FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Oyster Bay Small Business Loans
Tell me how you are able to avail the Oyster Bay Small Business Loans
Oyster Bay unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an traditional company loan?
The application to get the Small Business Loan in under 10 minutes by phone. You will receive an instant response and have the funds available in just 24 hours. Traditional company loans have an interest rate per annum as well as other fees and charges. We offer a company loan is a loan that is priced upfront which means you be aware of the amount you will have to pay, including any fees, charges or charges. Then, it is divided into a daily or weekly installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company need, such as control of cash flow business improvements, advertising to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Oyster Bay Business Loans
What is the Larger Oyster Bay Business Loan?
The Larger Business Loan is a larger loan size to support business expansion 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 to work with the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percentage 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 be trading for at least 3 years with an annual turnover of $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 of proving at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan is a great option for almost any business purpose including company renovations, to purchase equipment or inventory for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually by taking a charge on assets and can include registration with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature, rather than specifying the security of a specific asset. The person who signs the guarantee is personally accountable if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
A caveat is a legal document lodged to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan that is greater than $250K we may be able to provide an initial pre-approval in order to make the process. We might be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being questions. It is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you receive could be based on different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply 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 demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and a dedicated business expert in lending will call you to help you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit approval, 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 and 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually offer an answer within an hour, provided you apply at standard business hours and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll provide the decision in as little as one business day.
If you are applying for a Larger Business Loan ($100K or more) we might be likely to provide you with conditional pre-approval within 6 hours. After you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Some deals have been approved within the space of 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours. Also, allow us to use the advance bank verification link to instantly verify your bank information online. If you decide to upload documents from your account statement, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we typically provide a response in one hour if you submit your request within standard business times and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statements, we are able to offer the decision within an business day.
For the Larger Business Loans ($100K to $500K) we could be able to provide you with a conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain agreements have been approved within just 24 hours.
The fastest way is to make sure you apply during normal business hours. Also, allow us to use our advance bank verification to instantly check your bank’s information online. If you send us duplicates of your banking statement, it takes a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we take into consideration a range of aspects that determine how much we can lend you health of your company and the amount of repayments your business can afford. The amount you receive from the loan will be determined by the specific circumstances for your company.
When you make an application for a particular amount, we consider a variety of variables to assess the well-being that is your company as well as the amount of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances of your business.
Fees & repayments
What is the cost for an business loan?
When you apply for our company credit, we’ll assess the risk profile of your business and offer you with a customised offer, including the loan amount, the terms and the interest rates. It is a business loan is an upfront cost loan so you will be aware in advance of the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I pay?
The interest rates on business loans rates differ based on various variables like the amount to be of money borrowed, the business assets the funds will be used for and the sector the company operates in, how long the company has been operating and in the event that the business has sufficient cash flow to fund the loan, and the general health and creditworthiness of the business.
What are the charges?
There are no hidden costs for our business loans, and you’ll know precisely what you be required to pay and when, starting from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan early?
You can repay all of your loan early at any time.
If you do decide to take this route, please speak to our friendly company loans professionals. They will provide you with the details of your repayment and an early payout figure. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payout plus 1.5 percent of the principal balance and any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about how we collect, use, exchange and secure your information, is of huge importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our customers and security. We make use of an advanced banking verification system to instantly verify your bank account information online, allowing us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner borrows from an asset that they own to make the funding. The asset can be either a personal asset like the family home, or a business asset such as a vehicle or piece or equipment.
The majority of lending institutions, even the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan, then the asset could be transferred to the lender. In essence, it is means of securing new funding using the worth of the asset you already own.
Should I need security to secure a company loan?
For loans up to $150K no asset security is required upfront to access the money however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract), asset security is not needed. If you take out loans in excess of $150,000 generally, there is the option of a personal ensure and security in the form the charge of assets.