FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the O'Halloran Hill Small Business Loans
Tell me how you can avail the O'Halloran Hill Small Business Loans
O'Halloran Hill unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an ordinary business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the funds could be on your account within 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. Our business loan is a cash-based loan and you’ll know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into weekly or daily payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company reason, such as the management of cash flow, company improvements, advertising to purchase inventory, new equipment, for general working capital, and much more. The loan is not available for personal use.
About Larger O'Halloran Hill Business Loans
What is the Larger O'Halloran Hill Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to have been trading for at least 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be used for?
A larger company loan can be used to fund almost any company use, including company renovations, to purchase inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It is usually by taking a charge on assets, and could include registration through the PPSR or the registration of a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature, rather than stipulating security over an asset. The person who is signing the guarantee is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
A caveat is a legal form of document to offer an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger company loans of more than $250K we can offer an initial pre-approval to simplify the process. We might be able to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial well-being checks. It’s not an offer or guarantee of funds. Acceptance without condition 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 have the right to receive funds?
You may be eligible for an 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)
- you must prove at least 6 months of trading (for for the 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. Simply complete the online form in just a few minutes, and a dedicated company lending specialist will be in touch to help you.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually provide an answer within one hour if you submit your request during quality company hours and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements , we are able to provide the decision in as little as 1 company day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide you with conditional pre-approval in about six hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Certain deals have been approved within 24 hours.
The fastest way would be to make sure you apply during standard company hours. Also, permit us to use the advanced bank verification system link to verify your bank account information online. If you choose to upload the copies of bank statements it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour – as long as you apply in standard business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to provide you with conditional pre-approval within 6 hours. Once you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval within less than 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours and permit us to use the sophisticated bank verification to check your bank’s information online. If you decide to upload copies of your bank statements it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount we look at a variety of variables to determine your well-being of the company and the extent of repayments that your business can support. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
If you apply for a specific amount we will consider a number of variables to determine the well-being for your company and the extent of repayments your company can support. The total amount of your loan will be contingent on the particulars that are unique to your business.
Fees & repayments
What is the cost for an business loan?
If you decide to apply for the company loans, we’ll assess the risk profile of your business and provide an individualised offer, including the amount of loan, the term and the interest rates. A company loan is an upfront-priced loan which means you be aware in advance of the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I’m charged?
Interest rates for business loans rates depend on several variables like the amount to be that is borrowed, what company assets the funds will be used for as well as the field the company operates in, the long the business is in operation and in the event that the company has sufficient cash flow to fund the loan, and also the general well-being or creditworthiness of the business.
What are the costs?
There are no hidden fees for our company loans. You’ll know precisely how much you be required to pay and at what time, from the day you sign up. There’s no compounding and the loan comes with no additional fees (as as you make your payments punctually).
We do not charge an Application Fee. You are able to get a cash loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the expenses involved 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.
Do I have the option of paying off the loan earlier?
You can decide to repay the total amount of your loan early at any time.
If you do decide to pursue this option, please speak to our friendly company lending professionals. They’ll provide you with details for repayment and an early payout figure. This will be calculated as the sum of the principal amount remaining plus any accrued interest as of the date of early payout plus 1.5% of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather the information we collect, use, share and secure 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 employ industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of clients and security. We employ a highly sophisticated bank verification system that allows you to immediately verify your bank account details online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner utilises an asset they own to make the loan. The asset could be an individual property, such as the family home, or a company asset such as a truck as well as a piece of machine.
The majority of lending institutions, including the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence it’s the process of securing new financing using the value of what you already have.
Should I need security to get an company loan?
For loans that exceed $150,000, it is not necessary to secure assets prior to the loan’s access however, we do need a personal guarantee. So long as you comply with the terms of your loan (as stated in the loan contract) the security of assets is not required. For loans of over $150K generally, you can get personal ensure and security that is in the form the charge of assets.