Business Loans
- Borrow from $5K to $500K
- 12 – 36 month loan terms
- Funding possible in 24 hours
- No property security required upfront to access Prospa funding up to $150K
Understanding Business Loans in New Zealand
Business finance can be vital to help NZ businesses with expansion plans, give them the confidence to tackle new opportunities, and assist them as they navigate through various financial and cash flow challenges. As a business owner, knowing you can access business finance at the time you need it is the key to growth and success (not to mention peace of mind).
Whether you’re a seasoned business owner or you’re early on your entrepreneurial journey, you’ll find plenty of useful information here to help you understand the ins and outs when you apply for a business loan with Prospa in New Zealand.
Prospa Small
Business Loan
- Borrow from $5K up to $100K as a lump sum over a fixed term of up to 36 months.
- Minimum $6K monthly turnover and minimum trading history to apply.
- Great for managing cash flow, buying stock and equipment, or covering unexpected expenses.
Prospa Business
Loan Plus
- Borrow from $100K up to $500K as a lump sum over a fixed term of up to 36 months.
- Minimum $1 million annual turnover and 3 years trading to apply.
- Often used for funding growth, renovations and refits, or equipment purchases.
Prospa Business
Line of Credit
- Get ongoing access to funds up to $150K and only pay interest on the funds you use.
- Minimum $6K monthly turnover and minimum trading history to apply.
- Ideal for managing cashflow and unexpected expenses.
How do you apply for a Prospa Business Loan?
Applying for a business loan in New Zealand with Prospa is a simple process, as long as you meet our eligibility criteria. So if you’re New Zealand Citizen (or Permanent Resident) over the age of 18 and you own a New Zealand business with a valid NZBN/IRD, you just need to demonstrate a minimum monthly turnover of around $6K.
The application process then takes around ten minutes and can be completed entirely online. When you apply during business hours you will usually have a decision the same day, and once approved, funds are transferred to you within 24 hours. Apply now
How fast can you get a business loan at Prospa?
Prospa are New Zealand’s business lending specialists. We offer a streamlined application process that can result in loan approval in as little as 24 hours. This speedy turnaround time is especially beneficial for business owners who require funds urgently to seize new opportunities, cover unexpected expenses, or address cash flow gaps. Prospa leverages innovative technology and data-driven assessments to make fast lending decisions, so choosing Prospa is great when you need quick access to funds for your business.
How much can you borrow for your business?
At Prospa, we offer business funding between $2,000 and $500,000. The loan amount you can borrow for your business in New Zealand varies from business to business, and depends on factors like the business’s financial health, the industry it operates in, the creditworthiness of the business and our credit policies. If you have any questions, please speak to a business lending specialist on 0800 005 797
What is the interest rate of business loans in New Zealand?
In general, business loan interest rates in New Zealand vary widely. They are influenced by factors such as the lender’s policies, the type of loan, and your business’s creditworthiness. At Prospa, we assess your business before making you a loan offer which includes repayments, the loan term, the applicable interest rates, and any terms and conditions. You can always reach out to a member of our business lending specialist team on 0800 005 797 to find out more about Prospa’s business loan interest rates for businesses in NZ.
Does a business loan affect your credit score?
When you apply for a business loan in New Zealand, all lenders will typically check your personal credit score alongside your business health. Credit reporting bodies will put together a report on your creditworthiness based on a range of factors like how many loan applications you’ve made, your current credit, any overdue bills, and any past bankruptcies. However, if you manage your business loan responsibly, it can have a positive long-term effect on your credit score, potentially making it easier to access credit in the future. If you would like to know more about credit scores, check out this helpful article How to improve your credit score | Prospa NZ
Customers making it happen with a Prospa loan
Read customer stories
FAQ
Questions about repayments
In New Zealand, the tax deductibility of business loan repayments depends on how the borrowed funds are used. Generally, if the loan is used for business purposes such as expansion, purchasing assets, or covering operating expenses, the interest and principal repayments may be tax-deductible. However, because every situation is unique, it’s important for business owners to talk to a tax professional or accountant before making financial decisions, to make sure you are getting the most out of any investment you make.
Early repayment penalties vary from lender to lender. At Prospa, we are flexible and we won’t penalise you for paying out your NZ business loan early. In fact, making additional repayments on your Prospa Small Business Loan will not only save you time, but you may even save in interest on the loan.
Making extra repayments on your business loan in New Zealand can be a smart financial strategy. It allows you to reduce the principal balance faster, ultimately saving on interest costs and potentially shortening the loan term. Many lenders in New Zealand permit borrowers to make additional repayments without penalties – and that includes Prospa. Paying off your loan early gives you greater control over your business loan thus strengthening your financial position in the process.
