FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kingston Small Business Loans
Tell me more about Kingston Small Business Loans
Kingston unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans refer to an annual interest rate as well as other fees and charges. We offer a business loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any interest, fees or charges. Then, it is divided into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as cash flow management, business improvements, advertising, to purchase inventory or new equipment, for general working capital, and much more. The loan is not available for personal use.
About larger Kingston Business Loans
What is the Larger Kingston Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been trading for at least 3 years and generate an annual revenue of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost any company need, including business improvements, purchasing inventory or new equipment for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is in the form of a charge over assets and can include the registration of this on the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally based rather than stipulating security over an asset. The person who is signing the guarantee is personally accountable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be assigned according to the date the security interest has been registered.
The caveat can be described as a formal document filed to offer an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for a Larger Business Loan that is greater than $250K it is possible to offer an initial pre-approval that will help smooth out the process. We may be able to apply for this without a credit verification and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial well-being checks. It is not an offer or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be based on different conditions.
Do I have the right to receive funds?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application in few minutes and an experienced company credit specialist will be in touch to help you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we can often provide a response in one hour – as long as you apply at standard business time and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements , we will be able to provide an answer within just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we might be able to offer you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Certain offers have been approved within 24 hours.
The fastest way is to make sure you apply during normal company hours and allow us to use our advanced bank verification system to verify your bank account information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour – provided you make your application in standard business time and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we’ll be able to offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be capable of provide the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Some agreements have been approved within the space of 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours and allow us to use the modern bank verification to instantly verify your bank account information online. If you decide to upload the copies of bank statement, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we will consider a number of variables for determining how much we can lend you well-being that is your business and the amount of the repayments your business can support. The total amount of your loan will be contingent on the particular circumstances for your business.
If you apply for a specific amount we will consider a number of elements to determine how much we can lend you such as health that is your company and the amount of repayments your company can afford. The total amount of your loan will depend on the particulars for your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you make an application for one of our business loans, we will assess the risk assessment for your business and provide you with a customised offer including the amount of the loan, the duration and interest rates. The company loan is a loan that is priced upfront therefore you will be aware of the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I pay?
The interest rates on business loans rates vary due to variables like the amount to be borrowed, what business assets the funds are used to purchase in addition to the industry that the business operates in, the long the business is in operation for, what percentage of the company has sufficient cash flow to fund the loan, and overall well-being or financial standing of the company.
What are the cost?
There aren’t any hidden costs with our business loans, and you’ll be aware of the amount it is that you be required to pay, and at what time, from the first day. There’s no compounding interest, and no extra fees (as long as you make your payments punctually).
We do not charge an Application Fee. You can apply for a loan without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan earlier?
You can repay the entire amount of your advance loan at any time.
If you choose to take this route, please contact our helpful business lending experts. They will offer you with details on repayment and an early payment figure. It will be calculated using the total of the remaining principal amount and any accrued interest at the time of the early payout plus 1.5% of the principal remaining plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payments and to work with your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect data, process, exchange and ensure the security of your information is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We utilise a sophisticated bank verification system to instantly verify your bank account information online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a business owner makes use of an asset that they own to obtain the funding. The asset could be an individual asset, such as the family home or it could be a business asset such as a vehicle or other piece of machinery.
The vast majority of banks, not just the banks with the biggest size, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, then your asset may be sold by the lender. In essence it’s the process of securing new financing using the worth of the asset you already have.
What do I require security to secure a business loan?
For loans of up to $150K, it is not necessary to secure assets upfront to access the money but we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan obligations (as stated in the loan contract) Asset security is not required. For loans over $150K generally there is an individual guarantee and security that is in the form a charge over assets.