FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the North Lakes Small Business Loans
Tell me more about North Lakes Small Business Loans
North Lakes unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from the traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and funds may be on your account within 24 hours. Traditional company loans reference an annual interest rate as well as other fees and charges. Our company loan is a loan that is priced upfront which means you be aware in advance of the total amount due, which includes any interest, fees or charges. Then, it is divided into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business reason, such as control of cash flow company improvements, advertising, to purchase inventory or new equipment, for general working capital, and much more. The loan is not available for personal use.
About Larger North Lakes Business Loans
What is the Larger North Lakes Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to have been trading for at least 3 years and generate an annual revenue of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used for almost all company use, including business renovations, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. It’s by way of charge against assets, and could include registering this in the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is general in nature, rather than defining the security for a particular asset. The person who signs the ensure is personally responsible if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a security interest that is registered.
Caveats are legal document lodged to provide the legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K, we may offer an initial pre-approval in order to ease the process. We could be able to do this without credit checks and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial health questions. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be based on different terms.
Application process
Are I eligible for funding?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of continuous trading (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 few minutes and a dedicated business loan specialist will call you to guide you through the process.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll also require:
$100K to $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 month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim financial statements for the current year, Aged Payables and Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we typically provide a response in one hour – as long as you apply during standard company times and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll offer the decision in as little as one company day.
If you are applying for a Larger Business Loan ($100K or more) we may be likely to provide you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain deals have been approved in 24 hours.
The most effective method for you to apply is ensure you apply during normal company hours, and permit us to use the modern bank verification to instantly check your bank’s information online. If you choose to upload duplicates of your banking statements , it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer within one hour – as long as you apply during normal business hours and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements we can offer a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be likely to provide you with a conditional pre-approval in about six hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved in just 24 hours.
The most effective method can be make sure you apply during normal business hours, and allow us to use the sophisticated bank verification link to confirm your bank details online. If you upload the copies of bank statement, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we will consider a number of aspects that determine your well-being of your company and the amount of repayments that your business can afford. The total amount of your loan will be contingent on the particular circumstances the company.
If you apply for a particular amount, we take into consideration a variety of elements to assess your well-being of your company and the level of the repayments your company is able to afford. The total amount of your loan will be contingent on the specific circumstances for your company.
Fees & repayments
What is the cost for a company loan?
When you apply for business loans with us company loan, we will assess the risk assessment the company and provide an individualised offer including the loan amount, the terms and interest rates. A business loan is an upfront-priced loan which means you know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the amount I pay?
Interest rates for company loans rates depend on several factors such as the amount that is borrowed, the company assets the money will be used for and the sector the business operates in, the long the company has been in operation, how long the company has sufficient cash flow to cover the loan, and also the overall well-being as well as creditworthiness business.
What are the fees?
There are no hidden costs with our company loans. You’ll know exactly how much it is that you need to pay and when, starting from the very first day. There’s no compounding and no additional fees (as as you make your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can repay the entire amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful company lending specialists. The professionals will provide you with repayment details as well as an early payout amount. It will be calculated using the sum of the principal amount remaining and accrued interest to the date of early payout, plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss payments and to work your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing the ways we gather, use, exchange and protect your information, is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to customer security and privacy. We employ a highly sophisticated bank verification system link to instantly verify your bank account details online. This allows us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an company owner makes use of the assets they have to secure the funds for a loan. The asset can be an asset belonging to the personal, like the family home, or it could be a business asset like a truck or piece of equipment.
The majority of lenders, even the banks with the biggest size, prefer to make loans secured by assets. If you’re struggling to pay back the loan, your asset may be taken over by the lender. In essence, it’s a way of securing new financing by using the worth of the asset you already have.
Should I need security to get an company loan?
For loans of up to $150,000, the requirement for asset security is not required before you can access the money but we require a personal guarantee. require the personal guarantee. If you adhere to the loan terms (as stated in the loan contract) Asset security will never be needed. If you take out loans in excess of $150,000 typically, you will need the option of a personal ensure and security is provided in the form of an asset charge.