FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Opaheke Small Business Loans
Tell me how you are able to avail the Opaheke Small Business Loans
Opaheke unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from an ordinary business loan?
Apply to your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and have the funds in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. We offer a company loan is an upfront priced loan which means you be aware in advance of the amount you will have to pay, including any interest, fees or charges. This is then divided into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business purpose including managing cash flows, company renovations, marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
Concerning Larger Opaheke Business Loans
What is the Larger Opaheke Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be trading for at least 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be utilised?
A larger business loan can be used for almost every business purpose including company remodeling, buying inventory or new equipment as well as 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 needed for accessing funds over $150,000. It’s as a result of an charge on assets, and could include registration through the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally in nature rather than specifying the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
Caveats are legal document lodged to provide the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000, we may offer an initial pre-approval to ease the process. It is possible to get this done without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health questions. This is not an offer or guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be subject to different conditions.
Application process
Are I eligible for funding?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the 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. Simply complete the online form in just a few minutes, and an experienced business lending specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer in just one hour if you make your application within quality business timings and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements , we are able to provide the decision within just the span of one company day.
For Larger Business Loans ($100K or more) we may be capable of offer you with pre-approval conditional to your application in around six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The most efficient method is to make sure you apply during normal business hours. You can also allow us to use the modern bank verification to confirm your bank details online. If you opt to send us copies of your bank statements , it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually provide an answer in just one hour, provided you submit your request at normal business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements we can offer an answer in just 1 business day.
For Larger Business Loans ($100K to $500K) We may be in a position to offer you with a conditional pre-approval within six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this can be faster depending on the circumstances of each application. Certain transactions have received approval in just 24 hours.
The most effective method would be to ensure you apply during standard business hours. Also, let us use the modern bank verification to check your bank’s information online. If you upload copies of your bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount, we consider a variety of elements to determine the health of the business and the amount of payments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances for your business.
When you apply for a set amount, we take into consideration a variety of factors to assess the well-being that is your company and the level of repayments that your company can support. The total amount of your loan will be contingent on the particular circumstances for your company.
Fees & repayments
How do you charge for a company loan?
When you make an application for business loans with us company financing, we’ll assess the risk assessment of your company and offer an individualised offer, including the amount of the loan, the duration and interest rates. This company loan is an upfront cost loan and you’ll be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I’m charged?
Interest rates for company loans rates depend on a variety of factors including the amount that is borrowed, what company assets the money are used to purchase and the sector the business is operating in, how long the company has been operating as well as how long the business has enough cash flow to cover the loan, and general health as well as creditworthiness company.
What are the costs?
There are no hidden fees with our business loans, and you’ll be aware of the amount you’ll be required to pay and at what time, from the day you sign up. There’s no compounding and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of your loan at any point in time.
If you are deciding to take this route, please talk to one of our helpful company loan specialists. They’ll provide you with the details of your repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payment plus 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To ensure that you don’t miss payments and to work with your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being transparent about the ways we gather data, process, exchange and secure your information, is vital and a vital 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 sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We use an advanced bank verification system link to immediately verify your bank account information online so we can offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner uses the assets they have to obtain the funding. The asset can be either an individual asset, such as the family home, or it could be a business asset such as a truck or piece or equipment.
The majority of banks, not just the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan then your asset may be transferred to the lender. In essence it’s an opportunity to secure new funding taking advantage of the value of what you already own.
What do I need security for a company loan?
For loans that exceed $150K, there is no requirement for asset security before you can access the money However, we do require a personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract) and you are able to meet your obligations, asset security is not required. For loans that exceed $150K, typically, you will need an individual guarantee and security in the form a charge over assets.