Business finance in New Zealand covers a wide range of funding solutions to help Kiwi businesses start, grow, manage cash flow and acquire assets. Whether you’re an SME owner after working capital, a startup seeking seed finance, or an established business needing equipment, understanding your options is the key to making the right decision. This guide covers all the major business finance types available in NZ — from banks and specialist lenders — plus rates, eligibility, startup funding and government support. It’s general information, not financial advice.
The types of business finance
The main types of business finance
Business term loans
A lump sum repaid over a set period (1–10 years), with fixed or variable interest. Amounts range from ~$5,000 to several million. Secured loans attract lower rates than unsecured.
Working capital finance
Overdrafts, revolving credit and short-term loans to cover day-to-day costs and bridge invoice-to-payment gaps — valuable for seasonal businesses and long payment cycles.
Asset & equipment finance
Acquire vehicles, machinery, plant and technology without paying upfront, via hire purchase, finance leases or operating leases — with repayments often matched to the asset’s useful life.
Invoice finance
Also called debtor finance or factoring — unlock cash tied up in unpaid invoices, with a lender advancing up to ~80–90% immediately rather than waiting 30–90 days. Popular in construction, transport and wholesale.
Commercial mortgages
Fund business premises, investment property or development. Rates are typically higher than residential, with LVRs usually limited to around 60–70%.
Each of these has its own dedicated guide: our small business loans guide covers term lending for SMEs, our working capital guide covers cash-flow finance, and our asset finance guide covers equipment and vehicles.
Rates and eligibility
Indicative rates and eligibility
Rates are priced on risk and move with the Reserve Bank’s OCR — these are broad, indicative ranges; always compare current rates across lenders.
| Finance type | Typical rate |
|---|---|
| Secured business loan | ~7% – 14% p.a. |
| Unsecured business loan | ~12% – 28% p.a. |
| Bank overdraft | ~10% – 15% p.a. |
| Asset / equipment finance | ~7% – 16% p.a. |
| Invoice finance | ~1.5% – 3% per 30 days |
What lenders assess
- Time in business: banks usually want 2+ years’ trading; some non-banks consider from 6 months
- Revenue: consistent turnover (minimums vary by lender and loan size)
- Credit history: both the business’s and the director’s personal credit
- Security: property, equipment or a personal guarantee may be required
- Financials: usually 2 years of accounts (P&L, balance sheet); a business plan for startups or growth
Choosing a lender
New Zealand’s major banks (ANZ, BNZ, ASB, Westpac, Kiwibank) offer the most comprehensive range of business finance, usually at the lowest rates for qualifying businesses — but with stricter criteria and slower approval. Non-bank and specialist lenders — bank-status lenders like Heartland, specialist asset financiers such as UDC, and online SME lenders such as Prospa, Bizcap and Moula — typically approve faster and take a more flexible view of eligibility, at higher rates. (Named lenders here are examples of the market, not recommendations.) The right choice depends on how quickly you need funds, how much, your trading history, and whether you can offer security — so compare the total cost across a few options, and check any lender is registered before you commit.
Startup, government and bad-credit options
Startup finance and government support
Funding a startup
Most traditional lenders want trading history, so early-stage funding usually comes from elsewhere:- Angel networks — e.g. Angel HQ, Ice Angels, Flying Kiwi Angels
- Venture capital — e.g. Movac, Punakaiki Fund, Icehouse Ventures
- Equity crowdfunding — e.g. PledgeMe, Snowball Effect
- Personal or director-guaranteed loans to get started
Government support
Grants and support that don’t add to your debt:- MBIE Innovation Services — the R&D funding and startup programmes previously run by Callaghan Innovation (disestablished in late 2025) now sit here
- R&D Tax Incentive — a 15% tax credit on eligible R&D
- Regional Business Partner Network — subsidised advice and capability funding
- business.govt.nz — a funding finder covering grants for NZ businesses
Bad-credit business finance
If credit history is impaired, mainstream banks will likely decline, but specialist non-bank lenders may still help — especially with strong cash flow, security to offer, or where the credit issue is historical rather than current.Government programmes change — confirm current schemes and eligibility at business.govt.nz.
If credit history is a barrier, our bad credit loans guide covers the realistic options, and since business tax and the RDTI intersect with finance, our tax rates guide is a useful companion.
The bottom line
New Zealand has a deep, competitive market for business finance — from bank term loans and overdrafts to specialist asset, invoice and startup funding. The best option always depends on your specific need: match the finance type to the purpose (a term loan for a one-off investment, working capital for cash-flow gaps, asset finance for equipment, invoice finance for slow-paying customers), compare the total cost rather than the headline rate, and make sure the repayments fit your cash flow. And before taking on debt, check whether a government grant or the RDTI could fund part of it without adding to your liabilities — and consider talking it through with your accountant.
Disclaimer: This article is general information about business finance in New Zealand, not financial advice, and not a recommendation of any lender, product or structure. Interest rates, fees, loan amounts, eligibility and government schemes vary and change over time — the figures here are indicative only, and any named lenders or investors are examples of the market, not endorsements. Always confirm current rates and terms directly, compare the total cost of borrowing, check current government schemes at business.govt.nz, and consider advice from an accountant or business adviser.
Reference sources
- business.govt.nz — finance, funding and government grants for business: business.govt.nz
- MBIE — the Research and Development Tax Incentive (RDTI): rdti.govt.nz
- Regional Business Partner Network — subsidised business advice: regionalbusinesspartners.co.nz
- Financial Service Providers Register — check a lender is registered: fsp-register.companiesoffice.govt.nz
Frequently asked questions
How much can I borrow for my NZ business?
Amounts range from as little as $5,000 for microloans to $10 million or more for commercial property or large corporate lending. What you can borrow depends on your revenue, credit history, the security and financials you can provide, and the purpose of the loan. Secured loans (backed by property or equipment) generally allow higher amounts than unsecured.
Can I get a business loan with no security?
Yes — unsecured business loans are available from several NZ non-bank lenders. However, they typically carry higher interest rates and lower limits than secured loans, and lenders may still require a personal guarantee from the business owner. Compare the total cost against a secured option before deciding.
How long does it take to get a business loan?
It varies widely: online non-bank lenders can provide a decision within a day or two, while traditional banks typically take two to four weeks for a full assessment. Having your financials, bank statements and business details ready speeds up either route considerably.
What government funding is available for NZ businesses?
Options include the R&D funding and startup programmes now run by MBIE’s Innovation Services (previously Callaghan Innovation, which was disestablished in late 2025), the R&D Tax Incentive (a 15% tax credit on eligible R&D), and the Regional Business Partner Network. Check business.govt.nz for the current, full list of grants and support.
What’s the difference between secured and unsecured business loans?
A secured loan is backed by an asset (property, equipment) the lender can claim if you default — which lowers their risk, so it usually means a lower rate and higher limits. An unsecured loan has no such backing, so it’s faster and simpler but comes with higher rates and lower limits, and often a personal guarantee.
Can a startup get business finance in NZ?
It’s harder, because most lenders want trading history. Startups usually turn to angel networks (Angel HQ, Ice Angels), venture capital (Movac, Icehouse Ventures), equity crowdfunding (PledgeMe, Snowball Effect), government innovation support, or personal/director-guaranteed loans. A solid business plan and evidence of demand strengthen any application.
