FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Northpark Small Business Loans
Tell me more about Northpark Small Business Loans
Northpark unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from a traditional business loan?
You can apply to this Small Business Loan in under 10 minutes via the internet or by phone. You will receive a same day response and the funds could be in your account in 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. We offer a company loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes any fees, charges or charges. Then, it is broken down into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company need, such as control of cash flow company renovations, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal purposes.
About Larger Northpark Business Loans
What is the Larger Northpark Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to be operating for at least three years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can the funding be used for?
A larger business loan can be used to fund almost all business use, including company improvements, purchasing inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. This can be done as a result of an charge against assets and can include registration on the PPSR or filing a caveat.
A director’s or personal ensure is a promise to repay credit that is generally in nature rather than stating security over a particular asset. The person who is signing the ensure is personally responsible if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR allows preference over private property granted depending on the date that a registration of a security interest.
Caveats are legal document lodged to offer an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 it is possible to offer a preliminary pre-approval to help ease the process. It is possible to get this done without a credit verification and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial health questions. This is not an offer or guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you may receive may be on different terms.
The application process
Do I qualify for funds?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a couple minutes, and an experienced company loan specialist will be in touch to help you.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer within one hour if you make your application during quality business timings and permit us to utilise the bank verification system to immediately verify your bank account information online. If you opt to upload copies of your banking statements we can provide the decision within the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we might be capable of provide the conditional pre-approval in about six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The quickest method would be to ensure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to upload documents from your account statement, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we typically provide a response in one hour – as long as you apply at normal business hours and permit us to use the bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements, we’ll be able to provide an answer in as little as 1 business day.
For Larger Business Loans ($100K or more) We may be likely to provide you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in the space of 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours, and allow us to use our advanced bank verification system to instantly verify your bank account information online. If you opt to upload copies of your bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of factors that determine the health of the company and the extent of repayments that your business will be able to support. The total amount of your loan will be contingent on the specifics for your business.
When you submit an application for a particular amount, we take into consideration a variety of factors to determine your health of the company as well as the amount of payments your business will be able to support. The total amount of your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to make an application for our business financing, we will assess the risk profile for your company and offer you with a customised offer, including the loan amount, the terms and the interest rates. The company loan is a loan that is priced upfront so you will know the exact amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I’m charged?
Interest rates for company loans rates depend on a variety of factors such as the amount that is of money borrowed, the company assets the funds are used to purchase as well as the field the company operates in, the long the business has been in operation for, what percentage of the business has enough cash flow to cover the loan, and also the overall well-being and creditworthiness of the company.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much it is that you be required to pay and when, right from the very first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to get a cash loan without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I repay the loan in advance?
You can decide to repay the entire amount of your loan at any point in time.
If you choose to do this please speak to our friendly business loan specialists. The experts will provide you with details for repayment as well as an early payout amount. The figure will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payment in addition to 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payment dates and to align with your cash flow general, we provide repayments either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
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 a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We make use of an advanced bank verification system that allows you to immediately verify the bank account details online so we can offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an company owner makes use of an asset they own to secure the funds for a loan. The asset may be an individual property, such as the family home, or it could be a business asset such as a truck or piece or equipment.
The vast majority of lenders, including the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan, the asset could be taken over by the lender. In essence it is the process of securing new financing by using the value of what you already own.
Do I need security to get a business loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money However, we do require a personal guarantee. If you adhere to the loan terms (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150K generally there is a personal ensure and security that is in the form charges on assets.