Startup Business Loan Calculator
Calculate startup business loan repayments and costs. Free NZ startup loan calculator with realistic rates for new businesses without trading history.
⚠️ Startup Reality Check: Startups typically pay 12-25% interest (higher risk) and often require personal guarantees or equity investment alongside debt.
Startup Loan Calculator
Calculate your startup loan repayments and total costs
Loan Summary
Monthly Payment
$1,736
Total Interest
$12,496
Total Repayment
$62,496
Total Capital
$65,000
Your Investment
23.1%
Funding Breakdown
Reality Check: 90% of startups fail to repay loans. Most NZ banks won't lend to businesses under 2 years old without substantial personal assets as security. Consider if equity investment or bootstrapping might be better for your situation. Loan defaults can affect your personal credit for 5+ years.
Startup Business Loan Providers in NZ (January 2025)
🏦 Banks (Rare for Startups)
🚀 Alternative Lenders
💰 Peer-to-Peer / Crowdfunding
Startup Funding Options: Which is Best?
💳 Business Loans
Amount: $10K-$250K
Cost: 12-25% interest
✓ Pros:
- • Keep 100% ownership
- • Fast approval (1-2 weeks)
- • No equity dilution
- • Predictable repayments
✗ Cons:
- • Personal guarantee required
- • Must repay even if startup fails
- • Expensive interest rates
- • Limited amounts available
📈 Equity Investment
Amount: $50K-$2M+
Cost: 10-40% equity stake
✓ Pros:
- • No repayment obligation
- • Investor expertise/network
- • Larger amounts available
- • No personal guarantee
✗ Cons:
- • Give up ownership/control
- • Hard to find investors
- • Lengthy due diligence
- • May force exit strategy
💰 Bootstrapping
Amount: Your savings
Cost: $0 (no interest/equity)
✓ Pros:
- • Keep 100% ownership
- • No debt/repayments
- • Forces lean operation
- • No approval needed
✗ Cons:
- • Limited capital
- • Slower growth
- • Personal financial risk
- • May miss opportunities
NZ Government Startup Support Schemes
🇳🇿 Business Finance Guarantee (BFG)
Government guarantees up to 80% of your loan, making banks more willing to lend to startups.
- ✓Loans: $10K-$500K
- ✓Government guarantees 80% (you repay 100%)
- ✓Reduces bank risk, improves approval odds
- ✓Available through major NZ banks
🔬 Callaghan Innovation Grants
Government grants (not loans) for tech startups and R&D projects - no repayment required.
- ✓R&D grants: $5K-$5M (depends on project)
- ✓No repayment if project fails
- ✓For tech/innovation startups
- ✓Can stack with loans/equity
Tip: Combine government guarantees + grants + personal investment to minimize loan amount and reduce risk
What Lenders Want to See from Startups
📋 Required Documents
- • Business Plan: Detailed plan with market research, financial projections (3 years), competitive analysis
- • Personal Financials: Your credit score, assets, liabilities, personal bank statements (6 months)
- • Proof of Investment: Evidence you've invested personal funds (typically 20-30% of total)
- • Revenue Evidence: Any sales to date, contracts, purchase orders, letters of intent
- • Security: Details of assets that can be used as loan security (property, equipment, shares)
✅ What Improves Your Chances
- ✓ Industry Experience: 5+ years in the industry you're entering
- ✓ Proven Sales: Already generating revenue, even if small
- ✓ Strong Personal Credit: Credit score 650+ with no defaults
- ✓ Property Security: Home equity or other property to secure against
- ✓ Co-Founder/Partners: Experienced team sharing risk (multiple guarantors)
- ✓ Government Support: Grants or guarantees already approved
Ready to Fund Your Startup?
Get startup loan quotes from multiple NZ lenders. We'll help you compare rates, find government support schemes, and explore all funding options.
Startup Loan Calculator FAQ
Can I get a business loan for a startup with no revenue?
It's very difficult but not impossible. Banks rarely lend to pre-revenue startups. Your best options: (1) Alternative lenders like Prospa/Bizcap (12-25% rates), (2) Government guarantee schemes, (3) Secure against personal property, or (4) Combine with significant personal investment (30%+). Most successful startup loans involve 20-30% personal contribution.
What interest rate can I expect for a startup loan?
Startup loans cost 12-25% per year in NZ, significantly higher than established business loans (8-12%). Alternative lenders charge 15-25%, banks charge 10-15% but rarely approve startups. With government guarantee schemes, you might get bank rates (10-12%). Your rate depends on personal credit, industry experience, and available security.
Do I need to personally guarantee a startup loan?
Yes, almost always. 95% of startup loans require personal guarantees, meaning you're personally liable if the business fails. This can affect your personal credit, home, and assets for 5+ years. Carefully consider if you can afford loan repayments from personal income if startup doesn't generate revenue as planned.
Should I get a startup loan or seek equity investment?
Depends on your situation. Startup loan: Better if you want 100% ownership, need $10K-$100K, have personal assets to secure, and can afford repayments. Equity investment: Better if you need $100K+, want to share risk, value investor expertise, and are willing to give up 10-40% ownership. Many startups combine both: small loan + equity.
What is the NZ Business Finance Guarantee?
Government scheme where taxpayers guarantee 80% of your loan, encouraging banks to lend to startups. You still repay 100% of the loan at normal rates. Available for loans $10K-$500K through major banks. Significantly improves approval odds for startups. Check with ANZ, ASB, BNZ, or Westpac about eligibility.
How much should I personally invest before seeking a loan?
Lenders typically want to see 20-30% personal contribution before lending to startups. If you need $100K total, invest $20K-$30K of your own money first. This proves commitment and shares risk. Larger personal investment = better rates and higher approval odds. Consider: savings, home equity, family loans, credit cards (carefully), or selling assets.