FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kingseat Small Business Loans
Tell me about the Kingseat Small Business Loans
Kingseat unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from a traditional company loan?
Apply for this Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and the money could be on your account within 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. The business loan is an upfront priced loan so you will know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then broken down into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company need, such as the management of cash flow, business improvements, advertising to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal use.
About Larger Kingseat Business Loans
What is the Larger Kingseat 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 with a fixed-term up to 36 months. Repayments are weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been trading for at least 3 years with an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be utilised?
A larger company loan is a great option for almost any business purpose including business improvements, purchasing new equipment or inventory, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. It’s in the form of a charge over assets, and could include registering this with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature, rather than specifying security over an asset. The person who signs the ensure is personally responsible if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR gives preference over private property assigned according to the date a security interest has been registered.
The caveat can be described as a formal form of document to offer the legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000 we can offer an initial pre-approval to simplify the process. We could be able to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial well-being questions. This is neither an offer nor a guarantee of financing. Acceptance without condition is subject to an extensive credit evaluation and any offer that you are offered could be on different conditions.
Application process
Are I eligible for funding?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and an experienced business lending specialist will contact you to guide you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Application details including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, plus interim financials for the current financial year such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour – as long as you make your application in quality business times and let us utilise the bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide an answer within just 1 company day.
For Larger Business Loans ($100K to $500K) we may be in a position to provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some transactions have received approval in less than 24 hours.
The fastest way can be ensure you apply during standard business hours, and permit us to use the advanced bank verification system to verify your bank account information online. If you decide to upload the copies of bank statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within one hour – as long as you submit your request within standard business times and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements, we’ll be able to provide an answer within one business day.
For the Larger Business Loans ($100K or more) We may be likely to provide you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain deals have been approved in just 24 hours.
The most efficient method would be to ensure you apply during normal business hours, and allow us to use our advance bank verification link to instantly confirm your bank details online. If you upload the copies of bank statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a certain amount, we look at a variety of factors that determine the health that is your business and the level of repayments your company is able to afford. The total amount of the loan will be determined by the specifics that are unique to your company.
When you apply for a certain amount, we will consider a number of factors to determine the health of the company as well as the amount of the repayments your company is able to afford. The total amount of your loan will depend on the specific circumstances that are unique to your company.
Fees & repayments
What is the cost for a company loan?
When you make an application for one of our company credit, we will assess the risk assessment the business and provide an individualised offer that includes the amount of loan, the term and interest rates. The company loan is an upfront-priced loan so you will know in advance the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on a variety of factors including the amount borrowed, the company assets the money are used to purchase in addition to the industry that the business is operating in, how long the business has been running and what percentage of the business has sufficient cash flow to fund the loan, and also the general well-being as well as creditworthiness business.
What are the cost?
There aren’t any hidden charges with our company loans, and you’ll know precisely what you’ll need to pay, and at what time, from day one. There’s not any compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay off the loan earlier?
You may choose to pay back the entire amount of the loan at any point in time.
If you decide to do this please talk to one of our helpful business credit professionals. We will offer you with repayment details along with an early payout estimate. The figure will be calculated as the total of the principal balance plus any accrued interest as of the date of early payout, plus 1.5% of the principal remaining as well as any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about the ways we gather, use, exchange and protect your information, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We make use of an advanced bank verification system to instantly verify the bank account details online, allowing us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner uses an asset that they own to secure the loan. The asset may be an individual property, such as the family home or it could be a company asset like a truck as well as a piece of machine.
The vast majority of banks, including the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan then your assets could be taken over by the lender. In essence it’s a way of securing new funding using the value of what you already have.
Are I need security to secure a business loan?
For loans of up to $150,000, the requirement for asset security is not required before you are able to access the money, however we require a personal guarantee. require a personal guarantee. So long as you comply with your loan obligations (as stated in the loan contract) Asset security is not required. For loans that exceed $150K, generally there is the option of a personal ensure and security that is in the form the charge of assets.