commercial loan

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

June 6, 2023

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!