Unsecured Business Loan Calculator
Calculate unsecured business loan repayments without collateral. Free NZ calculator for no-security business loans with realistic rates and terms.
⚠️ Unsecured Loan Reality: No collateral = higher risk for lenders. Expect interest rates 3-8% higher than secured loans (typically 12-25% vs 7-12% for secured).
Unsecured Loan Calculator
Calculate your no-security business loan repayments
Loan Summary
Monthly Payment
$2,670
Total Interest
$21,120
Total Repayment
$96,120
Effective APR
16.5%
Cost vs Revenue
4.2%
Loan Affordability Check
Personal Guarantee Required: Unsecured loans still require personal guarantees. While you don't pledge specific assets, lenders can pursue your personal assets (home, car, savings) if you default. "Unsecured" means no specific collateral, not "no personal liability."
NZ Unsecured Business Loan Providers (January 2025)
🏦 Banks (Rare for Unsecured)
🚀 Alternative Lenders
💰 Peer-to-Peer Lending
Secured vs Unsecured Business Loans
🔒 Secured Loans
Interest Rates: 7-12%
Lower rates due to collateral
Collateral: Required
Property, equipment, inventory, accounts receivable
Loan Amount: Higher
Up to 80% of collateral value (can be $1M+)
✓ Pros:
- • Lower interest rates (save thousands)
- • Larger loan amounts available
- • Longer repayment terms (5-10 years)
- • Easier to qualify (asset reduces risk)
✗ Cons:
- • Risk losing specific asset if default
- • Longer approval time (valuation required)
- • Must own valuable assets to secure
- • Asset tied up (can't sell easily)
📋 Unsecured Loans
Interest Rates: 12-25%
Higher rates reflect increased risk
Collateral: Not Required
No specific assets pledged (but personal guarantee still applies)
Loan Amount: Lower
$5K-$500K (typically $10K-$150K, 20-30% of revenue)
✓ Pros:
- • No specific assets at risk
- • Faster approval (1-3 days typical)
- • Don't need to own property/equipment
- • Keep assets free for other uses
✗ Cons:
- • Much higher interest (costs 2X more)
- • Smaller loan amounts
- • Shorter terms (1-5 years typical)
- • Still requires personal guarantee
Real Cost Comparison: $75K Loan Over 3 Years
| Loan Type | Interest Rate | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|---|
| Secured (Equipment) | 8.5% | $2,370 | $10,320 | $85,320 |
| Secured (Property) | 7.5% | $2,327 | $8,772 | $83,772 |
| Unsecured (Bank) | 15.0% | $2,599 | $18,564 | $93,564 |
| Unsecured (Alternative) | 20.0% | $2,793 | $25,548 | $100,548 |
| Unsecured (High-Risk) | 25.0% | $2,992 | $32,712 | $107,712 |
Unsecured costs $8K-$24K MORE than secured for the same $75K loan!
If you have assets to secure against (property, equipment), secured loans save significant money.
When to Choose an Unsecured Business Loan
✅ Good Fit
- • No property or equipment to secure against
- • Service-based business (consultants, agencies)
- • Need quick funding (1-3 days)
- • Smaller amount ($10K-$100K)
- • Short-term cash flow need (pay back quickly)
- • Assets needed for other purposes
⚠️ Use With Caution
- • Larger amounts ($150K+) - cost adds up
- • Longer terms (5+ years) - interest compounds
- • Startup with no revenue (very expensive)
- • Poor credit history (rates 25%+)
- • Can't afford high monthly payments
- • Already have other high-interest debt
❌ Better Alternative
- • Own equipment/property? Get secured loan (save 5-10%)
- • Buying equipment? Equipment finance is secured and cheaper
- • Have invoices? Invoice finance may be better
- • Own home? Home equity loan costs 6-8%
- • Long-term need? Secured saves $20K+ over 5 years
Compare Unsecured Business Loan Options
Get unsecured business loan quotes from multiple NZ lenders. Compare rates, terms, and approval speed to find the best no-collateral loan for your business.
Unsecured Loan Calculator FAQ
What is an unsecured business loan?
An unsecured business loan doesn't require specific collateral (property, equipment, inventory). However, you still sign a personal guarantee, meaning lenders can pursue your personal assets if you default. "Unsecured" means no specific asset pledged upfront, not "no personal liability." Rates are 3-10% higher (12-25% vs 7-12% secured) to compensate for increased lender risk.
How much can I borrow with an unsecured business loan?
Unsecured business loans range $5K-$500K, but typically $10K-$150K. Most lenders limit unsecured loans to 20-30% of annual revenue. For example, $500K revenue = max $100K-$150K unsecured. Larger amounts require collateral or very strong financials (profitable, 2+ years trading, excellent credit).
What interest rate can I expect for an unsecured loan?
Unsecured business loan rates in NZ: Banks 12-18%, alternative lenders 15-25%, high-risk borrowers 25-40%. Rates depend on: trading history (2+ years better), revenue ($500K+ revenue gets better rates), credit score (650+ improves rates), industry (professional services better than hospitality), and loan amount (smaller loans cost more percentage-wise).
Do I still need a personal guarantee for unsecured loans?
Yes, 98% of unsecured business loans require personal guarantees. This means you're personally liable - lenders can pursue your home, car, savings if business defaults. The only difference from secured loans: they haven't specified which asset upfront. If you default, they can claim any/all personal assets through legal action. Very few truly "no personal guarantee" loans exist (usually only invoice finance).
Should I get unsecured or secured loan?
Get secured if you can. Secured loans cost 5-10% less (saves $10K-$30K on $100K loan). Only choose unsecured if: (1) You don't own assets to secure, (2) Need very fast funding (1-2 days), (3) Borrowing small amount short-term, or (4) Assets needed for other purposes. For amounts $100K+ over 3+ years, secured saves significant money. Run both calculators to compare total cost.
How fast can I get an unsecured business loan?
Unsecured loans are fastest to approve: Alternative lenders (Prospa, Bizcap) 1-3 days, P2P lenders (Harmoney) 3-7 days, Banks 1-2 weeks (slower but cheaper). Speed comes from no asset valuation required. Have ready: 6-12 months bank statements, financial statements, business plan, ID. Established businesses (2+ years, $300K+ revenue) get approved fastest.