FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Oriental Bay Small Business Loans
Let me know how you can avail the Oriental Bay Small Business Loans
Oriental Bay unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
The application for your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an instant response and funds may be in your account in 24 hours. Traditional company loans reference an interest rate per annum together with additional fees and charges. The business loan is a pre-paid loan so you will know ahead of time the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business use, including control of cash flow business improvements, advertising, to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used for personal reasons.
About Larger Oriental Bay Business Loans
What is the Larger Oriental Bay Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been in operation for at least 3 years, and have an annual income of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be used for?
A Business Loan of a larger size can be used for almost any company reason, such as company remodeling, buying equipment or inventory or as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This can be done by taking a charge on assets, which could also include registering this in the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person signing the ensure is personally liable in the event that the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted in accordance with the date on which a security interest was registered.
The caveat can be described as a formal document that is filed to offer the public notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan of $250K or more, we may offer an initial pre-approval that will help ease the process. It is possible to make this decision without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes you answering some financial health checks. It is not an offer or guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you might receive could be based on different terms.
Application process
Can I be eligible for funding?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a few minutes and a dedicated company expert in lending will be in touch to help you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour if you make your application at standard business timings and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can provide an answer within just 1 business day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The fastest way is to make sure you apply during normal business hours and permit us to use the advance bank verification link to confirm your bank details online. If you upload copies of your bank statement, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within one hour – as long as you make your application within normal business hours and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements, we are able to offer an answer within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be in a position to provide the conditional pre-approval in about six hours. Once you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Some transactions have received approval in less than 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours, and let us use the sophisticated bank verification link to instantly check your bank’s information online. If you decide to send us documents from your account accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of variables for determining how much we can lend you health for your business and the level of repayments your company can afford. The amount you receive from your loan will be contingent on the particular circumstances the company.
When you submit an application for a specific amount we look at a range of variables to assess the health for your business and the amount of repayments your business will be able to support. The amount you receive from your loan will depend on the particular circumstances the business.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for business loans with us company loan, we will assess the risk profile the company and provide you with a tailored offer, including the amount of the loan, the duration and the interest rates. A business loan is an upfront cost loan and you’ll be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
The interest rates on company loans rates depend on a variety of factors like the amount of money borrowed, what company assets the funds are used to purchase, the industry the company is operating in, how long the company is in operation as well as whether the business has sufficient cash flow to cover the loan, and also the overall well-being or financial standing of the business.
What are the charges?
There are no hidden fees for our business loans, and you’ll know exactly how much you be required to pay and when, from the first day. There’s no compounding interest and no extra fees (as as you make your payments in time).
We don’t charge an application fee. You can make an application for loans with without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay out the loan in advance?
You can choose to repay the total amount of your loan in full at any time.
If you decide to do this please call our helpful company lending experts. We will offer you with details for repayment along with an early payout estimate. This is calculated as the sum of the principal balance and the accrued interest up to the time of early payout in addition to 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To make sure you do not miss repayments and to fit in your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about how we collect, use, exchange and secure your information, is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system to instantly verify your bank account details online to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an company owner borrows from an asset that they own to make the loan. The asset may be an asset belonging to the personal, like the family home, or it could be a business asset like a truck as well as a piece of machine.
The vast majority of the lenders not just the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, then your asset may be sold by the lender. In essence, it’s means of securing new financing by using the value of what you already own.
Should I require security to get a business loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money but we do require a personal guarantee. So long as you comply with the terms of your loan (as specified in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150K generally, you are able to get personal guarantee and security in the form of charges on assets.