commercial loan

Small Business, Big Dreams: Finding the Right Loans for Your New Zealand Enterprise

August 21, 2023

Starting a small business is a big undertaking, but it can be incredibly rewarding. Unfortunately, you’ll need more than big dreams and enthusiasm if you want to improve your chances of success – that’s where small business loans can help your NZ enterprise thrive.

Making your dreams work without funding is difficult, especially in today’s fast-paced business world. You’ll need some money to work with to grow your company.

A small business loan is the perfect way for businesses to get some money to work with. They can then use that money to purchase more inventory, hire more staff or do whatever else they need to grow their passion project.

Getting a loan sounds like a fantastic stepping stone towards success. But, as with any financial undertaking, there are a few things you should think about before you apply for any small business loans in NZ.

Getting The Best Loan For Your NZ Company

When it comes to business, you should never jump first and think later. Poor financial decisions can seriously land you in hot water! Always think your business decisions through before you do anything drastic, like sign up for a loan that might not be quite right for you.

How do you know what loan is right for you?

Before you call anyone, whether they’re a potential lender or a helpful lending broker, it’s extremely important to get all of your things in order.

Always stay organised. Make sure you know where any important business documents are, such as income statements, and consider gathering them if you think you’ll need them.

Furthermore, prepare yourself mentally as well. Make a plan about what you’ll do with your loan, how you plan on making the money back and so on. You’ll be more likely to succeed in getting small business loans in NZ if you can show that you’re an organised business person who’s serious about what they’re doing.

Using this convenient online business loan calculator is an easy way to get an idea of how much your loan will cost.

Next, you need to think about the type of loan you need. A good way to determine what kind of loan you need is to identify your business needs. There are several types of business loans available, so it’s vital that you choose the most suitable one for your specific situation.

A few, but not all, of your small business loan options are:

  • Asset Finance. This type of loan is secured against your assets, such as equipment or inventory. If you default on the business loan, your lender can seize your selected assets to recoup their losses. Asset finance can be a good option for businesses that need to finance the purchase of assets, but it’s important to ensure you can afford the monthly payments.
  • Unsecured Business Loans. These loans aren’t secured against any assets. This means that the lender is only relying on your business’s creditworthiness to repay the loan rather than on collateral. These loans are generally more difficult to get than asset-backed loans, but they’re a great option if you have a good credit score.
  • Working Capital Loans. These NZ small business loans are used to finance the day-to-day operations of a business rather than funding the purchase of large new equipment or machinery. Daily operation assistance can include paying for inventory, payroll or marketing expenses. These tend to be short-term loans, with repayment terms of generally one to three years.
  • Plant And Machinery Loans. This kind of loan is used to finance the purchase of equipment or machinery. A loan of this type is often secured against the equipment that’s being purchased. This is a fantastic option for business people who are seeking loans to expand their operations with new equipment or to upgrade their existing equipment.

Once you know what type of loan you need, then you’ll need to find the best lender for you. This task is exceptionally daunting for small business owners with little to no experience with NZ small business loans. So, to make sure you get the best results possible, we highly recommend working with a professional loan broker who will offer you personalised assistance.

Would You Like Some Expert Assistance? We’re Here To Help!

Thinking about everything that goes into applying for a small business loan can be very confusing and frustrating, regardless of why you need the loan or how much money you need. Making the wrong choices can result in you paying more in interest than you really need to.

How exactly can you make all the right choices? That’s easy; just call our team of friendly loan brokers at Spinach.

We have plenty of experience with NZ small business loans, and we’re passionate about helping people just like you get the funding they need to thrive. Every unique business makes Aotearoa better, and we want you to succeed!

Would you like our help? Call us on 0800 SPINACH, or reach out to us through our contact page.

To get the funding you need, call us at Spinach!