Know what a business loan actually costs before anyone asks for your details. Calculator covers $5,000 to $500,000 across the structures NZ banks and alternative lenders price.
Indicative repayment
Weekly
$237/week
Indicative only. Not a quote or offer of credit. Actual rates, fees, and repayments depend on the business profile and the lender's decision.
Sending to Prospa
3 years at 14.00%. Prospa will ask a few quick questions, then provide a firm quote and funding if eligible.
Redirecting…
Indicative only. Why we say this
Live calculator
Indicative weekly and monthly figures.
Refers to Prospa
A vetted NZ SME lender.
$5K to $500K
Small business through to growth.
6 months to 5 years
Term loans on common NZ ranges.
The basics
A business loan in New Zealand is finance advanced to a business for a defined purpose, repaid over an agreed term with interest. It is distinct from a personal loan in three practical ways: assessment is against the business itself (trading history, monthly turnover, cash-flow profile) rather than only the owner's personal credit; interest is generally deductible against business income subject to the accountant's confirmation; and the lender may take security over business assets, property, or a director's personal guarantee depending on amount and structure.
The NZ business-finance market spans amounts from $5,000 (small unsecured loans for tradies and sole traders) to $500,000+ (secured term loans for fit-outs, equipment, acquisitions, or commercial property). Common terms run from 6 months on a working-capital advance up to 5 years on a standard term loan, and longer on commercial mortgages. Indicative interest rates commonly span 7% to 25% per annum, depending on whether the loan is secured or unsecured, the trading history of the business, and the lender's credit assessment.
The four main lender categories are the major banks (ANZ, ASB, BNZ, Westpac, Kiwibank), specialist NZ-registered banks (Heartland Bank), asset finance specialists (UDC Finance, Pioneer, MTF), and alternative lenders (Prospa, Avanti, BizCap). Each category sits at a different point on the rate, speed, and credit-appetite trade-off.
Quick reference
Per IRD interest deduction guidance, subject to your accountant's confirmation.
Loan structures
Most New Zealand small-business lending falls into one of three structures. The right structure depends on the size of the funding need, whether the cash is needed once or recurring, and whether security is on the table. Indicative ranges below.
A lump-sum unsecured term loan for working capital, stock, equipment, or marketing. Approval typically tied to trading history and monthly turnover, with no upfront property security required for most amounts in this band.
Common eligibility: 6 months trading, $6K+ monthly turnover, active NZBN.
Amount
$5K to $150K
Term
Up to 5 years
Security
None upfront
Repayments
Weekly or monthly
A larger secured term loan for fit-outs, acquisitions, equipment-heavy expansion, or commercial property. Security over property or qualifying business assets is typically expected at this size, in exchange for a materially lower indicative rate band.
Common eligibility: 2 to 3 years trading, $1M+ annual turnover, asset ownership.
Amount
$150K to $500K
Term
Up to 5 years
Security
Property or assets
Rate band
Lower than unsecured
A revolving facility with a pre-approved limit. Funds are drawn as needed, repaid, and redrawn through the term. Interest is charged only on the drawn balance, which suits seasonal businesses, supplier-payment cycles, and uneven inbound cash flow.
Common eligibility: 2 years trading, $6K+ monthly turnover, active NZBN.
Limit
$2K to $500K
Access
2-year revolving
Interest
On drawn balance only
Best for
Seasonal cash flow
Common uses
New Zealand businesses borrow for a wide range of reasons. The 16 most common purposes break down across four buckets: cash-flow needs (working capital, payroll, tax bills), asset purchases (stock, equipment, vehicles), premises and growth (fit-out, commercial property, expansion, acquisition), and structural finance (refinance, bridging, startup, trade finance). Each reason has its own typical structure, indicative cost, and lender appetite. Pick the one closest to the situation for a deeper guide.
Money out before money in. The most common reason NZ SMEs borrow.
Read onWages need paying before a slow customer pays you. Or you're onboarding ahead of the revenue.
Read onIRD bill due before the cash arrives? Bridge it, or look at tax pooling first.
Read onBridge a quiet quarter. Built for agribusiness, hospitality, and tourism.
Read onStock up before the season hits. Short-term, sells through, repaid out of receipts.
Read onReplace or upgrade kit that earns out across the loan term. Asset-secured at lower rates.
Read onUte, van, light truck, fleet. Asset-secured against the vehicle.
Read onShopfit. Kitchen refurb. Office relocation. Typically secured against the lease.
Read onOwner-occupier or investor. Property-secured commercial mortgage.
Read onIs the demand proven? If yes, larger amounts. Often bank-led with property security.
Read onM&A funding. Cash deposit + vendor finance + bank-led term loan, in that order.
Read onLower rate, shorter term, or both. A numbers exercise, not financial advice.
Read onPaid-acquisition campaigns, brand refresh, multi-month programmes. Hard to underwrite without payback maths.
Read onShort-term gap between two known events. Higher rate band, shorter term.
Read onPre-revenue and early-stage. Hardest tier to fund. Personal security usually required.
Read onPay overseas suppliers before NZ customers pay you. Trade-finance facilities or LC structures.
Read onIndicative rates
NZ business lenders price between 7% and 25% per annum across the standard products in 2026. The four-percentage-point spread between secured major-bank pricing (around 7-11%) and alt-lender unsecured (around 15-25%) is the cost of speed and the cost of going around credit committee. Reserve Bank of NZ business-lending statistics confirm the broader pattern. Specific lender pricing on a given application depends on the borrower's profile.
| Product | Major bank | Alternative lender | Security |
|---|---|---|---|
| Term loan, secured | 7% to 11% | 9% to 14% | Property or assets |
| Term loan, unsecured | 10% to 14% | 12% to 25% | Director's guarantee |
| Equipment / asset finance | 8% to 12% | 9% to 16% | The asset |
| Line of credit | 9% to 14% | 12% to 20% | Varies |
| Commercial mortgage | 7% to 9% | 8% to 11% | Commercial property |
Indicative bands only. The actual rate offered depends on the lender's assessment after application. For the deeper breakdown of factors that drive the rate, fees on top, and rate-by-amount-band, see the full NZ business loan rates 2026 guide.
Process
Five steps from "we need finance" to "funds in the account". Alt-lenders like Prospa fund within a business day on amounts under $150,000. Major-bank applications run 1 to 3 weeks. MBIE small-business guidance covers the broader regulatory framework.
01
A specific purpose ("$25K for pre-Christmas stock, repaid out of December sales") tightens the rate band and shortens the assessment compared to "$25K for working capital".
02
Test the indicative weekly cost on the amount, term, and rate band. If the weekly is comfortable through a quiet quarter, the maths likely works. If it's tight on a strong month, reconsider.
03
Term loan for one-off purposes; line of credit for recurring gaps; equipment finance for asset purchases; commercial mortgage for property. The right structure decides 30% to 50% of the offered rate.
04
Standard pack: NZBN, business owner ID, last 6 months business bank statements, loan-purpose statement. Larger amounts add P&L and cash-flow forecast. Direct or via a vetted partner like Prospa.
05
On acceptance, the lender registers any required security on the PPSR, settles funds (often direct to the supplier on equipment finance), and the loan term begins. Funds typically draw within 1 to 7 business days.
How it will work
01
Slide the amount, term, and indicative rate. Weekly and monthly repayments and total interest update instantly. Useful for testing whether the maths works on a given purpose before talking to anyone.
02
Try a shorter term against a smaller weekly payment, a secured rate band against an unsecured one, or a line of credit shape against a term loan. The right structure depends on the cash-flow profile.
03
The "see if you qualify" path connects through to Prospa, our vetted NZ business-finance partner. Prospa asks a few quick questions, then provides a firm quote and arranges funding if the business is eligible.
Who it's for
Tradies, consultants, and contractors trading 6 months or more, looking for short-term working capital, equipment finance, or van and tool replacement. Unsecured small business loans typically fit this profile.
Cafes, retailers, gyms, salons, and trades-based businesses with 1 to 3 years of trading history and consistent monthly turnover. Term loans up to $150K and lines of credit are the common structures observed.
Established businesses with 2 to 5+ years trading and seven-figure turnover, funding fit-outs, equipment-heavy expansion, second-site rollouts, or acquisitions. Secured loans up to $500K are the common structures observed.
NZ business lenders
Twelve lenders covered: the five major NZ banks, the specialist NZ banks and asset financiers, and the alternative lenders that fund applications the major banks decline. Every entry is independent editorial. The only commercial relationship is with Prospa, disclosed on the partner page.
Major bank lending and rural products. Lowest indicative rates for borrowers who clear the application.
Major bank business and rural lending. Strong agri presence in the South Island.
Major bank with QuickBiz online product and Business Moments editorial cluster.
Major bank business, rural, and asset finance. Westpac Equipment Finance is the asset arm.
NZ-owned bank with an SME-focused offer set, smaller-end of the major-bank cluster.
NZ bank with deep specialty in asset finance, livestock, and online unsecured small-business loans.
Long-established NZ asset finance specialist; ANZ subsidiary historically.
Vehicle and asset finance through a dealer/originator network.
Our finance partner. Fast-online unsecured small-business lending and a line of credit.
Secured property and asset specialist. Bridging, commercial property, asset finance.
SME term and line of credit. Now part of Shift internationally.
Short-term unsecured and caveat-secured lending for SMEs the major banks decline.
Indicative rate bands only. Final pricing depends on the lender's assessment.
See the full lender directoryWhy a calculator first
Working out the indicative weekly repayment on a given amount, term, and rate is the cheapest decision a borrower can make. It surfaces whether the loan is genuinely affordable, whether a shorter term saves enough total interest to be worth the higher weekly cost, and whether a smaller amount achieves the goal at lower total cost.
Doing this before any application keeps the conversation with a lender focused on structure, not affordability surprises. The calculator outputs are indicative only and not a quote, but they are usually within striking distance of what a real offer lands at on the same inputs.
FAQ
A business loan is finance advanced to a New Zealand business for a defined purpose, repaid over an agreed term with interest. Common formats are an unsecured term loan (lump sum repaid weekly or monthly), a secured term loan (against property or business assets), and a revolving line of credit. Amounts typically span $5,000 to $500,000 in the small-and-medium business market, with terms up to five years on term loans.
A small business loan is assessed against the business itself, including its trading history, turnover, and cash-flow profile, rather than only the owner's personal credit. Interest can typically be deductible against business income (subject to your accountant's confirmation), the loan can sit on the balance sheet as a liability, and the lender may take security over business assets rather than personal ones. A personal loan does none of those things.
Small business term loans on the NZ market commonly run from $5,000 to $150,000 unsecured, and from $150,000 up to $500,000 with security over property or qualifying business assets. Lines of credit run from around $2,000 up to $500,000 with the same security pattern. The achievable amount depends on trading history, monthly turnover, the purpose of the funds, and the lender's credit assessment.
Most NZ business lenders look for a minimum trading history (often 6 months for smaller unsecured loans, 2 to 3 years for larger secured facilities), a minimum monthly turnover threshold (commonly around $6,000 a month or higher), an active NZBN, the business owner being 18 or over, and NZ citizenship or permanent residency. A clean credit file is the standard expectation.
Common uses observed across the NZ market include working capital and cash-flow smoothing, paying staff wages and supplier invoices, purchasing stock or inventory ahead of a busy season, buying equipment, fitting out new premises, marketing campaigns, GST or provisional tax payments, and funding expansion or acquisition. Some lenders specify allowable purposes; many treat the loan as general business funding once approved.
Unsecured term loans in the NZ small-business market commonly run 6 months to 5 years, with weekly or monthly repayments. Secured larger loans typically also run up to 5 years. A line of credit runs as a revolving facility, often for an initial 2-year access period with renewal at term end. Shorter terms increase the weekly repayment but reduce the total interest paid.
Smaller unsecured business loans (typically up to $150,000) commonly require no upfront property security. Larger amounts and lower-rate offers usually require security over property, qualifying business assets, or a director's guarantee. The trade-off is that secured facilities typically price lower than unsecured ones because the lender's risk is reduced.
Indicative business loan rates on the New Zealand market commonly span 8% to 30% per annum, with the actual rate depending on whether the loan is secured or unsecured, the trading history of the business, the monthly turnover, the purpose of the funds, and the lender's assessment. Secured loans against property typically price at the lower end; short-term unsecured working-capital loans typically price at the higher end.
Interest on a loan used for business purposes is generally deductible against business income in New Zealand, subject to your accountant's confirmation on the specific structure. Where a loan is mixed-purpose (partly personal, partly business), the deductibility is apportioned. The accountant is the right person to confirm the treatment for the specific business position.
A term loan is advanced as a lump sum and repaid over a fixed schedule with interest charged on the full balance. A line of credit is a pre-approved limit the business can draw on, repay, and redraw across the term, with interest charged only on the drawn balance. The line of credit suits cash-flow smoothing and seasonal businesses; the term loan suits a defined one-off purpose.
Most NZ business lenders allow early repayment, and many of the unsecured small-business products advertise unlimited extra repayments at no extra cost. The detail varies between lenders, so the loan contract is the authoritative reference. Early repayment typically reduces the total interest paid materially, particularly on longer-term loans.
After running the calculator, the "see if you qualify" button connects through to Prospa, our vetted New Zealand business-finance partner. Prospa asks a few quick questions on the next step, then provides a firm quote and arranges funding if the business is eligible. We do not pass calculator inputs across; the application begins fresh with Prospa.
Ready when you are
Run the calculator to see the weekly cost on the amount and term that fits the business. When you're ready, the "see if you qualify" button hands off to Prospa for a firm quote and funding if eligible.
Disclaimer
A business loan is a commitment that runs for months or years, and repayments come out of the same operating cash flow as everything else. Before committing, it is worth modelling the weekly and monthly cost against the business's working-capital position, which is what this site is built to help with. Borrowing at a level that stays comfortable through a quiet quarter, not just a strong one, is widely regarded as the safer frame.
What this site is
A calculator and information tool. Not a lender, not a broker, not a registered financial adviser. Nothing here is personalised financial advice.
What the figures show
Modelled estimates based on the inputs you enter. Not a quote. Not an offer of credit. Not a guarantee of approval, rate, or fees.
What the lender decides
Final rates, fees, and approval are set by the lender after a CCCFA-appropriate assessment of the applicant's circumstances and credit decision.
Commercial disclosure
Businessloans.org.nz earns a commission from Prospa when a visitor applies through this site and their application is approved. The commission is paid by Prospa, not by the borrower, and it does not influence the rate Prospa offers. Full disclosure on the partner page.
Tax, GST, and accountant framing
Tax-treatment statements (GST claim timing, interest deductibility, depreciation rates) are general in nature and subject to your accountant's confirmation on the specific business position. For material amounts, professional advice from a registered financial adviser or chartered accountant is widely regarded as the safer frame.
