FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kingseat Small Business Loans
Tell me more about Kingseat Small Business Loans
Kingseat unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes by phone. You will receive a same day response and funds may be available in just 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. Our business loan is an upfront priced loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then broken down into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company reason, such as the management of cash flow, business remodeling, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About larger Kingseat Business Loans
What is the Larger Kingseat Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
A 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 qualify for a loan of this size, your business needs to have been operating for at least three years, and have an annual income of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be utilised?
A large business loan can be used for nearly every business reason, such as business improvements, purchasing inventory or new equipment for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. This can be done by way of charge over assets, and could include registration through the PPSR or making as a caveat.
A personal or director’s ensure is a promise to repay credit that is generally in nature rather than stipulating the security for a particular asset. The person who signs the guarantee is personally liable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR allows priority over personal property to be granted according to the date the security interest has been registered.
Caveats are legal document lodged to offer the public notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan that exceeds $250K it is possible to offer a preliminary pre-approval to help smooth out the process. We might be able to do this without credit checks and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial well-being checks. It is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could be subject to different conditions.
The application process
Are I eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and a dedicated company credit specialist will be in touch to guide you through the process.
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 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour if you submit your request in quality business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements we can provide an answer within 1 business day.
For the Larger Business Loan ($100K up to $500,000) we might be capable of offer you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be quicker based on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours. Also, allow us to use the modern bank verification to instantly confirm your bank details online. If you decide to upload the copies of bank accounts, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour if you submit your request at normal business timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements, we will be able to offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some transactions have received approval within less than 24 hours.
The fastest method can be ensure you apply during standard business hours and let us use the advanced bank verification system to instantly verify your bank account information online. If you choose to send us duplicates of your banking accounts, 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 take into consideration a range of variables in order to assess what is the health for your company and the extent of repayments your company will be able to support. The total amount of the loan will be determined by the specifics that are unique to your company.
When you apply for a set amount, we look at a range of aspects to assess your well-being of the company and the amount of repayments your company can afford. The amount you receive from your loan will be determined by the specific circumstances of your business.
Fees & repayments
What is the cost for a company loan?
If you decide to make an application for one of our company financing, we will assess the risk assessment the business and provide you with a tailored offer that includes the loan amount, the terms and the interest rates. This business loan is a loan that is priced upfront therefore you will know the exact amount payable including any costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates depend on several variables like the amount to be of money borrowed, the company assets the money are used to purchase and the sector the business is operating in, how long the business is in operation, how long the business has enough cash flow to pay for the loan, and also the overall health as well as creditworthiness business.
What are the costs?
There aren’t any hidden charges for our company loans, and you’ll know exactly how much it is that you be required to pay and when, from the very first day. There’s no compounding interest and no extra fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of your loan in full at any time.
If you are deciding to do this please call our helpful business credit professionals. They will provide you with details for repayment as well as an early payout amount. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of early payment, plus 1.5 percent of the principal balance and any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work your cash flow cycle we offer repayments either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about the ways we gather information, use it, and exchange it, as well as safeguard your data, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We use an advanced banking verification system to immediately verify your bank account information online so we can offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner makes use of an asset that they own to get the funding. The asset could be an individual property, such as the family home, or an company property like a truck or other piece of machinery.
The majority of lenders, even the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan, the asset could be taken over 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 need security to get a company loan?
For loans up to $150,000 it is not necessary to secure assets before you can access the money but we do require a personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in the loan contract), asset security will never be required. For loans that exceed $150,000, typically, you will need personal guarantee and security in the form of charges on assets.