FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Kings Park Small Business Loans
Let me know more about Kings Park Small Business Loans
Kings Park unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from an ordinary business loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and the funds could be in your account in 24 hours. Traditional company loans refer to an interest rate per annum together with additional fees and charges. We offer a company loan is a cash-based loan so you will be aware in advance of the total amount due, which includes any fees, charges or charges. Then, it is divided into weekly or daily installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost any business reason, such as control of cash flow company remodeling, marketing to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About Larger Kings Park Business Loans
What is the Larger Kings Park 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 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to be trading for at least 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly every company need, including company renovations, purchase of new equipment or inventory, as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It is usually by way of charge on assets and can include registering this on the PPSR or registering as a caveat.
A personal or director’s ensure 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 business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date a security interest was registered.
A caveat is a legal form of document to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger company loans that is greater than $250,000, we may offer an initial pre-approval to simplify the process. We may be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health checks. This is not an offer of credit or guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer you might receive could be on different conditions.
The application process
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, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in few minutes and an experienced company lending specialist will be in touch to assist you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Application details including credit consent as well as 12 months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often provide a response in one hour – as long as you make your application at standard company hours and you allow us to utilise the bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements , we are able to provide an answer in just 1 business day.
For Larger Business Loans ($100K or more) we may be able to provide you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Some offers have been approved within less than 24 hours.
The fastest way can be make sure you apply during standard business hours. Also, let us use the advance bank verification to instantly verify your bank account information online. If you decide to upload duplicates of your banking statements , it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) We can usually offer a response in one hour, provided you submit your request during standard business time and you allow us to use the bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements, we will be able to provide a decision within one business day.
If you are applying for Larger Business Loans ($100K and up) we could be likely to provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours and allow us to use our advance bank verification to instantly check your bank’s information online. If you opt to upload copies of your bank statements, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a specific amount we look at a variety of variables in order to assess your well-being of your company as well as the amount of repayments that your business can afford. The amount you receive from your loan will depend on the specifics for your business.
When you apply for a set amount, we look at a range of elements to assess the well-being of your company and the level of repayments your business will be able to support. The total amount of your loan will be determined by the particulars for your business.
Fees & repayments
What is the cost for a business loan?
When you apply for business loans with us business loan, we will assess the risk assessment that you have for your company and offer you with a customised offer, including the amount of the loan, the duration and interest rates. The business loan is an upfront priced loan therefore you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I am charged?
The interest rates on business loans rates depend on several factors like the amount of money of money borrowed, the business assets the funds will be used for, the industry the business operates in, the long the company has been in operation and what percentage of the company has sufficient cash flow to support the loan, and the general health or financial standing of the company.
What are the charges?
There are no hidden fees for our company loans. You’ll know precisely what you be required to pay and at what time, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to make an application for loans with with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan earlier?
You can repay the total amount of your loan at any point in time.
If you are deciding to take this route, please speak to our friendly company loans specialists. The experts will provide you with details on repayment as well as an early payout amount. This is calculated as the sum of the remaining principal amount and any accrued interest at the date of early payout in addition to 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear how we collect data, process, exchange and ensure the security of your information is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We make use of an advanced bank verification system link to instantly verify the bank account details online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner borrows from the assets they have to obtain the funds for a loan. The asset can be an individual property, such as the family home or it could be a company asset like a truck or piece or equipment.
The vast majority of the lenders including the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence, it is a way of securing additional financing taking advantage of the value of what you already own.
What do I require security to secure a company loan?
For loans up to $150,000 there is no requirement for asset security in advance to gain access to the funds However, we do need an individual guarantee. In the event that you fulfill the loan terms (as stated in your loan contract) Asset security is not required. If you take out loans in excess of $150,000 generally there is an individual guarantee and security that is in the form the charge of assets.