# Business loans in New Zealand

> You can get business loans in New Zealand from banks or online lenders, and each has its own pricing. Learn how they compare and what you'll need to apply.

By Jason Dark, last checked 2026-11-05. Part of [Loans](https://smallbusinessloan.co.nz/loans) on Skipper.

## The short version

- Banks offer lower rates but want security, a trading history and full financial records, and they take longer.
- Online lenders decide quickly and often don't need security, and their loans cost more.
- When you compare loans, look at the true annual rate and the total you'll repay.
- Be ready to provide bank statements, accounting records and details of the directors.

## Banks and online lenders

In New Zealand, business loans come from two main kinds of lender. Banks offer the biggest loans at the lowest rates. They usually want security, often your house, and a few years of financial statements, and the application can take weeks.

Online lenders like [Prospa](https://smallbusinessloan.co.nz/lenders/prospa) and [Bizcap](https://smallbusinessloan.co.nz/lenders/bizcap) work differently. They decide quickly and lend smaller amounts over shorter terms, often without property as security. You pay more for that speed.

## How lenders price a loan

Banks and some online lenders quote an interest rate. Others use a [factor rate](https://smallbusinessloan.co.nz/glossary/factor-rate), a multiplier that sets your total repayment. If you borrow $50,000 at a factor rate of 1.2, you pay back $60,000, plus any fees.

A factor rate looks cheaper than it is, because you repay it in weekly or daily instalments over a short term. The [true cost calculator](https://smallbusinessloan.co.nz/tools/true-cost) converts the factor rate, fees and term into a [true annual rate](https://smallbusinessloan.co.nz/glossary/true-annual-rate) you can compare with a bank's interest rate. A factor rate of 1.2 over 12 months with weekly repayments works out to about 37% a year.

## Secured and unsecured loans

A secured loan is backed by an asset the lender can sell if you stop paying, such as property, a vehicle or equipment. An [unsecured loan](https://smallbusinessloan.co.nz/loans/unsecured-business-loans) has no specific asset behind it, so the lender usually asks each director for a [personal guarantee](https://smallbusinessloan.co.nz/glossary/personal-guarantee) instead.

## What lenders look at

Lenders usually want to know:

- how long you've been trading
- your revenue, often checked through your bank statements or accounting software
- your credit history and your directors'
- what you'll use the money for
- any other debts the business has

Online lenders often connect to your bank account or accounting software to collect this directly, which is part of why they're fast.

## Comparing offers

When you compare offers, check three things: the true annual rate, the total you'll pay back including fees, and the cost of paying the loan off early. A loan with a lower rate but a high early payout fee can cost more if you plan to clear it fast.

## Sources

- [Prospa: Small business loans](https://www.prospa.co.nz/small-business-loan)
- [Bizcap: Compare solutions](https://www.bizcap.nz/compare-solutions)