How to apply National Australia Bank business loan

Last Updated on May 8, 2024 by admin

Are you searching for Australia’s largest business lender that will assist you in starting, growing and succeeding in your business and you don’t know the kind of loan you can apply for? National Australia Bank has unveiled different type of business loans to suit your needs .

The range of loans for National Australia Bank small businesses enable you Manage your cash flow, purchase stock and grow your business. They include the following: NAB QuickBiz Loan,NAB Business Options Loan,NAB Business Markets Loan, NAB Business Recovery Loans and Business vehicle and equipment finance.

In this post we shall take a look at different type of National Australia Bank business loan, requirements and Benefits

1. NAB QuickBiz unsecured business loan

This is regarded as an unsecured business loan because it doesn’t require any collateral during your credit application process but you must show the strength of your cash flow as security, instead of physical assets. You can get up to $250,000 if you are NAB existing business customer, while new to NAB can get up to $100,00

The Term facility ranges from 1-3 years tenor with Fixed interest rate of 10.95 % p.a

 

Requirements to apply for NAB QuickBiz unsecured business loan

Here’s a breakdown of the main requirements to be eligible for a NAB QuickBiz unsecured business loan:

General Requirements:

  • Business Registration: You must have a registered business with a valid Australian Business Number (ABN) or Australian Company Number (ACN).
  • Business Location: Your business must be based and operated within Australia.
  • Minimum Revenue: Typically, you’ll need to demonstrate a minimum annual revenue, often around $75,000 or more.
  • Operating History: Your business needs to have been in operation for a minimum period, usually at least 12 months, though some exceptions might apply.
  • Creditworthiness: NAB will assess your business’s credit history. A good credit score will increase your chances of approval and may secure better interest rates.
  • Your business has been in operation for at least 12 months and You’re at least 18 years or older to apply and hold an Australian citizenship or permanent residency.
  • If you have an existing business loan with NAB, you can apply online for an additional NAB QuickBiz Loan, NAB QuickBiz Overdraft or NAB business credit card.

 

Specific Requirements:

  • Loan Amount: If you’re an existing NAB customer, you can only apply for this product if you have less than $1 million in existing business lending with NAB and up to $250,000 in unsecured business lending with NAB (inclusive of this application)
  • This loan is available only as fixed interest rate principal and interest loan for a 12, 24, 36, 48 or 60-month term with monthly repayments. Variable rate loan and interest only loans are not available. Economic costs may be payable if you terminate early. If this does not work for you, we have other loan options that may better suit your needs.
  • You must have an Australian bank account, in the same name as your business, to receive your funds.
  • Loan Term: Choose from repayment terms between 12 and 72 months.
  • Business Structure: Sole traders, companies, partnerships, and trusts are generally eligible.

Documentation

Be prepared to provide the following:

  • Business and Personal IDs: ABN/ACN, driver’s license or other government-issued ID
  • Financial Statements: Up-to-date financial documents such as tax returns, profit and loss statements, balance sheets and/or bank statements.
  • Business Plan (Optional): While not always mandatory, a business plan may increase your chances of approval, as it demonstrates your business goals and strategy.

Eligible trusts include the following:

  • your trust must be a non-government discretionary trust
  • your trust has a valid Australian Business Number (ABN) and has been registered for at least 12 months
  • your trust has been established in Australia
  • the beneficiaries of your trust are individuals
  • your trustees can only be one of:- up to two individuals
  • if the trustee is a company, shares in the company must be beneficially held.

Length of a NAB QuickBiz Loan

The NAB QuickBiz Loan is available as a principal and interest loan for 12, 24, 36, 48 or 60-month term (with monthly repayments). This means you’ll be required to pay off your loan over the term you choose.

 

2. NAB Business Options Loan

The NAB Business Options Loan is a flexible business finance that provides funding to help manage cash flow, purchase new equipment, expand your operations, or for other business needs. It comes in two varieties:

  • Secured: Loan is secured against an asset, usually business property. Often allows for larger loan amounts and potentially lower interest rates.
  • Unsecured: No asset required as security. It might have stricter eligibility criteria and smaller loan amounts compared to the secured version.

It is suitable for SMEs, including sole traders, partnerships, trusts and registered companies. The loan tenor is up to 30 years to help you purchase an existing business, fund expansion

You can borrow up to $1,000,000 to expand your business so long as it’s registered in Australia.You will need an active ABN or ACN, business bank account number (if you’re an existing NAB customer).

How to apply for NAB Business Options Loan

Before you get started Have these items ready

If you’re an existing NAB customer, providing details of a NAB business account may help us to streamline your application and provide a quicker decision.

There’s no need to upload any documents in the application form, but we may ask for additional information later in the process, including:

  • ABN or ACN of your business.

  • NAB business account number (if available). A business credit card number can’t be used for this application.

  • Details of the security you’ll provide for the loan and any finance currently in place.

  • You’ll also be asked to confirm whether there have been changes to your business operation over the last twelve months.

Eligibility Check you’re eligible to apply online

If applying online you’ll need to make sure:

  • Your funding requirement is up to $1 million

  • The funds will be used wholly or predominately for business purposes

  • The business is registered in Australia

  • You’re authorised to submit the application on the behalf of the business

     

Getting started How to apply

  1. Complete the online application form. It only takes about five minutes.

  2. We’ll process the application and call you within one to two business days with a decision or to discuss your application further.

  3. We’ll help you to sort out the loan details, create the contracts and sign the agreement.

  4. Once everything is in order you’ll receive the funds

     

3. NAB Business Markets Loan

You can borrow up to $250,000 via NAB Business Markets Loan and the Loan terms range from from 30 days up to 15 years. the borrower can choose between floating interest rate or fixed interest rate… You can apply over the phone or in person with your local NAB business banker.

Benefits NAB Business Markets Loan

1. Borrow amounts over $250,000.

2.Loan terms from 30 days up to 15 years. Match your payment schedules and interest rate period to suit your business’s cash flow cycles.

3.Loans can be interest-only or established with principal repayments. Easily add new components after loan establishment without additional documentation.

4. Draw down on your loan as needed throughout the different phases of construction if required.

5. Draw down on your loan as needed throughout the different phases of construction if required.

How Apply for a NAB Business Markets Loan

1.You can apply over the phone or in person with your local NAB business banker.

2. Choose the right finance to suit your business needs.

3. Once the approval is sorted, the bank  will send you the completed documents to sign and return.

4. Your loan will be disburse once all documents are received and approved.

 

4. NAB SME Recovery Loan Scheme

NAB Business Recovery Loans have been designed to help small and medium sized enterprises (SMEs) that have been hit hard by the economic impacts of coronavirus (COVID-19). The loan forms part of the Australian Government’s SME Recovery Loan Scheme (‘Scheme’).

With SME Recovery Scheme Loan you can get up to $5 million to help Australian businesses recover.You could either apply for secured business loan up to $5 million, with security options including a mortgage over commercial real estate or unsecured business loan up to $250,000

The loan tenure is up to 10 years with no repayments required for 12 months and there is no application or loan service fees. Note: approved borrowers can access up to $5 million per ABN

NAB Business Recovery Loans must only be used for business purposes, such as:

.working capital
.capital expenditure
.supporting business acquisition (when structured in a way that meets SME Recovery Loan rules)
.purchasing owner-occupied commercial property
.refinancing eligible business debt (restrictions apply

Support available to businesses can include:

  • Restructuring of business facilities along with reduced or waived applications fees;
  • Deferral of principal payments across multiple product options;
  • Waiving costs and charges for withdrawing term deposits early giving customers quick access to cashflow;
  • Credit card and personal loan relief;
  • Professional wellbeing support.
  • Business recovery loan options (under the Federal Government’s SME Recovery Loan Scheme)

Support available for individual customers can include:

  • Providing a temporary reduced payment arrangement;
  • Giving a temporary payment break;
  • Where appropriate, restructuring a home loan or consolidating debt to suit different situations;
  • Wellbeing support or referral to financial counselling

 

What to consider before applying for a loan

Business loans can allow you to manage your cash flow, purchase stock or inventory and grow your business. Understanding the following will assist you when apply for a loan

. Loan purpose and amount: You should know how much you need to borrow and how much you will be able to repay.

. loan fees and interest rates: try and find out for the loan fees and interest rates before
. loan repayments: Repayments are important to calculate before taking on a loan
. Credit score: your credit check is part of the loan application

 

 

Meet Ogbeide Frank, popularly known as perere, a blogger who loves writing about finance and Tech. He studied Business administration at the Ambrose Alli University Ekpoma and Mobile Communication at Orange College Malaysia .Frank have worked as a banker and consultant in variety of Nigeria agencies

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