Small Business Start-Up Loans

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Small Business Loans NZ

Steps to Getting a Small Business Loan in New Zealand

If you are not already running your small business it could be that you need a small business loan to set you on your way to owning and successfully running your own small business. So before you go out and apply for your small business loan you might like to read this guide so you know the best ways to prepare your application and have a better chance of getting your small business loan approved. Once you have had your loan approved I wish you all the best in your chosen career path and hope it leads you to be successful.

Start by Planning Ahead

Your first steps should be that you are prepared with your ideas well in advance and this is especially true when it comes to preparing your application for a small business loan. By being prepared and getting an early start can make the difference between your getting the best deal available or your coming away with a really poor deal, or even having your loan rejected outright. Good preparation is essential in achieving success for your business. You really should be planning at least a couple of months ahead of your proposed opening date.

Your Credit Rating

When applying for a small business loan banks will begin by looking at your credit history. If it is an existing company they will be looking at your company’s credit rating. If you are applying for a small business start up loan they will be looking at your personal credit history. The banks will also look into your personal credit history if your company is less than three years old. This can mean that any unpaid or overdue bills (particularly on your credit cards) or missed mortgage payments can result in your application being refused.

Call Stephen to make an appointment to discuss YOUR business loan needs: 09 377 4433

Checking your Credit History

In New Zealand there are three locations where your credit details are held, they are:

  • Veda Advantage
  • Dunn and Bradstreet
  • Centrix

You should consider checking your business and personal credit reports from each of these. If you think there are any discrepancies you can dispute these errors through the Citizens Advice Bureau.

Your Business Plan

Having a good business plan in place is essential and takes time to develop. It is also an essential part of your small business loan application. Until you have completed the preparations for your business plan you will not know how much you would like to borrow. This applies both for a start up plan and to grow or expand an existing business. There is a good guide that outlines what you need to include in a business plan or how to develop your own from the New Zealand Trade and Enterprise

How to Present Your Business Plan

Once you have completed your business plan and you know how much you need to borrow the next step is to present your ideas to your bank. The presentation of your business plan should outline the goals you predict for future growth but you will also have to explain how, where and on what you plan to spend every dollar you are borrowing on. You will also have to show in your presentation how you plan to make the repayments for your loan.

Please don’t walk up to the branch by yourself – your finance professional is there to provide guidance and help discuss your needs. As an experienced commercial banker, I know what the bank is looking for and can make this process less stressful and achieve a much better outcome.

Investing in New Equipment

If part of your business plan includes investing in new equipment you will have to show a detailed breakdown of that piece of equipment. Let’s take company vehicles as an example. You will have to show the purchase costs and running costs for each vehicle. You may have to explain why that choice of vehicle is a good fit for your business.

If you can highlight size, reliability, or that vehicles value for money these factors can all improve your reasoning for achieving the loan that you require. You should also ensure your plans on repayments are reasonable and that you are not overstretching your budget. Also if you are making a bid for an amount far greater than you need will also likely end in your loan application being rejected.

First Impressions- Meeting your Loan Officer

First impressions are so important so when you meet your loan officer for the first time you should show him/her a professional looking presentation package that includes all of your financial projections and a summary of your business objectives and how giving you a small business loan can help to achieve those objectives. This proposal should be prepared with your mortgage adviser reviewing all the critical points and ensuring supporting evidence backs your proposal.

You should try to predict any possible questions that you may be asked and as best as you can prepare your answers. It is a wise idea to have stress tested versions of your forecasts to show your bank you are being practical as well as optimistic and have factored in economy fluctuations and market changes.

You should remain calm and confident throughout your meeting as this will add to the look of professionalism you are hoping to portray. Your confidence is a big factor in selling your business idea to your loan officer. You should eagerly show then your plans for future growth and the prospects of your business.

Types of Loans Available

Business loans are very similar to personal loans in the options that are available. Fixed interest rate loans will have the same repayments for the entirety of the life of the loan. They are a good option for small businesses that need to know the exact amount that will be withdrawn from the business account every month.

Floating interest rate loans enable you to make lump sum payments at any time during the period of the loan term. You can also change the repayment amount due every month. They are the better option if you are hoping to pay off your loan quickly but are unable to make large payments every month.

Whatever small business loan option you decide on you have to remember that business loans require security, usually this is the business owner’s residential property.


To get the funding you require for your small business loan requires some pre-planning and thought into how much you need and what you need it for. You should take the time necessary to create a well presented business plan and know why you need the money and for what purpose. If it is well presented there should be no reason why you are not soon preparing to start your own small business.

Contact My Money

Address: 50 Remuera Road, Remuera


Phone: 09 377 4433