FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Opaheke Small Business Loans
Let me know what you think of the Opaheke Small Business Loans
Opaheke unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
You can apply for the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and the money could be on your account within 24 hours. Traditional business loans reference an interest rate per annum along with other charges and fees. Our company loan is a loan that is priced upfront which means you know ahead of time the total amount payable including the interest, fees and charges. This is then broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company use, including managing cash flows, company improvements, advertising for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal purposes.
About Larger Opaheke Business Loans
What is the Larger Opaheke Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to have been in operation for at least 3 years, and have an annual income of at least $700,000. It is necessary to be 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 demonstrate at minimum 12 months of business.
What can I use the funding for?
A Business Loan of a larger size is a great option for almost every business need, including business improvements, purchasing inventory or new equipment for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It’s by taking a charge on assets, which could also be registered in the PPSR or making a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature, rather than stating the security of a specific asset. The person who signs the guarantee is personally liable in the event that the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be granted depending on the date that a security interest was registered.
Caveats are legal document lodged to offer notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger company loans of $250,000 or more, we may offer a preliminary pre-approval to help smooth out the process. We may be able to do this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial well-being checks. It’s not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer that you may receive may be subject to different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the 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 simple and easy. Just fill out the online application within a few minutes and an experienced company lending specialist will contact you to guide you through the process.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Information on the application including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer in just one hour, provided you apply at quality company time and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statement, we’ll provide an answer in as little as the span of one company day.
For the Larger Business Loan ($100K to $500K) we may be likely to offer you with a conditional pre-approval within about six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Certain deals have been approved in 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours and allow us to use the advance bank verification to confirm your bank details online. If you opt to upload the copies of bank statements it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer in just one hour – as long as you submit your request during normal business timings and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statements, we are able to provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be capable of provide you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be faster depending on the particular circumstances of each application. Some deals have been approved in 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 advance bank verification link to check your bank’s information online. If you opt to upload copies of your bank statements, it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of variables that determine what is the health of your company and the level of payments your business is able to afford. The total amount of your loan will be contingent on the specific circumstances for your business.
When you submit an application for a certain amount, we look at a range of elements to determine how much we can lend you such as well-being that is your company and the extent of the repayments your business can afford. The amount you receive from the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you request our business loans, we’ll assess the risk assessment the business and provide an individualised offer that includes the amount of loan, the term and the interest rates. This business loan is an upfront-priced loan so you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I will be charged?
Interest rates for business loans rates vary due to factors like the amount of money of money borrowed, the business assets the money will be used for, the industry the business operates in, how long the company is in operation for, how long the company has enough cash flow to pay for the loan, as well as the general health or financial standing of the company.
What are the charges?
There are no hidden fees with our company loans, and you’ll be aware of the amount it is that you need to pay and when, starting from the first day. There’s no compounding and there are no additional charges (as as you make your payments punctually).
We do not charge an Application Fee. You can apply for a loan with no cost upfront or commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan early?
You can decide to repay all of your loan in full at any time.
If you do decide to pursue this option, please call our helpful company credit specialists. They’ll offer you with repayment details as well as an early payout amount. It will be calculated using the sum of the principal balance and the accrued interest up to the date of early payout and 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To ensure you do not miss payment dates and to align your cash flow schedule, we provide payments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and protect your information, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We employ an exceptionally sophisticated bank verification system link to immediately verify your bank account information online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an company owner utilises an asset they own to secure the funds for a loan. The asset could be an individual asset, such as the family home or an company asset such as a truck as well as a piece of machine.
The vast majority of lenders, even the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan then the asset might be offered for sale by the lender. In essence it is an opportunity to secure new financing using the value of what you already have.
Are I need security for a company loan?
Up to $150K in loans no asset security is required before you can access the money, however we require a personal guarantee. require a personal guarantee. If you adhere to your loan commitments (as detailed in the loan contract) Asset security will never be needed. For loans that exceed $150K, generally, you are able to get an individual guarantee and security in the form an asset charge.