How much can I borrow for a business loan in New Zealand?
Last reviewed: 2026-05-07 · General information only — not regulated financial advice.
Indicative caps by lender + structure
| Loan type | Indicative NZ cap | Notes |
|---|---|---|
| Unsecured term loan (banks) | Confirm cap with the bank | Usually requires ≥ 2yr trading + director guarantee. |
| Unsecured term loan (alternative lenders) | Confirm cap with each lender | Faster approval; higher rate; director guarantee. |
| Secured term loan | Scales with security | Property security typically unlocks the largest amounts. |
| Equipment / vehicle finance | Up to 100% of asset value | Asset is primary security; balloon options common. |
| Invoice finance | % of debtor book | Scales as your invoicing scales; ongoing facility. |
| Commercial property | Scales with property value + LVR cap | LVR caps depend on property type + tenant covenant. |
Indicative only. Maximum amounts vary by lender, structure, and credit cycle. Confirm directly with each lender.
What drives your individual cap?
- Trading history. 1–2 years minimum for most banks; alternative lenders may consider 6–12 months.
- Cash flow. Lenders model debt-servicing using EBITDA or net operating cash flow against new + existing debt obligations.
- Security offered. Property unlocks the largest amounts; equipment, vehicles, and debtors are common business-asset alternatives.
- Director / shareholder guarantees. Personal guarantee strength expands the lender's recovery options and therefore your cap.
- Sector + risk profile. Some sectors (hospitality, retail, construction) face tighter underwriting in certain credit cycles.
- Existing debt. Existing facilities, IRD arrears, and director-related credit issues will all reduce your cap.
Sizing rules of thumb
These are directional only — confirm with the specific lender:
- Unsecured working-capital lending: ~1–3 months of business revenue.
- Secured term loan: appraised value of security × LVR cap, capped by serviceability.
- Equipment finance: up to 100% of asset value, often less a small deposit on used assets.
- Invoice finance: typically 70–90% of the debtor book that meets eligibility (B2B, on-credit, named debtors).
- Commercial property: LVR caps vary; prime owner-occupied typically higher than investment property.
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Related questions
Can I get a business loan with bad credit?
Options if you have past credit issues.
How long does a business loan take?
Typical timelines from application to funded.
What documents do I need?
Standard NZ business-loan document checklist.
How can I improve my approval odds?
What to fix before you apply.
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