FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Northpark Small Business Loans
Let me know how you are able to avail the Northpark Small Business Loans
Northpark unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the money could be in your account within 24 hours. Traditional business loans refer to an annual rate of interest along with other charges and fees. The business loan is an upfront priced loan therefore you’ll be aware in advance of the total amount to be paid, including any interest, fees or charges. Then, it is divided into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business need, such as the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal reasons.
About Larger Northpark Business Loans
What is the Larger Northpark Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be trading for at least 3 years with an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funding for?
A larger business loan can be used for almost any business need, including business renovations, purchase of new equipment or inventory for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This is by taking a charge on assets, and could be registered with the PPSR or registering as a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally in nature rather than defining security over an asset. The person signing the guarantee is personally responsible if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR gives the priority of personal property assigned in accordance with the date on which a registration of a security interest.
A caveat is a legal document that is filed to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250,000 it is possible to offer an initial pre-approval that will help simplify the process. We might be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health questions. This is not an offer or guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer you may receive may be subject to different conditions.
The application process
Do I have the right to receive funds?
You may apply for a business 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)
- you must demonstrate at minimum 6 months of trading (for a 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 in few minutes and a dedicated business lending specialist will call you to assist you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence), a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually provide an answer within an hour if you apply at quality company timings and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements , we’ll be able to provide the decision in just one business day.
For Larger Business Loans ($100K and up) we could be in a position to offer you with conditional pre-approval in around 6 hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Some offers have been approved within the space of 24 hours.
The fastest way can be ensure you apply during standard company hours and permit us to use the advanced bank verification system link to confirm your bank details online. If you opt to send us documents from your account accounts, it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour if you submit your request during normal business timings and you allow us to use the bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll offer an answer within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of offer you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some agreements have been approved in just 24 hours.
The most effective method is to make sure you apply during normal business hours. Also, permit us to use the advanced bank verification system to check your bank’s information online. If you decide to send us copies of your bank statements, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we take into consideration a range of variables for determining what is the health of your business and the amount of repayments your company will be able to support. The amount you receive from your loan will depend on the specific circumstances of your business.
When you make an application for a set amount, we take into consideration a variety of elements to determine your health of your business and the amount of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to request the company financing, we’ll assess the risk profile the business and provide you with a tailored proposal that includes the amount of loan, the term and interest rates. This business loan is an upfront priced loan so you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Business loan interest rates depend on a variety of factors like the amount of money that is borrowed, what business assets the funds are used to purchase in addition to the industry that the business is operating in, how long the company is in operation for, what percentage of the company has sufficient cash flow to pay for the loan, and also the overall health as well as creditworthiness company.
What are the charges?
There are no hidden costs for our business loans. You’ll know precisely what you need to pay and at what time, from the very first day. There’s no compounding and there are no additional charges (as as long as you pay your payments in time).
We do not charge an application fee. You are able to apply for a loan without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you are deciding to take this route, please call our helpful company lending professionals. The professionals will offer you with repayment details and an early payout figure. The figure will be calculated as the total of the principal remaining and accrued interest to the time of the early payout, plus 1.5 percent of the principal balance and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing how we collect, use, exchange and protect your information, is of paramount importance and a vital aspect 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 as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated banking verification system to instantly verify your bank account information online to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner utilises an asset they own to get the funding. The asset can be either an individual asset, such as the family home or a company asset such as a truck or other piece of machinery.
The vast majority of lenders, including the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan then the asset might be taken over by the lender. In essence it’s an opportunity to secure new funding using the value of what you already own.
Are I require security for an business loan?
For loans up to $150K the requirement for asset security is not required before you can access the money However, we do require the personal guarantee. So long as you comply with your loan obligations (as stated in the loan contract) the security of assets will never be required. For loans that exceed $150,000, generally there is an individual ensure and security is provided in the form of the charge of assets.