FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the North Haven Small Business Loans
Tell me more about North Haven Small Business Loans
North Haven unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an ordinary company loan?
It is possible to apply to the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get a same day response and funds may be on your account within 24 hours. Traditional business loans are based on an annual interest rate plus other fees and charges. The business loan is an upfront priced loan therefore you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. Then, it is broken down into either a daily or weekly installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business purpose including the management of cash flow, company renovations, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About the Larger North Haven Business Loans
What is the Larger North Haven Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been trading for at least 3 years and have an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used for nearly any company purpose including business renovations, to purchase new equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s by taking a charge on assets and can be registered with the PPSR or registering a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally based rather than specifying the security for a particular asset. The person who signs the guarantee is personally responsible if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR permits preference over private property granted according to the date the registration of a security interest.
Caveats are legal document that is filed to provide notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans of $250K or more we may be able to provide an initial pre-approval in order to simplify the process. We may be able to do this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health checks. This is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you are offered could have different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application within a few minutes and an experienced company loan specialist will call you to guide you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent twelve months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we typically provide a response in one hour if you make your application in quality business time and let us utilise the bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we’ll be able to provide the decision in just one company day.
For the Larger Business Loan ($100K or more) we could be likely to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval in less than 24 hours.
The quickest method would be to ensure you apply during normal company hours, and permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you choose to upload duplicates of your banking statements , it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within an hour if you submit your request within normal business hours and permit us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be capable of offer the conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Some transactions have received approval in less than 24 hours.
The most effective method is to ensure you apply during standard business hours and let us use the advanced bank verification system link to instantly check your bank’s information online. If you choose to send us copies of your bank accounts, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of factors that determine how much we can lend you health of the business and the amount of the repayments your business is able to afford. The total amount of your loan will be contingent on the specifics of your business.
When you submit an application for a set amount, we take into consideration a variety of elements to assess your health for your business and the amount of repayments that your company will be able to support. The total amount of your loan will depend on the specific circumstances the company.
Fees & repayments
How do you charge for an business loan?
When you make an application for one of our company loans, we’ll assess the risk profile that you have for your company and provide you with a tailored offer that includes the amount of the loan, the duration and interest rates. This company loan is a loan that is priced upfront which means you be aware of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I will be charged?
The interest rates on company loans rates vary due to factors such as the amount that is borrowed, what business assets the money will be used for, the industry the company operates in, how long the business has been in operation for, whether the business has enough cash flow to cover the loan, and also the general well-being or financial standing of the company.
What are the costs?
There are no hidden fees for our business loans. You’ll be aware of the amount you need to pay, and when, starting from the very first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You can request a credit loan with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of the advance loan at any time.
If you choose to pursue this option, please speak to our friendly business credit experts. The experts will provide you with repayment details as well as an early payout amount. It will be calculated using the total of the principal amount remaining and accrued interest to the time of the early payout in addition to 1.5 percent of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being transparent about how we collect data, process, exchange and safeguard your data, is crucial and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We use an advanced bank verification system link to immediately verify your bank account details online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from an asset that they own to get the funding. The asset can be either an individual property, such as the family home or it could be a business asset like a truck as well as a piece of machine.
The vast majority of lending institutions, even the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence, it’s a way of securing new funding taking advantage of the value of what you already have.
What do I require security to get a business loan?
For loans that exceed $150K, no asset security is required in advance to gain access to the funds however, we require a personal guarantee. need a personal guarantee. In the event that you fulfill the loan terms (as specified in your loan contract) Asset security will never be required. For loans over $150,000 generally, you are able to get a personal guarantee and security is provided in the form of a charge over assets.