FAQ

How long will it take for my loan application to be approved?

We'll let you know in about an hour if you're buying from a dealer, or within 48 hours for commercial loans (once we have all the information we need)

What is the interest rate?

Interest rates vary depending on the amount borrowed and the credit history of the business. Interest rates can also be fixed or floating depending on how you would like your loan structured.

Can I change the amount of the loan after it is approved?

Yes - Just contact us at Smart money and we will take care of the adjustment.

What is the security for my business’s lending?

If the loan is for plant or equipment, the security will be the asset you’ve purchased, although we may ask for additional security or a guarantor, depending on our credit assessment of your business.

If the loan is for business expansion or acquisition, the security will be the assets of the business.

Can I or my business pay the loan off before the end of the term?

Yes, we can structure your loan so you can make lump sum repayments during the term without penalty. However if your loan is for business purposes and you pay off your loan in full before the end of the term, there is an early settlement fee.

Is there a minimum loan amount?

$5000.00 is the minimum loan amount.

How long can the loan be over ?

For chattel lending anywhere from 6 months to 72 Months and for Mortgages - up to 30 years.

What is a guarantor?

A guarantor is someone who agrees to pay the loan if the borrower doesn’t keep up the payments.

Is there a minimum age for applying for finance?

Yes under NZ law you have to be at least 18 years old to enter into a finance contract.

What if I have no credit history?

You may not need to have any previous credit history to get a loan with us; however, we may ask you to provide a suitable guarantor for your loan.

What if I have bad credit?

Apply for a loan with us and we’ll assess your application.

Why would I lease a car rather than own a car?

Leasing allows you to drive a car without paying out a lump sum to purchase, which means you have cash for other purposes. The low deposit, the tax advantages, and no risk on resale also make leasing an attractive option.

Does leasing a vehicle give me a tax benefit?

Depending on your individual or business circumstances, leasing a vehicle can provide considerable tax advantages. In most cases the lease payment will be fully tax deductible. Your accountant will be the best person to give you advice on this.

Can I lease a used vehicle?

Yes, but there may be limits on the term of the lease. Generally, only late model, low kilometre vehicles will be considered.

Is maintenance included in my lease payments?

With an operating lease, you can choose to include service costs and tyres, or you can have a non-maintained lease where you pay these costs yourself.

What's the difference between an operating lease and a finance lease?

At the start of a lease, the expected residual value is set (what the vehicle will be worth at the end of the lease). At the end of a lease the vehicle is usually sold, and this may be for more or less than the residual value.

With a finance lease, if the sale price is less than the residual value, the lessee pays the difference to the lease company. If the sale price is more than the residual value, the lease company refunds the difference.

Under an operating lease, the lease company takes any profit or loss on the sale and the lessee is not involved at all.

What is sale and lease back?

This is an option which allows you to inject cash into your business by selling your vehicle to a lease company and then leasing that vehicle back from the company.