FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Oriental Bay Small Business Loans
Tell me what you think of the Oriental Bay Small Business Loans
Oriental Bay unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
It is possible to apply for the Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and the funds could be available in just 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. This company loan is a loan that is priced upfront which means you be aware in advance of the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any company reason, such as managing cash flows, company remodels and marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Oriental Bay Business Loans
What is the Larger Oriental Bay Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be operating for at least three years, and have an annual income of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost all company purpose including company renovations, purchase of new equipment or inventory, as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge against assets, and could be registered on the PPSR or registering a caveat.
A director’s or personal ensure is a promise to repay credit that is generally based rather than stating security over an asset. The person who is signing the guarantee is personally responsible if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR grants priority over personal property to be granted depending on the date that a registration of a security interest.
Caveats are legal document that is filed to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 it is possible to offer a preliminary pre-approval to help smooth out the process. We could be able to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial health questions. It’s not an offer of credit or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer you are offered could have different conditions.
Do I qualify for funds?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and an experienced business loan specialist will be in touch to guide you through the process.
To apply for up $100,000, you’ll require identification details (valid Driver’s License) along with an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we usually offer a response in one hour – as long as you make your application during quality company timings and you allow us to utilise the bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements , we are able to offer the decision within just an business day.
For the Larger Business Loan ($100K or more) we may be likely to offer you with conditional pre-approval within 6 hours. After you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal company hours. Also, allow us to use the advanced bank verification system to instantly check your bank’s information online. If you upload duplicates of your banking statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide a response in one hour – provided you make your application in normal business time and let us use the bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements, we are able to offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, let us use the advance bank verification link to instantly verify your bank information online. If you upload the copies of bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of aspects to determine what is the health that is your business as well as the amount of payments your business can afford. The total amount of your loan will be contingent on the specifics of your company.
When you make an application for a set amount, we take into consideration a variety of elements to assess the well-being that is your company and the extent of repayments that your business will be able to support. The total amount of your loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for a business loan?
When you apply for the business loan, we’ll assess the risk assessment of your company and provide you with a tailored offer including the amount of the loan, the duration and the interest rates. A company loan is an upfront cost loan therefore you will be aware of the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I am charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, what business assets the funds are used to purchase in addition to the industry that the business operates in, the long the company is in operation, in the event that the company has enough cash flow to pay for the loan, as well as the overall well-being as well as creditworthiness business.
What are the costs?
There are no hidden fees for our company loans, and you’ll be aware of the amount you’ll be required to pay, and when, right from the day you sign up. There’s no compounding interest and no additional fees (as long as you make your payments in time).
We do not charge an application fee. You are able to make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan earlier?
You can choose to repay all of your loan at any point in time.
If you are deciding to pursue this option, please contact our helpful business loans experts. They’ll provide you with repayment details and an early payout figure. This is calculated as the total of the principal remaining and accrued interest to the time of the early payout plus 1.5% of the principal remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we provide payments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We employ a highly sophisticated bank verification system that allows you to immediately confirm your bank account information online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner makes use of an asset that they own to get the loan. The asset could be an individual property, such as the family home, or it could be a business asset like a truck or piece or equipment.
The majority of lenders, not just the big banks, tend to make loans secured by assets. If you are having difficulty paying back the loan, then your asset may be sold by the lender. In essence it’s the process of securing new financing by making use of the value of what you already own.
Should I require security for a business loan?
For loans that exceed $150,000, it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. need a personal guarantee. In the event that you fulfill the loan terms (as stated in your loan contract document) Asset security is not required. For loans that exceed $150K, generally there is personal guarantee and security in the form of charges on assets.