FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The North Harbour Small Business Loans
Tell me about the North Harbour Small Business Loans
North Harbour unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and have the funds in your account in 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. Our company loan is an upfront priced loan therefore you’ll know ahead of time the total amount due, which includes any interest, fees or charges. This is then divided into weekly or daily repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost any business reason, such as managing cash flows, business improvements, advertising, to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal purposes.
About the Larger North Harbour Business Loans
What is the Larger North Harbour Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been in operation for at least 3 years and generate an annual revenue of $700,000. The applicant must also 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 minimum 12 months of continuous trading.
What can I use the funding for?
A larger company loan can be used to fund almost every business need, including company improvements, purchasing equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It’s by way of charge on assets, and may be registered with the PPSR or making a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally based rather than stipulating the security for a particular asset. The person who signs the guarantee is personally responsible if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR gives priority over personal property to be assigned according to the date the registration of a security interest.
A caveat is a legal document filed to provide notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of $250K or more, we may offer an initial pre-approval that will help smooth out the process. We might 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 answering a couple of financial health checks. It is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be based on different conditions.
The application process
Can I be eligible for funding?
You are eligible to apply for a company 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’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and an experienced business lending specialist will call you to guide you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within one hour – as long as you apply within quality business hours and you allow 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 statement, we’ll provide the decision in just one company day.
If you are applying for a Larger Business Loan ($100K and up) we may be in a position to offer the conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The most efficient method can be make sure you apply during standard business hours, and let us use the modern bank verification link to check your bank’s information online. If you opt to send us copies of your bank accounts, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we typically provide an answer in just one hour if you make your application during standard business timings and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements we can offer an answer in as little as one business day.
For the Larger Business Loans ($100K to $500K) we might be able to provide the conditional pre-approval within 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending on the circumstances of each application. Some transactions have received approval in less than 24 hours.
The fastest method would be to ensure you apply during standard business hours. You can also allow us to use the sophisticated bank verification link to instantly check your bank’s information online. If you upload the copies of bank accounts, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of variables in order to assess your well-being that is your company and the extent of repayments that your company can support. The total amount of your loan will depend on the particular circumstances of your company.
When you apply for a specific amount we will consider a number of aspects to assess how much we can lend you such as well-being for your company and the extent of the repayments your company is able to afford. The amount you receive from your loan will depend on the particulars that are unique to your company.
Fees & repayments
How do you charge for the cost of a company loan?
When you apply for our company financing, we’ll assess the risk assessment the business and provide you with a customised offer, including the loan amount, the terms and the interest rates. It is a company loan is an upfront-priced loan therefore you will know in advance the total amount due, which includes any charges or interest.
What determines the rate that I’m charged?
Interest rates for business loans rates vary due to variables like the amount to be borrowed, the company assets the funds are used to purchase as well as the field the company is operating in, how long the company has been in operation as well as how long the business has sufficient cash flow to fund the loan, and general well-being or creditworthiness of the company.
What are the fees?
There are no hidden fees for our company loans. You’ll know precisely how much you’ll be required to pay and when, right from the day you sign up. There’s no compounding and there are no additional charges (as long as you make your payments in time).
We don’t charge an application fee. You can get a cash loan without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay out the loan in advance?
You can choose to repay the total amount of your loan at any point in time.
If you are deciding to pursue this option, please contact our helpful company lending specialists. The experts will provide you with the details of your repayment and an early payout figure. It will be calculated using the total of the principal amount remaining and any accrued interest at the time of the early payout in addition to 1.5% of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear the ways we gather information, use it, and exchange it, as well as safeguard your data, is vital 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 standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We employ an exceptionally sophisticated bank verification system link to immediately verify the bank account details online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from assets they own to make the loan. The asset can be an asset belonging to the personal, like the family home or an business asset such as a vehicle or piece of equipment.
The vast majority of banks, not just the banks with the biggest size, prefer to make loans secured by assets. If you are having difficulty paying back the loan then the asset might be transferred to the lender. In essence it is the process of securing new financing using the value of what you already have.
Are I need security to secure a company loan?
Up to $150,000 in loans there is no requirement for asset security upfront to access the money however, we do require an individual guarantee. As long as you follow your loan obligations (as stipulated in your loan contract) Asset security will never be required. For loans that exceed $150K, generally, you can get an individual ensure and security in the form of the charge of assets.