FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Opaheke Small Business Loans
Tell me more about Opaheke Small Business Loans
Opaheke unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from an traditional company loan?
You can apply for the Small Business Loan in under 10 minutes by phone. You will receive a same day response and the funds could be available in just 24 hours. Traditional company loans refer to an annual interest rate along with other charges and fees. We offer a company loan is a loan that is priced upfront which means you know ahead of time the amount you will have to pay, including any interest, fees or charges. Then, it is divided into weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business reason, such as cash flow management, business improvements, advertising to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used for personal use.
About larger Opaheke Business Loans
What is the Larger Opaheke Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to be trading for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost every business use, including company renovations, to purchase inventory or new equipment or as 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 for accessing funds over $150,000. This is in the form of a charge on assets and can include registering this through the PPSR or making a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally in nature rather than stipulating the security for a particular asset. The person who is signing the guarantee is personally liable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR permits priority over personal property to be granted according to the date a security interest that is registered.
The caveat can be described as a formal document lodged to offer notice of a legal claim to property.
What is a pre-approval without Credit Check?
When you’re applying for larger company loans that is greater than $250,000 we can offer an initial pre-approval to smooth out the process. We could be able to make this decision without a credit verification 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 questions. This is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You may apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a couple minutes, and a dedicated business expert in lending will be in touch to guide you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within an hour – as long as you apply at standard company times and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements , we will be able to offer the decision within just one company day.
For the Larger Business Loan ($100K and up) we could be likely to offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard company hours and permit us to use the modern bank verification link to instantly check your bank’s information online. If you upload documents from your account accounts, it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) We can usually provide an answer within one hour – provided you make your application within standard business hours and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statements we can offer a decision in just one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be in a position to provide the conditional pre-approval within 6 hours. Once you’ve signed your 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. Some agreements have been approved within just 24 hours.
The fastest way would be to make sure you apply during normal business hours, and allow us to use our modern bank verification link to verify your bank information online. If you choose to upload duplicates of your banking accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a certain amount, we will consider a number of factors for determining what is the well-being that is your business and the extent of repayments your business will be able to support. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
When you make an application for a particular amount, we take into consideration a variety of elements to assess the well-being that is your business and the amount of repayments your company can support. The amount you receive from your loan will depend on the specifics that are unique to your business.
Fees & repayments
How do you charge for a business loan?
When you apply for our business credit, we will assess the risk assessment the company and provide an individualised offer including the amount of loan, the term and the interest rates. The company loan is an upfront priced loan which means you know in advance the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I’m charged?
Business loan interest rates depend on a variety of factors like the amount of money of money borrowed, the business assets the funds are used to purchase as well as the field the company is in, how long the company is in operation, whether the business has enough cash flow to fund the loan, and also the general health and creditworthiness of the business.
What are the charges?
There are no hidden costs for our business loans. You’ll know precisely what you’ll need to pay, and when, from the very first day. There’s not any compounding interest and there are no additional charges (as long as you are able to 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 obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan early?
You may choose to pay back the total amount of your loan at any point in time.
If you decide to take this route, please talk to one of our helpful business credit specialists. The experts will provide you with details for repayment and an early payment figure. It will be calculated using the total of the remaining principal amount and the accrued interest up to the date of early payout and 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To help you avoid missing repayments and to fit in your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
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 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 secure your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to customer security and privacy. We use an advanced bank verification system that allows you to immediately verify your bank account details online so we can provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where the company owner borrows from assets they own to secure a loan. The asset may be an asset belonging to the personal, like the family home or a company property like a truck or other piece of machinery.
The majority of lending institutions, not just the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan, your asset may be taken over by the lender. In essence it is means of securing new financing using the worth of the asset you already own.
What do I require security to secure a company loan?
For loans up to $150K the requirement for asset security is not required in advance to gain access to the funds but we require a personal guarantee. require the personal guarantee. So long as you comply with your loan obligations (as specified in your loan contract), asset security will never be needed. For loans that exceed $150,000, typically, you will need a personal ensure and security that is in the form charges on assets.