Business line of credit in NZ: compare lenders

What is a business line of credit?

A business line of credit lets you borrow money whenever you need it, up to a set limit. When you repay what you've used, that amount becomes available again. You only pay interest on the money you actually borrow, not the full limit.

A line of credit is useful for changing costs, such as buying stock before a busy season, paying wages while waiting for customer payments or getting through a slow month. If you need to make one large purchase to pay off over time, a business loan is usually a better choice.

Business lines of credit compared

These are the lines of credit New Zealand online lenders publish, checked on 6 November 2026.

• Prospa Business Line of Credit

  Limit

  $2,000 to $500,000 (one Prospa page says up to $150,000)

  Who qualifies

  Up to $150,000: 6 months of trading for most industries, $6,000 a month in turnover, an NZBN and an owner aged 18 or over who is an NZ citizen or permanent resident

  Cost

  Interest on what you draw (rate not published), plus a weekly service fee

• Bizcap Line of Credit

  Limit

  $5,000 to $500,000

  Who qualifies

  9 months of trading, $20,000 a month in revenue and an active NZBN

  Cost

  Interest on what you draw (rate not published)

• Bizcap Line of Credit Ultra

  Limit

  Up to $500,000

  Who qualifies

  9 months of trading, $75,000 a month in revenue and a credit score of at least 400

  Cost

  0% to 2% interest in the first four weeks, then a rate that isn't published

• ScotPac Line of Credit

  Limit

  $50,000 to $300,000, up to 200% of average monthly sales

  Who qualifies

  12 months of trading with consistent sales, $50,000 a month in turnover, 6 months of bank statements and an owner aged 18 or over who is an NZ citizen or permanent resident

  Cost

  Interest on what you draw (rate not published), a 3% establishment fee and an $85 monthly admin fee

ScotPac's line of credit runs for 2 years, and then you repay the balance over the next 2 years. Fundme, a broker, can also arrange lines of credit from other lenders.

Line of credit or overdraft?

A bank overdraft works much like a line of credit. It's connected to your business bank account, so you can go below zero up to a set limit and pay interest only on what you use. Banks publish their overdraft base rates, and most charge a monthly fee on the full limit. With BNZ's QuickBiz, you can apply online for a loan or overdraft from $5,000 to $100,000.

Banks usually want a longer trading history for an overdraft than online lenders want for a line of credit. If your bank won't approve you, or the limit is too low, an online line of credit could fill the gap. The business overdraft guide compares rates and fees from each bank.

What a line of credit costs

You pay interest on the money you borrow, for as long as you use it. Also look out for fees that apply even if you don't use the limit, such as Prospa's weekly service fee or ScotPac's monthly admin fee, and any establishment fee when the line is set up.

Online lenders don't publish their line of credit rates, so ask for the rate and all fees in writing before you agree. If you know roughly how much you'll borrow and for how long, the true cost calculator can turn those figures into a true annual rate to compare with an overdraft.

Who can get a business line of credit?

Prospa has the lowest published requirements: 6 months of trading and $6,000 a month in turnover for limits up to $150,000. Bizcap asks for 9 months and $20,000 a month, while ScotPac needs 12 months and $50,000 a month. All of them also check your bank statements and credit history.

The eligibility checker shows how many lenders publish criteria your business meets.

Common questions