FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Northcote Point Small Business Loans
Tell me what you think of the Northcote Point Small Business Loans
Northcote Point unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from an ordinary business loan?
Apply for the Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and the funds could be on your account within 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. This company loan is a pre-paid loan therefore you’ll know ahead of time the total amount to be paid, including any interest, fees or charges. This is then divided into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business use, including cash flow management, company remodeling, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal reasons.
About the Larger Northcote Point Business Loans
What is the Larger Northcote Point Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
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 that is this large the business needs to be in operation for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can the funding be used for?
A larger company loan can be used to fund almost all company use, including company renovations, to purchase inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This is by way of charge against assets, and could include registration through the PPSR or making as a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature rather than specifying security over an asset. The person who signs the guarantee is personally liable in the event that the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
A caveat is a legal form of document to provide the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250K it is possible to offer an initial pre-approval to smooth out the process. We could be able to get this done without credit checks and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial health questions. This is not an offer or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could have different conditions.
Are I eligible for funding?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and an experienced business credit specialist will call you to help you.
To apply for up $100,000, you’ll need ID details (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within an hour if you make your application during standard company time and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements , we are able to offer a decision within just one business day.
If you are applying for a Larger Business Loan ($100K or more) we could be likely to offer you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval, turnaround times are around 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 is to make sure you apply during normal business hours and permit us to use the advance bank verification link to verify your bank account information online. If you upload the copies of bank accounts, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we usually offer a response in one hour – provided you submit your request within standard business time and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statement, we’ll offer an answer in as little as an business day.
For the Larger Business Loans ($100K and up) we may be in a position to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Certain transactions have received approval in 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to send us the copies of bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount, we look at a variety of aspects for determining how much we can lend you health for your company as well as the amount of repayments that your business is able to afford. The total amount of your loan will depend on the particular circumstances the business.
When you submit an application for a particular amount, we look at a range of elements to assess the well-being of your company and the amount of payments your company can support. The total amount of your loan will depend on the specific circumstances of your company.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to apply for business loans with us company loans, we will assess the risk profile of your business and offer you with a tailored offer including the loan amount, the terms and the interest rates. It is a business loan is an upfront-priced loan which means you be aware of the total amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates differ based on various factors including the amount of money borrowed, the business assets the money are used to purchase and the sector the business operates in, how long the company has been in operation for, in the event that the business has sufficient cash flow to support the loan, as well as the overall well-being or financial standing of the company.
What are the charges?
There are no hidden fees for our business loans, and you’ll know exactly how much you’ll need to pay, and when, starting from the day you sign up. There’s no compounding and no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can request a credit loan no cost upfront or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan early?
You can decide to repay the total amount of your loan early at any time.
If you choose to do this please speak to our friendly company lending professionals. They’ll offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and accrued interest to the time of early payment, plus 1.5 percent of the remaining principal plus any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow standard, we provide payments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and safeguard your data, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our clients and security. We utilise a sophisticated bank verification system to instantly confirm your bank account information online. This allows us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner uses the assets they have to secure a loan. The asset could be an individual property, such as the family home, or an company asset like a truck or piece of equipment.
The majority of lenders, not just the big banks, tend to make loans secured by assets. If you’re struggling to pay back the loan, the asset could be taken over by the lender. In essence, it’s the process of securing new financing using the worth of the asset you already own.
Should I need security to secure an company loan?
For loans up to $150,000 it is not necessary to secure assets prior to the loan’s access However, we do require a personal guarantee. As long as you follow the terms of your loan (as specified in the loan contract) Asset security is not needed. For loans of over $150,000 typically, you will need a personal guarantee and security is provided in the form of the charge of assets.