FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Nathan Small Business Loans
Let me know about the Nathan Small Business Loans
Nathan unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an ordinary business loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and have the funds in your account in 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. Our company loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any fees, interest or charges. Then, it is divided into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including the management of cash flow, company improvements, advertising, to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal use.
About larger Nathan Business Loans
What is the Larger Nathan Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been trading for at least 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funding for?
A Larger Business Loan can be used to fund almost any company purpose including company renovations, to purchase equipment or inventory as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. This is by way of charge on assets, and may include the registration of this on the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than stipulating security over an asset. The person who signs the guarantee is personally accountable if the company the borrower fails 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 granted to individuals who own personal property (including goods or assets). The PPSR gives priority over personal property to be assigned depending on the date that a security interest was registered.
A caveat is a legal document that is filed to offer notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval that will help smooth out the process. We might be able to get this done without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial well-being questions. It’s not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you may receive may be subject to different terms.
The application process
Can I be eligible for funding?
You can 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)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a few minutes and a dedicated business expert in lending will be in touch to assist you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater 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, as well as interim financials from the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we usually offer an answer within an hour, provided you submit your request within quality company timings and you allow us to utilise the bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we will be able to offer a decision within just an business day.
For Larger Business Loans ($100K and up) we may be able to provide the conditional pre-approval within 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours. Also, allow us to use the advance bank verification link to instantly check your bank’s information online. If you opt to upload copies of your bank statement, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we usually provide an answer in just one hour – provided you make your application at normal business time and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statement, we’ll offer the decision within 1 business day.
If you are applying for Larger Business Loans ($100K and up) We may be capable of offer you with pre-approval conditional to your application in about six hours. Once you’ve signed your 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. Some agreements have been approved in less than 24 hours.
The fastest method would be to ensure you apply during normal business hours, and permit us to use the sophisticated bank verification link to instantly confirm your bank details online. If you opt to upload the copies of bank statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we consider a variety of aspects that determine the health of your company and the extent of payments your company can afford. The amount you receive from your loan will depend on the specific circumstances the company.
If you apply for a specific amount we consider a variety of variables to determine your health for your company as well as the amount of repayments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How do you charge for a business loan?
If you decide to request our company loans, we will assess the risk profile the business and provide you with a tailored proposal that includes the amount of the loan, the duration and interest rates. The company loan is an upfront-priced loan and you’ll be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I’m charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, the company assets the money are used to purchase and the sector the business operates in, the long the business has been operating, in the event that the company has enough cash flow to pay for the loan, as well as the overall well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much you’ll be required to pay and when, right from the day you sign up. There’s not any compounding interest and no additional fees (as as long as you pay your payments in time).
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 covers the costs associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan early?
You may choose to pay back the entire amount of your loan at any point in time.
If you decide to do this please speak to our friendly company credit experts. They’ll offer you with repayment details and an early payout figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of the early payout, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being upfront about the ways we gather data, process, exchange and safeguard your data, is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We employ a highly sophisticated bank verification system link to instantly verify your bank account information online, allowing us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner makes use of an asset they own to make the loan. The asset may be an individual asset, such as the family home, or an company property like a truck or piece or equipment.
The majority of banks, not just the big banks, tend to secure loans against assets. If you have trouble paying back the loan, then your asset may be offered for sale by the lender. In essence it is means of securing new financing using the value of what you already have.
Should I require security to secure an business loan?
For loans up to $150K it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. need a personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract), asset security will never be required. If you take out loans in excess of $150,000 generally there is the option of a personal guarantee and security in the form of the charge of assets.