FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Normandale Small Business Loans
Let me know about the Normandale Small Business Loans
Normandale unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional business loan?
You can apply for your Small Business Loan in under 10 minutes online or over the phone, receive an instant response and the funds could be available in just 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. This company loan is an upfront priced loan and you’ll know ahead of time the total amount due, which includes the interest, fees and 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 for almost any business purpose including managing cash flows, business renovations, marketing to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About the Larger Normandale Business Loans
What is the Larger Normandale Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be trading for at least 3 years and have an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used to fund almost any business reason, such as business 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 a secured loan?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge over assets and can be registered with the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally based rather than specifying security over an asset. The person who signs the guarantee is personally accountable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR gives priority over personal property to be assigned according to the date a security interest has been registered.
Caveats are legal document that is filed to provide the legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250,000 it’s possible to offer a preliminary pre-approval to help simplify the process. We might be able to get this done without a credit check and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial well-being questions. It is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject a full credit assessment and any offer you are offered could be subject to different terms.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a few minutes and a dedicated business lending specialist will contact you to guide you.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually offer a response in one hour if you apply during standard business times and let us utilise the bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements , we are able to offer an answer within an company day.
For the Larger Business Loan ($100K and up) we could be in a position to provide 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 about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval in less than 24 hours.
The quickest way to apply is to make sure you apply during standard company hours and allow us to use the advance bank verification to verify your bank account information online. If you decide to send us duplicates of your banking statement, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we typically provide a response in one hour – as long as you submit your request at normal business times and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer the decision within 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be likely to offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some transactions have received approval in less than 24 hours.
The fastest method is to make sure you apply during normal business hours, and allow us to use our modern bank verification to verify your bank information online. If you decide to upload duplicates of your banking statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a certain amount, we look at a variety of elements in order to assess how much we can lend you health for your business and the level of repayments that your business can support. The total amount of the loan will be determined by the particular circumstances the business.
When you make an application for a certain amount, we take into consideration a variety of aspects to assess your health of the company and the extent of payments your company is able to afford. The total amount of your loan will be determined by the particular circumstances of your business.
Fees & repayments
What is the cost for an business loan?
If you decide to make an application for one of our business loans, we will assess the risk assessment that you have for your company and offer you with a tailored proposal that includes the loan amount, the terms and interest rates. A business loan is an upfront-priced loan so you will know the exact amount due, which includes any interest rates, fees or charges.
What determines the rate that I’m charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, the company assets the funds will be used for, the industry the business operates in, the long the company has been operating, in the event that the company has enough cash flow to fund the loan, and the general health as well as creditworthiness business.
What are the charges?
There aren’t any hidden costs for our company loans, and you’ll know precisely what it is that you be required to pay, and when, from the day you sign up. There’s not any compounding interest and no extra fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you choose to do this please call our helpful company lending experts. We will provide you with repayment details along with an early payout estimate. This is calculated as the sum of the principal balance and the accrued interest up to the date of early payout in addition to 1.5% of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To make sure you do not miss repayments and to fit in with your cash flow standard, we offer repayments that are either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and protect your information, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to security for our clients and security. We use an advanced banking verification system to instantly verify the bank account details online so we can provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner uses the assets they have to make the funding. The asset could be an individual asset, such as the family home or it could be a business asset like a truck or piece of equipment.
The majority of lenders, even the major banks, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then your assets could be sold by the lender. In essence, it is means of securing additional financing using the value of what you already have.
What do I need security for a business loan?
For loans of up to $150K, there is no requirement for asset security upfront to access the money however, we require a personal guarantee. require an individual guarantee. If you adhere to your loan commitments (as specified in your loan contract), asset security is not needed. For loans that exceed $150,000, generally, you are able to get a personal ensure and security is provided in the form of charges on assets.