FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Northpark Small Business Loans
Tell me more about Northpark Small Business Loans
Northpark unsecured loans provides amounts of 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 this Unsecured Loan different from a traditional company loan?
Apply for the Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and the money could be in your account in 24 hours. Traditional business loans reference an annual rate of interest along with other charges and fees. We offer a business loan is a loan that is priced upfront which means you be aware of the amount you will have to pay, including any fees, charges or charges. Then, it is divided into weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company purpose including control of cash flow business renovations, marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan is not available for personal reasons.
About larger Northpark Business Loans
What is the Larger Northpark 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 with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate your situation.
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 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to be trading for at least 3 years and generate an annual revenue of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be utilised?
A larger company loan is a great option for almost any company purpose including company renovations, to purchase new equipment or inventory or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This can be done by way of charge over assets, which could also be registered in the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally in nature rather than stipulating security over an asset. The person who is signing the guarantee is personally accountable if the company lender is not able 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 registered in respect of personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be granted according to the date a registration of a security interest.
A caveat is a legal document filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan of $250K or more we may be able to provide an initial pre-approval in order to make the process. We could be able to get this done without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial well-being checks. This is neither an offer nor a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer you receive could have 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 the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and an experienced company lending specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within an hour, provided you submit your request during standard business times and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements , we will be able to offer a decision in just 1 business day.
For the Larger Business Loan ($100K and up) we may be able to offer the conditional pre-approval within 6 hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some offers have been approved within the space of 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours. You can also permit us to use the advance bank verification link to instantly verify your bank account information online. If you choose to send us copies of your bank statement, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer in just one hour, provided you make your application in normal business times and let us use the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements we can provide 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 within 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Some agreements have been approved in 24 hours.
The quickest method can be make sure you apply during standard business hours. You can also permit us to use the sophisticated bank verification to instantly check your bank’s information online. If you send us copies of your bank statements it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of aspects for determining what is the health that is your company and the extent of repayments that your company can afford. The total amount of the loan will be determined by the specifics for your business.
When you make an application for a set amount, we take into consideration a variety of factors to determine how much we can lend you such as health of the company and the amount of payments your company can afford. The amount you receive from your loan will be determined by the particulars the business.
Fees & repayments
How much should you charge for an business loan?
When you apply for our business loans, we’ll assess the risk assessment for your business and offer you with a tailored offer that includes the loan amount, the terms and interest rates. The business loan is a loan that is priced upfront which means you be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on several factors including the amount that is borrowed, what company assets the money will be used for and the sector the business is operating in, how long the business has been running for, in the event that the business has enough cash flow to pay for the loan, and general health or creditworthiness of the company.
What are the fees?
There are no hidden costs with our company loans, and you’ll know exactly how much it is that you need to pay, and at what time, from the first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments punctually).
We do not charge an application fee. You are able to request a credit loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan earlier?
You can decide to repay the entire amount of the advance loan at any time.
If you decide to take this route, please call our helpful company loans experts. We will offer you with the details of your repayment along with an early payout estimate. It will be calculated using the total of the principal remaining plus any accrued interest as of the time of the early payout in addition to 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We use an advanced bank verification system that allows you to instantly verify the bank account details online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner utilises an asset they own to obtain a loan. The asset may be an individual asset, such as the family home or an business asset like a truck or piece of equipment.
The vast majority of the lenders including the banks with the biggest size, prefer to guarantee loans against assets. If you are having difficulty paying back the loan then the asset might be taken over by the lender. In essence, it’s means of securing new financing taking advantage of the value of what you already own.
Do I require security for a business loan?
For loans up to $150,000 no asset security is required prior to the loan’s access However, we require a personal guarantee. require an individual guarantee. If you adhere to the terms of your loan (as stated in the loan contract) Asset security will never be required. For loans that exceed $150,000, typically, you will need a personal ensure and security is provided in the form of the charge of assets.