applying for a

Startup Business Loan NZ

Startup business loans are something Compare Business Loans specialise in. We have access to multiple business loan lenders who offer startup businesses funding to turn their dream into reality. We’ll help make your startup business loan application experience as simple as possible by arranging everything thats required and writing up your full application. If you don’t have a business plan completed yet, don’t worry! We’ve got you covered with our own online business plan you can complete in our application portal.

Read on below to have any questions answered regarding whats required for a startup business loan.

Think you're ready to chat now?

1. How to get a startup business loan in NZ

Getting approved for a startup business loan can be difficult if you don’t prepare well for your application. Although in your mind your new business will be a success and earn you thousands of dollars every week, a lender doesn’t know this, they don’t know you,  your experience or whether you can successfully run a profitable business.

When applying for a startup business loan you will need to demonstrate to the lender that you are low risk, have experience in the industry, can run a business and ultimately make your business loan repayment obligations.

6 key things to consider when applying for a startup business loan are:

  1. Business Plan
  2. Security (Property, external income, vehicle)
  3. Cashflow forecast
  4. Costings budget
  5. Savings/Deposit
  6. 3 months Personal bank statements

back to top

Startup Business Loan NZ

2. Preparing to apply for a startup business loan

Your goal when applying for a startup business loan is to present the right information to a lender that shows them the risk of lending to you is low enough and you’ll be able to successfully make your loan repayments. The first thing you will need before applying for a business loan is a well thought out business plan.

Your business plan should demonstrate to the lender you have a business strategy, goals, startup costs and financial forecasts. It should also show you either have experience in the industry and/or experience running a business.

Write down what you will need to operate your business each day – equipment, employees, stock, power and more. What will all this cost you each day? How many products do you need to sell every day to make a profit? How many clients do you need to provide your services to each day to be in the green? Get your costs written down and build a budget for everything you will need to run your new business.

Your costings will show the lender exactly where the funds will be spent. You can then use your costings to draw up  a Cashflow Forecast which will also be necessary to show the lender how you will successfully repay your business loan (with interest). The best idea is to get an accountant to complete a cashflow forecast for you as it will hold more credibility and your accountant will be able to help advise what costs to include.

back to top

Free Application Management

ready to take the next step?

Chat with us today and get a clear picture of what you’ll need to purchase your dream business. We can assist your business purchase from start to finish and unless your application is successful it won’t cost you a cent.

3. Do I need security when applying for a startup business loan?

The short answer is yes. Because there is no financial history of the business to assess, the risk to lenders is increased so in general security is required for a startup business loan. However security can come in different forms and security for a loan doesn’t just mean property. So what form of security will help you get approved for a startup business loan?

  1. Property. Property with equity will definitely help get you on your way to a successful business loan application.
  2. Cash Savings.  Having a deposit saved to help get your new business off the ground shows the lender you are good with money and will lower your total lending amount required. In general you will need 30-50% of the total amount of the loan.
  3. External income source. If you or your partner have other income sources this can help as a form of security. If for any reason your business cannot make its repayments one month your external income can be used to help. This will lower your risk to the lender
  4. Vehicle. A vehicle can be used with some lenders as security
  5. Business equipment. A GSA can be put over business assets

back to top

4. Can I get a startup business loan with bad credit?

Having bad personal credit may result in requiring more security and also a higher interest rate. Some lenders will flat out refuse business loans with bad credit in NZ. Because your business is new and there is no “business credit history” as such, your personal credit history will be assessed.

If you have any personal debt that is outstanding and not on a payment plan or some kind of arrangement it is highly unlikely you will qualify for a startup business loan. This does not look good for a lender and shows you are high risk. If you have outstanding debt but have arranged repayments and are making your payments your chances of securing a loan will be slightly better.

If you have fully repaid your outstanding debts you will be in a far better position with a lender as it shows yes, you made a mistake, but you are rectifying it. Some lenders will only look back a certain amount of time as well so your original default may not even be looked at.

back to top

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

Compare Car Finance New Zealand icon

Considering a business loan? We'll get you approved funding from the right lender!