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How to get a small business loan

How to get a small business loan
Getting a small business loan involves several steps, which will vary depending on the lender you apply with and the type of loan. Here are some general steps you can take to increase your chances of being approved for a small business loan

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Being well prepared for your business loan application can be the difference between an approval or a decline. Its easy to just jump straight in and appy however every lender has certain requirements you must meet for an approval so you must make sure you meet those requireemnts before applying.

Your business may have an unresolved debt you’re unaware of, you may have had a slow month which shows a declining revenue, you may have missed a payment on an existing loan. All of these can be a red flag to a New Zealand business loan lender and mean your application is declined. You need to ask yourself is a business loan is the right idea for your business, and prepare well before applying. Here’s what to consider before applying for a business loan:

Determine your business loan needsBefore applying for a loan, identify how much money you need and what you will use it for. This will help you decide which lender to apply with and what kind of loan you require.Review your personal and business credit scoreLenders will evaluate your personal and business credit history when considering your loan application. Check your credit score and credit history to make sure they are in good standing and fix any errors that may negatively impact your creditworthiness. It is common to apply, only to find there is a debt you were unaware of, or even an error on your credit history that affects the outcome of your application.Gather your financial documentsLenders will want to see your financial records, financial report, profit and loss, bank statements, and cashflow forecasts. Make sure you have access to all or some of these before applying for a loan. Your accountant or online accounting software can help with most docs required.Pre-assess your businessIts a good idea to chat with your accountant or business partner and go over your current financial position. Is this the best time to be applying for a loan? Have your last 3 months been showing good profits? Have you missed any auto payments? Is your IRD all up to date? Too many red flags will mean a declined application. Research lenders Shop around and compare different lenders to find one that best suits your needs. Consider factors such as interest rates, loan terms, and repayment options. A business loan broker can assist free of charge and help you prepare your application + get you to the right lender. A referral fee will be included in your loan for the brokers assistance only if the loan settles so a broker is great way to give your business the best chance of approval.Prepare your loan application Fill out the loan application completely and accurately. Be prepared to provide detailed information about your business, including your business plan, financial statements, and available security.

Remember that getting a small business loan can take time and effort. By being prepared and following these steps, you can increase your chances of getting the funding you need to grow your business. If you want to chat with Compare Business Loans, our brokers can determine what kind of funding your business needs and which lender would be the best option over a 5 minute phone call. Enquire today and we’ll give you a call.

Business Loan NZ Quick Links

  1. Apply online in 60 seconds
  2. Check your credit score
  3. NZ Small business loan educational resource
  4. Register as a sole trader or company NZ
  5. FREE business plan template

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A 5 minute phone call is all it takes to find out the amout of funding available to your business. We’ll help you prepare and apply for a business loan with the right lender. Business loan interest rates starting at 8.95%

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How much money can your business borrow?

Start a conversation with Compare Business Loans today to see how much funding your business is eligible for

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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