FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Kings Cross Small Business Loans
Let me know about the Kings Cross Small Business Loans
Kings Cross unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from an ordinary company loan?
It is possible to apply for the Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and have the funds on your account within 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. We offer a business loan is a cash-based loan which means you know in advance the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost every company reason, such as the management of cash flow, business remodeling, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan is not available for personal use.
About the Larger Kings Cross Business Loans
What is the Larger Kings Cross Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to be operating for a minimum of 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A large business loan is a great option for almost all business reason, such as business improvements, purchasing inventory or new equipment for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This is by taking a charge on assets and can be registered through the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally in nature rather than stating the security of a specific asset. The person signing the guarantee is personally liable in the event that the company lender is not able 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 registered in respect of personal property (including goods or assets). The PPSR permits the priority of personal property assigned according to the date the security interest was registered.
A caveat is a legal document lodged to provide the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger business loans of $250K or more we may be able to provide an initial pre-approval to ease the process. We might be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being checks. It is neither an offer nor a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could have 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 over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a couple minutes, and a dedicated business expert in lending will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s License), a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent, 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within one hour, provided you make your application at quality business times and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll offer a decision within just the span of one company day.
For the Larger Business Loan ($100K to $500K) we could be able to offer you with a conditional pre-approval within about 6 hours. After 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 specifics of each application. Certain offers have been approved within less than 24 hours.
The quickest way to apply is to ensure you apply during standard company hours. Also, let us use the advanced bank verification system to verify your bank account information online. If you choose to send us copies of your bank accounts, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) we usually provide a response in one hour, provided you make your application within normal business time and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements, we are able to provide a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of provide you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The fastest method can be make sure you apply during normal business hours, and permit us to use the advanced bank verification system link to instantly confirm your bank details online. If you opt to send us duplicates of your banking statements it can take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a certain amount we look at a variety of variables in order to assess the health that is your company and the level of payments your business can afford. The total amount of your loan will be contingent on the specifics of your business.
If you apply for a specific amount we consider a variety of factors to determine how much we can lend you such as health of your business and the amount of payments your business can afford. The total amount of the loan will be determined by the specific circumstances the business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for the business loan, we will assess the risk assessment of your business and provide you with a tailored offer including the amount of loan, the term and interest rates. This company loan is an upfront cost loan which means you be aware in advance of the total amount payable including any costs, fees, or interest rates.
What determines the amount I am charged?
Business loan interest rates depend on a variety of 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 has been operating, what percentage of the business has sufficient cash flow to support the loan, and also the overall health and creditworthiness of the company.
What are the fees?
There aren’t any hidden charges for our business loans. You’ll know precisely what it is that you be required to pay, and when, right from the very first day. There’s no compounding and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You are able to apply for a loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can repay the total amount of your loan early at any time.
If you decide to take this route, please contact our helpful company lending professionals. They will provide you with repayment details along with an early payout estimate. This is calculated as the sum of the principal balance and accrued interest to the time of the early payout plus 1.5 percent of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To make sure you do not miss due dates and also to be in line with your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about the ways we gather, use, exchange and protect your information, is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated banking verification system to instantly verify your bank account details online to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner borrows from the assets they have to secure a loan. The asset could be an asset belonging to the personal, like the family home or an business asset such as a truck or piece or equipment.
The vast majority of the lenders even the largest banks, are inclined to make loans secured by assets. If you are having difficulty paying back the loan then the asset could be sold by the lender. In essence it’s means of securing new financing by using the worth of the asset you already own.
Are I need security to secure a business loan?
For loans of up to $150,000, there is no requirement for asset security before you can access the money, however we do need a personal guarantee. So long as you comply with your loan obligations (as stipulated in your loan contract), asset security will never be required. For loans of over $150K generally, there is the option of a personal ensure and security is provided in the form of an asset charge.