FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The North Harbour Small Business Loans
Tell me how you are able to avail the North Harbour Small Business Loans
North Harbour unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
The application to the Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. Our 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. This is then broken down into either weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost every business purpose including managing cash flows, business remodeling, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal use.
Concerning Larger North Harbour Business Loans
What is the Larger North Harbour Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can the funds be used for?
A larger company loan can be used to fund almost all company purpose including company improvements, purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It’s by way of charge over assets, which could also be registered through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally based rather than stating security over an asset. The person signing the ensure is personally responsible if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR allows preference over private property assigned according to the date a security interest that is registered.
A caveat is a legal document that is filed to offer notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan that is greater than $250K we may be able to provide an initial pre-approval that will help simplify the process. It is possible to get this done without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being checks. It’s in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could be subject to different conditions.
Do I qualify for funds?
You may 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 to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a couple minutes, and a dedicated company lending specialist will contact you to guide you through the process.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, 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, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we usually provide an answer within one hour, provided you make your application within standard company time and permit us to utilise the bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statements , we are able to offer an answer in just 1 business day.
For Larger Business Loans ($100K or more) we may be likely to offer you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal company hours. You can also let us use the advance bank verification to instantly verify your bank account information online. If you decide to upload the copies of bank statements it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour if you apply at standard business timings and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements, we are able to offer a decision within 1 business day.
For Larger Business Loans ($100K to $500K) we could be capable of offer you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some transactions have received approval in the space of 24 hours.
The most effective method is to ensure you apply during normal business hours. Also, allow us to use our modern bank verification to instantly check your bank’s information online. If you upload duplicates of your banking statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we will consider a number of variables in order to assess your well-being of the company and the amount of payments your company is able to afford. The total amount of your loan will depend on the specific circumstances the business.
When you submit an application for a set amount, we take into consideration a variety of elements to assess the well-being for your business and the amount of repayments your business is able to afford. The amount you receive from the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for business loans with us company loans, we will assess the risk assessment the company and provide you with a customised offer that includes loan amount, term and the interest rates. It is a company loan is an upfront priced loan and you’ll know in advance the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I am charged?
Interest rates for business loans rates depend on a variety of factors including the amount borrowed, what company assets the money will be used for in addition to the industry that the business is in, how long the business has been in operation for, what percentage of the business has sufficient cash flow to pay for the loan, and also the general well-being or creditworthiness of the business.
What are the costs?
There are no hidden costs for our company loans, and you’ll know precisely what it is that you be required to pay and when, starting from the first day. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You can get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with setting up 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 out the loan early?
You may choose to pay back all of your loan early at any time.
If you are deciding to do this please contact our helpful business credit experts. We will offer you with the details of your repayment and an early payment figure. This will be calculated as the sum of the principal remaining plus any accrued interest as of the date of early payout plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in with your cash flow standard, we provide repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is crucial 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 and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We employ a highly sophisticated bank verification system that allows you to instantly verify the bank account details online to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner borrows from the assets they have to obtain the loan. The asset may be a personal asset like the family home or it could be a company asset like a truck or other piece of machinery.
The vast majority of lenders, including the big banks, tend to make loans secured by assets. 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 funding taking advantage of the value of what you already own.
Do I require security to secure 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. need an individual guarantee. In the event that you fulfill your loan obligations (as specified in the loan contract) Asset security is not required. If you take out loans in excess of $150K generally, there is the option of a personal guarantee and security in the form of the charge of assets.