FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Noble Park North Small Business Loans
Tell me more about Noble Park North Small Business Loans
Noble Park North unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes the 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. You’ll get an immediate response, and funds may be in your account in 24 hours. Traditional business loans are based on an interest rate per annum together with additional fees and charges. This company loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any interest, fees or charges. This is then 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 to fulfill almost any business purpose including the management of cash flow, company improvements, advertising to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About the Larger Noble Park North Business Loans
What is the Larger Noble Park North Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can the funding be used for?
A larger business loan can be used to fund almost any company need, including company renovations, purchase of equipment or inventory or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This can be done as a result of an charge over assets, which could also be registered with the PPSR or making as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally in nature rather than stating the security of a specific asset. The person who signs the ensure is personally liable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR grants preference over private property granted depending on the date that a registration of a security interest.
An affidavit is an official form of document to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250,000 it’s possible to offer an initial pre-approval to ease the process. We may 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, which involves the answer to a series of financial health checks. This is neither an offer nor a guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could be subject to different conditions.
The application process
Do I qualify for funds?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in just a few minutes, and an experienced business loan specialist will contact you to guide you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we usually provide a response in one hour, provided you make your application within standard company hours and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements we can provide a decision within just an company day.
For the Larger Business Loan ($100K to $500K) we may be in a position to offer you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Some offers have been approved in the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours. You can also allow us to use our modern bank verification link to instantly verify your bank information online. If you choose to send us duplicates of your banking statements it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we typically offer an answer in just one hour – provided you submit your request at normal business hours and permit 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 bank statements, we’ll be able to provide a decision within 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be able to offer you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this can be faster depending upon the circumstances for each application. Certain transactions have received approval within less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours and permit us to use the advance bank verification to instantly verify your bank account information online. If you decide to send us the copies of bank statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a specific amount we will consider a number of elements that determine the well-being of your business and the extent of the repayments your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your company.
When you apply for a certain amount, we take into consideration a variety of factors to determine the well-being for your company as well as the amount of payments your business can afford. The total amount of your loan will depend on the particulars that are unique to your business.
Fees & repayments
How much should you charge for a company loan?
If you decide to request our company credit, we’ll assess the risk profile the company and offer an individualised offer including the loan amount, the terms and interest rates. It is a business loan is an upfront priced loan which means you know in advance the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I am charged?
Business loan interest rates depend on several factors like the amount of money borrowed, what 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 operating and whether the business has sufficient cash flow to support the loan, and general health and creditworthiness of the business.
What are the charges?
There are no hidden costs for our business loans. You’ll know precisely what it is that you need to pay and when, starting from the first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing 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.
Do I have the option of paying off the loan in advance?
You can choose to repay the entire amount of the loan in full at any time.
If you decide to do this please call our helpful business lending professionals. They will provide you with details for repayment as well as an early payout amount. It will be calculated using the sum of the principal amount remaining plus any accrued interest as of the time of early payment and 1.5% of the remaining principal as well as 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 with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear the ways we gather the information we collect, use, share and secure 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 make use of industry-standard encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We utilise a sophisticated banking verification system to immediately verify your bank account details online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner makes use of an asset they own to obtain the funding. The asset could be an asset belonging to the personal, like the family home or an company asset such as a vehicle or piece or equipment.
The vast majority of banks, even the big banks, tend to guarantee loans against assets. If you’re struggling to pay back the loan, then the asset might be transferred to the lender. In essence, it’s means of securing new financing by taking advantage of the value of what you already own.
Do I need security to secure a company loan?
Up to $150K in loans it is not necessary to secure assets in advance to gain access to the funds However, we do require a personal guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150K generally, you can get a personal ensure and security in the form of an asset charge.