FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Oaklands Junction Small Business Loans
Let me know more about Oaklands Junction Small Business Loans
Oaklands Junction unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from a traditional company loan?
Apply to this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and the money could be available in just 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. This company loan is a cash-based loan which means you be aware of the total amount payable including the interest, fees and charges. This is then broken down into either weekly or daily repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business use, including managing cash flows, business improvements, advertising for purchasing inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
About larger Oaklands Junction Business Loans
What is the Larger Oaklands Junction Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the business needs to be in operation for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost any business purpose including company renovations, purchase of new equipment or inventory, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s by way of charge on assets, and could be registered on the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally in nature rather than defining the security of a specific asset. The person who is signing the guarantee is personally responsible if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR allows preference over private property assigned according to the date the security interest has been registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan of $250,000 or more, we may offer an initial pre-approval in order to simplify the process. We could be able to do this without a credit verification 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. It’s in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer that you receive could be subject to different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in few minutes and an experienced company loan specialist will call you to help you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent and 12 months bank statement, an 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.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we can often provide a response in one hour – as long as you make your application at standard company timings and let us use the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements , we will be able to offer the decision in just an company day.
If you are applying for a Larger Business Loan ($100K or more) we might be able to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Some transactions have received approval within 24 hours.
The quickest method is to ensure you apply during normal company hours. You can also allow us to use our advanced bank verification system link to verify your bank account information online. If you decide to send us duplicates of your banking accounts, it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we can often provide an answer within one hour – as long as you apply within normal business hours and you allow us to use the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements we can offer an answer within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we could be likely to offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The fastest method would be to make sure you apply during normal business hours. Also, allow us to use our sophisticated bank verification to instantly verify your bank information online. If you choose to send us duplicates of your banking statements, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of elements that determine the health for your company and the amount of repayments that your company can support. The amount you receive from your loan will be contingent on the particular circumstances of your business.
If you apply for a particular amount, we look at a range of aspects to determine your well-being for your business and the level of repayments that your business will be able to support. The total amount of your loan will be determined by the specific circumstances the business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for business loans with us company credit, we will assess the risk profile that you have for your business and offer you with a customised offer, including the loan amount, the terms and the interest rates. The business loan is an upfront priced loan therefore you will be aware of the total amount payable including any charges, interest rates or fees.
What determines the amount I will be charged?
The interest rates on business loans rates vary due to factors such as the amount that is that is borrowed, what company assets the money are used to purchase in addition to the industry that the business is operating in, how long the company has been operating and how long the business has sufficient cash flow to pay for the loan, and overall well-being and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our company loans. You’ll know precisely what it is that you be required to pay, and at what time, from the first day. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can apply for a loan no cost upfront or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the total amount of your loan in full at any time.
If you choose to pursue this option, please speak to our friendly company loans specialists. We will provide you with details on repayment along with an early payout estimate. This is calculated as the total of the principal balance and accrued interest to the date of early payout and 1.5% of the principal remaining plus any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about the ways we gather, use, exchange and protect your information, is of huge importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced bank verification system that allows you to instantly verify your bank account details online, allowing us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner borrows from assets they own to secure the loan. The asset can be an asset belonging to the personal, like the family home, or a business asset like a truck or piece of equipment.
The vast majority of the lenders not just the largest banks, are inclined to make loans secured by an asset. If you’re struggling to pay back the loan then the asset might be transferred to the lender. In essence, it is an opportunity to secure new financing taking advantage of the value of what you already own.
Are I require security to get an business loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. need a personal guarantee. As long as you follow your loan commitments (as detailed in your loan contract) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150K typically, you will need the option of a personal guarantee and security that is in the form the charge of assets.