FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Northpark Small Business Loans
Let me know more about Northpark Small Business Loans
Northpark unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
The application for your Small Business Loan in under 10 minutes online or by phone. You will receive an immediate response, and the money could be in your account in 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. We offer a company loan is an upfront priced loan and you’ll be aware of the total amount to be paid, including the interest, fees and charges. This is then broken down into weekly or daily payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company purpose including the management of cash flow, company improvements, advertising for purchasing inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About the 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. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to be in operation for at least 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Business Loan of a larger size can be used to fund almost every company reason, such as business renovations, purchase of inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This is by way of charge over assets, and could include registering this with the PPSR or making as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally based rather than stating security over a particular asset. The person who signs the guarantee is personally responsible if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR grants the priority of personal property granted in accordance with the date on which a registration of a security interest.
Caveats are legal document that is filed to provide an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that exceeds $250,000 it’s possible to offer a preliminary pre-approval to help ease the process. We could be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering some financial well-being questions. It’s neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer you are offered could be subject to different conditions.
Application process
Do I have the right to receive funds?
You may be eligible 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 process for applying is fast and easy. Simply complete the online form within a few minutes and an experienced company expert in lending will contact you to help you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Information on the application including credit consent twelve months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer in just one hour if you make your application in quality business times and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statement, we’ll offer a decision in as little as an company day.
For the Larger Business Loan ($100K or more) we may be in a position to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal business hours, and let us use the advanced bank verification system to confirm your bank details online. If you decide to send us copies of your bank statement, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we typically offer an answer within one hour – as long as you make your application within normal business time and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statement, we’ll offer an answer in just an business day.
For Larger Business Loans ($100K to $500K) we could be in a position to provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Some agreements have been approved in 24 hours.
The quickest method can be ensure you apply during standard business hours. Also, allow us to use our modern bank verification to instantly check your bank’s information online. If you decide to send us duplicates of your banking statement, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a specific amount we look at a variety of elements to determine what is the health of the business and the amount of repayments your business is able to afford. The total amount of your loan will depend on the specifics of your company.
If you apply for a particular amount, we take into consideration a variety of variables to determine your well-being of the business and the amount of the repayments your business is able to afford. The amount you receive from the loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much do you charge for an business loan?
If you decide to make an application for one of our business credit, we’ll assess the risk assessment that you have for your business and provide you with a customised proposal that includes the loan amount, the terms and interest rates. The business loan is a loan that is priced upfront therefore you will know the exact amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I’m charged?
Interest rates for business loans rates differ based on various variables like the amount to be that is borrowed, what business assets the money will be used for, the industry the business operates in, the long the company has been operating for, how long the business has sufficient cash flow to pay for the loan, and overall health or creditworthiness of the business.
What are the costs?
There are no hidden fees for our business loans, and you’ll be aware of the amount it is that you be required 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 no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan early?
You may choose to pay back all of your loan at any point in time.
If you decide to take this route, please call our helpful company loan experts. They’ll offer you with details for repayment as well as an early payout amount. This is calculated as the sum of the remaining principal amount and any accrued interest at the time of the early payout plus 1.5 percent of the remaining principal and any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being upfront about how we collect information, use it, and exchange it, as well as protect your information, is vital and is an essential element 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 personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We use an advanced bank verification system that allows you to instantly verify your bank account information online to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a business owner borrows from the assets they have to make a loan. The asset can be an asset belonging to the personal, like the family home, or a business asset like a truck or piece or equipment.
The majority of the lenders not just the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, then your assets could be transferred to the lender. In essence it’s the process of securing additional financing taking advantage of the value of what you already have.
Should I need security to secure a business loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds, however we require a personal guarantee. require the personal guarantee. In the event that you fulfill your loan obligations (as stated in the loan contract) Asset security will never be needed. For loans of over $150,000 generally, you are able to get an individual guarantee and security in the form of charges on assets.