As a business loan broker, we manage many enquiries every day from people looking for a loan for starting a business to well established businesses needing to purchase new equipment or additional cashflow.
Our clients are usually looking for a small business loan to grow their business and increase their revenue and can be anywhere from their first month in business to their 10th year.
Best small business loan for starting a business
When starting a business your business loan will be secured against assets you own. There is more risk involved for a lender because there is no financial history to assess your application on so to decrease the risk an asset you own will be included in the small business loan as collateral. This means if for any reason your business fails, the lender could seize your asset and sell it to get their money back.
Compare Business Loans use over 6 different lenders who can offer a small business loan for starting a business. Each lender has different requirements and will accept certain types of security or have various minimum requirements eg; credit score, deposit, financial documents and more.
Our best small business loan lenders for starting a business in 2023 are Pioneer Finance, Finance Direct, Efco and UDC Finance. Provided you have the right security, a deposit and a busines splan with financial data to analyse these 4 lenders can assist your small business get a loan for starting a business.
We have strong relationships with each lender and have prepared hundreds of applications for our clients so we know exactly what each lender requires and how to prepare each application for success. If you are thinking about applying for a small business loan for starting a business in New Zealand contact us today and we can help you get everything together and choose the right lender for your business situation.
Best unsecured small business loan
The best unsecured small business loan for your business will depend on your monthly revenue and your time trading. Unsecured business loan lenders in New Zealand have minimum requirements your business will need to meet when assessing applications. The amount available to your business when applying for an unsecured business loan will be calculated on your business turnover and health of your business (including credit score).
The best unsecured small business loan lenders we use for our clients are ZIP Capital, Get Capital, Exceeda Finance and Prospa. Each lender have their own unique minimum requirements so their unsecured business loans may not be offered to your business. For example ZIP Capital require your business has been trading for 18 months or more and has a turnover of $17k per month or more. If your business meets these requirements ZIP can offer between $5,000 – $500,000 in unsecured funds called a line of credit. A line of credit is an amount your business is approved for and you can draw down any amount from it when you need it, only getting charged interest on the amount you draw down.
The minimum time trading for an unsecured business loan is 6 months and that would be with Prospa. Prospa are a good option for unsecured business loans however you need to make sure you know what your total repayments will be before accepting an offer and the Prospa interest rates can be higher than other unsecured business loan lenders.
If you are considering an unsecured small business loan and want to know what options are available to your business give Glenn from Compare Buisness Loans a call today on 0272 611 207 and find out the best unsecured small business loan available for your business. A quick 5 minute phone call is all we need to pre-assess and let you know how much you are eligible to borrow and which lender will be best for your business to apply with.
Best secured small business loan
A secured small business loan is a loan where the funds your business borrows are secured by an asset you own like a vehcle or property. You can usually borrow up to 70% of your assets value, or if you are using property you need a LVR of 75% or less which is your loan to value ratio.
All secured loan lenders in New Zealand will accept different types of security so your secured small business loan options may be restricted by what type of security you have. All lenders will accept vehicles as security, some will not accept vehicles more than 10 years old. Some lenders will offer a GSA over your business assets and chattels however some won’t offer a GSA. Most secured loan lenders will accept property as security and it will depend on its location and how much equity there is in the property whether they will accept it as security or not.
When we put together an application for our clients for a secured small business loan we generally use Pioneer Finance, Heartland Bank, Finance Direct or Efco. Exactly who we use will depend on the business applying, how their application looks and what is available as security.
Best interest rate for small business loans
Interest rates for small business loans have increased over the last 2-3 years due to inflation, Covid, and banks printing money around the globe. The best interest rate for a small business loan in New Zealand is likely to be from a bank at around 7%. The best interest rate we can find from a non-bank lender is for asset finance at 8.25%. A secured small business loan interest rate will usually be better than an unsecured one because there is less risk for the lender. Unsecured will start at 9% however your business would need to be in prime health with top credit history to receive this rate. Always check your interest rate and the total amount payable when you receive an offer from a lender as some lenders will offer rates up to 35% or even more.
Compare Business Loans know the rates offered by most lenders we are partnered with and can help get your business to the right lender once we know why you’re applying for a loan and whether you should apply for a secured or unsecured loan. If you want some guidance on applying for a small business loan in NZ we can help get you started and work with you through the application to settlement.Business Loan NZ Quick Links