FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Noranda Small Business Loans
Let me know how you are able to avail the Noranda Small Business Loans
Noranda 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 can be made daily or weekly.
What makes this Unsecured Loan different from the traditional business loan?
The application to get this Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and funds may be on your account within 24 hours. Traditional business loans reference an annual rate of interest plus other fees and charges. We offer a company loan is a loan that is priced upfront which means you know in advance the amount you will have to pay, including any interest, fees or charges. This is then broken down into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company purpose including cash flow management, company renovations, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal use.
About the Larger Noranda Business Loans
What is the Larger Noranda Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to have been trading for at least 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 business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A Larger Business Loan can be used for almost every business need, including company renovations, to purchase new equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done by way of charge against assets, which could also include registration with the PPSR or filing as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally based rather than defining security over an asset. The person who is signing the ensure is personally accountable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR allows preference over private property granted depending on the date that a registration of a security interest.
The caveat can be described as a formal document that is filed to provide an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help ease the process. We might be able to do this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial well-being questions. It is not an offer or guarantee of credit. A conditional approval is subject a full credit assessment and any offer you may receive may be based on 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 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (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 simple. Simply complete the online form in just a few minutes, and an experienced company loan specialist will contact you to guide you through the process.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License) along with a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within an hour – as long as you submit your request in quality company timings and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statement, we’ll offer a decision within just one business day.
If you are applying for a Larger Business Loan ($100K and up) we may be in a position to offer the 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 it could be faster based on the circumstances of each application. Some offers have been approved within 24 hours.
The fastest way can be make sure you apply during standard company hours. You can also permit us to use the advanced bank verification system to instantly confirm your bank details online. If you send us duplicates of your banking statement, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within an hour – provided you submit your request within standard business time and let us use the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements we can provide an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K and up) we could be likely to offer you with pre-approval conditional to your application in around six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some agreements have been approved within less than 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours and allow us to use our sophisticated bank verification link to instantly verify your bank account information online. If you decide to upload documents from your account accounts, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of elements in order to assess your well-being that is your company and the amount of payments your business can support. The amount you receive from your loan will depend on the specific circumstances for your company.
If you apply for a certain amount, we consider a variety of variables to determine how much we can lend you such as well-being for your business as well as the amount of repayments that your business can support. The amount you receive from your loan will be determined by the particular circumstances the company.
Fees & repayments
What is the cost for a business loan?
When you request the company financing, we’ll assess the risk profile for your business and offer an individualised offer, including loan amount, term and the interest rates. A business loan is an upfront priced loan which means you be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for company loans rates depend on a variety of factors including the amount borrowed, what company assets the funds are used to purchase and the sector the company is in, how long the company has been operating and in the event that the business has enough cash flow to support the loan, and overall well-being or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you be required to pay and when, starting from day one. There’s no compounding and no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to apply for a loan with with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can choose to repay all of your loan at any point in time.
If you are deciding to take this route, please speak to our friendly company loan experts. They’ll offer you with details on repayment and an early payment figure. It will be calculated using the total of the principal remaining and any accrued interest at the time of early payout in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payments and to work your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear the ways we gather data, process, exchange and ensure the security of your information is crucial and an integral 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 as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced banking verification system to instantly verify the bank account details online so we can offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the company owner uses an asset that they own to obtain the loan. The asset can be either an individual asset, such as the family home, or a business property like a truck as well as a piece of machine.
The vast majority of lenders, even the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan, then the asset might be sold by the lender. In essence it is a way of securing additional financing using the worth of the asset you already have.
Do I need security to get a business loan?
For loans of up to $150K, it is not necessary to secure assets before you can access the money but we require a personal guarantee. need an individual guarantee. If you adhere to the terms of your loan (as stated in your loan contract) Asset security is not required. For loans over $150,000 typically, you will need a personal guarantee and security in the form an asset charge.