FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the North Lakes Small Business Loans
Tell me how you are able to avail the North Lakes Small Business Loans
North Lakes unsecured loans provides amounts 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 how is the Unsecured Loan different from an ordinary company loan?
Apply for the Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and the money could be on your account within 24 hours. Traditional company loans reference an annual interest rate as well as other fees and charges. Our company loan is a loan that is priced upfront therefore you’ll be aware of the total amount payable including any interest, fees or charges. Then, it is broken down into either weekly or daily repayment figure.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business purpose including control of cash flow business improvements, advertising to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
About Larger North Lakes Business Loans
What is the Larger North Lakes Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be operating for a minimum of 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used to fund almost every business reason, such as business renovations, purchase of inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This is by taking a charge over assets and can be registered on the PPSR or filing a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is generally in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
A caveat is a legal document that is filed to provide notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting larger company loans of more than $250K we may be able to provide an initial pre-approval to simplify the process. We might be able to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial health checks. This is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you may receive may be subject to different terms.
The application process
Can I be eligible for funding?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a 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 quick and easy. Simply complete the online form in few minutes and an experienced business credit specialist will be in touch to guide you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 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 you have a loan of more than $150K).
$250K to $500K: Application details including credit consent and 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer in just one hour, provided you make your application in standard company times and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll offer a decision within just the span of one company day.
For Larger Business Loans ($100K up to $500,000) we may be able to offer you with a conditional pre-approval in about six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain offers have been approved in 24 hours.
The most effective method is to ensure you apply during standard business hours, and allow us to use the advance bank verification link to instantly verify your bank account information online. If you opt to send us the copies of bank statements , it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour if you submit your request in standard business time and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements we can provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be capable of offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Certain deals have been approved in 24 hours.
The most efficient method can be ensure you apply during standard business hours, and allow us to use the sophisticated bank verification to instantly verify your bank information online. If you choose to send us copies of your bank accounts, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a certain amount, we look at a variety of factors that determine what is the well-being of your company and the level of repayments your business can afford. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
When you submit an application for a particular amount, we take into consideration a variety of factors to assess your well-being of your business and the amount of the repayments your company can afford. The amount you receive from your loan will depend on the specifics the company.
Fees & repayments
How much do you charge for a business loan?
If you decide to request the business loans, we’ll assess the risk profile the business and provide you with a tailored offer including the loan amount, the terms and the interest rates. This company loan is a loan that is priced upfront therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the amount I am charged?
The interest rates on company loans rates depend on a variety of variables like the amount to be of money borrowed, the business assets the money are used to purchase in addition to the industry that the company operates in, the long the company has been running, what percentage of the company has sufficient cash flow to support the loan, and the overall well-being and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you’ll need to pay and when, from day one. There’s no compounding and there are no additional charges (as as long as you pay 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 the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan in advance?
You can repay the total amount of your loan early at any time.
If you choose to take this route, please speak to our friendly business lending professionals. They’ll provide you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal remaining and accrued interest to the time of the early payout and 1.5 percent of the principal amount remaining and any outstanding fees.
How do you make repayments work?
To ensure you do not miss repayments and to fit in your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect, use, exchange and protect your information, is of huge importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We utilise a sophisticated bank verification system link to instantly verify the bank account details online, allowing us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner uses assets they own to obtain the funding. The asset may be an individual asset, such as the family home or a company property like a truck or piece or equipment.
The majority of the lenders not just the largest banks, are inclined to secure loans against an asset. If you are having difficulty paying back the loan, the asset might be transferred to the lender. In essence it is an opportunity to secure new funding using the value of what you already have.
Do I need security to secure a company loan?
Up to $150K in loans no asset security is required before you can access the money however, we do need the personal guarantee. As long as you follow the loan terms (as stipulated in your loan contract document), asset security is not required. If you take out loans in excess of $150,000 generally there is personal guarantee and security in the form charges on assets.