Business Loan Interest Rates in New Zealand

Business Loan Interest Rates in New Zealand
For many businesses, securing a loan can be essential to fund growth or overcome unexpected financial hurdles. In New Zealand, there are a variety of lenders and loan options available to businesses, each with their own interest rates and terms. Understanding the interest rates associated with business loans can be critical in making informed decisions about borrowing.

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Types of Business Loans

Before exploring interest rates, it is important to understand the types of loans available. There are a range of business loans in New Zealand, including secured and unsecured loans, revolving credit facilities, and overdrafts. Secured loans require collateral, such as property or assets, while unsecured loans do not. Revolving credit facilities are similar to credit cards, allowing businesses to draw funds as needed up to a certain limit, while overdrafts are a type of revolving credit that allows businesses to overdraw their accounts up to a predetermined limit.

Interest Rates for Business Loans

The interest rates associated with business loans can vary significantly based on a variety of factors, including the lender, loan type, creditworthiness of the borrower, and economic conditions. As of March 2023, the average interest rate for business loans in New Zealand ranges from 8.25% to 15%, depending on the type of loan and the borrower’s creditworthiness. Secured loans generally have lower interest rates than unsecured loans, as they are less risky for lenders. Revolving credit facilities and overdrafts tend to have higher interest rates due to their flexibility and ease of access.

If you do your research online most lenders will have their starting rates included on their website so you can get an idea on what your minimum rate could be. Another good way to know what your interest rate could be is to speak with a business loan broker who will know what most lenders rates are and who would be your ideal lender to apply with.

Factors Affecting Business Loan Interest Rates

In addition to the type of loan and the borrower’s creditworthiness, there are several other factors that can impact business loan interest rates in New Zealand. These include the lender’s risk appetite, the state of the economy, inflation, and competition among lenders. Lenders may also consider the borrower’s industry, business plan, and cash flow when determining interest rates.

Comparing Lenders and Loan Options

With so many lenders and loan options available, it is important to shop around to find the best interest rates and terms for your business. Comparing interest rates, fees, repayment terms, and customer service can help you make an informed decision. Working with a trusted financial advisor or business loan broker can also be helpful in navigating the complex world of business lending.


When considering a business loan in New Zealand, it is important to carefully consider the type of loan, interest rates, and other factors that can impact your borrowing experience. By understanding the lending landscape and comparing options, you can find a loan that meets your business’s needs while minimizing costs and maximizing benefits.

Compare Business loans can help you prepare your business loan application, apply with the right lender and liaise with the lender during the application process. Partnering with a broker can help make the application process easier and increase your chances of approval.

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Business loan lenders in New Zealand

We are partnered with multiple business loan lenders throughout NZ. Each lender provides different types of business loans and will offer different rates for small business loans depending on your business’ financial situation and financial history.

Heres a few lenders we work with and their basic lending criteria.

Get capital small business loans

Fast flexible business finance

• Loans from $5000
• Minimum 9 months trading
• Unsecured to $50k
• 10k or more monthly revenue
• Cashflow, asset, equipment finance

Heartland bank small business loans

Give your business a boost

• Unsecured up to $100k
• Terms up to 5 years
• Secured loans available
• No early repayment fees
• Interest rates from 11%

Fundtap invoice finance nz

Invoice Finance

• 100% online
• Loan off your outstanding invoices
•Funds in 24hrs
• Fast source of cashflow
• Use it when you need it

Pioneer Finance NZ

Your loan, tailored to you

• 100% online application
• Loan terms up to 7 years
• Secured finance
• Finance up to $100k
• Business finance for any reason

efco small business finance nz

We Finance Dreams

• 100% online
• From 8.95%
•Decision in 24hrs
• Startup business loans
• Vehicle finance, asset finance, cashflow loans

Speirs Finance NZ

The kiwi owned team growing kiwi businesses

• Truck Finance
• Repayment up to 5 years
• Heavy Machinery Finance
• 2nd hand asset finance
• Equity Release

Partner with Compare Business Loans Today

As a business loan broker, we are essentially an extension of your business. When you work with us, we do all the hard work for you by preparing your application and matching you with an NZ lender most likely to approve your business loan application. Get Started Now!

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