FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kingsland Small Business Loans
Tell me what you think of the Kingsland Small Business Loans
Kingsland unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an traditional business loan?
Apply to this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional business loans reference an annual rate of interest plus other fees and charges. We offer a company loan is a pre-paid loan therefore you’ll know ahead of time the total amount payable including any fees, interest or charges. This is then broken down into either weekly or daily payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business need, such as the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Kingsland Business Loans
What is the Larger Kingsland Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the company needs to be trading for at least 3 years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can the funding be used for?
A Business Loan of a larger size can be used for nearly every business use, including company renovations, to purchase inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This can be done by taking a charge against assets and can include registration with the PPSR or registering as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than stipulating security over an asset. The person who signs the guarantee is personally responsible if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR allows preference over private property granted in accordance with the date on which a registration of a security interest.
A caveat is a legal document that is filed to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250K we can offer an initial pre-approval in order to ease the process. We may be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial health checks. It’s not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you may receive may be on different terms.
Can I be eligible for funding?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in just a few minutes, and an experienced business loan specialist will call you to guide you through the process.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent twelve months of bank statements, IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we usually offer an answer within one hour – as long as you make your application in quality business time and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements , we are able to provide an answer in just an business day.
For the Larger Business Loan ($100K and up) we may be able to provide you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain agreements have been approved in 24 hours.
The most effective method would be to make sure you apply during standard company hours and let us use the advance bank verification link to confirm your bank details online. If you choose to upload copies of your bank statement, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within an hour if you make your application within normal business timings and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements we can provide a decision within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be likely to provide you with conditional pre-approval in about six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending upon the circumstances for each application. Some offers have been approved in just 24 hours.
The fastest method would be to make sure you apply during normal business hours and allow us to use our sophisticated bank verification link to instantly verify your bank information online. If you decide to send us duplicates of your banking statement, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount, we will consider a number of variables that determine how much we can lend you health of your business and the amount of repayments your business can afford. The amount you receive from the loan will be determined by the particular circumstances for your company.
When you submit an application for a set amount, we look at a range of variables to assess how much we can lend you such as well-being for your company as well as the amount of the repayments your business is able to afford. The amount you receive from your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much should you charge for an company loan?
When you apply for business loans with us business loan, we will assess the risk profile of your business and offer you with a tailored offer, including the amount of loan, the term and the interest rates. This business loan is an upfront priced loan so you will be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I am charged?
Interest rates for company loans rates depend on several factors including the amount of money borrowed, the business assets the funds are used to purchase and the sector the business is operating in, how long the company has been in operation as well as in the event that the company has sufficient cash flow to fund the loan, and also the overall well-being or financial standing of the company.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much it is that you need to pay, and when, from the first day. There’s no compounding and there are no additional charges (as as you make your payments on time).
We don’t charge an application fee. You can request a credit loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Can I repay the loan early?
You may choose to pay back the entire amount of the advance loan at any time.
If you do decide to take this route, please talk to one of our helpful company lending professionals. They will provide you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal remaining and accrued interest to the time of early payment in addition to 1.5% of the principal remaining and any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in your cash flow schedule, we provide payments that are either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect data, process, exchange and ensure the security of your information is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We make use of an advanced bank verification system link to instantly verify your bank account details online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner uses assets they own to make a loan. The asset could be an asset belonging to the personal, like the family home or an business property like a truck or piece of equipment.
The vast majority of lenders, including the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan then your assets could be sold by the lender. In essence, it is the process of securing new financing using the worth of the asset you already have.
Are I need security to secure a business loan?
For loans of up to $150K, no asset security is required in advance to gain access to the funds However, we require a personal guarantee. require an individual guarantee. If you adhere to the terms of your loan (as detailed in your loan contract) Asset security is not needed. For loans that exceed $150K, generally, there is a personal guarantee and security in the form of charges on assets.