FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kingswood Small Business Loans
Let me know about the Kingswood Small Business Loans
Kingswood unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
Apply to this Small Business Loan in under 10 minutes over the phone, receive a same day response and the funds could be on your account within 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. Our company loan is a loan that is priced upfront so you will be aware of the amount you will have to pay, including any interest, fees or charges. This is then broken down into either weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company purpose including managing cash flows, company renovations, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal purposes.
About larger Kingswood Business Loans
What is the Larger Kingswood 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 term fixed up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been in operation for at least 3 years, and have an annual income of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A Business Loan of a larger size can be used for almost all business need, including business renovations, purchase of inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is in the form of a charge against assets and can include the registration of this through the PPSR or making a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is general in nature, rather than stating security over a particular asset. The person who signs the guarantee is personally liable in the event that the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR allows priority over personal property to be assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans of more than $250K, we may offer an initial pre-approval that will help smooth out the process. We may be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment that includes you answering a few financial well-being questions. This is not an offer or guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer you may receive may be based on different conditions.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for 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 quick and simple. Complete the online form in just a few minutes, and an experienced business credit specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually provide an answer within an hour – as long as you submit your request in standard business times and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements , we will be able to provide the decision in just one company day.
For Larger Business Loans ($100K to $500K) we could be capable of provide you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal company hours. You can also allow us to use the advanced bank verification system link to check your bank’s information online. If you choose to send us duplicates of your banking statement, it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within one hour, provided you submit your request within standard business time and let us make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll offer the decision in just an business day.
For the Larger Business Loans ($100K up to $500,000) We may be able to offer the conditional pre-approval within about six hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Certain offers have been approved within the space of 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also permit us to use the sophisticated bank verification to verify your bank account information online. If you decide to upload copies of your bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of elements in order to assess the health of the company as well as the amount of repayments that your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances the business.
When you apply for a certain amount, we consider a variety of variables to determine how much we can lend you such as health that is 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 contingent on the specific circumstances the company.
Fees & repayments
How much do you charge for an company loan?
When you make an application for the company financing, we’ll assess the risk profile that you have for your company and provide you with a customised offer, including loan amount, term and interest rates. It is a company loan is an upfront priced loan and you’ll be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I pay?
Business loan interest rates differ based on various factors like the amount of money that is borrowed, what business assets the funds are used to purchase in addition to the industry that the business operates in, how long the business has been in operation for, what percentage of the business has enough cash flow to support the loan, and general well-being and creditworthiness of the business.
What are the charges?
There are no hidden costs with our business loans. You’ll know precisely what you need to pay and when, right from the first day. There’s not any compounding interest and no additional fees (as as you make your payments punctually).
We do not charge an application fee. You are able to get a cash loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of the loan at any point in time.
If you are deciding to take this route, please call our helpful company credit specialists. We will provide you with details on repayment as well as an early payout amount. It will be calculated using the sum of the principal balance and any accrued interest at the time of early payout in addition to 1.5 percent of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear the ways we gather, use, exchange and ensure the security of your information is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We employ an exceptionally sophisticated bank verification system link to immediately verify your bank account information online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner makes use of the assets they have to get the funds for a loan. The asset may be an individual asset, such as the family home or a company asset like a truck as well as a piece of machine.
The vast majority of the lenders even the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, your assets could be taken over by the lender. In essence, it’s an opportunity to secure new financing using the value of what you already own.
Should I require security for a business loan?
For loans of up to $150,000, there is no requirement for asset security upfront to access the money, however we do require the personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract document) Asset security will never be required. For loans of over $150K generally, you can get a personal ensure and security in the form of charges on assets.