FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the North Narrabeen Small Business Loans
Let me know about the North Narrabeen Small Business Loans
North Narrabeen unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
It is possible to apply to get your Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and the money could be in your account within 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. The business loan is an upfront priced loan therefore you’ll be aware of the total amount due, which includes any interest, fees or charges. Then, it is broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost any business need, such as managing cash flows, company improvements, advertising to purchase inventory, new equipment, to fund general working capital and much more. The loan is not available for personal purposes.
About the Larger North Narrabeen Business Loans
What is the Larger North Narrabeen Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the business needs to have been in operation for at least 3 years with an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funds for?
A Larger Business Loan can be used to fund almost any business purpose including company renovations, to purchase new equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It is usually in the form of a charge over assets, and may include registration in the PPSR or registering a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature rather than specifying security over a particular asset. The person signing the guarantee is personally responsible if the company the borrower fails 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 lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date the security interest has been registered.
Caveats are legal document filed to provide an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 we can offer a preliminary pre-approval to help smooth out the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial health checks. It is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you may receive may be based on different terms.
The application process
Are I eligible for funding?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application within a few minutes and an experienced business lending specialist will contact you to assist you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent and 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we can often offer an answer within an hour – as long as you make your application during standard company times and you allow us to utilise the bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll offer a decision in just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide you with a conditional pre-approval within about 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain transactions have received approval in 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal business hours and allow us to use the advance bank verification to instantly check your bank’s information online. If you decide to send us the copies of bank statements it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we typically offer a response in one hour – as long as you submit your request within standard business times and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statements, we’ll be able to offer an answer within one business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to provide you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The most effective method for you to apply is ensure you apply during standard business hours, and allow us to use our advance bank verification to verify your bank information online. If you choose to upload copies of your bank statement, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we will consider a number of factors that determine the health that is your company and the amount of repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances of your business.
When you submit an application for a set amount, we will consider a number of elements to assess how much we can lend you such as well-being for your business and the amount of repayments that your business can afford. The total amount of your loan will be contingent on the particular circumstances the business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you apply for the company financing, we’ll assess the risk assessment the company and provide you with a customised offer including loan amount, term and the interest rates. It is a company loan is an upfront-priced loan therefore you will be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Business loan interest rates depend on a variety of factors including the amount that is borrowed, what company assets the funds are used to purchase, the industry the company operates in, the long the business has been running and how long the company has enough cash flow to pay for the loan, and 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, right from day one. There’s no compounding interest and no additional fees (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to apply for a loan no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of your loan in full at any time.
If you choose to take this route, please speak to our friendly company loan specialists. We will provide you with repayment details and an early payout figure. This is calculated as the total of the principal balance and any accrued interest at the date of early payout and 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 repayments and to fit in your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear how we collect the information we collect, use, share and protect your information, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We use an advanced bank verification system that allows you to instantly verify your bank account information online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from an asset they own to obtain the funds for a loan. The asset may be an individual property, such as the family home or an business asset like a truck or piece or equipment.
The majority of lenders, including the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan then the asset could be offered for sale by the lender. In essence, it is the process of securing new financing by taking advantage of the value of what you already own.
Do I require security for an company loan?
For loans that exceed $150,000, the requirement for asset security is not required before you are able to access the money but we do require a personal guarantee. In the event that you fulfill your loan obligations (as specified in your loan contract), asset security will never be needed. For loans that exceed $150K, generally, you are able to get the option of a personal ensure and security is provided in the form of the charge of assets.