FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Northcross Small Business Loans
Let me know what you think of the Northcross Small Business Loans
Northcross unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from a traditional business loan?
It is possible to apply to your Small Business Loan in under 10 minutes over the phone, receive an instant response and the money could be in your account within 24 hours. Traditional business loans have an annual rate of interest along with other charges and fees. We offer a company loan is a loan that is priced upfront therefore you’ll know in advance the total amount due, which includes any fees, charges or charges. This is then divided into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business reason, such as cash flow management, company renovations, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Northcross Business Loans
What is the Larger Northcross Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. The applicant must also 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 to demonstrate at minimum 12 months of business.
What can I use the funds for?
A large business loan can be used for nearly every company use, including company improvements, purchasing equipment or inventory or as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This is by taking a charge over assets, which could also include registering this in the PPSR or registering a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally based rather than stipulating the security of a specific asset. The person signing the ensure is personally liable in the event that the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date the registration of a security interest.
The caveat can be described as a formal document lodged to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000, we may offer an initial pre-approval to smooth out the process. It is possible to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial health checks. This is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you are offered could be subject to different conditions.
Do I qualify for funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and a dedicated business credit specialist will call you to guide you.
To apply for up $100,000, you’ll require identification details (valid Driver’s License) and a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent and 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour, provided you apply at quality business times and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements we can provide an answer in just the span of one business day.
For Larger Business Loans ($100K to $500K) we might be likely to provide you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The most efficient method would be to make sure you apply during standard company hours and let us use the advance bank verification to check your bank’s information online. If you send us copies of your bank statements it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we usually offer a response in one hour, provided you make your application in standard business times and you allow us to use the bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements we can offer an answer in as little as one business day.
For Larger Business Loans ($100K and up) We may be capable of offer you with a conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain agreements have been approved within just 24 hours.
The most effective method can be ensure you apply during standard business hours. Also, let us use the modern bank verification link to instantly check your bank’s information online. If you decide to upload duplicates of your banking accounts, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of elements for determining how much we can lend you health of your company and the level of repayments your business will be able to support. The total amount of your loan will depend on the particular circumstances the company.
If you apply for a particular amount, we will consider a number of variables to determine how much we can lend you such as well-being that is your business and the extent of repayments your business can afford. The amount you receive from the loan will be determined by the specific circumstances for your company.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for one of our business loans, we will assess the risk profile that you have for your business and provide you with a customised proposal that includes loan amount, term and interest rates. A company loan is an upfront cost loan so you will know the exact amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I’m charged?
Business loan interest rates vary due to factors including the amount of money borrowed, the company assets the money will be used for and the sector the business is operating in, how long the company is in operation for, in the event that 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 cost?
There aren’t any hidden costs with our business loans, and you’ll know precisely how much you be required to pay, and at what time, from the very first day. There’s no compounding interest, and no additional fees (as as you make your payments in time).
We do not charge an application fee. You are able to 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. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan earlier?
You may choose to pay back the total amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful business loans experts. The professionals will provide you with details on repayment and an early payment figure. The figure will be calculated as the total of the principal remaining and the accrued interest up to the time of early payout plus 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To make sure that you don’t miss payments and to work with your cash flow routine, we offer repayments that are either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear how we collect, use, exchange and safeguard your data, is crucial and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to customer security and security. We employ a highly sophisticated bank verification system that allows you to instantly verify your bank account information online. This allows us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a business owner borrows from assets they own to obtain the funds for a loan. The asset can be an asset belonging to the personal, like the family home, or a company property like a truck or piece or equipment.
The majority of lending institutions, including the major banks, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence, it’s an opportunity to secure new financing taking advantage of the value of what you already have.
Are I require security to secure an business loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access, however we do need the personal guarantee. If you adhere to your loan commitments (as stipulated in the loan contract) the security of assets is not needed. For loans over $150,000 generally, you are able to get the option of a personal guarantee and security in the form of the charge of assets.