FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kingswood Small Business Loans
Tell me what you think of the Kingswood Small Business Loans
Kingswood unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
It is possible to apply for this Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and funds may be on your account within 24 hours. Traditional business loans reference an annual interest rate as well as other fees and charges. The business loan is an upfront priced loan therefore you’ll be aware of the total amount due, which includes the interest, fees and charges. This is then broken down into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including the management of cash flow, business remodels and marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal use.
About the Larger Kingswood Business Loans
What is the Larger Kingswood Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which 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, your company needs to have been in operation for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A large company loan is a great option for almost any business use, including business remodeling, buying inventory or new equipment or as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It’s in the form of a charge on assets, and could include the registration of this with the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature rather than stating the security of a specific asset. The person who is signing the ensure is personally liable in the event that the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including objects or assets). The PPSR permits prioritisation over property that is personal to be granted depending on the date that a security interest that is registered.
Caveats are legal form of document to provide an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan of more than $250,000 we can offer an initial pre-approval to ease the process. It is possible to make this decision without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being questions. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could be on different conditions.
Application process
Are I eligible for funding?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a few minutes and a dedicated business expert in lending will call you to help you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) as well as an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Information on the application including credit consent twelve months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically provide a response in one hour if you apply within standard business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statement, we’ll offer an answer in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to offer you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours and permit us to use the advanced bank verification system link to check your bank’s information online. If you send us copies of your bank statements it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we usually provide an answer within an hour if you make your application at normal business time and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements, we will be able to offer a decision in as little as one business day.
For the Larger Business Loans ($100K up to $500,000) we could be likely to offer the conditional pre-approval within six hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved in the space of 24 hours.
The fastest way can be make sure you apply during standard business hours and allow us to use our sophisticated bank verification to instantly confirm your bank details online. If you choose to upload the copies of bank statements it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a particular amount, we will consider a number of variables that determine what is the health of your company and the amount of repayments your business can afford. The amount you receive from the loan will be determined by the specific circumstances of your company.
When you make an application for a specific amount we consider a variety of factors to assess how much we can lend you such as health for your company and the level of the repayments your company can afford. The amount you receive from your loan will depend on the specific circumstances that are unique to your company.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to request one of our business loans, we’ll assess the risk profile that you have for your company and provide you with a customised offer including the amount of the loan, the duration and interest rates. A company loan is an upfront priced loan which means you 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’m charged?
The interest rates on business loans rates depend on a variety of factors such as the amount that is borrowed, what company assets the money will be used for as well as the field the company operates in, the long the company has been running for, in the event that the business has sufficient cash flow to support the loan, and also the general health or financial standing of the company.
What are the fees?
There are no hidden fees for our business loans, and you’ll know precisely how much it is that you be required to pay, and at what time, from the first day. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan earlier?
You can repay the total amount of your advance loan at any time.
If you do decide to take this route, please talk to one of our helpful company lending specialists. They will offer you with details on repayment as well as an early payout amount. It will be calculated using the total of the principal balance and the accrued interest up to the time of early payment plus 1.5% of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To make sure you do not miss payment dates and to align with your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about how we collect the information we collect, use, share and safeguard your data, is of paramount importance and is an essential aspect 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 security for our clients and privacy. We employ a highly sophisticated bank verification system to immediately verify the bank account details online so we can provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner utilises an asset that they own to secure the loan. The asset can be either a personal asset like the family home or it could be a company property like a truck or other piece of machinery.
The vast majority of banks, including the major banks, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then the asset could be taken over by the lender. In essence, it’s the process of securing additional financing using the worth of the asset you already own.
Do I require security to secure an company loan?
For loans up to $150K no asset security is required prior to the loan’s access however, we require a personal guarantee. require a personal guarantee. As long as you follow the loan terms (as specified in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans of over $150,000 generally, you can get a personal guarantee and security is provided in the form of the charge of assets.