Business loans in NZ: what to know before you borrow
A business loan can fund growth, smooth cash flow or seize a time-sensitive opportunity. But the rate you're offered, whether the facility is secured, and how you apply all make a real difference to what your business ends up paying. Here's how it works in NZ.
What are business loan rates in New Zealand?
Business loan rates in NZ generally range from 8.99% to 29.95% p.a. (AIR). The lowest rates go to established businesses with strong credit profiles, usually on secured facilities. The rate your business is actually offered depends on your business credit profile, trading history, the loan amount, the term and whether you offer security. Treat advertised numbers as a starting point, not a promise.
Secured vs unsecured: what's the difference?
A secured business loan is backed by an asset, often equipment, a vehicle or property. Because the lender has security, the rate is typically lower and you may be able to borrow more. An unsecured loan isn't tied to an asset, so it carries a higher rate to reflect the added risk to the lender, but it's faster to arrange with no valuation required. If your business has an asset you're comfortable using as security, a secured facility can bring your rate down, but make sure you understand what's at stake if repayments aren't met.
Should I apply direct or use a matching service?
Applying direct means approaching one lender at a time, and each application usually triggers a hard credit check on both your business and director profiles. Several hard checks in a short window can pull your scores down at exactly the moment you're trying to secure funding. Zooma flips that: one application, one soft credit check, and access to multiple vetted NZ lenders. We assess your business and match you to the lender whose criteria best fit, rather than you guessing which one to try first.
Does my business need to be profitable?
Not necessarily. Lenders assess cash flow and revenue rather than profitability alone, so consistent revenue often matters more than showing a profit on paper. Most lenders on our panel look for at least 9 months of trading history, though some specialist lenders accept shorter periods for businesses with strong, consistent revenue. We assess your situation before approaching any lender, so you know where you stand.
How much does it cost to use Zooma?
If your loan is funded, a broker and introducer fee of up to $1,500 (GST inclusive) applies. Lender establishment fees of up to $450 may also apply, depending on the lender. Every fee is disclosed to you before you commit, so there are no surprises. We only get paid when your loan goes ahead, which keeps our interest aligned with finding your business a deal worth taking. There are no upfront fees to apply.
What protections do I have as a borrower?
Consumer credit in NZ is governed by the Credit Contracts and Consumer Finance Act 2003, and the Commerce Commission enforces the responsible lending rules. Note that some business lending falls outside the consumer protections of the CCCFA, so it's important to read every contract carefully and understand the terms. For independent, government-backed guidance on business finance, business.govt.nz is a good place to start.