FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Northgate Small Business Loans
Let me know more about Northgate Small Business Loans
Northgate unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
The application for this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and funds may be in your account within 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. We offer a business loan is an upfront priced loan therefore you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. This is then broken down into either a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business reason, such as managing cash flows, business remodels and marketing to purchase inventory, new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
About the Larger Northgate Business Loans
What is the Larger Northgate Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth 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 cash flow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been operating for at least three years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be utilised?
A Business Loan of a larger size is a great option for almost every company use, including business improvements, purchasing inventory or new equipment as well as 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 necessary for funding of more than $150,000. This can be done in the form of a charge on assets, and could include registering this on the PPSR or the registration of as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature rather than defining security over an asset. The person who signs the ensure is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR gives priority over personal property to be granted according to the date a security interest was registered.
An affidavit is an official form of document to provide notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval in order to smooth out the process. It is possible to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial well-being questions. It is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be based on different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and an experienced company lending specialist will call you to help you.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank statements, IRD statements as well as the two most recent years’ financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour – as long as you apply within quality business timings and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements , we are able to provide a decision within the span of one business day.
For the Larger Business Loan ($100K and up) we might be in a position to provide you with conditional pre-approval within about six hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest method for you to apply is ensure you apply during standard company hours. Also, allow us to use the advanced bank verification system to instantly confirm your bank details online. If you decide to send us the copies of bank accounts, it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour – as long as you apply at standard business timings and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statement, we’ll provide a decision within an business day.
If you are applying for Larger Business Loans ($100K and up) we could be likely to offer you with conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours, and permit us to use the modern bank verification link to instantly confirm your bank details online. If you opt to send us documents from your account statement, 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 particular amount, we take into consideration a range of factors that determine what is the well-being of your company and the level of repayments that your company is able to afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
When you submit an application for a certain amount, we look at a range of aspects to assess how much we can lend you such as health of your company and the extent of payments your business can afford. The amount you receive from your loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to request one of our company financing, we will assess the risk assessment of your business and offer you with a customised offer including the amount of the loan, the duration and interest rates. It is a company loan is an upfront priced loan which means you be aware of the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I’m charged?
Interest rates for company loans rates depend on a variety of factors such as the amount that is borrowed, what business assets the money will be used for as well as the field the business is in, how long the company is in operation and how long the business has sufficient cash flow to cover the loan, and the general well-being as well as creditworthiness company.
What are the fees?
There are no hidden fees for our company loans. You’ll know precisely how much you’ll need to pay, and when, right from day one. There’s no compounding interest and no extra fees (as long as you make your payments in time).
We don’t charge an application fee. You are able to make an application for loans with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You may choose to pay back the entire amount of the loan early at any time.
If you are deciding to pursue this option, please talk to one of our helpful business lending specialists. We will provide you with repayment details along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and accrued interest to the date of early payout, plus 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing repayments and to fit in with your cash flow general, we provide repayments either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect data, process, exchange and secure your information, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We utilise a sophisticated bank verification system link to immediately confirm your bank account information online so we can provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner utilises assets they own to secure the loan. The asset can be an individual asset, such as the family home, or an company asset such as a vehicle as well as a piece of machine.
The majority of the lenders even the major banks, prefer to make loans secured by assets. If you’re having trouble paying back the loan, then your assets could be offered for sale by the lender. In essence, it’s means of securing new financing making use of the value of what you already have.
Should I require security to secure an company loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access but we do require the personal guarantee. As long as you follow your loan commitments (as detailed in the loan contract) Asset security is not required. For loans over $150K generally, there is personal ensure and security that is in the form an asset charge.