Business Loans
Looking to grow your business or cover expenses? Prospa offers quick and flexible funding solutions tailored to New Zealand businesses. Apply today and discover how much you could borrow.
- Borrow from $5K to $500K
- Loan terms up to 5 years
- 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.
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 $2K and $500K. 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 credit worthiness 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
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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.
In New Zealand, business loans are not considered income. This is because loans must be repaid to the lender, and therefore they do not represent an increase in wealth or earnings. When you receive a business loan, it is recorded as a liability on your business’s balance sheet, not as income on the profit and loss statement. This principle is consistent across most accounting practices globally, including New Zealand.
In accounting terms, the principal portion of loan repayments is not considered a business expense. This part of the payment goes towards reducing the loan balance, which is a liability on your balance sheet, rather than an expense that would be recorded on your income statement.
However, the interest component of your loan repayments is considered a business expense. Interest represents the cost of borrowing money, and it is deductible as an expense for most businesses, reducing the taxable income of the business.
