FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Oriental Bay Small Business Loans
Tell me what you think of the Oriental Bay Small Business Loans
Oriental Bay unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from an ordinary business loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and the money could be on your account within 24 hours. Traditional business 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 in advance the total amount payable including any fees, charges or charges. Then, it is broken down into either a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company reason, such as cash flow management, business remodels and marketing for purchasing inventory or new equipment, for 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 loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to be operating for a minimum of 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan is a great option for almost every business purpose including business renovations, to purchase equipment or inventory for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. It is usually by way of charge against assets, which could also be registered with the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature, rather than stating the security for a particular asset. The person signing the guarantee is personally liable in the event that the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including objects or assets). The PPSR allows priority over personal property to be granted according to the date a security interest has been registered.
Caveats are legal document that is filed to offer the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan of more than $250K we may be able to provide an initial pre-approval to ease the process. It is possible to apply for this without a credit check and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you are offered could be based on different conditions.
The application process
Can I be eligible for funding?
You may be eligible for a business 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)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $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 business loan specialist will call you to help you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License), a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within one hour, provided you apply at quality company times and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you choose to send us copies of your bank statements , we will be able to offer an answer within one business day.
If you are applying for a Larger Business Loan ($100K and up) we might be likely to offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be quicker based upon the circumstances for each application. Some offers have been approved in the space of 24 hours.
The quickest method for you to apply is make sure you apply during standard company hours and permit us to use the advanced bank verification system link to instantly confirm your bank details online. If you upload the copies of bank statements it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour – provided you make your application at normal business timings and permit us to use the bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements, we will be able to offer a decision within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we could be able to offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Certain agreements have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to confirm your bank details online. If you opt to upload copies of your bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a specific amount we take into consideration a range of aspects in order to assess the health of your business and the extent of repayments your business can support. The total amount of your loan will depend on the particular circumstances for your business.
When you make an application for a specific amount we will consider a number of aspects to determine your health for your company and the amount of payments your business can support. The amount you receive from the loan will be determined by the specifics of your company.
Fees & repayments
How much should you charge for a business loan?
When you apply for our company loan, we will assess the risk assessment that you have for your company and provide you with a customised offer that includes the amount of the loan, the duration and the interest rates. It is a company loan is an upfront priced loan which means you be aware of the total amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
The interest rates on company loans rates depend on a variety of factors like the amount of money borrowed, what business assets the money will be used for in addition to the industry that the business operates in, how long the business is in operation, what percentage of the company has sufficient cash flow to pay for the loan, and general well-being as well as creditworthiness business.
What are the costs?
There are no hidden costs for our business loans. You’ll know precisely what you’ll need to pay, and when, from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments punctually).
We don’t charge an Application Fee. You can request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan earlier?
You may choose to pay back all of your loan in full at any time.
If you decide to pursue this option, please talk to one of our helpful company credit experts. The professionals will provide you with repayment details as well as an early payout amount. The figure will be calculated as the total of the principal balance and accrued interest to the time of early payment and 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss repayments and to fit in your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear how we collect the information we collect, use, share and safeguard your data, is vital and is a crucial part 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 qualified for our commitment to security for our customers and privacy. We utilise a sophisticated banking verification system to immediately verify the bank account details online so we can provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a company owner borrows from assets they own to get the loan. The asset can be a personal asset like the family home, or a business asset such as a truck as well as a piece of machine.
The vast majority of lending institutions, not just the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, then your assets could be transferred to the lender. In essence, it’s a way of securing additional financing making use of the value of what you already have.
Do I need security to secure a company loan?
For loans up to $150,000 it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. require the personal guarantee. As long as you follow the loan terms (as stated in your loan contract document) Asset security will never be required. For loans over $150K generally, you are able to get the option of a personal guarantee and security is provided in the form of an asset charge.