Working Capital Loans NZ

Bridge cash flow gaps and fund growth opportunities with flexible working capital solutions

What is Working Capital?

Working capital is the money your business needs to cover day-to-day operations - from paying suppliers and staff to managing inventory and covering operational expenses. Working capital loans bridge the gap between your business expenses and income, ensuring smooth operations even when cash flow is tight.

Unlike equipment finance or property loans, working capital loans offer maximum flexibility. Use the funds for any business purpose: inventory purchases, staff wages, marketing campaigns, or seasonal cash flow management.

Key Benefits

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Quick Access to Funds

Get funding within 24 hours to maintain cash flow

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Flexible Use

Use funds for any working capital needs

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Simple Process

Streamlined online application and approval

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Revolving Options

Access funds as needed with credit line facilities

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Seasonal Support

Bridge seasonal cash flow gaps effectively

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No Asset Security Required

Unsecured options based on business performance

Working Capital Options

Loan Amount
$5,000 - $500,000+
Loan Term
3 - 24 months (short-term focus)
Interest Rates
Banks: 8.99%-15% | Alternative: 15%-35%
Funding Speed
24 hours - 5 business days
Security Required
Often unsecured up to $100K
Repayment Options
Daily, Weekly, Fortnightly, or Monthly

Seasonal Working Capital Examples

Many NZ businesses experience seasonal cash flow challenges. Here's how working capital loans help different industries:

Retail

Challenge: Stock up for Christmas season

Solution: Working capital to purchase inventory in October-November

Best Timing: 2-3 months before peak season

Construction

Challenge: Weather delays affecting cash flow

Solution: Bridge funding for wages and overheads during wet months

Best Timing: Winter months (June-August)

Tourism/Hospitality

Challenge: Off-season revenue drops

Solution: Maintain staff and operations during quiet periods

Best Timing: May-September (off-peak months)

Agriculture

Challenge: Equipment and seed costs before harvest

Solution: Fund planting season expenses before income arrives

Best Timing: Spring season (September-November)

Working Capital Solutions by Scenario

Invoice Payment Delays

Customers paying 30-90 days late

Working Capital Solution: Bridge the gap between invoice issue and payment

Typical Amount: $10K - $150K

Term: 1-3 months

Large Contract Upfront Costs

Need materials/labour before payment milestones

Working Capital Solution: Finance project costs until milestone payments

Typical Amount: $25K - $300K

Term: 2-6 months

Inventory Restocking

Bulk purchase discounts or supplier terms

Working Capital Solution: Take advantage of bulk pricing and early payment discounts

Typical Amount: $15K - $200K

Term: 1-4 months

Equipment Breakdown

Unexpected repair or replacement costs

Working Capital Solution: Emergency funding to maintain operations

Typical Amount: $5K - $100K

Term: 3-12 months

Working Capital Needs by Industry

Manufacturing

  • • Raw material purchases
  • • Production cycle funding
  • • Export order financing
Amount: $50K - $500K Term: 3-12 months

Wholesale/Distribution

  • • Inventory purchases
  • • Warehouse operations
  • • Transportation costs
Amount: $25K - $300K Term: 2-6 months

Professional Services

  • • Staff salaries
  • • Office rent
  • • Project expenses
Amount: $10K - $100K Term: 1-6 months

Food & Beverage

  • • Ingredient purchases
  • • Packaging materials
  • • Equipment maintenance
Amount: $15K - $200K Term: 1-4 months

Comparing Working Capital Lenders

Different lenders offer different advantages for working capital funding. Understanding these differences helps you choose the right funding partner:

Traditional Banks

ANZ, BNZ, ASB, Westpac

Advantages

  • • Lower interest rates
  • • Established relationships
  • • Comprehensive services

Considerations

  • • Strict requirements
  • • Slow approval process
  • • Extensive documentation

Best For

Established businesses with strong financials

Alternative Lenders

Prospa, Spotcap, Timelio

Advantages

  • • Quick approval
  • • Flexible criteria
  • • Minimal documentation

Considerations

  • • Higher interest rates
  • • Shorter terms
  • • Additional fees

Best For

Businesses needing quick funding or with limited credit history

Credit Line Providers

ScotPac, Capital Partners

Advantages

  • • Pay only for what you use
  • • Revolving credit
  • • Instant access

Considerations

  • • Variable rates
  • • Credit limits
  • • Personal guarantees

Best For

Businesses with fluctuating working capital needs

How to Apply for Working Capital

1

Assess Your Working Capital Needs

Calculate how much funding you need and for how long

  • Review cash flow projections for next 3-12 months
  • Identify specific working capital gaps
  • Calculate required amount and preferred term
  • Consider seasonal or cyclical business patterns
2

Prepare Your Application Documents

Gather essential business and financial information

  • Business bank statements (last 6 months)
  • Financial statements or management accounts
  • Cash flow forecasts and projections
  • Details of existing debts and commitments
3

Compare Lender Options

Find the best working capital solution for your needs

  • Compare interest rates and fees
  • Review repayment terms and flexibility
  • Check approval timeframes
  • Consider ongoing relationship benefits
4

Submit Application

Apply through SME Loans to access multiple lenders

  • Complete online pre-qualification
  • Upload required documentation
  • Receive multiple funding proposals
  • Choose the best offer for your business

Working Capital Management Tips

Monitor cash flow weekly to identify funding needs early
Negotiate better payment terms with suppliers and customers
Consider invoice factoring for immediate cash from outstanding invoices
Use working capital loans strategically, not as emergency funding
Build relationships with multiple lenders before you need funding
Keep detailed records of how working capital improves business performance

Frequently Asked Questions

How quickly can I get working capital funding?

Through our network, you can receive funding within 24-48 hours for amounts up to $100,000, with larger amounts typically taking 3-5 business days once approved.

Do I need to provide security for working capital loans?

Many working capital loans are unsecured, especially for amounts under $100,000. Larger amounts may require business assets or personal guarantees as security.

Can I use working capital loans for any business expense?

Yes, working capital loans are designed for flexibility. Use them for inventory, wages, rent, marketing, or any operational expense that keeps your business running.

What's the difference between a working capital loan and a line of credit?

A loan provides a lump sum with fixed repayments, while a line of credit lets you draw funds as needed and pay interest only on what you use. Lines of credit offer more flexibility for ongoing working capital needs.

How do I know how much working capital I need?

Calculate your monthly operational expenses and identify cash flow gaps. Consider seasonal variations, growth plans, and any upcoming large expenses. Our calculator can help estimate your needs.

Can startups get working capital loans?

Yes, but requirements are stricter. Startups typically need strong cash flow projections, personal guarantees, and may pay higher rates. Alternative lenders are often more flexible than banks for new businesses.

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