FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Orakei Small Business Loans
Tell me how you are able to avail the Orakei Small Business Loans
Orakei unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
The application to get your Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and have the funds on your account within 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. The business loan is a pre-paid loan and you’ll know in advance the total amount due, which includes any interest, fees or charges. This is then broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company reason, such as control of cash flow business remodeling, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
About Larger Orakei Business Loans
What is the Larger Orakei Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to have been in operation for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funds for?
A larger business loan can be used for almost every business purpose including company remodeling, buying inventory or new equipment for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually by way of charge against assets, which could also include the registration of this in the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally in nature rather than specifying security over a particular asset. The person who signs the guarantee is personally responsible if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including goods or assets). The PPSR gives preference over private property assigned according to the date a security interest was registered.
The caveat can be described as a formal form of document to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger company loans that is greater than $250,000 we can offer an initial pre-approval to smooth out the process. We might be able to do this without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being questions. This is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you are offered could have different terms.
Do I have the right to receive funds?
You can apply for an business 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’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in few minutes and an experienced company expert in lending will contact you to help you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent twelve month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically provide an answer in just one hour, provided you submit your request in standard company times and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statement, we’ll provide a decision in as little as 1 business day.
For the Larger Business Loan ($100K or more) we could be in a position to provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The most effective method can be ensure you apply during normal business hours, and let us use the modern bank verification to verify your bank information online. If you opt to upload copies of your bank statement, it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we can often offer an answer in just one hour if you make your application at normal business hours and let us make use of the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statement, we’ll offer an answer in just an business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some agreements have been approved in 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, allow us to use our advance bank verification to instantly verify your bank account information online. If you send us duplicates of your banking statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount, we look at a variety of variables in order to assess the health for your business as well as the amount of the repayments your company can support. The amount you receive from your loan will depend on the specific circumstances for your business.
When you submit an application for a specific amount we consider a variety of aspects to determine how much we can lend you such as health of your business and the extent of repayments that your company is able to afford. The amount you receive from your loan will depend on the specifics that are unique to your company.
Fees & repayments
How do you charge for a business loan?
When you apply for business loans with us business loan, we will assess the risk assessment for your company and provide an individualised offer that includes loan amount, term and the interest rates. This company loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any charges, interest rates or fees.
What determines the rate that I am charged?
The interest rates on business loans rates vary due to factors like the amount of money of money borrowed, the business assets the money will be used for in addition to the industry that the company is in, how long the business has been operating as well as how long the business has enough cash flow to cover the loan, and also the general well-being and creditworthiness of the company.
What are the cost?
There are no hidden fees for our business loans. You’ll know precisely what you’ll need to pay and at what time, from the very first day. There’s no compounding interest and there are no additional charges (as long as you make your payments on time).
We don’t charge an Application Fee. You can request a credit loan with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay off the loan early?
You can repay all of your advance loan at any time.
If you are deciding to take this route, please call our helpful company loans specialists. They’ll provide you with the details of your repayment and an early payout figure. This is calculated as the total of the remaining principal amount and any accrued interest at the time of early payout and 1.5 percent of the remaining principal and any outstanding fees.
How do repayments work?
To help you avoid missing repayments and to fit in your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about how we collect information, use it, and exchange it, as well as 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 standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to customer security and security. We use an advanced bank verification system to immediately verify your bank account details online, allowing us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner makes use of the assets they have to obtain the loan. The asset can be a personal asset like the family home, or it could be a business asset such as a vehicle or piece of equipment.
The vast majority of the lenders even the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan then the asset could be offered for sale by the lender. In essence, it’s a way of securing new financing by making use of the value of what you already have.
Do I require security for an company loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. need a personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document) the security of assets will never be required. If you take out loans in excess of $150K generally, there is personal guarantee and security in the form of a charge over assets.