Why do the main banks make small business finance so hard?
Businesses of all sizes big and small need access to finance at times and unfortunately in New Zealand most banks require a mortgage over your home before they will lend smaller businesses anything – even for a small overdraft.
As finance brokers and small business owners we thought that there must be someone able to offer a better way.
Business Revolving Credit Facility
Most businesses in New Zealand have times when they need additional funds for cashflow and growth, and in the past the common thing to do was get a bank overdraft.
But getting even a small bank overdraft is now a lot harder.
The revolving credit facilities operate in a very similar way to a bank overdraft, where you pay interest on what you use and can repay and redraw money to suit your cashflow.
Unlike the banks, this revolving credit (overdraft) is easier to get and priced individually so it may be cheaper than a bank, but can be more expensive. The key is this is not secured over any home of asset like a vehicle of machinery.
Business Term Loans
Sometimes a term loan is better as it has a set term with set repayments and you know that it is being paid off with each payment.
Generally term loans will be from $5,000 to $100,000 and you can choose a loan term to suit, generally up to a maximum of 2-years.
If you need a larger loan (up to $500,000) you may be asked for more details, but that still might be a good option.
Get A Combination
Most businesses that we work with are asking us to arrange a small revolving credit to fund mainly cashflow and short-term funding requirements, and then a term loan to fund any projects and debt consolidation
This combination is proving popular.
Business Finance Request
Please use this form to request business finance
