Category: Business Insights

There is a fine line between surviving and thriving as a business, and for many Kiwis pushing their ventures through the growth stage, that line is funding. This can make securing funding feel like something you need to do as quickly as possible, prompting many eager Kiwi business owners to sign on the dotted line for a loan that doesn’t meet their needs.

Shopping around for the right business loan lender is vital. In essence, knowing how to compare business loans NZ-wide is an art form best left to the experts. Today’s article will help you understand this process. Read on to learn why you should shop around before choosing a business loan lender and how to compare business loans and their lenders.

The Benefits of Comparing Business Loan Lenders

Knowing how to compare business loans in NZ means understanding that no two lenders are quite the same. Each lender has a unique way of doing business, and that means you’ll see wildly different interest rates, repayment structures, flexibility, approval times, and customer service. They run the gamut, and going in without a basis for comparison can create ongoing trouble for your business’s finances.

So, what do you stand to gain by shopping around?

• Better interest rates.

The most obvious benefit of comparison is getting a lower interest rate. Even a 1–2% difference can save your business thousands over the life of the loan.

• Tailored repayment terms.

Some lenders offer fixed repayments, while others might give you flexibility based on your cash flow. Whether you’re a seasonal operator or experiencing rapid growth, finding a loan that matches your financial rhythm makes a huge difference.

• Reduced fees.

Application fees, early repayment penalties, and account maintenance charges can all vary heavily from lender to lender. While this isn’t always easy to find on the surface level, delving into specific policy wording can help you pick things out.

• Faster access to funds.

When your business needs capital, time is often of the essence. Some lenders may take weeks, while others can approve and disburse funds in just a few days. Matching your lender to your timeline ensures you’re not left waiting when opportunity knocks.

• Specialist lender expertise.

Certain lenders specialise in specific industries or business sizes. By shopping around, you might find a provider who understands your industry, offering terms and advice tailored to your situation.

So the real question is, how do you do it? How do you spot a lender that not only gives you timely access to your funds, can tailor the repayment terms to suit your business and comes with specialised expertise to help guide you on lending in your specific industry?

This is where knowing how to compare business loans in NZ comes in.

How to Compare Lenders & Business Loans NZ-Wide 

• Know what your business needs.

Before you start comparing business loans offered by NZ lenders, take the time to conduct an honest inventory of your priorities. This will become your guide.

Get clear on what you need the loan for. Are you expanding your team? Purchasing equipment? Investing in a marketing campaign? The purpose of the loan will help determine what kind of product suits you best (term loan, line of credit, invoice financing, etc.).

• Assess your business’s financial health.

Lenders will look at your revenue, time in business, credit score, and overall risk. Understanding where you stand will help you narrow down lenders likely to approve you and offer favourable terms.

• Compare interest rates and total repayment costs.

Don’t just focus on the interest rate. Look at the annual percentage rate (APR), total cost over the life of the loan, and whether early repayment is allowed and if it incurs a penalty. Using a business loan calculator can help you dig beneath the surface and understand repayment costs for certain loans.

• Read the fine print.

Some loans may appear attractive on the surface but come with hidden terms and conditions. Are there account-keeping fees? Late payment penalties? Balloon payments at the end? Always review the full terms before committing. The best lenders will make an effort to be as clear as possible about these terms, so look out for those.

• Use a business loan broker.

Finally, we strongly recommend you work with a broker. Brokers work the numbers to make sure your loan is suited to your business and that it won’t add unnecessary financial stress to your entire operation. 

This is our area of expertise, and we go to work for you to find the best loan terms. We compare business loans NZ-wide to find the best option so that you can then work with a narrow field to make the choice that is right for you.

It takes a combination of factors to compare business loans in NZ. Time, commitment, and a surefire knowledge of exactly what your business needs. But with expert assistance, you can not only find the loan that’s going to help you now, but also the loan that will help future-proof your business..

Commit to growing your way, take the time to do your research, and partner with brokers you trust. That’s the recipe for success.

Learn how Spinach helps businesses like yours grow.

Are you busy comparing your options for business loans? Spinach is a team of New Zealand’s friendliest business loan brokers on a mission to help businesses just like yours grow their way. We’re here to answer your questions as quickly and easily as possible so that you can make the right call for your business.

Get in touch with our finance team to compare business loans NZ-wide today!

If you run a small business, then you already know it presents a range of challenges. Growth is the most important thing for a small business owner because it gives you a foothold, letting you access bigger customers, better stability, and increased revenue. But this game can feel a lot like a catch-22, because it often takes money to make money, especially if you need specific equipment to get off the ground.

Enter: asset finance. A way for Kiwi business owners to access specific equipment for immediate use while paying it off, just like a normal business loan. If you are looking for a way to grow without putting up all of your reserved capital for a single piece of equipment, tapping one of the many policies for asset finance NZ has to offer might be for you.

But what is it? And is asset finance right for you? This blog post will help you to answer those questions, so read on for a breakdown from your resident business finance experts.

What is Asset Finance?

Asset finance is a particular kind of secured loan, where the piece of equipment that you buy or replace acts as the security for the loan itself. The type of asset finance that New Zealand businesses access allows them to add a vital piece of equipment to their inventory without incurring a significant amount of immediate capital, then pay for the purchase over time.

How does asset finance work?

Unlike some other business loans, you don’t get cash-in-hand or a direct deposit into your business’s bank account. Instead, what usually happens is that you will apply for a loan of a certain amount to purchase a specific piece of equipment (or a vehicle). Once that is approved, you’ll buy that piece of equipment, and the funds will be transmitted directly to the seller, and the loan repayment period will begin.

Is asset finance right for you?

The terms of each policy for asset finance NZ businesses’ access will be unique, just like each business loan, so you should expect your policy to be tailored to the needs of your business.

That said, some solid benefits across the board make asset finance a great choice for Kiwi businesses that rely on certain types of equipment to stay operational:

1. The asset itself will provide the loan security, which means, in most cases, the loan won’t affect your ability to secure credit through other means.
2. If you need to upgrade your equipment quite often, you might be able to secure an asset rental policy where your broker or lender purchases the asset and rents it to you for a designated period.
3. Every policy for asset finance NZ-wide should be tailored to match the life of the piece of equipment you’re buying, and payments can be carefully scheduled to meet your abilities as a business.
4. Tapping a specific piece of equipment can open up a lot of extra financial opportunities for you, making it easier to pay back the loan and grow your business.

If you run a business and need to upgrade your machinery, equipment, or even your facility, asset finance might be the right call for you.

Accessing Asset Finance NZ-Wide: What to Know

Asset finance is pretty unique because it doesn’t require you to put up capital or any additional security from your existing business assets. You just need to be comfortable with putting up the asset you’re acquiring as the loan’s security while you pay down the loan.

Because of this structure, there are one or two things to know before you sign on the dotted line:

• You’ll need to do your research before applying, as the application process requires a fairly accurate estimate of how expensive the piece of equipment you’re hoping to buy is.
• Keeping up with the loan is important because falling too far behind on repayments may result in the asset being reclaimed as a way to pay down the remainder of the loan. To avoid this, it’s important to estimate your business’s ability to create income with the new piece of equipment as accurately as possible. Qualified brokers can help with this.
• The value of most assets tends to depreciate over time, so keep that in mind for long-term financial evaluations of your business!
• If you’re after long-term funding, a standard business loan might be a better solution for you. Asset finance policies tend to suit one-off purchases with specific repayment terms.

If there is one thing to take away from this article, it’s this: every single business is unique. What your business needs to grow and get stable might be different to other businesses in other industries, or even your direct competitors.

The best way to be sure if asset finance in NZ is the right thing for you is to reach out to an experienced financial expert who can help assess your needs, review your options, and collaborate on finding the right direction.

Growing a business? Get help from Spinach.

We’re New Zealand’s friendliest business loan brokers, offering a quick and easy way for you to access the capital your business needs to grow. If you’re looking for asset finance in New Zealand, simply complete your online application, and we’ll be in touch (often within the same day). How good is that?

If you have any questions, don’t hesitate to get in touch with our friendly team. We’re here to help you grow your way.

If you run a small business, then you are looking for ways to grow your company, improve your profits and expand your client base. Small business loans help NZ businesses reach their short and long-term goals by providing them with the funding they need.

However, it’s not enough to acquire the loan itself – you need to use it wisely. How can you use the money to grow your business and your profits to pay back your loan and improve your company in the long run?

Exploring Strategies For Small Business Loans

There are so many ways you can boost your business with extra funding. So, before you apply for a loan, you must formulate a plan for what you will do with your money. Understanding your business plan will make you appear more serious to lenders and will help you know how much money you need to ask for.

What can you do with NZ small business loans?

Boost Your Marketing Efforts. Even if you have incredible products or services, you will have trouble selling them if no one knows about your business. Marketing allows you to reach out to countless potential customers, getting your branding out there and telling people about your unique services.

Explore different marketing methods you could use for your business:

• Print Marketing. Traditional marketing involves putting ads in print media, like magazines, newspapers or physical posters.
• Online Marketing. Online marketing is a must for modern businesses because so many people are online nowadays. Invest in ads for websites, videos and more to get your name out there. Additionally, make sure you set up a website for your business and create a Google Business Profile so that potential customers can learn more about you online. Digital marketing and SEO (Search Engine Optimisation) efforts can draw more eyes to your company.
• Social Media. So many of us use social media every day, which makes social media platforms very powerful tools for modern businesses. Set up social media profiles on different platforms so you can post about your products, services, events, deals and more.
• Creative Campaigns. Feel free to get creative with how you show off your goods. For example, you could host a contest, and the winner could win a prize from your product line. This will bring attention to your business and give customers a chance to interact with your brand.

Upgrade Your Commercial Space. If you have a physical storefront where your team works and your customers come to visit, consider using your NZ small business loan to improve it. Even small upgrades can have a major impact on your hardworking team and your valued customers.

You could put effort into improving functionality:

• Renovate your space to improve the layout or functionality of your workspace, improving workflow.
• Invest in better furnishings to create a better working environment, encouraging your team to stay productive.

You can also improve customer experience so that your customers will want to visit you again:

• Redecorate to create an inviting, modern environment that your customers will enjoy being in.
• Create areas to sit or relax so your customers can feel good when they’re waiting.

Improving your space itself will leave a lasting impression on your team and your customers, promoting staff well-being and creating a nice place for your customers.

Invest In New Equipment Or Technology Upgrades. Modern, efficient tools and machinery can streamline your operations, improving your productivity and your product quality.

Replace or upgrade your current equipment to:

• Increase Efficiency. Get work done faster or create products more quickly, without cutting corners or harming quality.
• Boost Product And Service Quality. Invest in modern machinery that’s designed to create amazing results more effectively, making life easier for your team and your customers.
• Reduce Energy Usage. Choose equipment that’s made with energy efficiency in mind, reducing your running costs and your energy consumption.

Although new machinery often has high upfront costs, it can make up for the initial investment through better output and reduced running costs. Plus, the improved production can increase profitability by enhancing your goods and services.

Hire And Train New Staff. Does your current team feel overwhelmed? Could you use some extra help? Use the funding from NZ small business loans to expand your team, hiring and training new staff.

Your new staff members can help fill gaps in your current operations. They can serve more clients and boost your production. Ensure each new staff member is adequately trained and equipped for the work. Your loan could help with hiring the new staff members, purchasing equipment for them, training them and ensuring they get paid.

Enhancing NZ Companies With Small Business Loans

Your loan can be used in countless ways to uplift your small business. Of course, the first step is to plan for and secure your small business loan. We welcome you to work with our Spinach team to learn more about your business loan opportunities.

Get started by calling us on 0800 SPINACH. Or, send us a message online.

Spinach: Let’s pave your way to success with a small business loan.

Business loans help companies thrive, giving business owners the funding they need to boost their businesses like never before. When starting a new business, one of the most common concerns that business owners struggle with is money. You need funding to create products, buy equipment, pay employees and so on, but it can be difficult to save up extra cash when you’re already putting so much time, effort and money into your current operations.

Business loans can give you that extra bit of funding you need to take things to the next level. But first, you’ll need to choose the right business loan, as selecting the proper financing for you can strongly impact your long-term business success.

Top Factors To Consider When Choosing Business Loans In New Zealand

Where do you start?

Your Business Needs: What Do You Need To Reach Your Short- And Long-Term Goals? Before you apply for anything, stop to reflect on the current status of your business. The stage of your business and the industry you’re in can affect how much money you should ask for. How is your current financial situation? How much money do you need to reach the goals you are currently focusing on?

A few common goals that many small business owners in New Zealand have are:

• Funding startup costs.
• Purchasing new equipment.
• Expanding operations.
• Hiring more staff.

Analyse your current operations and think about any issues you’re facing. Could funding from business loans help you solve those problems?

With this information in mind, you need to determine how much money you should ask for. Try to calculate a realistic amount based on your budget or your financial forecast, and try to avoid borrowing far too much or too little.

Loan Options: Common Loan Types In Aotearoa. There are different types of business loans, and one kind may be better suited for your needs than another. Before choosing your loan type, make sure you research the options available to you.

• Working Capital Loans. These are often used to cover day-to-day operational expenses.
• Small Business Loans. These are specifically meant for smaller businesses, helping grow them into larger operations.
• Asset Finance. These help you finance assets, such as new equipment or vehicles.
• Plant And Machinery Loans. These allow you to purchase the plant and machinery you need to expand your business.
• Invoice Finance. These address delayed payments from clients.
• Unsecured Business Loans. These loans don’t require property or assets as security.

Interest Rates And Fees: How Much You’ll Pay. It’s essential to pay attention to any interest rates and fees you will need to pay along with your original loan amount. To help you visualise the amount of money you will need to repay your lender, we invite you to use our useful business loan calculator on our website.

Your Financials: Assess Your Business Financials And Creditworthiness. Factors like your credit score will strongly affect how willing a lender is to provide you with business loans. Check your business credit score, which is separate from your personal credit score, and consider ways to improve it if needed. The simplest way to improve your business credit score is to pay your bills on time.

Before you apply for your business loan, you should also gather and prepare any necessary financial documents as proof of your business’s financial standing. Financial records like income statements will help lenders assess loan repayment ability.

Your debt-to-income ratio is also an important factor, as it helps determine your borrowing capacity and influences loan terms.

Professional Assistance: Working With A Business Loan Broker To Maximise Results. All of the above-listed tips can help you discover the right business loans for your unique NZ business. However, they can be challenging to act on independently – especially if you are new to the business loan world.

No worries, help is available – expert business loan brokers can go through each of these steps with you, guiding you through the process while connecting you to reputable NZ lenders who can offer you what you need. A broker can simplify the loan search process and assist you with putting together a loan application that looks fantastic to lenders.

Making wrong moves when applying for a loan can cause your application to be rejected. When you work with a trained lending specialist, you can avoid mistakes and optimise your chances of success.

Securing Funding For Your New Zealand Business

Why are you interested in applying for a loan? Regardless of your goals, we at Spinach would love to help. We specialise in offering our clients professional services tailored to their unique needs.

Do you have any questions for us, or would you like to get the application process started right away? Please feel free to call us on 0800 774 622 or use our contact page.

Spinach: Let’s secure the right funding to grow your business.