FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Ovingham Small Business Loans
Tell me how you can avail the Ovingham Small Business Loans
Ovingham unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an ordinary company loan?
The application to get the Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and have the funds in your account within 24 hours. Traditional business loans are based on an annual interest rate together with additional fees and charges. This company loan is a cash-based loan which means you know ahead of time the total amount payable including any fees, charges or charges. This is then broken down into either a daily or weekly payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company reason, such as the management of cash flow, business remodels and marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About larger Ovingham Business Loans
What is the Larger Ovingham 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 that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost all business reason, such as business renovations, to purchase inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. It’s as a result of an charge over assets, which could also include the registration of this in the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally in nature rather than stipulating the security of a specific asset. The person who signs the ensure is personally accountable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal document filed to offer notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger company loans of $250K or more, we may offer a preliminary pre-approval to help smooth out the process. We might be able to apply for this without a credit check, and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial health questions. It is not an offer or guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer that you might receive could be on different terms.
Application process
Are I eligible for funding?
You may apply 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)
- can demonstrate at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and an experienced business expert in lending will call you to guide you through the process.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s License) and an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent as well as 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K and up) we usually provide a response in one hour if you apply at standard company time and allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer the decision within an company day.
If you are applying for a Larger Business Loan ($100K and up) we might be in a position to offer the conditional pre-approval in about 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. You can also allow us to use our modern bank verification link to instantly verify your bank account information online. If you upload documents from your account statements , it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour, provided you submit your request in normal business hours and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements, we are able to provide a decision within one business day.
For Larger Business Loans ($100K to $500K) we might be capable of provide the conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval in just 24 hours.
The quickest method is to make sure you apply during normal business hours. Also, let us use the sophisticated bank verification to instantly verify your bank account information online. If you upload the copies of bank statements, it takes 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 take into consideration a range of aspects that determine what is the well-being of your company and the level of repayments your business can afford. The total amount of your loan will be contingent on the particular circumstances of your company.
When you submit an application for a specific amount we will consider a number of variables to assess your health for your business and the amount of repayments your company can afford. The amount you receive from your loan will be contingent on the particulars that are unique to your company.
Fees & repayments
How much do you charge for a business loan?
When you request one of our business loan, we will assess the risk assessment of your company and provide you with a customised offer, including loan amount, term and the interest rates. A company loan is a loan that is priced upfront which means you be aware of the total amount due, which includes any charges or interest.
What is the factor that determines the price I will be charged?
Business loan interest rates depend on several factors including the amount that is borrowed, what business assets the funds are used to purchase as well as the field the business is operating in, how long the business has been running, what percentage of the business has sufficient cash flow to fund the loan, as well as the general health as well as creditworthiness business.
What are the costs?
There are no hidden costs with our company loans. You’ll be aware of the amount it is that you need to pay, and when, from the day you sign up. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can request a credit loan no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You may choose to pay back the total amount of your loan in full at any time.
If you do decide to do this please talk to one of our helpful business loan professionals. We will provide you with details on repayment along with an early payout estimate. It will be calculated using the total of the principal remaining and any accrued interest at the time of early payment, plus 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payment dates and to align with your cash flow routine, we provide payments that are either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about the ways we gather information, use it, and exchange it, as well as protect your information, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We make use of an advanced bank verification system that allows you to instantly verify the bank account details online, allowing us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner makes use of assets they own to obtain the loan. The asset can be an individual property, such as the family home, or a business property like a truck or piece or equipment.
The majority of the lenders not just the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, the asset could be transferred to the lender. In essence, it’s means of securing new funding using the value of what you already have.
What do I need security to secure a company loan?
For loans that exceed $150,000, no asset security is required upfront to access the money but we do require the personal guarantee. In the event that you fulfill your loan obligations (as specified in your loan contract) the security of assets is not required. If you take out loans in excess of $150,000 generally, you are able to get the option of a personal guarantee and security is provided in the form of charges on assets.