Category: Business Insights

Fueling Ambition: The Comprehensive Guide to Different Types of Business Loans

Posted on by KWD

You’ll need heaps of different traits and resources if you want to succeed in the business world. Passion, solid goals and a strong work ethic can all help you grow your company, but there’s one thing that everyone needs to really get their dream started: funds. One way you can secure the funds you need early on is through business loans.

Whenever you’re doing anything with money, it’s vital that you know exactly what you’re getting into. With a multitude of loan options available, understanding the types of loans is crucial for making informed decisions that meet your needs and align with your goals.

No worries; our friendly team of lending specialists here at Spinach are here to help. We know that every business is different, and we specialise in helping owners find the best choices for their specific circumstances. 

Understanding The Different Types Of Business Loans Available

Not all financial situations or business goals are the same, so it’s vital that you find a loan with terms that are ideal for your circumstances. Plenty of different types of loans are available, and if you choose the wrong kind, you might not get your desired results.

Before you apply for any loan, it’s important to take the right steps to understand your opportunities. For instance, you could use our easy-to-use business loan calculator to get an idea of what your loan could be like.

Here are a few of the kinds of loans we deal with at Spinach, and what you should know about them:

Working Capital Loans. A working capital loan serves as a lifeline for businesses by providing a lump sum of funds to maintain day-to-day operations and manage cash flow fluctuations. These loans are designed to bridge the gap between outgoing and incoming payments, ensuring that businesses can cover expenses such as payroll, inventory and overhead costs. If you’re unable to cover these costs, you may not be able to continue your operations, so this loan can really help you keep things running smoothly.

Working capital business loans may take the form of a line of credit or an overdraft facility, offering flexibility and convenience in accessing funds as needed. It’s important to borrow no more than 5 or 10% of your turnover to avoid excessive debt and ensure affordability. If you borrow more than that amount, you may have trouble repaying it, and it will be much more expensive. While it may be tempting to borrow more now so you have more money to work with, doing so can cause you trouble down the track.

Asset Finance. Asset finance is a type of loan that’s meant to help companies get the business assets they need to continue, change or grow their operations. These business assets can refer to company vehicles, equipment, machinery and more. Whether you’re interested in upgrading the assets you already own or you want to expand your fleet of vehicles, asset finance could be the right solution for you.

These loans are secured against the assets you buy, so you should be able to get good loan terms and rates when you choose this type of business loan.

Secured And Unsecured Business Loans. Naturally, all loans require a personal guarantee from the person getting the loan that they’ll pay it back. However, these loans can be either secured or unsecured, and it’s important to understand the difference between these two before you apply for any loan:

  • Secured Loans. These loans are secured against your property or business assets, such as your vehicles or equipment. This allows lenders to offer longer terms, lower interest rates and larger loan amounts, because these loans are less risky to the lenders themselves.
  • Unsecured Loans. Conversely, unsecured loans aren’t secured against any property or business assets. Instead, these loans come with only a personal guarantee from the one borrowing the money. These loans are riskier for the lender, so they may offer shorter terms and higher interest rates.

Bridging Loans. As its name implies, these business loans are meant to ‘bridge the gap’ in your finances. These serve as temporary financing solutions to help you complete purchases or transactions. It’s common for people to use these loans when purchasing or upgrading a new asset while waiting for another one to sell or be repaired.

Term Loans. Unlike working capital loans, where you get a lump sum of money and can repay it when needed, term loans give you a lump sum of money but you have to repay it incrementally over the loan’s term, like how you would with a home mortgage or a car loan. 

Getting The Right Funding For Your New Zealand Business

Business loans are a fantastic opportunity for any kind of business, regardless of whether you’re starting your first business venture or you’re growing your existing company. Of course, every smart business person knows you should think through any big business moves, which is why we at Spinach are here to help.

Do you need a small business loan to boost your business? Then come and see how our lending specialists can help you. To get started, you can call us on 0800 774 622.

Give your business a healthy financial boost with Spinach!

Your Financial Ally: The Role and Benefits of a Business Loan Broker

Posted on by KWD

From securing capital to managing cash flow, the financial world can be rather intimidating, especially for those new to business ownership. Among all of the difficult financial decisions you’ll need to make, one invaluable ally stands out: the business loan broker.

As a business owner, you may find yourself grappling with strange financial terminology that you’re not quite familiar with. Unfortunately, one wrong move can land you in hot water, even if it was due to a simple misunderstanding. Luckily, loan brokers are here to make the process simple and easy to understand. They can use their skills, experience, and knowledge to help you fully comprehend even the most complicated financial terms, helping you make informed decisions that benefit your business.

If you’re a business person who’s considering getting a commercial loan, we encourage you to keep reading to learn more about how a professional business loan broker can help you secure a fantastic deal. 

Understanding The Role Of A Loan Broker

Expert loan brokers serve as intermediaries between business owners and lenders, using their expertise to match businesses with the most suitable loan options. These professionals possess in-depth knowledge of the lending landscape, allowing them to explore various loan products and lender requirements.

When you work with one of these asset finance specialists, you can have peace of mind knowing that you’re partnering with someone who knows exactly what they’re doing. Whether you’re seeking capital to fund your business’s growth, purchase equipment or manage cash flow, a lending specialist can help you take advantage of your best opportunities.

Naturally, it’s important to find a business loan broker that meets your needs. Search for a professional that you get along with, who communicates well and who has a genuine interest in helping you. Before you begin working with anyone, make sure you ask them any questions you have so that you can gauge if they’re a good fit for you.

As you can imagine, there are plenty of incredible advantages to working with an exceptional loan broker who has your best interests in mind. A handful of these benefits include:

Access To Many Lending Options. Expert loan brokers maintain relationships with an extensive network of lenders, including banks, credit unions and other lending institutions. This broad network allows them to present you with a diverse array of lending options that are specifically tailored to your business requirements.

Expert Guidance And Advice. Exploring the world of business lending can be very overwhelming, especially for those unfamiliar with the process. Business loan brokers offer expert guidance and advice, helping you understand the nuances of different loan products, terms and interest rates. With their assistance, you can make smart, informed decisions that perfectly align with your goals and financial status. If you ever get confused, don’t hesitate to ask questions, and your loan broker should be able to clear things up for you in an easy-to-understand way.

Streamlined Application Process. Securing a business loan often involves a lengthy and complex application process. Professional loan brokers streamline this process by gathering necessary documentation, preparing loan applications and liaising with lenders on your behalf. Their expertise ensures that your application is presented in the best possible light, increasing your chances of approval.

Negotiation And Advocacy. Business loan brokers are skilled negotiators who advocate on your behalf to secure great loan terms and conditions. From negotiating interest rates to going for flexible repayment schedules, they work tirelessly to ensure that you receive the most advantageous deal available.

When you work with someone who cares about what they do, rather than someone who just sees you as any other client, you can have confidence in them and know that they’ll do whatever they can to help you.

Time And Cost Savings. By working with a skilled business loan broker who’s done this many times before, you can save heaps of time and money. Rather than dedicating countless, stressful hours to researching lenders and going over paperwork yourself, you can trust your lending specialists to lend you a much-needed helping hand.

Furthermore, professional loan brokers can help to identify deals that are better for you, potentially leading to cost savings through better interest rates. 

Securing Your Business Loan With Confidence

In the ever-evolving landscape of business lending, having a trusted, knowledgeable ally by your side can make all the difference. Lending specialists are pivotal in simplifying the lending process and empowering New Zealand business owners to make informed financial decisions.

Are you seeking financial advice regarding business loans? If so, our expert team of experienced asset finance specialists are here to help. At Spinach, we specialise in helping people boost their businesses with expertly negotiated business loans.

To learn even more, visit our website for details. We also have useful and easy-to-use tools available to help you understand your options, such as our business loan calculator.

Are you ready to get the process started? Feel free to contact our team on 0800 774 622 to get in touch.

Grow your business like never before with Spinach.

Unlocking Growth: A Guide to Securing Your Commercial Loan Successfully

Posted on by KWD

Starting or expanding a New Zealand business often requires financial support, and understanding the various types of commercial loans available is essential for success. With the right funds and help from an experienced lending specialist, you can watch as your business grows and thrives.

In this comprehensive guide, we’ll delve into the world of financing to help you understand the different kinds of loans offered and how you can significantly better your chances of acquiring the funding you need.

The Many Different Types of Business Loans

Commercial loans are loans that are granted to businesses, rather than individuals – but did you know that there are different types of business loans? To maximise your chances of success, it’s vital that you choose the right type of loan for your business.

The types of business loans that you could consider are:

Working Capital Loan. This type of loan is a lump sum of money that helps to keep your cash flow moving. The amount of money can actually change within the month to bridge the gap between outgoing and incoming payments. We recommend keeping a loan of this type to no more than 5-10% of your turnover for optimal payment. Any more, and you could have trouble repaying it.

Asset Finance. This type of loan involves funds allocated for business assets, such as vehicles and equipment. This can help you acquire the right equipment and assets you need to grow your business and improve your profits.

Secured And Unsecured Business Loans. While all loans require a personal guarantee from the business or individual to the lender, these loans can be secured or unsecured. Secured loans involve the loan being secured against a property or business asset. However, with an unsecured loan, you are only offering a personal guarantee, and the loan is not secured against your property or assets.

Bridging Loans. These commercial loans assist with closing financial gaps in transactions, similar to home purchases. For example, you could use this type of loan to complete a transaction while another one concludes.

Term Loan. For this type of loan, you can borrow a sum of money upfront and then incrementally repay the loan over a set duration. This is a very versatile commercial loan option that can be tailored to different business needs.

Tips For A Successful Business Loan Application

It’s vital that you take the right steps to improve your chances of securing a commercial loan. Keep these tips in mind as you apply for your loan:

Understand Your Needs And Create A Plan. First and foremost, make sure you understand exactly why you’re applying for a loan. Think about what you’ll use the money for and how much money you’ll need. Consider how you’ll use the money to contribute to your business’s growth in the future.

This will help your lender know what they’re funding and will show that you’re a proactive business person who plans for success. Understanding your exact needs will also help you choose the right type of loan so that your funding aligns with your plans.

Assess Your Credit Profile. Before submitting an application, review your personal and business credit scores. Good credit will show your potential lenders that you’re a reliable business person, and they’ll be more likely to trust you with a loan.

Gather The Right Documents. Compile any essential financial statements, tax returns and other important documents that you’ll need to present a good picture of your company’s financial health. Having the right documents will show your potential lenders that you’re organised and responsible.

Get Professional Help From An Experienced Business Loan Broker. Even if you’ve been running your business for a while, understanding the intricacies of commercial loans can be a challenge. One mistake can result in a denied application.

So, the best thing you can do to ensure your success is to work with a business loan broker with plenty of training, experience and drive. 

A professional lending specialist will help you create a good plan, gather the right documents, address any issues that could prevent you from being granted a loan and help you find the right lender for your situation.

Growing Your New Zealand Business With The Right Commercial Loan

Securing a commercial loan doesn’t have to be an overwhelming challenge. With a clear understanding of your business needs, the right type of loan and careful preparation, you can navigate the financial world with ease and confidence.

Consider seeking guidance from professionals like us at Spinach, who specialise in unravelling the intricacies of business loans. Remember, a successful commercial loan application is not just about obtaining funds – it’s about unlocking the growth potential of your business.

If you’re ready to explore your business’s financing options, please don’t hesitate to message our Spinach team through our contact page or by calling us on 0800 774 622.

Get the right funding and move towards success with Spinach.

3 Things That Will Instantly Disqualify You from a Business Loan

Posted on by KWD

When preparing to borrow funds to invest in your business, you want to feel confident that the loan is likely to be approved.

We have prepared this list of 3 ways your loan will be instantly declined to help you overcome them before getting started. Once you can overcome these three issues, you’ve increased the likelihood of the ‘go-ahead’ you are hoping for.
1. You are not managing your monthly creditor obligations well.
This looks like:

  • dishonouring transactions in your bank statements,
  • unarranged overdrafts in your bank statements, and
  • late payment of bills

You can overcome this by:

  • preparing a monthly budget outlining due dates of creditor invoices and payments and making sure money is in place to pay your direct debit payments on time.
  • forecasting your cashflows with your accountant to predict when there will be a shortfall, so you don’t take too much out of the business too soon.
  • Negotiating better payment terms with both your creditors and debtors so your cashflow cycles are in synch.
  • Making sure there is sufficient working capital in the transaction accounts to allow for seasonal fluctuations in your business.

2. You don’t have a clear purpose for the loan funds.
Gone are the days where you can go to the bank and ask, ‘how much can I have?’ With responsible lending protocols in place, you need to have a simple explanation for the loan purpose.

You can overcome this by:

  • Preparing a forecast to show the outcome of the introduced working capital, such as the increased turnover of that new equipment or staff member.
  • Showing invoices, quotes, or website links for the equipment you want to buy.
  • Settlement statements for any loans you want to refinance.

3. There are a large number of credit enquiries in a short space of time.
It makes sense that when you are applying for credit without a broker you may apply to a couple of places and see what the best deal is, but if there are a large number of enquiries in a short space of time, lenders start to ask what might be going on and why no loan has been successful before now. It may also take points off your credit score each time an enquiry is made. So, be mindful with the number of enquiries you are making, or better yet, work with a broker like Spinach to save time and hassle.

At Spinach, we are business loan brokers who work with 26 financiers to find solutions for any business purpose. So, to have a confidential chat about your preparedness, or about the goal you are trying to fund, get in touch with Jemma on 021358433, or jemma@spinach.co.nz or visit our website www.spinach.co.nz

*Note this is not personalised financial advice. Usual lending criteria, fees and interest rates apply.

Navigating the World of Business Loans in New Zealand: What You Need to Know

Posted on by KWD

Thousands of New Zealand businesses are trying to make it work; what sets yours apart? You need passion, effort and funds to succeed in the business world. Unfortunately, many people lack the necessary funds, and generating revenue is difficult when you don’t have money to grow your business. If you’re a business person who can relate to this, you can consider looking into business loans in NZ.

Some people get anxious about loans because they know they’ll have to repay them. Of course, you will eventually need to repay your loan, but you can significantly boost your profits with the money you use. You’ll be paying your loan back in no time!

But you shouldn’t just walk into a bank and ask for a loan without the right plan, documents and help.

How Do You Know If Your New Zealand Business Needs A Loan?

Before you start researching business loans in NZ, there’s one very important question you need to ask yourself:

Why do you need a business loan?

Before doing anything, always fully understand why you’re doing it. What do you think you’re going to do with the money? You can reflect on your options by thinking about why your business needs help.

A few common reasons why people apply for business loans are:

  • Unsatisfying Profits. A big goal that most business owners have is to make money. If your cash flow is less than optimal, you will want to do absolutely everything you can to improve it. A loan can help you purchase more inventory or pay for other business-related expenses to boost your company.
  • Equipment Needs. The majority of businesses require some form of equipment to function. Chefs need kitchen equipment, mechanics need tools and so on. What equipment do you use? A loan can help you purchase the tools you need or maintain your current equipment.
  • Insufficient Staff. Another pair of helping hands can go quite a long way. You can use the extra funds to hire and train new staff.
  • Marketing Campaigns. NZ business loans can also be used to launch amazing marketing campaigns that get your brand out there. After all, you could have the most outstanding products in the world, but no one’s going to buy them if no one knows you exist.

What To Do If You Need A Business Loan In New Zealand

Have you identified why you need a business loan? Good! You’ve completed the very first step to acquiring and successfully using your loan. Next, you should:

Consider Your Eligibility. Not every lender looks at the same requirements when determining whom to lend to, so the lender you choose may look at certain qualities but not others. However, most lenders look at basic details like credit score and business experience.

It’s wise to review these qualities before you speak to any lenders so you’re prepared:

  • Credit Score. Your credit score is a useful indicator of how reliable you are with money. So, this is often one of the very first things a lender will look at.
  • Business Experience. Some lenders will only lend to companies that have been operating for a minimum amount of time.
  • Potential Collateral. Some lenders will require you to put something up for collateral that they can seize if you fail to repay your loan.

Examine Your Wants And Come Up With A Number. You’ve thought about why you need a loan, but have you reflected on how much those needs will cost? Think about everything you plan on using your loan for and come up with a realistic number.

You can use our helpful loan calculator to gain insight into how much your loan might cost.

Contact A Fantastic New Zealand Loan Broker. Get in touch with an experienced loan broker to discuss business loans in NZ. If you are thinking about applying, we welcome you to speak to us at Spinach! We’re proud to offer people like you personalised advice.

Once we’re speaking, we can discuss your needs and what you want from a business loan. We’ll do our best to identify a lender that’s right for you.

Submit An Application. After those steps are done and we’ve found the right path for you, it’s time to submit an application!

Make Your First Step Towards An Amazing Business Loan Right Now

Applying for business loans in NZ is a rewarding process, but it can also be rather challenging if you’re not sure what to do. Don’t worry; we’re here to help! Our friendly and professional Spinach loan brokers are happy to assist you.

We don’t just offer generic advice that you could get anywhere, either. We look at your circumstances, analyse your details and speak to you to help you in a way that’s perfectly suited to your business and your wishes.

Please don’t hesitate to call us at 0800 774 622 or visit our website to reach us.

Work with Spinach to create a brighter future for your business!

Unlocking Growth Opportunities: How Business Loans Can Fuel Your Company’s Success

Posted on by KWD

You need passion and effort to make a business successful, but you also need money! It’s difficult to get your company off the ground if you’re low on cash. Thankfully, there are business loans and financial opportunities that you can utilise to give your company the help it deserves.

With the right loan, you can thrive in no time; you just need to be smart with your actions to use your loan right and to get a deal that’s best for you.

But how do you do that? This process can be extremely confusing for business owners who have never applied for a business loan before, and making the wrong move can seriously cost you money.

Don’t worry; we at Spinach are here to help! Keep reading to learn how you, too, can be successful.

How To Use Business Loans To Your Advantage

Say you do get your loan; what can you do with it? It would be best if you had a good plan for how you’ll use your loan before applying for one. Otherwise, you may end up squandering your money.

There are many things that you can use your loan for to fuel your company’s success. The specific things you do will depend on the type of company you run and your priorities, but in general, a few smart things you can do are:

Get New Equipment. No matter what type of job you do, you most likely use some form of equipment during your daily tasks. Bakers need cooking utensils and appliances to make delicious food; craftspeople need quality tools to create their goods, and so on. What type of equipment do you use in your business?

Chances are, there are better types of equipment that you can use for your company that’ll boost your efficiency and get you better results. You can purchase new equipment using business loans to get your work done faster and better, thus increasing your profits and brand reputation.

Stock Up On Inventory. You can purchase more inventory for your business to ensure that you have plenty of products to sell. With more inventory, you can offer more to your customers and make more money. You can then funnel those funds into growing your business even more or use them to repay your loan.

Hire New People. Some extra help can go a long way. But, new employees need to be trained and paid. You can use money from your loan to hire and train new people to improve your company’s productivity.

Important Steps To Take Before Applying For A Loan

There are lots of helpful things you can do with business loans to improve your company. But that’s only if you get approved for your loan.

It’s crucial to be smart about your choices before you actually apply for a loan to improve your chances of getting approved.

Before you apply for anything, read through these steps and think about what you’ll need to do:

Step 1: Plan! Always plan ahead before you make any big decisions. The wrong choices, especially when your choices involve a lender’s money, can lead to trouble.

So, plan ahead. Think about what you’ll need your loan for, what specific things you’ll do with the money and how much money you’ll request. This is good for your future, but it’s also good for loan applications because lenders tend to prefer when the people they’re working with have a clear path for what they’re going to do.

Step 2: Choose An Experienced NZ Loan Broker. Stepping into the world of business loans is never easy if you’re new to it, and you definitely don’t want to do it alone. Look for experienced loan brokers who have helped plenty of people like you before. They’ll have the knowledge and experience to give you personalised help.

At Spinach, our team is always here to offer help that specifically applies to your situation. We won’t just give you generic advice that you can get from any other source; we’ll look at your circumstances and help you as best as we can.

Step 3: Meet Your Loan Broker And Discuss Your Options. It’s time to meet! Speak with your loan broker and discuss your needs, your wants and your current situation.

Step 4: With Their Help, Apply For Your Loan. Once everything is discussed and your loan broker knows what you want, they can then help you with the loan application process. They’ll help you find the right lenders, and they’ll certainly help you get a great deal.

What You Can Do Right Now To Get A Great Loan For Your Company

The best time to start improving your business is right now. Contact our team at Spinach for some of the best support and advice in New Zealand! We’re a friendly team that strives to help New Zealand’s business owners with their business loans.

We know your business is unique, and we’re excited to hear about it. Call us at 0800 774 622 or conveniently reach us through our website.

Lead your company with success with Spinach.

How To Get A Bad Credit Business Loan – 3 Things You Must Know

Posted on by KWD

A business loan, and the help of an expert business loan broker, can really give your company a much-needed push. You can use those funds to grow your business, improve your equipment, hire new people and more. Overall, the right loan can be just what you need to become successful.

However, lenders tend to look at your credit score when they review your application. What happens if you have bad credit? Bad credit isn’t exactly something you can change overnight.

Is it hopeless? Can you still get a loan, or do you need to look at other financial options?

Read on to learn more about crucial things that all business owners should know about, whether or not your credit score is good or bad.

What Should I Know About Applying For A Loan With Bad Credit?

You might wonder, ‘should I even bother working with an expert business loan broker if I have bad credit? Would I be wasting my time?’

If you need a business loan, you should absolutely consider speaking with a professional loan broker to help with your situation. They’ll help you understand that:

Getting A Loan With Bad Credit Isn’t Impossible, But It Is More Difficult. You will be happy to know that you can get a business loan, even with bad credit. However, the process will be a bit more difficult, and some lenders may reject your application based on your credit score.

So, the process of getting a loan may take longer and may be a bit more complicated than it would if you had excellent credit. A professional business loan broker will be able to help you sort out your details and find the best lender for you.

Some lenders look at other factors as well, not just credit score. Additionally, some lenders specialise in bad credit loans.

Some things that you can do to improve your chances of getting a loan, even with bad credit, are:

  • Having an asset for security or collateral.
  • Improving your credit score.
  • Creating an excellent business plan regarding what you will do with the loan.

You Can Take Certain Steps To Improve Your Credit Score. Having a bad credit score due to poor actions in the past may be disheartening, but you shouldn’t think that this is the end of the line for your loan opportunities. You can take steps to enhance your credit score.

Improving your credit score won’t happen immediately, but if you start to improve your financial habits now, you can improve your future. Consider speaking to your business loan broker about your credit options.

You May Need To Pay More Interest For Your Loan. Along with the loan process taking longer, you may also need to pay more interest for your loan. This will reflect the added risk your lender is taking by lending their money to someone with a low credit score.

Although this isn’t good, having the extra funds can help you improve your business greatly, and you can pay off your loan if you plan well and put in the effort.

What Should I Do When Applying For A Loan With Bad Credit?

Luckily, applying for a loan with bad credit isn’t too different from applying for a loan with good credit. Plus, a talented business loan broker can help you greatly, so it’s highly recommended that you work with someone with the right experience and knowledge to help you.

Some simple steps you should take are:

1. Decide Why You Need A Loan. Whenever you apply for any kind of loan, regardless of your credit score, you should always have a set reason why you need the loan. What will you use it for? How much money will you require for your specific reasons?

2. Look At Your Loan Factors. Although most lenders will look at your credit score, it’s not the sole thing that they’ll look at. Plenty of other factors go into if they think they should lend to you.

3. Create A Realistic Business Plan. It’s very important that you have a solid business plan. A plan can seriously benefit your productivity and show your business loan broker and your lenders that you’re serious about using their money well. Your plan should include what you’ll use the money for and how you’ll pay it back.

You can use a great business loan calculator to get an idea of how much money you’ll be expected to pay back monthly.

4. Speak To Your Broker About Lender Options. When you have a plan, you and your loan broker can begin to look at your best possible options. An experienced broker will be extremely helpful with this step.

5. Apply For Your Loan. After you have everything you need, it’s time to actually apply for your loan.

Where Can I Get Expert Assistance Regarding Business Loans In New Zealand?

If you want the best loan for your situation, then you’ll need to work with some of the best business loan brokers in New Zealand – and you can find them here at Spinach. We’re thrilled to help businesses of all sizes with their loan opportunities.

Would you like some help getting a good deal on a business loan? Call us at 0800 774 622; we’d love to assist you.

Spinach can help you get the financial help you need for your business.