FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Normal Park Small Business Loans
Let me know more about Normal Park Small Business Loans
Normal Park unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from the traditional company loan?
The application to your Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and the funds could be in your account in 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. This company loan is a cash-based loan therefore you’ll be aware of the total amount due, which includes any interest, fees or charges. This is then broken down into either a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company reason, such as cash flow management, business improvements, advertising to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal use.
About the Larger Normal Park Business Loans
What is the Larger Normal Park Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been in operation for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funds be utilised?
A Larger Business Loan can be used for almost all business reason, such as business renovations, to purchase inventory or new equipment or as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. This can be done by taking a charge on assets, which could also include registration in the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally based rather than stating security over an asset. The person who is signing the guarantee is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR grants the priority of personal property assigned depending on the date that a registration of a security interest.
Caveats are legal form of document to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250,000, we may offer a preliminary pre-approval to help smooth out the process. We might be able to apply for this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial health checks. It’s in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be on different terms.
Application process
Do I have the right to receive funds?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a few minutes and a dedicated company expert in lending will be in touch to guide you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s License) along with a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) We can usually offer an answer within one hour if you apply in quality company times and let us use the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements , we are able to provide an answer in as little as an business day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to offer you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain agreements have been approved in less than 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours. You can also permit us to use the modern bank verification link to check your bank’s information online. If you opt to upload copies of your bank statements , it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within one hour, provided you apply within normal business hours and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements, we are able to provide the decision in just the span of one business day.
For Larger Business Loans ($100K to $500K) we might be in a position to offer you with a conditional pre-approval in around six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Certain transactions have received approval within just 24 hours.
The fastest way would be to ensure you apply during standard business hours, and allow us to use our advance bank verification to confirm your bank details online. If you decide to send us documents from your account statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we will consider a number of elements in order to assess what is the well-being of the business and the level of repayments that your business can support. The total amount of the loan will be determined by the specific circumstances the business.
If you apply for a particular amount, we will consider a number of factors to determine how much we can lend you such as health for your company and the extent of repayments your business will be able to support. The total amount of the loan will be determined by the particular circumstances of your company.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for one of our company loan, we will assess the risk assessment that you have for your business and offer you with a customised offer that includes the loan amount, the terms and the interest rates. The business loan is a loan that is priced upfront therefore you will be aware in advance of the total amount due, which includes any charges or interest.
What is the basis for the rate I will be charged?
Business loan interest rates depend on a variety of factors like the amount of money of money borrowed, the company assets the money are used to purchase as well as the field the business operates in, the long the company has been operating as well as in the event that the business has enough cash flow to fund the loan, as well as the general well-being or creditworthiness of the company.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll be aware of the amount you’ll need to pay, and at what time, from the very first day. There’s no compounding and the loan comes with no additional fees (as as you make your payments punctually).
We do not charge an application fee. You can request a credit loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of the loan early at any time.
If you do decide to take this route, please contact our helpful company loans professionals. The professionals will offer you with the details of your repayment and an early payout figure. This is calculated as the total of the principal amount remaining plus any accrued interest as of the date of early payout in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To make sure you do not miss repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather the information we collect, use, share and protect your information, is of paramount importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We utilise a sophisticated bank verification system to instantly verify your bank account details online so we can offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner makes use of the assets they have to get the funding. The asset can be an individual property, such as the family home or an company property like a truck or other piece of machinery.
The majority of the lenders even the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan, then the asset might be sold by the lender. In essence it is an opportunity to secure additional financing making use of the value of what you already own.
What do I need security to secure an business loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds, however we require a personal guarantee. require a personal guarantee. If you adhere to your loan obligations (as specified in your loan contract) the security of assets is not required. For loans over $150K generally there is personal ensure and security that is in the form charges on assets.