Short-term business loans for NZ cash-flow needs.

A short-term business loan is term lending where the term sits at 6 to 18 months. The product overlaps with small business loan and working capital loan; the distinguishing feature is the compressed term and the speed of decision (often same-day funding). Rates run 14% to 28% indicative.

They overlap. The distinction is timing: short-term loans cap at 18 months and prioritise speed; working capital loans extend to 24 months and emphasise the operational use of funds. Some lenders market the same product under both names. The mechanics (rate, security, repayment structure) are similar.

Indicative rates run 14% to 28% per annum across NZ short-term unsecured products. The rate is higher than longer-term loans because the lender amortises fixed origination costs across a shorter window. Asset-supported short-term products price slightly below.

NZ short-term business loans commonly run $5K to $250K. Most borrowing concentrates in $20K to $100K because amounts above $100K typically benefit from longer terms (24 to 60 months) where unit economics work better for both parties.

Same-day or next-business-day funding is common across NZ alternative lenders for amounts under $150K with documents in place upfront. Larger applications, or those requiring an accountant letter, can run 2 to 5 days.

NZBN, business owner ID, last 3 to 6 months business bank statements (often via secure read-only feed), and a brief on the loan purpose and repayment source. Larger amounts may add a P&L. Self-employed applications may add an accountant letter.

Many NZ alternative-lender short-term products include early-repayment fees that capture a portion of the remaining interest if the loan is settled early. Specific structures vary; some lenders offer no-penalty early repayment, others discount remaining interest only partially. The contract is the authoritative reference.

Interest on a short-term business loan used for business purposes is generally deductible against business income, subject to the accountant's confirmation. The deductibility position is straightforward where the purpose is clearly business; mixed-use scenarios apportion.

A short-term loan typically beats a longer-term loan where the repayment source materialises inside 18 months and the borrower wants to be debt-clear quickly. The total interest cost on a short-term loan is materially lower than a 36 to 60-month loan for the same principal because of the compressed exposure.

On default, the lender pursues recovery through the personal guarantee. Late fees apply, credit file marks. Continued non-payment moves to formal default fast (30 to 60 days) because of the compressed term. Direct contact with the lender on a temporary cash setback is the cleaner first step.

Yes, sole traders are eligible across NZ alternative lenders. Common minimums are NZBN, 6 to 12 months trading, and clean credit. Sole-trader applications can occasionally trigger CCCFA where the borrowing is wholly or predominantly for personal use.

Most NZ alternative lenders explicitly disallow stacking and detect it through bank-statement review during application. Where stacking is detected, the application is typically declined. The pattern materially worsens default risk and most lenders treat it as a red flag rather than a relationship to extend.