FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Northfield Small Business Loans
Let me know what you think of the Northfield Small Business Loans
Northfield unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from a traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and the money could be in your account within 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. This company loan is an upfront priced loan which means you know ahead of time the total amount to be paid, including any fees, interest or charges. Then, it is broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business need, such as control of cash flow business improvements, advertising for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Northfield Business Loans
What is the Larger Northfield Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to have been trading for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can the funding be used for?
A Larger Business Loan can be used for almost any business reason, such as company renovations, to purchase new equipment or inventory, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. This is by way of charge against assets and can include registering this with the PPSR or making as a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature, rather than stating the security of a specific asset. The person signing the ensure is personally accountable if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR permits preference over private property granted in accordance with the date on which a registration of a security interest.
Caveats are legal document lodged to provide the legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan of $250,000 or more, we may offer an initial pre-approval in order to simplify the process. We may be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health checks. This is not an offer of credit or guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you are offered could be on different conditions.
Application process
Are I eligible for funding?
You can 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 trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and an experienced company expert in lending will call you to help 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 six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application 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 twelve months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically provide a response in one hour if you apply at standard business timings and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll provide an answer within the span of one company day.
For Larger Business Loans ($100K or more) we might be capable of offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Certain offers have been approved within 24 hours.
The fastest way would be to make sure you apply during standard business hours. Also, allow us to use the modern bank verification to verify your bank account information online. If you opt to send us duplicates of your banking statements , it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we usually offer a response in one hour if you submit your request during standard business times and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statement, we’ll offer the decision in as little as 1 business day.
For the Larger Business Loans ($100K or more) we could be in a position to offer you with pre-approval conditional to your application in around six hours. Once you have signed the pre-approval, the turnaround time is 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 in just 24 hours.
The fastest method can be ensure you apply during normal business hours and allow us to use the advanced bank verification system to instantly verify your bank account information online. If you opt to upload copies of your bank statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we will consider a number of elements for determining the well-being for your business as well as the amount of payments your business can afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your business.
When you apply for a particular amount, we take into consideration a variety of variables to determine the well-being for your business as well as the amount of repayments your company will be able to support. The total amount of your loan will be contingent on the particulars the company.
Fees & repayments
How much do you charge for a company loan?
If you decide to apply for the company credit, we’ll assess the risk profile of your company and provide you with a tailored offer including the amount of loan, the term and interest rates. The 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 will be charged?
Business loan interest rates depend on several factors like the amount of money borrowed, what company assets the funds will be used for as well as the field the business is operating in, how long the business has been operating for, in the event that the company has enough cash flow to support the loan, and overall health as well as creditworthiness company.
What are the costs?
There are no hidden fees for our business loans. You’ll know exactly how much you need to pay and at what time, from the very first day. There’s not any compounding interest and no extra fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can make an application for loans no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan earlier?
You can choose to repay the entire amount of your advance loan at any time.
If you are deciding to pursue this option, please speak to our friendly business loans specialists. We will offer you with details on repayment and an early payout figure. It will be calculated using the total of the principal remaining and any accrued interest at the time of early payment in addition to 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
To make sure that you don’t miss payments and to work your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about the ways we gather, use, exchange and secure your information, is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our clients and security. We make use of an advanced bank verification system link to instantly verify your bank account information online. This allows us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner uses an asset that they own to secure the loan. The asset can be either an individual property, such as the family home or an company asset like a truck as well as a piece of machine.
The vast majority of lenders, including the big banks, tend to secure loans against an asset. If you have trouble paying back the loan, then the asset might be sold by the lender. In essence it’s the process of securing new financing using the worth of the asset you already own.
Do I require security to secure an business loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access, however we do need a personal guarantee. If you adhere to the loan terms (as detailed in your loan contract) the security of assets is not needed. For loans that exceed $150K, generally, there is the option of a personal ensure and security in the form charges on assets.