FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Norwood Small Business Loans
Let me know how you are able to avail the Norwood Small Business Loans
Norwood unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
You can apply for this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and funds may be in your account within 24 hours. Traditional company loans have an annual interest rate as well as other fees and charges. The business loan is an upfront priced loan therefore you’ll know in advance the total amount due, which includes any fees, interest or charges. Then, it is broken down into either a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company reason, such as control of cash flow company renovations, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal reasons.
About larger Norwood Business Loans
What is the Larger Norwood Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to have been in operation for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funding for?
A Larger Business Loan is a great option for almost any company use, including business remodeling, buying inventory or new equipment as well as for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It’s by way of charge against assets, and could include registering this with the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature, rather than defining security over a particular asset. The person who is signing the guarantee is personally responsible if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR allows priority over personal property to be assigned according to the date a security interest that is registered.
An affidavit is an official document lodged to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan that exceeds $250K it is possible to offer an initial pre-approval in order to 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 the answer to a series of financial well-being questions. This is neither an offer nor a guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer you might receive could have different terms.
The application process
Are I eligible for funding?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a couple minutes, and an experienced business expert in lending will contact you to guide you.
To apply for up $100,000, you’ll need ID details (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on the application including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) we can often offer a response in one hour – as long as you apply during standard business timings and let us utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements , we are able to offer a decision in as little as the span of one business day.
For the Larger Business Loan ($100K and up) we may be able to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some transactions have received approval in 24 hours.
The fastest way for you to apply is make sure you apply during standard company hours and permit us to use the advanced bank verification system to instantly verify your bank account information online. If you send us copies of your bank statement, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we usually offer an answer within one hour, provided you apply in standard business timings and allow us to 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 can provide the decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be likely to offer you with conditional pre-approval within six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain transactions have received approval within less than 24 hours.
The most effective method is to make sure you apply during normal business hours. Also, let us use the sophisticated bank verification to confirm your bank details online. If you opt to send us copies of your bank statements, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we look at a variety of factors for determining what is the well-being of your business as well as the amount of the repayments your company will be able to support. The total amount of your loan will depend on the specific circumstances the business.
When you make an application for a set amount, we take into consideration a variety of aspects to assess how much we can lend you such as well-being for your company and the amount of payments your company is able to afford. The total amount of your loan will be determined by the particulars that are unique to your business.
Fees & repayments
What is the cost for an company loan?
If you decide to request the business financing, we will assess the risk assessment the business and provide you with a customised proposal that includes the amount of loan, the term and interest rates. A company loan is an upfront priced loan so you will know in advance the total amount payable including any charges, interest rates or fees.
What determines the rate that I pay?
Business loan interest rates depend on a variety of factors like the amount of money that is borrowed, what business assets the funds are used to purchase and the sector the business is in, how long the company has been running and whether the company has enough cash flow to fund the loan, as well as the overall well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our company loans. You’ll know precisely what you need to pay and at what time, from the very first day. There’s no compounding and no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can make an application for loans with absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated in establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of your loan early at any time.
If you do decide to pursue this option, please call our helpful business loan professionals. They will offer you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the date of early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about the ways we gather information, use it, and exchange it, as well as safeguard your data, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We make use of an advanced bank verification system link to immediately verify your bank account information online to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the business owner makes use of the assets they have to obtain the funds for a loan. The asset could be an individual property, such as the family home, or it could be a business asset such as a truck or piece or equipment.
The majority of banks, not just the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, then your assets could be taken over by the lender. In essence it is a way of securing new funding taking advantage of the value of what you already have.
Are I require security to secure a company loan?
For loans that exceed $150,000, it is not necessary to secure assets in advance to gain access to the funds however, we do need the personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract), asset security will never be required. For loans of over $150,000 generally, you are able to get the option of a personal ensure and security in the form the charge of assets.