The best business loans NZ will depend on your business situation and the type of business loan you require. If you are searching for the best business loan option for your business you will need to take several things into consideration to find the right lender.
What do you require the business loan for
Are you purchasing equipment, need extra cashflow, consolidating existing debts or in the startup stage? Every lender in New Zealand offer loans for different reasons so the best business loan option for you business will depend on what the reason for the loan is. Ask yourself why you need the loan and then research what lenders offer loans for that reason.
What is your monthly revenue
Your monthly revenue or annual revenue will determine which lenders you can apply with. Some lenders will require a minimum monthly revenue to proceed with an application. Your monthly revenue will also help a lender determine how healthy your cashflow is by assessing your revenue minus expenses. Are you in profit each month? Can your business afford to repay a loan?
The months your business has been trading will also help you decide the best business loans available to your business. Some lenders will only lend to a business that has been trading for 6 months or more, some 10 months, some 12 or 24 months. If you are a startup looking for the best business loans, your options will be less than a business who has been trading for 12 months or more.
Secured or unsecured business loan
Do you have security to use as collateral for your business loan? A vehicle or business asset is a common form of business loan security. If you do not have any assets owned outright your best option would be an unsecured loan. Minimum requirements from lenders in New Zealand will be at least 6 months trading so if you are a startup or less than 6 months in business your only option will be a secured loan. Once you have decided whether you want a secured or unsecured loan you can look for the best business loans available to your business
How is your personl and business credit history? Each lender will have minimum credit scores they will lend to. If you have outstanding unresolved debt your chances of business loan approval will be less than if you had no outstanding debt and no record of payment defaults.
In summary, the best business loans in New Zealand is one that suits your specific business requirements and you will need to find a lender who matches your lending requirements.
As a business loan broker, Compare Business Loans have relationships with multiple lenders who all lend for different reasons and to businesses who are at different stages in their operation. If you would like to know what your business loan options are contact us by phone or email and we can help get you to the right lender with the right information to approve your application.