FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Northpark Small Business Loans
Let me know what you think of the Northpark Small Business Loans
Northpark unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from an ordinary business loan?
Apply for your Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and have the funds on your account within 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. The business loan is a pre-paid loan so you will know ahead of time the total amount to be paid, including any fees, interest or charges. Then, it is broken down into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company purpose including managing cash flows, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal use.
About Larger Northpark Business Loans
What is the Larger Northpark Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to be in operation for at least 3 years and have an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A large company loan can be used to fund almost every company use, including company remodeling, buying new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually in the form of a charge on assets, and may include the registration of this through the PPSR or making a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature, rather than defining the security of a specific asset. The person signing the ensure is personally accountable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted according to the date a security interest has been registered.
Caveats are legal document that is filed to provide notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan of $250K or more we may be able to provide an initial pre-approval to smooth out the process. It is possible to make this decision without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial well-being checks. It is not an offer or guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you are offered could be on different terms.
Do I have the right to receive funds?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in just a few minutes, and a dedicated company loan specialist will call you to guide you through the process.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour, provided you make your application within quality company timings and allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements , we are able to provide an answer in as little as an company day.
For the Larger Business Loan ($100K to $500K) we could be capable of offer you with a conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The most efficient method can be make sure you apply during standard company hours. Also, let us use the advanced bank verification system link to instantly confirm your bank details online. If you opt to upload documents from your account statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within an hour if you make your application during normal business hours and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements, we will be able to offer a decision in as little as 1 business day.
For Larger Business Loans ($100K or more) we might be in a position to offer the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be faster depending on the circumstances of each application. Some deals have been approved in 24 hours.
The fastest way is to ensure you apply during normal business hours. You can also let us use the modern bank verification link to verify your bank account information online. If you upload the copies of bank accounts, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of aspects that determine your health of your business and the amount of payments your business is able to afford. The amount you receive from your loan will depend on the specific circumstances of your business.
When you apply for a particular amount, we look at a range of factors to assess how much we can lend you such as well-being that is your business and the extent of repayments that your company will be able to support. The total amount of your loan will depend on the particulars that are unique to your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for the business loans, we’ll assess the risk profile of your company and offer you with a customised offer including loan amount, term and the interest rates. A company loan is an upfront-priced loan therefore you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for company loans rates vary due to variables like the amount to be borrowed, the company assets the funds will be used for in addition to the industry that the business is operating in, how long the business has been in operation, whether the business has enough cash flow to pay for the loan, as well as the overall well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs with our company loans, and you’ll know exactly how much you be required to pay and when, from the very first day. There’s no compounding interest and there are no additional charges (as as long as you pay your payments in time).
We don’t charge an application fee. You can make an application for loans with no cost upfront or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan early?
You can choose to repay the total amount of your loan in full at any time.
If you do decide to do this please speak to our friendly business loan professionals. We will provide you with details on repayment and an early payout figure. It will be calculated using the sum of the principal balance and the accrued interest up to the time of the early payout plus 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To make sure you do not miss due dates and also to be in line with your cash flow standard, we provide repayments either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect, use, exchange and protect your information, is of paramount importance and is a crucial part 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 as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We make use of an advanced bank verification system that allows you to immediately verify your bank account information online so we can offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner utilises an asset they own to obtain the loan. The asset can be an individual asset, such as the family home or a business asset such as a truck as well as a piece of machine.
The majority of banks, even the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan, your assets could be taken over by the lender. In essence, it’s a way of securing new financing by making use of the value of what you already own.
What do I need security to secure an business loan?
For loans that exceed $150K, there is no requirement for asset security upfront to access the money, however we do need an individual guarantee. As long as you follow your loan obligations (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150,000 typically, you will need personal ensure and security in the form of an asset charge.