FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The North Booval Small Business Loans
Tell me how you are able to avail the North Booval Small Business Loans
North Booval unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from a traditional business loan?
You can apply for the Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and the funds could be in your account within 24 hours. Traditional company loans reference an interest rate per annum plus other fees and charges. The company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company reason, such as cash flow management, business remodels and marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
About larger North Booval Business Loans
What is the Larger North Booval Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be in operation for at least 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly every company use, including company renovations, to purchase new equipment or inventory, as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This can be done as a result of an charge against assets, and may include registering this on the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature, rather than stipulating security over a particular asset. The person who signs the ensure is personally liable in the event that the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned in accordance with the date on which a security interest has been registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for larger business loans of $250,000 or more we may be able to provide an initial pre-approval to ease the process. We could be able to get this done without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial health questions. It is not an offer or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you may receive may have different terms.
Application process
Do I qualify for funds?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a few minutes and a dedicated company expert in lending will be in touch to guide you through the process.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (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, as well as interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you make your application within quality business hours and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements , we are able to provide a decision in as little as 1 company day.
For the Larger Business Loan ($100K or more) we may be able to offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method can be ensure you apply during normal business hours, and permit us to use the modern bank verification link to verify your bank account information online. If you opt to upload duplicates of your banking accounts, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) we usually offer a response in one hour – provided you apply within normal business time and let us make use of the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements, we are able to provide a decision within an business day.
For the Larger Business Loans ($100K and up) We may be capable of provide you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending on the particular circumstances of each application. Certain offers have been approved within just 24 hours.
The quickest method can be ensure you apply during standard business hours. You can also allow us to use our advance bank verification to confirm your bank details online. If you send us duplicates of your banking accounts, it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount we consider a variety of elements to determine what is the well-being of your business 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 for your company.
When you make an application for a particular amount, we look at a range of variables to determine your health for your business as well as the amount of the repayments your company can support. The amount you receive from your loan will be contingent on the particulars the company.
Fees & repayments
How much do you charge for a company loan?
When you make an application for business loans with us business financing, we’ll assess the risk assessment for your company and provide an individualised offer including the amount of loan, the term and interest rates. It is a company loan is an upfront-priced loan which means you know the exact amount due, which includes any interest rates, fees or charges.
What determines the amount I will be charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, the company assets the money will be used for as well as the field the business operates in, how long the business is in operation as well as how long the business has sufficient cash flow to fund the loan, and the general well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs with our business loans. You’ll know exactly how much you be required to pay, and at what time, from the very first day. There’s no compounding interest and no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan early?
You can repay the total amount of your advance loan at any time.
If you are deciding to do this please contact our helpful business loan experts. The specialists will offer you with details for repayment as well as an early payout amount. It will be calculated using the total of the principal amount remaining plus any accrued interest as of the date of early payout and 1.5% of the remaining principal as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about the ways we gather the information we collect, use, share and ensure the security of your information 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 employ industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We make use of an advanced bank verification system to immediately verify your bank account information online to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of assets they own to secure the funding. The asset can be either an individual asset, such as the family home or a company asset such as a truck or piece or equipment.
The majority of lending institutions, even the banks with the biggest size, prefer to make loans secured by assets. If you’re struggling to pay back the loan then your asset may be transferred to the lender. In essence it’s the process of securing new funding making use of the value of what you already have.
Are I need security to secure an business loan?
Up to $150K in loans the requirement for asset security is not required upfront to access the money but we require a personal guarantee. require the personal guarantee. As long as you follow the terms of your loan (as detailed in the loan contract), asset security is not required. For loans of over $150,000 generally, you can get an individual ensure and security in the form of the charge of assets.