FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Smithfield Small Business Loans
Let me know more about Smithfield Small Business Loans
Smithfield unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an traditional business loan?
Apply to the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an instant response and have the funds available in just 24 hours. Traditional business loans are based on an annual rate of interest along with other charges and fees. The business loan is a cash-based loan and you’ll be aware of the total amount to be paid, including any interest, fees or charges. This is then divided into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business purpose including managing cash flows, company renovations, marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal purposes.
About larger Smithfield Business Loans
What is the Larger Smithfield Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to have been operating for a minimum of 3 years and have an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A large business loan can be used for nearly every business use, including business improvements, purchasing new equipment or inventory, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This is as a result of an charge over assets, and may include the registration of this with the PPSR or the registration of a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature rather than defining security over an asset. The person signing the guarantee is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR grants priority over personal property to be granted according to the date a security interest was registered.
Caveats are legal document lodged to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger company loans of more than $250K we can offer an initial pre-approval to make the process. We could be able to get this done without a credit check and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial health questions. This is neither an offer nor a guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer you are offered could be subject to different conditions.
The application process
Can I be eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Just complete the online application in just a few minutes, and an experienced business expert in lending will be in touch to guide you through the process.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent twelve months bank statement, an IRD statement Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically provide a response in one hour – as long as you submit your request within standard business times and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements we can provide a decision in just the span of one business day.
For Larger Business Loans ($100K to $500K) we may be likely to provide the conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Certain agreements have been approved in less than 24 hours.
The most effective method can be make sure you apply during normal company hours. Also, allow us to use the advance bank verification link to instantly verify your bank account information online. If you decide to send us 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 or more) We can usually offer an answer in just one hour if you apply at standard business times and let us use the bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements we can offer the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Certain agreements have been approved in less than 24 hours.
The quickest method can be ensure you apply during standard business hours and allow us to use our advance bank verification link to instantly verify your bank information online. If you choose to upload duplicates of your banking statements it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount, we look at a variety of aspects in order to assess your health that is your company and the amount of repayments that your company is able to afford. The amount you receive from your loan will depend on the specifics for your company.
When you submit an application for a particular amount, we will consider a number of elements to assess your well-being of your company as well as the amount of repayments that your business is able to afford. The total amount of your loan will be contingent on the particular circumstances of your business.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to make an application for business loans with us company loans, we’ll assess the risk profile of your business and provide an individualised proposal that includes the amount of the loan, the duration and the interest rates. It is a business loan is an upfront priced loan so you will be aware of the total amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
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 as well as the field the company operates in, how long the business has been in operation, how long the business has enough cash flow to fund the loan, as well as the overall well-being as well as creditworthiness business.
What are the fees?
There are no hidden fees for our business loans. You’ll know precisely what you need to pay and when, right from day one. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can apply for a loan with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with setting up 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% of the loan amount.
Can I pay off the loan in advance?
You can repay the total amount of your loan early at any time.
If you are deciding to do this please talk to one of our helpful company loans professionals. We will offer you with details on repayment as well as an early payout amount. This is calculated as the sum of the principal balance and the accrued interest up to the time of early payout plus 1.5% of the remaining principal 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 provide repayments either daily or weekly. They will be automatically deducted from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear how we collect information, use it, and exchange it, as well as safeguard your data, is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We use an advanced bank verification system to immediately verify the bank account details online, allowing us to offer 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 borrows from assets they own to obtain the funds for a loan. The asset may be an asset belonging to the personal, like the family home, or a company asset like a truck or other piece of machinery.
The vast majority of the lenders not just the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan, then the asset could be taken over by the lender. In essence, it’s a way of securing new financing using the worth of the asset you already have.
Should I require security for a company loan?
For loans of up to $150K, it is not necessary to secure assets before you are able to access the money however, we do need a personal guarantee. As long as you follow the loan terms (as specified in your loan contract document) the security of assets will never be needed. For loans of over $150,000 typically, you will need an individual guarantee and security in the form of a charge over assets.