Business loans NZ: what they cost
See what a business loan costs each week and all up, then have a licensed broker check which lenders would back you.
$271 a week
$70,571 paid back in total
Estimate for $50,000 over 5 years at MTF Finance's 14.00% unsecured rate, fees added, checked 21 Oct 2026. Fees and conditions are below.
What would a business loan cost me?
Put in the amount, the term and the rate you've been quoted, and you'll see each repayment, the total and the interest.
For extra repayments or a full schedule, use the full loan calculator. Nothing you type leaves your screen unless you send the enquiry form.
What does a business loan cost per year?
Where a lender publishes a rate, business loans run from 7.99% to 25.95% p.a., plus set-up fees of $150 to $1,500. The lowest is Harmoney's, a personal loan taken out in your own name. On $50,000 over 5 years, that's the difference between paying back $60,871 and $92,053.
The banks don't publish an all-in business rate. ANZ, ASB and BNZ add a margin for your business to a base rate (ASB's is 11.47% p.a.), and Westpac and Kiwibank quote each loan, so you see the real rate only in the offer. Fast lenders such as Prospa and Bizcap publish no rate at all.
| Lender | Rate (p.a.) | Fee | Each week | Paid back in total |
|---|---|---|---|---|
| Harmoney (personal loan)7.99%–24.99% p.a. | 7.99%–24.99% | $150 | $234–$338 | $60,871–$87,948 |
| Lending Crowd8.95%–25.95% p.a. | 8.95%–25.95% | $450–$1,500 | $241–$354 | $62,620–$92,053 |
| MTF Finance (secured)10.55%–22.55% p.a. | 10.55%–22.55% | $380 | $251–$325 | $65,346–$84,577 |
| MTF Finance (unsecured)14.00%–24.00% p.a. | 14.00%–24.00% | $380 | $271–$335 | $70,571–$87,069 |
| Prospa (its own example)31% p.a. | 31% | 3%–4% | $394 | $102,444 |
$50,000 over 5 years, weekly, at the bottom and top of each published range with the set-up fee added; Prospa publishes no rate, so its row uses Prospa's own calculator example of 31% and a 4% fee. Rates from Harmoney, Lending Crowd, MTF Finance and Prospa, checked 21 Oct 2026; ANZ, ASB, BNZ, Westpac, Kiwibank, Bizcap and ScotPac publish no business loan rate.
See which lenders would back my businessWhat does a $50,000 business loan cost a week?
At 14.00% p.a., MTF Finance's lowest unsecured rate, $50,000 over 5 years costs you $271 a week and $70,571 all up, fees included.
A shorter term costs more each week and less overall. Over 3 years it's $398 a week, and you pay back $8,535 less. Pick the shortest term your cash flow can carry in a slow month.
| Loan at 14.00% p.a. | Each week | Paid back in total |
|---|---|---|
| $30,000 over 3 years | $240 | $37,517 |
| $50,000 over 1 year | $1,041 | $54,147 |
| $50,000 over 3 years | $398 | $62,036 |
| $50,000 over 5 years | $271 | $70,571 |
| $100,000 over 5 years | $539 | $140,161 |
Estimate only, not a quote or an approval. Your rate depends on your credit and the lender. Rates checked 21 Oct 2026.
Ask a broker what rate I'd get
What types of business loans are there in NZ?
There are seven main kinds, and the right one depends on what the money is for. A one-off purchase suits a term loan. A short gap in cash flow suits an overdraft or a line of credit, slow-paying customers suit invoice finance, and a machine or vehicle suits asset finance.
A work vehicle can also go on a car loan: see car finance.
| Type | How it works | Good for | Who offers it |
|---|---|---|---|
| Term loan | A lump sum repaid over a set term | Fit-outs, stock, equipment | Banks, MTF, Harmoney, Lending Crowd |
| Overdraft | A limit on your business account | Wages and bills between payments | All five banks |
| Line of credit | Draw, repay and draw again | Repeated short gaps | Prospa, Bizcap |
| Invoice finance | An advance on unpaid invoices | Customers on 30–90 day terms | ScotPac, BNZ |
| Asset finance | A loan secured on what you buy | Plant, machinery, utes, trucks | ASB, BNZ, Kiwibank, Westpac, MTF |
| Property-secured loan | Secured on a home or other property | Larger amounts at bank rates | ANZ, ASB, Bizcap |
| Short-term unsecured loan | Repaid daily or weekly over months | Urgent cash flow | Bizcap, Prospa, ScotPac |
Bank or non-bank business loan?
A bank is usually cheaper if your business has a trading record. A non-bank lender accepts a shorter record and decides faster, and you pay for that speed: Prospa's own example assumes 31% p.a., while ASB's base rate is 11.47% p.a. before its margin.
Westpac is the exception among the banks, lending to businesses trading under two years if you bring a plan and a forecast.
| What differs | Banks | Non-bank lenders |
|---|---|---|
| Trading history | Usually 1–2 years | 4 to 12 months |
| The rate | Base rate plus a margin, or a quote | A published range, or a quote only |
| Security | Property, business assets or a GSA | Often none upfront |
| Speed | BNZ QuickBiz: within two business days | Prospa: often within an hour |
| Repayments | Weekly, fortnightly or monthly | Weekly, sometimes daily |
Each lender's stated criteria, checked 21 Oct 2026. Banks: ANZ, ASB, BNZ, Westpac, Kiwibank. Non-bank lenders: Prospa, Bizcap, MTF Finance, Lending Crowd, Harmoney, ScotPac.
Secured or unsecured business loan?
A secured loan costs less, because the lender can sell the property, vehicle or equipment if you can't pay. At MTF Finance, secured rates start at 10.55% p.a. against 14.00% p.a. unsecured. Lending Crowd's secured loans top out at 23.78% p.a., against 25.95% p.a. across all its business loans.
An unsecured loan can still reach you personally. Most unsecured lenders ask directors for a personal guarantee, so if the business can't pay, the lender can come after you and, through a court judgment, your home.
Does a business loan put my house at risk?
It can, even when the loan isn't secured on it. Prospa lends up to $150,000, BNZ QuickBiz up to $100,000 and ANZ goBiz up to $250,000 without property, but larger bank loans usually want it. Watch for:
- a mortgage over your home, which lets the lender sell it if the business defaults;
- a personal guarantee, which makes you liable for the company's debt;
- a general security agreement (GSA), which covers the business's assets, and your home only if you also sign a guarantee or mortgage.
Before you sign a guarantee, ask the lender to cap it, give it an end date and leave the family home out, and get independent legal advice. The lender doesn't have to agree.
What do you need for a business loan?
Most lenders ask for the same things; how long you need to have traded is what differs. Have these ready:
- your NZBN and IRD number;
- recent business bank statements;
- financial statements, or your Xero or MYOB data;
- GST returns and turnover;
- a cash-flow forecast and what the loan is for (and a business plan if you're starting out);
- photo ID for each director, and details of any security.
| Lender | Trading | Turnover | What they read |
|---|---|---|---|
| ANZ goBiz | 2 years | Not stated | Two years of MYOB or Xero accounts |
| BNZ QuickBiz | 12 months | Not stated | 12 months of reconciled accounts |
| Kiwibank Fast Capital | 12 months | Not stated | Xero or MYOB, plus a credit check |
| Westpac start-up | Under 2 years | Not stated | Business plan and cash forecast |
| Prospa | 6 months | Over $6,000 a month | Bank statements or a bank link |
| Bizcap | 4 months | $12,000 a month | NZBN and bank statements |
| ScotPac Boost | 12 months | $10,000 a month | 6 months of bank statements |
From each lender's page, checked 21 Oct 2026.
Before you apply, ask yourself the question business.govt.nz suggests: "Can I afford the repayments, even during slow months and at tax time?"
Can a start-up get a business loan?
Yes, but from fewer lenders, and usually with a plan, a forecast and some security. Westpac has set aside $100m for businesses trading under two years and asks for a business plan and cash forecast instead of two years of accounts. Most others want a record first: 4 months at Bizcap, 6 at Prospa, 12 at ScotPac and two years at ANZ goBiz.
If you haven't started trading, the usual route is borrowing in your own name, such as a personal loan or a home loan top-up. That puts your own credit and your home behind the business. See personal loans.
Can I get a business loan to pay IRD?
You can, but talk to Inland Revenue first. An IRD instalment arrangement lets you pay overdue tax "weekly, fortnightly, or monthly", and keeping to it "may stop us taking further collection action". IRD charges interest and penalties on overdue tax, and can write off penalties in some cases.
If you do borrow, compare the loan with the IRD arrangement on the yearly rate, the fees and the total. Watch out for factor rates here: a 1.15 factor repaid weekly over 6 months works out at 55.34% p.a.
Which protections apply to business loans?
Fewer than on a personal loan. Most consumer credit rules don't cover a loan for business, so you don't get:
- the lender's duty to check you can afford it;
- consumer disclosure and a few days to cancel;
- hardship applications or the cap on high-cost loans;
- the protections for guarantors of a personal loan.
You still have some cover. A court can reopen an oppressive contract or strike out unfair terms in a small business contract, the lender must not mislead you, and a free dispute scheme such as the Banking Ombudsman takes complaints.
Credit Contracts and Consumer Finance Act 2003 (ss 11, 13, 14, Part 1A, ss 118–120); Fair Trading Act 1986 s 26C, for contracts under $250,000 a year; Financial Markets Conduct Act 2013 Part 2. A personal loan used for business may still be consumer credit, depending on its use and any business-purpose declaration.
How does a business loan broker help?
A broker shops around the banks and non-bank lenders for you and tells you what each option would cost all up. Compare Loans doesn't lend money or give financial advice.
- 1
Send the form with the amount, your region and how long you've traded. It never asks for income, IRD numbers, ID or credit history.
- 2
The broker calls at the time you choose and asks about the purpose, your turnover and any security.
- 3
They check which banks and lenders on their panel would consider your business, and explain the rate, fees, guarantee and total for each.
- 4
You apply to one lender through the broker. The lender runs its own checks before any offer.
What else do people ask about business loans?
What is the easiest business loan to get approved for?
The lenders with the lowest bar are also the dearest. Bizcap asks for 4 months of trading and $12,000 a month in revenue, and Prospa for 6 months and over $6,000 a month, but neither publishes a rate and Prospa's own example assumes 31% p.a. BNZ QuickBiz and Kiwibank Fast Capital want 12 months of accounts and ANZ goBiz two years, at bank rates.
How much can a small business borrow in NZ?
Anywhere from $2,000 to $4,000,000, depending on the lender and your security. Without security the limits are lower: $100,000 at Harmoney and BNZ QuickBiz, $150,000 at Prospa and $250,000 at ANZ goBiz. Lenders size the loan on your turnover and cash flow.
How do I get a $1,000,000 business loan?
Usually from a bank or a property-secured lender, with security and full accounts. Kiwibank's Fast Capital takes online applications up to $1,000,000 with 12 months of Xero or MYOB data, and Bizcap's secured loans go to $4,000,000 against property. ANZ goBiz caps online lending at $500,000 secured.
Is business loan interest tax deductible in NZ?
Generally yes: interest on money borrowed for the business is a deductible expense, though the loan itself isn't. Fees may be treated differently, so ask your accountant how your loan's interest and fees are handled.
Will a business loan affect my personal credit?
It will if you're personally on the hook: as a sole trader, with a personal loan used for the business (Harmoney's business loans are in your own name), or through a director's guarantee. Kiwibank checks credit history for Fast Capital, and Bizcap gets a credit report before an unconditional offer.
Is there a $5,000 small business grant in NZ?
No, there's no general $5,000 grant for small businesses, and a grant isn't a loan. Government support goes to particular purposes, regions or industries, and business.govt.nz lists what's open. IRD's COVID-19 Small Business Cashflow Scheme is closed to new applications.
Can I repay a business loan early?
Yes, at all five lenders whose terms Compare Loans read, though three charge for it. Prospa adds 1.5% of what's left, Kiwibank charges $250 if a loan over three years is repaid within three years, and Westpac and Kiwibank charge break costs on fixed loans. Harmoney charges nothing, and Bizcap gives a discount for settling early.
Does a longer term make a business loan cheaper?
No. A longer term makes each repayment smaller and the total bigger. At 14.00% p.a., before fees, $50,000 costs $1,709 a month and $61,520 in total over 3 years, $1,163 a month and $69,805 over 5 years, and $937 a month and $78,708 over 7 years, so the two extra years cost you $8,903.
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