FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Kingsley Heights Small Business Loans
Tell me what you think of the Kingsley Heights Small Business Loans
Kingsley Heights unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from the traditional company loan?
You can apply to your Small Business Loan in under 10 minutes over the phone, receive an immediate response, and the money could be on your account within 24 hours. Traditional business loans reference an annual interest rate along with other charges and fees. We offer a company loan is a loan that is priced upfront which means you know ahead of time the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either weekly or daily installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company use, including cash flow management, company remodeling, marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan is not available for personal use.
About larger Kingsley Heights Business Loans
What is the Larger Kingsley Heights Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to have been operating for at least three years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can the funds be used for?
A Business Loan of a larger size can be used for almost all company need, including company improvements, purchasing inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This can be done by taking a charge on assets, which could also include registering this in the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is generally based rather than stipulating security over a particular asset. The person who is signing the ensure is personally liable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date the registration of a security interest.
Caveats are legal document filed to provide notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval to make the process. We could be able to make this decision without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health checks. It’s in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer you receive could be subject to different conditions.
Can I be eligible for funding?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application in few minutes and an experienced business lending specialist will contact you to assist you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent, 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour, provided you make your application within standard company time and you allow us to utilise the bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we are able to provide a decision within 1 company day.
For the Larger Business Loan ($100K to $500K) we might be in a position to provide the conditional pre-approval within six hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved within less than 24 hours.
The quickest way to apply is to make sure you apply during standard business hours. You can also let us use the advance bank verification link to verify your bank account information online. If you choose to send us documents from your account statement, it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour – provided you submit your request in normal business times and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements we can offer the decision within one business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be faster depending on the particular circumstances of each application. Certain offers have been approved in less than 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours, and let us use the advanced bank verification system to verify your bank account information online. If you decide to send us the copies of bank accounts, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we consider a variety of factors to determine what is the well-being of the business and the extent of the repayments your business can afford. The total amount of your loan will depend on the specifics the company.
If you apply for a set amount, we look at a range of aspects to assess the well-being of your company and the extent of repayments that your business can support. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How do you charge for the cost of a business loan?
When you request one of our company financing, we’ll assess the risk assessment the company and provide an individualised offer including the loan amount, the terms and interest rates. The business loan is an upfront cost loan therefore you will be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I will be charged?
Business loan interest rates vary due to factors like the amount of money of money borrowed, the company assets the money will be used for, the industry the company operates in, the long the business is in operation as well as whether the business has sufficient cash flow to support the loan, and general well-being as well as creditworthiness business.
What are the cost?
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, starting from the very first day. There’s no compounding interest, and no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay off the loan earlier?
You can decide to repay all of your loan at any point in time.
If you choose to take this route, please talk to one of our helpful company credit experts. They’ll provide you with details for repayment and an early payout figure. This is calculated as the sum of the remaining principal amount and accrued interest to the time of the early payout and 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 your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being transparent about how we collect information, use it, and exchange it, as well as safeguard your data, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We use an advanced bank verification system that allows you to immediately verify your bank account details online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a business owner borrows from an asset they own to make a loan. The asset could be an individual asset, such as the family home, or it could be a business asset such as a vehicle or piece or equipment.
The majority of the lenders including the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, then the asset could be offered for sale by the lender. In essence, it’s an opportunity to secure additional financing making use of the value of what you already own.
Should I require security to secure an company loan?
For loans up to $150K there is no requirement for asset security before you are able to access the money but we do require the personal guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document), asset security is not needed. For loans of over $150K generally, you are able to get personal ensure and security in the form of the charge of assets.