Business loan interest rates in NZ

What interest rate will I pay on a business loan in NZ?

Published business loan rates in New Zealand run from about 8% to 30% a year. Where you land depends on the lender, whether you offer security, how long your business has traded and your credit history. The Reserve Bank's average rate on new small business overdrafts was 10.14% in October 2026, which gives a sense of what banks charge for everyday business lending. Online lenders cost more, and some quote a factor rate that hides how much.

Business loan rates by lender

These are the rates and fees each lender publishes, checked on 6 November 2026. Most banks and the bigger online lenders don't publish a full range, so they're described in the sections below.

• Heartland asset finance

  Published rate

  From 8.70% a year

  Fees

  Not published

• Lending Room (broker)

  Published rate

  8.99% to 29.95% a year

  Fees

  Broker fee up to $1,500, plus lender fees up to $450

• Pioneer Finance

  Published rate

  9.95% to 22.95% a year, fixed

  Fees

  $195 to $375 to set up, plus $9 a month

• Line Capital

  Published rate

  From 16% a year, fixed

  Fees

  2.5% of the loan, taken from the advance

• Harmoney (a personal loan in your name)

  Published rate

  7.99% to 24.99% a year

  Fees

  $150 to set up

Bank business loan rates

Banks set business loan rates by adding a margin to a published base rate. The margin depends on your business's risk, the security you offer and the loan term. That's why the base rate on a bank's website isn't the rate you'll pay.

On 6 November 2026, ANZ's business term loan floating base rate was 4.74% a year. BNZ's 90-day term loan base rate was 5.13%, and its business overdraft base rate was 11.20%. ASB lists a business base rate of 11.47% and a floating base rate of 4.64%, both with a minimum margin added. Kiwibank has a single base rate of 10.85% for business loans, property finance and overdrafts, plus a margin. Westpac asks you to contact its business lending team for rates.

Bank establishment fees are relatively low. ASB charges up to 1% of the loan, with a minimum of $25. Westpac also charges up to 1%, with a minimum starting at $400. Kiwibank's application fee starts at $25.

Online lender rates and factor rates

Online lenders decide faster and ask for less, but their rates are higher. Prospa sets your rate based on how much you borrow, your business size and your credit score, and charges a 3% to 4% establishment fee. Bizcap uses a factor rate, and ScotPac includes its fees in weekly repayments. Neither publishes its pricing.

A factor rate can look low because it's not an annual rate. To find out what you'll repay, multiply your loan amount by the factor rate. Repayments usually start right away, often weekly. In the true cost calculator, a $50,000 loan at a factor rate of 1.2, repaid weekly over 12 months, works out at about 37% a year. At 1.30, it's about 54%, and over 6 months, about 107%.

Invoice finance has its own pricing. FundTap charges a single fee per invoice, starting from 4%, depending on how long the invoice has until it's due.

What sets your rate

Security is the biggest factor in your rate. Loans backed by property or assets the lender can sell are cheaper than unsecured loans, which usually need a personal guarantee. Lenders also look at how long your business has traded, how steady your revenue is, your credit history and your directors' credit, the amount you want and the loan term. Newer businesses or those with credit issues pay more, if they can get a loan at all.

How to compare business loan offers

Look at the total amount you'll repay, including all fees, and check the true annual rate. A loan with a low rate but a high establishment fee can cost more than one with a higher rate and no fee. Use the business loan calculator for interest rates, and the true cost calculator to turn a factor rate into an annual rate. The eligibility checker shows how many lenders could consider your business.

Common questions