FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The One Tree Hill Small Business Loans
Let me know about the One Tree Hill Small Business Loans
One Tree Hill unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
You can apply to your Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and funds may be available in just 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. The business loan is a loan that is priced upfront which means you know ahead of time the total amount to be paid, including the interest, fees and charges. This is then divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company need, such as cash flow management, business improvements, advertising, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger One Tree Hill Business Loans
What is the Larger One Tree Hill Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be in operation for at least 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A larger company loan can be used for nearly every business need, including business improvements, purchasing new equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. This can be done as a result of an charge against assets, and could include registering this on the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally based rather than specifying security over an asset. The person who is signing the guarantee is personally liable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be granted according to the date the security interest that is registered.
Caveats are legal document that is filed to provide the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger company loans that exceeds $250K we may be able to provide an initial pre-approval in order to simplify the process. It is possible to get this done without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes you answering some financial well-being checks. This is neither an offer nor a guarantee of funds. A conditional approval is subject 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 apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form in few minutes and an experienced company loan specialist will be in touch to help you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we can often offer a response in one hour, provided you submit your request within quality business times and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can provide the decision within 1 business day.
For the Larger Business Loan ($100K or more) we may be able to offer you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method can be ensure you apply during normal business hours. Also, allow us to use the modern bank verification to instantly verify your bank account information online. If you choose to upload copies of your bank statement, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour if you submit your request within standard business hours and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statement, we’ll provide a decision in as little as one business day.
For Larger Business Loans ($100K to $500K) we might be in a position to provide the conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Certain deals have been approved within 24 hours.
The quickest method is to ensure you apply during standard business hours. You can also allow us to use the advanced bank verification system link to instantly confirm your bank details online. If you upload the copies of bank statement, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of elements to determine what is the health for your business and the amount of the repayments your business can support. The total amount of your loan will be contingent on the specifics of your company.
When you submit an application for a particular amount, we consider a variety of variables to assess the health of the business as well as the amount of payments your business is able to afford. The total amount of your loan will be contingent on the particulars of your company.
Fees & repayments
How do you charge for a company loan?
If you decide to request business loans with us company financing, we will assess the risk assessment the company and offer you with a tailored offer, including the loan amount, the terms and interest rates. It is a company loan is an upfront cost loan and you’ll know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
Interest rates for company loans rates vary due to factors such as the amount that is that is borrowed, what company assets the money will be used for and the sector the company is in, how long the company is in operation as well as whether the business has sufficient cash flow to pay for the loan, and also the overall health as well as creditworthiness business.
What are the fees?
There are no hidden costs with our business loans, and you’ll know exactly how much it is that you be required to pay, and at what time, from the first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan earlier?
You can decide to repay all of your loan in full at any time.
If you choose to pursue this option, please talk to one of our helpful company credit specialists. The experts will provide you with details on repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payment plus 1.5 percent of the principal amount remaining and any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work with your cash flow general, we offer repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing the ways we gather the information we collect, use, share and ensure the security of your information is crucial and a vital part of our relationship 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 certified for our commitment to customer security and security. We utilise a sophisticated bank verification system to immediately verify the bank account details online to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner utilises an asset that they own to get the funds for a loan. The asset can be an individual asset, such as the family home, or an company property like a truck or piece or equipment.
The vast majority of the lenders even the major banks, prefer to secure loans against an asset. If you’re having trouble paying back the loan then your assets could be sold by the lender. In essence it is a way of securing additional financing using the worth of the asset you already have.
Do I require security for a business loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access However, we do need an individual guarantee. In the event that you fulfill your loan commitments (as stipulated in the loan contract) Asset security is not required. If you take out loans in excess of $150K typically, you will need personal ensure and security that is in the form an asset charge.