FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Normandale Small Business Loans
Tell me what you think of the Normandale Small Business Loans
Normandale unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and the funds could be in your account in 24 hours. Traditional business loans reference an annual rate of interest plus other fees and charges. The business loan is a loan that is priced upfront so you will 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 amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost any business need, such as the management of cash flow, business renovations, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
About Larger Normandale Business Loans
What is the Larger Normandale Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used for almost any business purpose including company renovations, to purchase new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It’s by taking a charge over assets, which could also be registered in the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally based rather than defining security over an asset. The person who signs the guarantee is personally accountable if the business the borrower fails 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 reflects security interests which are registered with respect to personal property (including items or assets). The PPSR allows preference over private property granted according to the date the security interest has been registered.
Caveats are legal document lodged to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000, we may offer an initial pre-approval to smooth out the process. We could be able to do this without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial health questions. This is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you receive could be on different terms.
The application process
Can I be eligible for funding?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form in just a few minutes, and a dedicated business lending specialist will contact you to help you.
To apply for up $100,000, you’ll need ID details (valid Driver’s License) and an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent as well as 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour – as long as you make your application at standard business hours and let us make use of the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statements , we are able to provide the decision in as little as 1 business day.
For the Larger Business Loan ($100K and up) we may be capable of provide you with conditional pre-approval in around six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved within less than 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours, and let us use the modern bank verification link to instantly check your bank’s information online. If you opt to send us the copies of bank statements , it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer a response in one hour – provided you make your application in normal business time and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements, we’ll be able to offer an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be capable of offer you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The quickest method would be to make sure you apply during normal business hours and allow us to use our advance bank verification to instantly verify your bank account information online. If you opt to send us documents from your account statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a particular amount, we take into consideration a range of variables that determine your health that is your business and the extent of the repayments your company is able to afford. The total amount of your loan will depend on the particular circumstances of your company.
If you apply for a certain amount, we will consider a number of aspects to assess the well-being of the business as well as the amount of repayments that your business is able to afford. The total amount of the loan will be determined by the particular circumstances the company.
Fees & repayments
What is the cost for an company loan?
If you decide to make an application for one of our company loans, we’ll assess the risk assessment for your company and offer you with a tailored offer, including loan amount, term and the interest rates. This company loan is an upfront cost loan and you’ll be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for company loans rates vary due to factors such as the amount that is that is borrowed, what company assets the funds will be used for in addition to the industry that the company operates in, how long the business has been operating, how long the business has enough cash flow to pay for the loan, and the overall well-being and creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll know exactly how much it is that you need to pay, and when, starting from the very first day. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans absolutely no upfront cost and no the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan earlier?
You can decide to repay all of your loan in full at any time.
If you choose to pursue this option, please call our helpful company loan specialists. We will provide you with details on repayment as well as an early payout amount. The figure will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payout plus 1.5% of the principal balance plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and ensure the security of your information is vital and is a crucial aspect 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 secure your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system link to instantly verify your bank account information online so we can offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner makes use of assets they own to obtain the funds for a loan. The asset can be either a personal asset like the family home, or a company asset such as a vehicle or other piece of machinery.
The vast majority of the lenders even the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, then your asset may be sold by the lender. In essence, it’s a way of securing new funding taking advantage of the value of what you already own.
What do I need security for an business loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as stipulated in your loan contract document), asset security will never be needed. For loans that exceed $150,000, generally, you are able to get a personal guarantee and security in the form of the charge of assets.