Refinance or consolidate to lower rate, term, or facility count.

Yes, refinancing a business loan is a common transaction in the NZ market. The new lender pays out the existing lender at completion, and the borrower carries one new facility instead of the old one. Both major banks and alternative lenders fund refinance deals across the secured and unsecured spectrum.

Refinancing typically makes sense when the total cost of the new facility (rate plus fees plus any break costs on the old facility) is materially lower than the run-out cost of the existing facility. Common triggers are a matured trading position that now qualifies for a better rate, multiple accumulated facilities that simplify into one, or an asset-finance restructure where the residual position has shifted.

Short-term unsecured business loans in NZ commonly carry early-repayment break fees, particularly within the first 6 to 12 months. Asset-finance contracts may carry early-termination charges and residual-value adjustments. Property-secured term loans on fixed-rate components typically carry fixed-rate break costs calculated against the rate move since origination. Each lender publishes its specific calculation method.

Indicative establishment and re-registration costs commonly run $500 to $2,500 on a typical SME refinance, across new-lender establishment fee, legal documentation, PPSR re-registration, and (on property-secured deals) mortgage discharge and registration. Larger or more complex deals run higher.

Yes, consolidating multiple facilities into one new loan is a common refinance pattern in NZ. The new lender pays out each existing facility at completion. Confirming that the old facilities will actually close at completion (rather than continue running alongside the new loan) is a useful due-diligence step before signing.

Interest deductibility on a refinance facility generally follows the use of the borrowed funds (which is typically the same purpose as the original facility, since the refinance replaces it). Break fees, establishment fees, and legal costs may have varying tax treatment depending on the specific structure. The accountant is the right person to confirm the position, subject to the accountant's confirmation.

Standard documents include NZBN, director identification, the last 6 to 12 months of business bank statements, payout figures from the existing lenders, and the existing loan agreements. Property-secured refinances additionally require valuations and rates notices. Larger applications add a P&L, balance sheet, and cash-flow forecast.

NZ business credit reporting captures both the original facility and the new facility, with the original showing as paid-out at completion. Where the existing facility had a clean payment history, the refinance is typically neutral to positive on the credit file. Where the existing facility had defaults or arrears, those records remain visible separately.

Sole-trader and personal-guarantor refinances can engage the Credit Contracts and Consumer Finance Act 2003 where the borrowing is wholly or predominantly for personal use. Where CCCFA applies, the new lender carries additional disclosure and responsible-lending duties. Whether CCCFA applies on a specific refinance turns on the facts of the use of funds, and the accountant or solicitor is the right person to confirm.

Yes, NZ asset-finance contracts (chattel mortgage, hire purchase, finance lease) can typically be refinanced or paid out early. The lender provides a payout figure that includes the principal balance plus any early-termination charges and residual adjustments. The new lender pays this out at completion and writes a fresh contract against the asset, with PPSR re-registered.

Generally yes, all else equal: a longer term at the same rate produces more total interest, even though the monthly payment is lower. Where the new rate is materially lower than the old rate, the longer term may still produce a lower total cost, and the calculator is the right tool to test the specific maths.

Indicative timing for an unsecured term-loan refinance commonly runs 5 to 15 business days from application to settlement on smaller amounts with established lenders. Property-secured refinances commonly run 4 to 8 weeks because of valuation, legal, and registration steps. Multi-facility consolidations tend to sit at the longer end because each existing facility requires payout coordination.