- Business loans up to $200,000
- Low-interest starting from 0.5%
- Repayment up to 30 years
[Accessed April 17, 2018]
Interest.co.za - Online loans
Business loans were designed especially for businesses and are offered by a number of different lenders. The lender will assess your business requirements and help you find the solution that is perfect for you.
Choosing between a secured or an unsecured business loan
When you apply for a business loan, you will need to decide if you are going to apply for a secured or an unsecured business loan.
A secured loan refers to securing the loan amount with an item of collateral this could be a warehouse or anything of value that the business owns including the building, expensive equipment or machinery. A secured business loan will offer a lower interest rate and better loan terms. A secured loan will allow you access to more money as your loan is seen as less of a risk than an unsecured loan.
An unsecured loan will carry a much higher interest rate and will only allow you to borrow a small amount of money. These types of loans can be used for day to day costs or paying staff salaries or buying new stock when the business is first starting out.
What is asset finance and how does it work?
Every business operates on balance sheets and has assets that the business owns. Some examples include investment portfolios, properties, accounts receivable and stock that is owned. The short-term loan is then secured against the business balance sheets. The business assets secure the loan amount. Asset financing is used for new businesses that don’t yet have a proven track record or credit history.
Business loans can be used for many different reasons including to provide funding for a start-up business, to expand a new business and help it grow, to upgrade your business premises or purchase furniture and other office supplies.
When you are first starting a business, you may need some funding to help get your business off the ground.
Most lenders won’t lend money to new businesses that can’t show a proven track record and are seen as a high risk to lend money to
The loan can also be used for the following:
- To purchase new equipment or update machinery
- To invest or purchase stock
- For day to day running of the business and to boost the cash flow
- To pay your staff and settle outstanding accounts
Applying for a loan is the trickiest type of loan that you can apply for, you will need to provide a lot of supporting documentation and prove that you will be able to afford the loan repayment terms.
Venture capital funding
Venture capitalist doesn’t provide business loans instead they invest in your business. They make their money by sharing in your future profits.
Most return investments are charged at 30% of the profit margin. The main problem with this kind of investment is that the capitalist will want to have a level of control over the business operations
interest.co.nz – Business loan
- Loan Type Business loans
- Interest Rate 0.5 – 25.5% p/a
- Loan Amount up to $200,000
- Repayment 1 year to 30 years
Benefits of interest.co.nz
- Easy loan comparison
- Competitive interest rates
- Quick loan application
Business loan calculator
interest.co.nz - finance to help your business grow
You need to know exactly how much money your business will need when you apply for a quick cash loan.
You will need to identify what the money will be used for and how it is going to benefit your business. If you want to use the loan to finance growth in your business, you will need to provide a detailed plan that outlines how you plan to go about doing this. Lenders assess your business loan on how risky it would be to lend you money. The more risk the lender takes, the stricter the loan conditions will be.
Using collateral to secure your business loan
The way to look less risky to a potential lender is to provide collateral against your loan. This gives the lender a sense of security and they are more likely to agree to better loan terms and approve your business loan application.
It is difficult to apply for a business loan and you will need to provide an asset that is worth more than the loan amount and that will be repossessed if the loan is not paid.
Obtaining a business loan is a very slow process as the lender will need to make sure that it is a good idea to lend your business money. The process can take up to 3 months before you are provided with any funding.
Tips to follow when applying for a business loan
Applying for a business loan can be very daunting and there are many reasons that your loan may be declined
There are a few things that you can do to give your business loan application a better chance of approval these include:
- Apply to multiple lenders or use a loan comparison site to find the best deal
- Make sure you include a business plan with your loan application unless you're considering a personal loan application
- Ask for a certain amount and substantiate why you came to this amount
- Detail how you will use the loan in order to grow your business
- Be prepared to wait up to 3 months for an outcome
- Use your business equity or profit sheets as collateral against your loan
- Be flexible and negotiate
Customer Reviews & Testimonials
They have helped us to secure our new warehouse giving us the space we need to hire extra staff so that we can make our yearly turn over bigger and they are the best.
— Auckland —
They have helped us not just by giving us a loan but showing us how we can save on supplies and also helping us find better options for our company they are rock stars.
— Queenstown —
The service is amazing and that is why we have stayed with them even after we have paid our loan off they give the best of both worlds.
— Wellington —
- 206 Jervois Rd Herne Bay Auckland Region 1011 New Zealand
- Get Directions
- PO Box 47-756, Ponsonby, Auckland, 1011, New Zealand
- not available