FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Normal Park Small Business Loans
Tell me what you think of the Normal Park Small Business Loans
Normal Park unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
Apply to get the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and funds may be on your account within 24 hours. Traditional business loans are based on an annual interest rate along with other charges and fees. The company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is divided into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business reason, such as managing cash flows, company remodels and marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Normal Park Business Loans
What is the Larger Normal Park Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large, your company needs to have been operating for at least three years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used for almost every business purpose including business renovations, purchase of new equipment or inventory as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s by taking a charge on assets and can include registering this in the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to repay credit that is general in nature, rather than stipulating security over an asset. The person signing the guarantee is personally liable if the company borrower is unable to re-pay 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 the assets or goods). The PPSR grants the priority of personal property assigned according to the date a security interest was registered.
The caveat can be described as a formal document filed to offer an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250K we can offer a preliminary pre-approval to help make the process. We may be able to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial well-being questions. This is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer you might receive could be on different conditions.
Application process
Are I eligible for funding?
You may apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the 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. Just complete the online application within a couple minutes, and an experienced company credit specialist will call you to assist you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Information on the application including credit consent twelve months of bank statements, IRD statement, last 2 years finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K or more) we typically offer an answer within one hour, provided you make your application in quality business timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements , we will be able to provide a decision within an company day.
For the Larger Business Loan ($100K or more) we may be capable of offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be quicker based on the circumstances of each application. Some offers have been approved within 24 hours.
The most effective method for you to apply is ensure you apply during normal company hours, and let us use the advanced bank verification system link to confirm your bank details online. If you decide to send us copies of your bank statement, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour if you apply within normal business hours and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements we can offer an answer in as little as the span of one business day.
For Larger Business Loans ($100K up to $500,000) we might be in a position to provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The most effective 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 choose to upload the copies of bank statement, it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we look at a variety of aspects that determine the well-being for your company and the extent of the repayments your business can afford. The amount you receive from your loan will depend on the specific circumstances of your business.
If you apply for a set amount, we will consider a number of aspects to assess your well-being of the company as well as the amount of payments your business will be able to support. The total amount of the loan will be determined by the specifics the company.
Fees & repayments
How do you charge for an business loan?
When you make an application for our business loan, we’ll assess the risk assessment the business and offer an individualised proposal that includes the amount of loan, the term and the interest rates. It is a company loan is an upfront-priced loan and you’ll know in advance the total amount payable including any charges or interest.
What determines the amount I am charged?
The interest rates on business loans rates vary due to factors including the amount borrowed, the company assets the funds will be used for, the industry the company operates in, the long the company has been running, what percentage of the business has sufficient cash flow to fund the loan, and overall well-being or creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our company loans. You’ll know precisely what it is that you need to pay and when, starting from the day you sign up. There’s no compounding interest, and there are no additional charges (as as you make your payments punctually).
We do not charge an application fee. You can request a credit loan without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated in 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 amount of loan.
Can I repay the loan in advance?
You can repay all of your loan at any point in time.
If you are deciding to pursue this option, please contact our helpful company loans professionals. They will provide you with details for repayment and an early payout figure. It will be calculated using the sum of the principal remaining and accrued interest to the date of early payout, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about how we collect the information we collect, use, share and safeguard your data, is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal financial and other 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 instantly verify your bank account details online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner utilises the assets they have to get the funds for a loan. The asset could be a personal asset like the family home or an business asset such as a vehicle or other piece of machinery.
The vast majority of the lenders not just the major banks, prefer to secure loans against assets. If you have trouble paying back the loan, the asset could be offered for sale by the lender. In essence it is means of securing new financing by taking advantage of the value of what you already have.
What do I require security to get an company loan?
For loans up to $150,000 no asset security is required upfront to access the money, however we require a personal guarantee. need an individual guarantee. In the event that you fulfill the loan terms (as stipulated in the loan contract) the security of assets will never be required. If you take out loans in excess of $150,000 generally there is a personal guarantee and security is provided in the form of the charge of assets.