FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Normandale Small Business Loans
Tell me how you are able to avail the Normandale Small Business Loans
Normandale unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from an traditional company loan?
You can apply to this Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and have the funds in your account within 24 hours. Traditional business loans have an annual rate of interest plus other fees and charges. The company loan is a pre-paid loan therefore you’ll know ahead of time the total amount due, which includes any interest, fees or charges. Then, it is broken down into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business reason, such as control of cash flow company remodels and marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
About the Larger Normandale Business Loans
What is the Larger Normandale Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
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?
To be eligible for a loan of this size, your business needs to have been trading for at least 3 years and generate an annual revenue of $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 business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used for almost every business purpose including company improvements, purchasing new equipment or inventory or as 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 necessary for funding of more than $150,000. It is usually in the form of a charge on assets, and may include registration through the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature rather than defining security over an asset. The person who signs the guarantee is personally responsible if the company creditor is unable 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 contains security interests which are registered with respect to personal property (including items or assets). The PPSR allows the priority of personal property granted in accordance with the date on which a security interest was registered.
Caveats are legal form of document to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250K, we may offer a preliminary pre-approval to help ease the process. We could be able to do this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial well-being checks. It’s not an offer of credit or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you may receive may be subject to different terms.
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 business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a couple minutes, and an experienced company credit specialist will call you to guide you through the process.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) we typically offer an answer within an hour – as long as you make your application during standard company times and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we are able to provide an answer in as little as 1 company day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be capable of provide you with a conditional pre-approval in about six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Some transactions have received approval in the space of 24 hours.
The quickest way to apply is to make sure you apply during standard company hours and permit us to use the advance bank verification to instantly confirm your bank details online. If you choose to send us the copies of bank statement, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer within one hour if you submit your request at standard business hours and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements, we are able to offer an answer within the span of one business day.
For Larger Business Loans ($100K or more) we could be likely to offer you with pre-approval conditional to your application within about 6 hours. After 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 particular circumstances of each application. Some transactions have received approval within less than 24 hours.
The fastest way can be make sure you apply during normal business hours and allow us to use our sophisticated bank verification to instantly verify your bank account information online. If you upload copies of your bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we look at a variety of variables that determine your health of the business and the extent of repayments that your business can support. The total amount of your loan will depend on the specific circumstances for your company.
When you make an application for a set amount, we consider a variety of aspects to determine the health for your company as well as the amount of payments your business can afford. The amount you receive from your loan will be determined by the particulars that are unique to your company.
Fees & repayments
How much should you charge for an company loan?
When you make an application for one of our business loans, we’ll assess the risk profile of your business and provide you with a tailored offer, including the loan amount, the terms and interest rates. It is a business loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, the business assets the money will be used for as well as the field the business is operating in, how long the business is in operation and whether the company has sufficient cash flow to fund the loan, and the overall health and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you’ll need to pay and when, from day one. There’s no compounding interest, and no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan in advance?
You can decide to repay all of your loan in full at any time.
If you choose to pursue this option, please contact our helpful business credit specialists. They’ll provide you with repayment details as well as an early payout amount. This is calculated as the total of the principal remaining and any accrued interest at the date of early payout and 1.5% of the principal amount remaining and any outstanding fees.
How do you make repayments work?
To ensure you do not miss payments and to work with your cash flow standard, we provide repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about how we collect information, use it, and exchange it, as well as safeguard your data, is of huge importance and is an essential 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 financial information and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We use an advanced banking verification system to immediately confirm your bank account information online, allowing us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner makes use of an asset they own to get the funding. The asset can be an individual property, such as the family home, or an company property like a truck or piece or equipment.
The vast majority of lending institutions, including the banks with the biggest size, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, your assets could be offered for sale by the lender. In essence it is means of securing new funding using the worth of the asset you already own.
Should I need security for an business loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money However, we require a personal guarantee. require a personal guarantee. So long as you comply with the terms of your loan (as stipulated in your loan contract document) the security of assets is not required. For loans over $150K generally there is a personal ensure and security in the form charges on assets.