Yes, it is possible to get a loan if you want to start a business in New Zealand. There are several options available, including:
Business loan from a Bank
Banks in New Zealand offer loans to businesses, including startups. You will need to meet certain requirements, such as having a solid business plan, cashflow forecast and good credit history, to qualify for a loan. You may find you get a better rate with a bank than a non-bank lender, however sometimes banks can be harder to get approved with and the application process can take longer.
Government-backed loans and Grants
The New Zealand government provides several loan options for businesses, including startups. These loans can be used for things like research and development, export development, and business growth. Information is available online on the following link:
You’ll find Support for Māori business owners, Incubators and accelerators, Mentoring, Grants and Funding options like the Callaghan Innovation Grant available here.
If you search online you will find several websites such as https://www.enterpriseangels.co.nz/ or https://www.snowballeffect.co.nz/ where you can pitch your startup business to investors who will offer funding in exchange for equity in the business.
There is also some good information on getting investors onboard with your new business idea on the government website:
Non bank lenders are a popular option for starting a business in New Zealand. The application process will require a business plan, 12-24 month cashflow forecast, security for the loan and a deposit. You will need to demonstrate knowledge in the business industry or relevant experience. Your cashflow forecast will need to show profits that ensure you can meet your loan repayments and successfully run the business.
If applying for a business loan to start a business, make sure you have researched all your options and prepared well. If you don’t get the right information for your application in front of the lender, the chances of approval will decrease.
If you would like to chat about your startup business loan options with us feel free to call Glenn on 0272 611 207 or contact us by email and we can help point you in the right direction.