FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the One Tree Hill Small Business Loans
Tell me about the One Tree Hill Small Business Loans
One Tree Hill unsecured loans provides the range of $5,000 to $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 the Unsecured Loan different from a traditional company loan?
Apply to your Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and funds may be available in just 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. This business loan is an upfront priced loan therefore you’ll be aware of the total amount to be paid, including any fees, charges or charges. This is then divided into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company use, including control of cash flow business remodels and marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About the Larger One Tree Hill Business Loans
What is the Larger One Tree Hill Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to be trading for at least 3 years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be used for?
A Business Loan of a larger size can be used to fund almost all business use, including business renovations, purchase of equipment or inventory for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This can be done by way of charge on assets, which could also include registering this with the PPSR or filing as a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is generally in nature rather than defining security over a particular asset. The person who is signing the ensure is personally accountable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR allows preference over private property assigned according to the date a registration of a security interest.
The caveat can be described as a formal form of document to offer the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250K we may be able to provide an initial pre-approval that will help smooth out the process. We may be able to make this decision without credit checks and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial well-being checks. It is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you might receive could be on different conditions.
Are I eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in few minutes and a dedicated business loan specialist will call you to guide you through the process.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually offer an answer in just one hour, provided you make your application during quality business timings and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements , we are able to offer an answer within 1 business day.
For the Larger Business Loan ($100K or more) we could be capable of provide you with a conditional pre-approval within 6 hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however this can be quicker based on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method can be ensure you apply during standard business hours. You can also let us use the modern bank verification to instantly verify your bank account information online. If you opt to upload copies of your bank statement, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide a response in one hour – as long as you submit your request in standard business timings and let us use the bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements, we’ll be able to provide the decision in just the span of one business day.
For Larger Business Loans ($100K and up) we could be able to offer you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain deals have been approved within just 24 hours.
The quickest method would be to make sure you apply during standard business hours and allow us to use the modern bank verification to instantly verify your bank information online. If you upload duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of factors in order to assess the well-being of your business and the amount of repayments that your business can support. The total amount of your loan will be contingent on the specifics the business.
If you apply for a certain amount, we look at a range of elements to determine how much we can lend you such as well-being that is your business and the amount of payments your business is able to afford. The amount you receive from your loan will depend on the particulars that are unique to your business.
Fees & repayments
How much do you charge for a company loan?
When you apply for the company credit, we will assess the risk assessment that you have for your company and provide an individualised offer that includes loan amount, term and the interest rates. The company loan is a loan that is priced upfront therefore you will be aware of the total amount to be paid, including any charges or interest.
What is the factor that determines the price I pay?
Interest rates for business loans rates vary due to factors including the amount of money borrowed, the company assets the funds are used to purchase and the sector the company operates in, the long the company has been running and how long the business has sufficient cash flow to support the loan, and general well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden charges for our company loans, and you’ll know exactly how much you’ll need to pay, and at what time, from the first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can get a cash loan with no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan earlier?
You can repay the total amount of your loan at any point in time.
If you are deciding to take this route, please contact our helpful business loans professionals. The professionals will provide you with details on repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of early payment, plus 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss repayments and to fit in with your cash flow general, we provide repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being transparent about how we collect data, process, exchange and secure your information, is of paramount importance and a vital part 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 personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We utilise a sophisticated bank verification system that allows you to immediately verify the bank account details online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner uses an asset that they own to secure the loan. The asset could be a personal asset like the family home or a company asset like a truck or piece or equipment.
The majority of lenders, including the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan, your asset may be sold by the lender. In essence it’s a way of securing new financing using the worth of the asset you already own.
Should I need security to secure a business loan?
For loans that exceed $150K, there is no requirement for asset security in advance to gain access to the funds however, we do require the personal guarantee. In the event that you fulfill the loan terms (as specified in the loan contract) Asset security will never be needed. For loans over $150,000 generally, there is the option of a personal ensure and security in the form of charges on assets.