FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Ovingham Small Business Loans
Let me know about the Ovingham Small Business Loans
Ovingham unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
Apply for this 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 business loans have an annual rate of interest as well as other fees and charges. We offer a business loan is a cash-based loan so you will be aware in advance of the total amount due, which includes any fees, interest or charges. Then, it is broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business need, such as control of cash flow business remodels and marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Ovingham Business Loans
What is the Larger Ovingham Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been trading for at least 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funding for?
A larger business loan can be used for almost any company reason, such as business improvements, purchasing inventory or new equipment, 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 to access funding over $150,000. This is as a result of an charge against assets, which could also include registration through the PPSR or filing as a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is generally based rather than stating the security for a particular asset. The person who is signing the guarantee is personally liable in the event that the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR allows prioritisation over property that is personal to be granted depending on the date that a registration of a security interest.
The caveat can be described as a formal form of document to provide the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000, we may offer an initial pre-approval to ease the process. It is possible to apply for this without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial health checks. It is in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you are offered could be on different terms.
Application process
Can I be eligible for funding?
You may be eligible for an business 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 demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a few minutes and a dedicated company credit specialist will call you to guide you through the process.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent twelve month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year as well as Aged Payables and Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour, provided you submit your request within standard company time and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements , we are able to offer a decision in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be able to offer you with conditional pre-approval within 6 hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved in just 24 hours.
The quickest method would be to make sure you apply during standard business hours, and allow us to use the advanced bank verification system to instantly verify your bank account information online. If you opt to send us duplicates of your banking statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour – as long as you submit your request in standard business hours and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements we can offer the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we could be able to offer the conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain transactions have received approval in 24 hours.
The most efficient method is to make sure you apply during normal business hours and permit us to use the advanced bank verification system link to confirm your bank details online. If you decide to upload the copies of bank accounts, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a certain amount we will consider a number of aspects in order to assess the well-being that is your business and the amount of payments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances of your company.
When you apply for a certain amount, we look at a range of aspects to assess how much we can lend you such as well-being that is your company and the extent of payments your company will be able to support. The total amount of the loan will be determined by the particular circumstances the business.
Fees & repayments
What is the cost for a company loan?
When you make an application for business loans with us company loan, we will assess the risk assessment of your business and offer you with a customised offer, including loan amount, term and interest rates. A business loan is an upfront cost loan which means you be aware of the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I pay?
The interest rates on business loans rates depend on several factors like the amount of money that is borrowed, what company assets the money will be used for in addition to the industry that the company operates in, the long the company has been in operation and in the event that the company has enough cash flow to pay for the loan, as well as the general well-being and creditworthiness of the company.
What are the fees?
There are no hidden costs with our business loans. You’ll know exactly how much you’ll be required to pay and when, right from the very first day. There’s not any compounding interest and no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You can make an application for loans with with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of your loan at any point in time.
If you are deciding to do this please contact our helpful business lending experts. They’ll provide you with details for repayment along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the date of early payout, plus 1.5% of the remaining principal and any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss repayments and to fit in your cash flow schedule, we provide repayments either weekly or daily. These are automatically withdrawn from your business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We use an advanced banking verification system to instantly 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 a business owner borrows from the assets they have to secure the funds for a loan. The asset can be an individual property, such as the family home or it could be a company asset such as a vehicle or piece of equipment.
The vast majority of the lenders even the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then your asset may be taken over by the lender. In essence it is means of securing new financing using the value of what you already have.
What do I require security to get an business loan?
For loans up to $150K no asset security is required in advance to gain access to the funds However, we require a personal guarantee. require a personal guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract) the security of assets is not needed. For loans of over $150K generally, there is a personal guarantee and security in the form charges on assets.