FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Kings Park Small Business Loans
Tell me about the Kings Park Small Business Loans
Kings Park unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
The application to your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and the money could be in your account within 24 hours. Traditional company loans reference an interest rate per annum together with additional fees and charges. The business loan is a pre-paid loan so you will be aware of the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business reason, such as managing cash flows, business improvements, advertising, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal use.
About the Larger Kings Park Business Loans
What is the Larger Kings Park Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be operating for at least three years and generate an annual revenue of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can the funds be used for?
A larger company loan can be used for nearly all company purpose including company improvements, purchasing equipment or inventory or as 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 needed for accessing funds over $150,000. It is usually by taking a charge on assets, which could also be registered in the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to repay credit that is general in nature rather than defining security over an asset. The person who is signing the ensure is personally liable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR grants preference over private property assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document that is filed to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans that is greater than $250K it is possible to offer an initial pre-approval that will help simplify the process. We may be able to make this decision without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial well-being questions. This is neither an offer nor a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer you might receive could be subject to different terms.
Application process
Do I have the right to receive funds?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a few minutes and an experienced company credit specialist will contact you to help you.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financial statements for the current 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 up to $100,000) we usually provide an answer within an hour if you make your application during quality business time and let us use the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statement, we’ll provide a decision within an business day.
For the Larger Business Loan ($100K or more) we may be likely to offer you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the specifics of each application. Certain deals have been approved within just 24 hours.
The quickest method for you to apply is ensure you apply during normal company hours and permit us to use the modern bank verification to instantly verify your bank account information online. If you choose to send us duplicates of your banking statements , it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer within an hour – provided you apply during normal business times and allow us to use the bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements, we are able to offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The most effective method can be ensure you apply during standard business hours and allow us to use the sophisticated bank verification to instantly confirm your bank details online. If you decide to upload duplicates of your banking accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we look at a variety of elements in order to assess the well-being that is your business and the extent of the repayments your company can support. The amount you receive from your loan will depend on the particular circumstances for your company.
If you apply for a set amount, we will consider a number of elements to determine the health of the business and the amount of payments your company can support. The total amount of your loan will be contingent on the specific circumstances that are unique to your company.
Fees & repayments
How much do you charge for an company loan?
If you decide to request one of our company loans, we’ll assess the risk assessment the company and offer an individualised offer including the loan amount, the terms and interest rates. This business loan is an upfront priced loan therefore you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I’m charged?
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 in, how long the business is in operation as well as what percentage of the business has enough cash flow to support the loan, as well as the overall well-being as well as creditworthiness business.
What are the cost?
There aren’t any hidden costs with our company loans, and you’ll know precisely how much you need to pay, and when, from the day you sign up. There’s no compounding interest and no extra fees (as as you make your payments punctually).
We don’t charge an application fee. You can request a credit loan with without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of the advance loan at any time.
If you decide to do this please speak to our friendly business lending specialists. We will provide you with details on repayment as well as an early payout amount. This will be calculated as the sum of the principal remaining and the accrued interest up to the date of early payout and 1.5 percent of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To make sure you do not miss payments and to work your cash flow schedule, we offer repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about how we collect, use, exchange and protect your information, is of huge importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We use an advanced bank verification system to instantly verify your bank account details online, allowing us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner utilises the assets they have to get the funds for a loan. The asset can be either an asset belonging to the personal, like the family home, or a company property like a truck or piece or equipment.
The majority of lending institutions, including the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan then the asset could be sold by the lender. In essence, it’s means of securing new financing taking advantage of the value of what you already own.
Do I require security to get an company loan?
For loans of up to $150K, the requirement for asset security is not required prior to the loan’s access but we do require a personal guarantee. So long as you comply with your loan obligations (as specified in the loan contract) Asset security is not needed. For loans that exceed $150,000, generally, there is personal ensure and security in the form charges on assets.