FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Northgate Small Business Loans
Tell me about the Northgate Small Business Loans
Northgate unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
The application to get this Small Business Loan in under 10 minutes over the phone, receive an instant response and the money could be in your account within 24 hours. Traditional company loans are based on an annual interest rate as well as other fees and charges. This business loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any fees, charges or charges. This is then divided into weekly or daily payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company use, including control of cash flow company remodels and marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
About Larger Northgate Business Loans
What is the Larger Northgate Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to be operating for at least three 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 business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funds for?
A large business loan can be used to fund almost all company need, including company renovations, purchase of equipment or inventory or as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This is in the form of a charge on assets and can include registering this on the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to repay credit that is general in nature rather than defining the security of a specific asset. The person signing the ensure is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR gives the priority of personal property assigned in accordance with the date on which a security interest was registered.
Caveats are legal document that is filed to offer the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan of $250,000 or more we may be able to provide an initial pre-approval that will help simplify the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial well-being checks. This is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be based on different conditions.
Application process
Can I be eligible for funding?
You may apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in just a few minutes, and an experienced company loan specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$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 as well as 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, plus interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) we can often provide an answer within an hour, provided you make your application at standard business time and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide the decision in as little as an business day.
For the Larger Business Loan ($100K and up) we may be capable of offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal business hours. Also, permit us to use the modern bank verification to instantly confirm your bank details online. If you opt to upload duplicates of your banking accounts, it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we usually provide an answer in just one hour – as long as you submit your request during standard business timings and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements we can provide the decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Certain offers have been approved in just 24 hours.
The most efficient method can be make sure you apply during standard business hours, and let us use the sophisticated bank verification link to check your bank’s information online. If you opt to upload copies of your bank statements it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of elements to determine what is the health for your business and the extent of payments your business can support. The total amount of your loan will depend on the specifics the business.
When you submit an application for a set amount, we will consider a number of variables to assess your well-being for your company and the amount of payments your business is able to afford. The amount you receive from the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for a business loan?
When you request one of our business loans, we will assess the risk assessment for your business and offer an individualised offer that includes the loan amount, the terms and the interest rates. A company loan is an upfront-priced loan and you’ll know the exact amount due, which includes any interest rates, fees or charges.
What determines the amount I’m charged?
Interest rates for company loans rates depend on several factors such as the amount that is that is borrowed, what business assets the funds are used to purchase, the industry 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 general health or financial standing of the business.
What are the cost?
There aren’t any hidden charges with our business loans. You’ll know precisely what you’ll need to pay, and when, starting from the day you sign up. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments in time).
We do not charge an application fee. You can request a credit loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You can choose to repay the total amount of your loan at any point in time.
If you do decide to pursue this option, please talk to one of our helpful business lending specialists. The experts will offer you with the details of your repayment along with an early payout estimate. This is calculated as the sum of the principal balance and accrued interest to the date of early payout in addition to 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align with your cash flow general, we offer repayments either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear the ways we gather the information we collect, use, share and ensure the security of your information is crucial and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We utilise a sophisticated bank verification system link to immediately confirm your bank account information online. This allows us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner uses an asset that they own to make the loan. The asset may be an individual property, such as the family home or an company asset like a truck or other piece of machinery.
The vast majority of the lenders including the major banks, prefer to make loans secured by assets. If you’re having trouble paying back the loan then your asset may be offered for sale by the lender. In essence it’s the process of securing new financing making use of the value of what you already have.
Do I require security to secure a company loan?
For loans of up to $150K, it is not necessary to secure assets before you can access the money However, we do require an individual guarantee. So long as you comply with the terms of your loan (as stated in the loan contract), asset security is not needed. For loans that exceed $150K, generally there is the option of a personal guarantee and security in the form charges on assets.