FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Outer Harbor Small Business Loans
Let me know about the Outer Harbor Small Business Loans
Outer Harbor unsecured loans provides amounts of 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 this Unsecured Loan different from an ordinary business loan?
The application for your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and have the funds in your account in 24 hours. Traditional business loans reference an interest rate per annum along with other charges and fees. This company loan is a loan that is priced upfront which means you be aware of 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 the Small Business Loan be used for?
A Small Business Loan can be used for almost any company reason, such as cash flow management, business improvements, advertising, to purchase inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About the Larger Outer Harbor Business Loans
What is the Larger Outer Harbor Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be used for?
A large company loan is a great option for almost every company reason, such as business renovations, to purchase new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It is usually by taking a charge against assets and can include registration on the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally in nature rather than specifying security over an asset. The person who signs the ensure is personally responsible if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR allows priority over personal property to be assigned depending on the date that a security interest has been registered.
Caveats are legal document filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger business loans of more than $250,000 it is possible to offer a preliminary pre-approval to help simplify the process. We might be able to get this done without credit checks and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial health questions. This is in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer that you receive could have different conditions.
Application process
Are I eligible for funding?
You can 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 business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (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 an experienced company loan specialist will call you to help you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent, 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables summaries.
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 you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statement, we’ll offer a decision within the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to offer the conditional pre-approval within six 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 on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you decide to upload duplicates of your banking statements it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour – as long as you make your application at normal business time and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statements, we are able to provide the decision within 1 business day.
For Larger Business Loans ($100K and up) we may be able to provide you with conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Some transactions have received approval within just 24 hours.
The quickest method is to make sure you apply during normal business hours and allow us to use the modern bank verification link to confirm your bank details online. If you decide to send us the copies of bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount we consider a variety of variables in order to assess how much we can lend you well-being of your business and the level of repayments that your company is able to afford. The amount you receive from your loan will depend on the particular circumstances the business.
When you apply for a set amount, we take into consideration a variety of aspects to determine how much we can lend you such as well-being that is your company and the extent of repayments that your company is able to afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How much do you charge for an business loan?
If you decide to request one of our business financing, we will assess the risk assessment of your business and provide you with a tailored offer including the loan amount, the terms and the interest rates. A company loan is an upfront cost loan so you will be aware in advance of the total amount payable including any costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates differ based on various factors including the amount that is borrowed, what company assets the funds are used to purchase as well as the field the company operates in, the long the company is in operation for, in the event that the company has sufficient cash flow to pay for the loan, and also the general health or creditworthiness of the company.
What are the cost?
There are no hidden fees for our business loans. You’ll know precisely how much it is that you need to pay, and at what time, from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You can request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated 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 loan.
Can I repay the loan earlier?
You can choose to repay the entire amount of your advance loan at any time.
If you choose to do this please speak to our friendly business credit experts. The experts will offer you with repayment details along with an early payout estimate. It will be calculated using the sum of the principal amount remaining and any accrued interest at the date of early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align with your cash flow general, we offer repayments either daily or weekly. They will be automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about the ways we gather data, process, exchange and protect your information, is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We utilise a sophisticated bank verification system to instantly verify the bank account details online, allowing us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses an asset they own to secure a loan. The asset can be either an individual property, such as the family home, or an business asset such as a truck or other piece of machinery.
The vast majority of banks, not just the largest banks, are inclined to make loans secured by an asset. If you’re having trouble paying back the loan, then the asset could be offered for sale by the lender. In essence, it’s means of securing new financing taking advantage of the value of what you already have.
Are I need security to get an company loan?
For loans up to $150K it is not necessary to secure assets before you are able to access the money However, we do need the personal guarantee. As long as you follow the terms of your loan (as stated in your loan contract document) the security of assets is not required. For loans that exceed $150K, generally, you are able to get an individual guarantee and security that is in the form the charge of assets.