Banks, specialists, and alternative lenders.

There is no single answer, because the groups serve different situations. A business with two years of accounts and available security generally prices best at a bank. A business buying a specific asset commonly does better with an asset finance specialist. A business needing funds this week, or with under two years of trading, will generally find alternative lenders the only realistic option. Comparing across at least two groups is the practical approach.

Comparing two or three indicative offers is common practice and pricing for the same borrower varies more than most expect, particularly in unsecured lending where no asset anchors the assessment. Worth knowing is that multiple formal applications inside a short window can appear in a credit file and be read as difficulty, so seeking indicative terms before submitting formal applications avoids that pattern.

Yes, all five major banks run business lending divisions covering term loans, overdrafts, asset finance and commercial property. The constraint is generally the assessment rather than appetite: two years of accounts, demonstrated profitability and available security are common requirements, which excludes many newer or asset-light businesses rather than reflecting a decision not to serve them.

Lenders operating in New Zealand are subject to the Fair Trading Act and to the fair-dealing provisions of the FMC Act, and those lending to consumers or to guarantors borrowing predominantly for personal use also fall under the CCCFA. Business lending to companies sits largely outside the CCCFA, which means fewer of the disclosure protections consumer borrowers receive apply. Reading the loan agreement carries more weight in that context.

Common ground across the market is trading history, turnover and its stability, the credit files of the business and its directors, existing debt and security registered on the PPSR, and the purpose of the borrowing. Where lenders differ most is in source material: banks work from accounts and forecasts, while most alternative lenders read bank transaction data directly, which is why their assessment is faster and weighted toward recent conduct.

Yes, and refinancing from alternative-lender pricing to a bank or specialist after 12 to 24 months of clean repayments is a common path. The considerations are early repayment costs on the existing facility, whether the outgoing lender will discharge its PPSR registration promptly, and whether the new lender requires additional security. The saving is frequently several percentage points, so the comparison is generally worth running.