FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Nathan Small Business Loans
Tell me how you can avail the Nathan Small Business Loans
Nathan unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from an ordinary company loan?
The application to your Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and have the funds on your account within 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. We offer a company loan is a cash-based loan therefore you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. Then, it is divided into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company reason, such as cash flow management, company remodeling, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About the Larger Nathan Business Loans
What is the Larger Nathan 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 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used to fund almost any company purpose including company renovations, to purchase inventory or new equipment for 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 can be done by way of charge against assets and can include registration with the PPSR or registering a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is general in nature, rather than stipulating security over an asset. The person signing the guarantee is personally accountable if the business creditor is unable 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 records security interests that have been that are registered for personal property (including objects or assets). The PPSR gives preference over private property granted according to the date a security interest that is registered.
A caveat is a legal document filed to offer an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for the Larger Business Loan of more than $250K we can offer an initial pre-approval in order to simplify the process. It is possible to apply for this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial health questions. It is neither an offer nor a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you might receive could have different conditions.
Application process
Do I qualify for funds?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Complete the online form in just a few minutes, and an experienced company loan specialist will call you to guide you.
To apply for up $100,000, you’ll need identification details (valid Driver’s License), an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within an hour if you submit your request at standard business times and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to send us copies of your bank statement, we’ll provide an answer within just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of offer the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Certain offers have been approved in less than 24 hours.
The fastest way is to ensure you apply during normal company hours, and permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you choose to send us the copies of bank statements , it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within an hour – provided you submit your request in normal business hours and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements, we will be able to offer an answer in as little as an business day.
For Larger Business Loans ($100K or more) We may be in a position to provide you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Some agreements have been approved within just 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours and allow us to use the advance bank verification to instantly verify your bank information online. If you choose to send us copies of your bank accounts, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we will consider a number of factors to determine what is the health of your business and the amount of repayments your company is able to afford. The amount you receive from the loan will be determined by the specifics for your business.
If you apply for a set amount, we look at a range of elements to determine your health of the business and the amount of the repayments your business will be able to support. The amount you receive from the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to request the company financing, we will assess the risk profile for your company and offer you with a tailored proposal that includes the amount of the loan, the duration and the interest rates. This company loan is an upfront-priced loan which means you know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
Interest rates for company loans rates differ based on various factors including the amount borrowed, the company assets the money will be used for and the sector the business operates in, how long the company has been running, how long the company has sufficient cash flow to support the loan, as well as the overall health or creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans, and you’ll be aware of the amount it is that you need to pay and when, starting from day one. There’s no compounding and no extra fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You can get a cash loan without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated 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 percentage of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you are deciding to take this route, please contact our helpful company loan professionals. The specialists will provide you with details on repayment as well as an early payout amount. This is calculated as the sum of the principal balance and accrued interest to the time of early payout plus 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow routine, we provide repayments either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear the ways we gather, use, exchange and 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 techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We utilise a sophisticated banking verification system to immediately verify your bank account information online. This allows us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the company owner makes use of an asset that they own to obtain the funds for a loan. The asset can be either an individual asset, such as the family home, or it could be a company property like a truck or other piece of machinery.
The majority of lenders, not just the major banks, prefer to make loans secured by an asset. If you have trouble paying back the loan, the asset could be taken over by the lender. In essence, it is an opportunity to secure new financing by using the worth of the asset you already own.
Do I need security to secure an company loan?
For loans up to $150,000 the requirement for asset security is not required before you are able to access the money but we require a personal guarantee. need a personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract) Asset security will never be required. If you take out loans in excess of $150K generally, there is personal guarantee and security in the form the charge of assets.