# Business loan interest rates in NZ

> Published business loan interest rates in New Zealand run from about 8% to 30% a year. Compare bank base rates, online lender rates, factor rates and fees, checked on 6 November 2026.

By Jason Dark, last checked 2026-11-06. Part of [Loans](https://smallbusinessloan.co.nz/loans) on Skipper.

## The short version

- Published business loan rates in New Zealand run from about 8% to 30% a year, depending on the lender, the security and your business.
- The Reserve Bank's average rate on new small business overdrafts was 10.14% in October 2026, up from 9.87% a year earlier.
- Banks charge a base rate plus a margin they set for your business, so the base rate on their website is never the rate you pay.
- Online lenders that use a factor rate can cost far more than they look. A factor rate of 1.2 over 12 months, repaid weekly, works out at about 37% a year.

## 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](https://smallbusinessloan.co.nz/glossary/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.

| Lender | Published rate | Fees |
| --- | --- | --- |
| [Heartland](https://smallbusinessloan.co.nz/lenders/heartland) asset finance | From 8.70% a year | Not published |
| [Lending Room](https://smallbusinessloan.co.nz/lenders/lending-room) (broker) | 8.99% to 29.95% a year | Broker fee up to $1,500, plus lender fees up to $450 |
| [Pioneer Finance](https://smallbusinessloan.co.nz/lenders/pioneer-finance) | 9.95% to 22.95% a year, fixed | $195 to $375 to set up, plus $9 a month |
| [Line Capital](https://smallbusinessloan.co.nz/lenders/line-capital) | From 16% a year, fixed | 2.5% of the loan, taken from the advance |
| [Harmoney](https://smallbusinessloan.co.nz/lenders/harmoney) (a personal loan in your name) | 7.99% to 24.99% a year | $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](https://smallbusinessloan.co.nz/lenders/anz)'s business term loan floating base rate was 4.74% a year. [BNZ](https://smallbusinessloan.co.nz/lenders/bnz)'s 90-day term loan base rate was 5.13%, and its business overdraft base rate was 11.20%. [ASB](https://smallbusinessloan.co.nz/lenders/asb) lists a business base rate of 11.47% and a floating base rate of 4.64%, both with a minimum margin added. [Kiwibank](https://smallbusinessloan.co.nz/lenders/kiwibank) has a single base rate of 10.85% for business loans, property finance and overdrafts, plus a margin. [Westpac](https://smallbusinessloan.co.nz/lenders/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](https://smallbusinessloan.co.nz/lenders/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](https://smallbusinessloan.co.nz/lenders/bizcap) uses a factor rate, and [ScotPac](https://smallbusinessloan.co.nz/lenders/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](https://smallbusinessloan.co.nz/tools/true-cost), 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](https://smallbusinessloan.co.nz/lenders/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](https://smallbusinessloan.co.nz/loans/unsecured-business-loans), which usually need a [personal guarantee](https://smallbusinessloan.co.nz/glossary/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](https://smallbusinessloan.co.nz/glossary/establishment-fee) can cost more than one with a higher rate and no fee. Use the [business loan calculator](https://smallbusinessloan.co.nz/tools/business-loan-calculator) for interest rates, and the [true cost calculator](https://smallbusinessloan.co.nz/tools/true-cost) to turn a factor rate into an annual rate. The [eligibility checker](https://smallbusinessloan.co.nz/tools/lender-match) shows how many lenders could consider your business.

## Common questions

### What is the average business loan interest rate in NZ?

The Reserve Bank reports an average of 10.14% a year for new small business overdrafts in October 2026. The Reserve Bank doesn't publish an average for business term loans. Lenders' published rates range from about 8% to 30% a year.

### Are business loan rates higher than mortgage rates?

Yes. In October 2026, the Reserve Bank's average floating mortgage rate for new customers was 6.32%, while new small business overdrafts averaged 10.14%. Business loans usually have less security, so lenders charge higher rates.

### What is a factor rate?

A factor rate is a number, like 1.2, that you multiply by the amount you borrow to see what you'll repay. If you borrow $50,000 at 1.2, you repay $60,000. Because you pay it back quickly, it costs more than the same number as an interest rate would suggest.

## Sources

- [Reserve Bank of New Zealand: Retail interest rates on lending and deposits (B3)](https://www.rbnz.govt.nz/statistics/series/exchange-and-interest-rates/retail-interest-rates-on-lending-and-deposits)
- [ANZ: Business rates, fees and agreements](https://www.anz.co.nz/rates-fees-agreements/business/)
- [ASB: Business and rural loan interest rates and fees](https://www.asb.co.nz/business-loans/interest-rates-fees.html)
- [BNZ: Business lending interest rates and fees](https://www.bnz.co.nz/business-banking/loans-and-finance/interest-rates-and-fees)
- [Kiwibank: Business rates and fees](https://www.kiwibank.co.nz/business-banking/borrowing/rates-and-fees/)
- [Westpac: Business term loans](https://www.westpac.co.nz/business/loans-and-finance/business-term-loans/)
- [Heartland: Asset finance common questions](https://www.heartland.co.nz/asset-finance/common-questions)
- [Pioneer Finance: Interest rates and fees](https://pioneerfinance.co.nz/important-information/interest-rates-and-fees)
- [Line Capital: Frequently asked questions](https://www.linecapital.co.nz/frequently-asked-questions)
- [Harmoney: Business loans](https://www.harmoney.co.nz/personal-loans/business-loans)
- [Lending Room: Business loans](https://lendingroom.co.nz/business-loans/)
- [Prospa: Frequently asked questions](https://www.prospa.co.nz/frequently-asked-questions)
- [Bizcap: FAQs](https://www.bizcap.nz/faqs)