FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Orchard Hills Small Business Loans
Let me know what you think of the Orchard Hills Small Business Loans
Orchard Hills unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
Apply to get the Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and funds may be on your account within 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. Our business loan is a loan that is priced upfront and you’ll know in advance the amount you will have to pay, including any interest, fees or charges. This is then divided into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost every business reason, such as cash flow management, company remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available for personal reasons.
About larger Orchard Hills Business Loans
What is the Larger Orchard Hills Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been operating for at least three years with an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funds be used for?
A Business Loan of a larger size can be used for almost every company need, including company renovations, to purchase inventory or new equipment as well as 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 needed to access funding over $150,000. This can be done as a result of an charge over assets, which could also include registering this with the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally based rather than specifying the security for a particular asset. The person who is signing the ensure is personally responsible if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR allows the priority of personal property assigned according to the date the registration of a security interest.
The caveat can be described as a formal form of document to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250K we can offer an initial pre-approval to simplify the process. We could be able to apply for this without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial well-being questions. This is not an offer or guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you receive could be based on different terms.
The application process
Do I have the right to receive funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (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 within a few minutes and a dedicated company credit specialist will call you to assist you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 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, Aged Payables and Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we usually offer a response in one hour if you make your application during standard company hours and let us utilise the bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statements , we’ll be able to offer an answer in as little as the span of one company day.
For Larger Business Loans ($100K and up) we might be in a position to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the specifics of each application. Certain deals have been approved within less than 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours and let us use the modern bank verification link to instantly verify your bank information online. If you choose to send us copies of your bank accounts, it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide a response in one hour, provided you apply during standard business times and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements we can offer the decision within one business day.
For Larger Business Loans ($100K up to $500,000) we might be able to offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain offers have been approved in just 24 hours.
The most efficient method can be ensure you apply during normal business hours, and allow us to use the sophisticated bank verification link to instantly confirm your bank details online. If you decide to send us documents from your account accounts, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we take into consideration a range of factors in order to assess your health of the company and the extent of the repayments your company can support. The amount you receive from your loan will depend on the specifics of your company.
When you make an application for a set amount, we look at a range of factors to assess how much we can lend you such as well-being of your business and the extent of repayments that your company can afford. The total amount of your loan will be determined by the specific circumstances of your company.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to apply for business loans with us business financing, we will assess the risk assessment of your company and provide you with a customised offer including the loan amount, the terms and interest rates. It is a company loan is a loan that is priced upfront which means you know the exact amount due, which includes any interest rates, fees or charges.
What determines the rate that I am charged?
Business loan interest rates vary due to factors like the amount of money that is borrowed, what company assets the funds are used to purchase and the sector the company is in, how long the company has been in operation and how long the business has enough cash flow to pay for the loan, and also the general health and creditworthiness of the business.
What are the costs?
There are no hidden costs for our business loans, and you’ll be aware of the amount you be required to pay and when, from day one. There’s not any compounding interest and no additional fees (as long as you are able to make your payments in time).
We do not charge an Application Fee. You can make an application for loans with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan early?
You can repay the entire amount of the loan at any point in time.
If you are deciding to pursue this option, please talk to one of our helpful business credit experts. The specialists will provide you with details on repayment and an early payout figure. This will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payout plus 1.5 percent of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work your cash flow schedule, we provide repayments either weekly or daily. These are automatically withdrawn from your business account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear the ways we gather the information we collect, use, share and safeguard your data, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We make use of an advanced bank verification system that allows you to immediately confirm your bank account information online. This allows us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner borrows from the assets they have to make a loan. The asset could be a personal asset like the family home or it could be a business asset such as a vehicle or piece of equipment.
The vast majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan, the asset could be offered for sale by the lender. In essence it’s means of securing additional financing making use of the value of what you already have.
Are I require security to get an business loan?
Up to $150K in loans there is no requirement for asset security upfront to access the money, however we do require the personal guarantee. If you adhere to your loan obligations (as detailed in your loan contract) Asset security will never be required. If you take out loans in excess of $150K generally, there is a personal ensure and security that is in the form the charge of assets.