Business Loans for Kiwi Businesses

Here’s a straightforward overview of four common types of business finance, secured and unsecured, to help you find the right fit for your needs.

1. Secured Business Home Loan
Use your residential property as security to access competitive funding for your business.

Key Features:

Flexible Rates: Choose a floating rate for extra repayment flexibility or a fixed rate to lock in repayments; split your loan to enjoy both benefits.
Repayment Options: Pay weekly, fortnightly, or monthly, and make lump‑sum repayments anytime on a floating rate loan (conditions may apply for fixed‑rate lump sums).
Loan Term & Size: Borrow from $5,000 up to 80% of your property’s value, over terms up to 30 years.
Interest‑Only Periods: Available (subject to approval) for up to two years on owner‑occupied properties and up to five years on investment properties.

2. Standard Business Loans
Ideal for medium‑ to long‑term financing needs, from six months to five years.

Benefits:

Choice of Rate: Fixed rates bring certainty; floating rates offer flexibility, with the option to switch. You can also split your loan.
Flexible Repayments: Make extra repayments on floating‑rate loans without penalty.
Repayment Structures:

Table Loan: Level repayments that gradually shift from interest‑heavy to principal‑heavy.
Straight‑Line Loan: Fixed principal repayments; total payments decrease over time as interest falls.
Interest‑Only Loan: Payments cover only interest, with full balance due or refinanced at term end.
Before You Apply:

Assess your cash flow and borrowing needs
Budget for repayments and understand the impact of debt
Consider ways to reduce costs to borrow less
Good financial management can improve approval chances and may lower interest rates

3. Business Overdraft
A flexible, on‑demand credit facility linked to your everyday transaction account.

Why Choose an Overdraft?

Convenience: View and manage balances in one place, with access via online banking, EFTPOS, ATMs, phone, or in branch.
Cost‑Effective: Only pay interest on what you use, calculated daily, plus a small management fee—no fixed repayments.
Flexible Limits: Set a limit that suits your cash‑flow needs; short‑term extensions available, subject to criteria.

4. Flexible Credit Facility
A revolving line of credit secured against residential property, offering a versatile alternative to an overdraft.

Highlights:

Revolving Credit: Draw, repay, and redraw funds within your limit, with no fixed repayment schedule.
Lower Rates: Security against your home or residential property usually means cheaper rates than unsecured options.
Easy Access: Operate like a current account—access funds online, by phone, EFTPOS, ATM, or in‑branch whenever you need them.

Choosing the Right Option: Selecting the best business loan depends on your security preferences, repayment flexibility, and term requirements. Give us a call today to discuss further!