Quick answer
A business cash loan is a lump sum paid into your business account and repaid over an agreed term. Trading New Zealand businesses can usually reach $5,000 to $500,000 without security, judged mainly on turnover and bank statements. Owners with property can look at $20,000 to $5,000,000. Smaller unsecured amounts can sometimes be paid the same day.
Key points
- One lump sum, one repayment schedule, one clear end date.
- Unsecured amounts are judged on takings, not on the family home.
- Property security opens the door to far larger sums.
- Match the term to the job the money is doing.
- Unsecured
- Typically $5k – $500k
- With property
- $20k – $5m
- Speed
- Same day possible for smaller sums
- To enquire
- About 60 seconds, no credit check
Most owners go looking for a business cash loan on an ordinary Tuesday, not in a disaster. A supplier wants payment before a delivery. A big customer has said “end of next month”. Wages go out Thursday and takings have not caught up. The business is sound, but the calendar is against it.
A cash loan fixes the calendar. It puts a defined sum in your account now and lets you pay it back across a term that suits how the business actually earns.
How does a business cash loan work?
You ask for an amount, say what it is for and show how the business trades. If it fits, the lender pays the money into your business account and sets out a repayment schedule. The schedule might be weekly, fortnightly or monthly, usually lining up with when your takings arrive.
What makes this product easy to understand is that it has an end. You know the sum, the repayments and the date it finishes. That is different from a revolving facility, where the balance rises and falls. If your need is a one-off, a loan is usually the cleaner tool.
Unsecured or secured?
| Unsecured | Property-secured | |
|---|---|---|
| Size | $5k – $500k | $20k – $5m |
| Judged on | Turnover and bank statements | Equity in the property and how it will be repaid |
| Paperwork | Statements, ID, NZBN | The same, plus property details |
| Timing | Same day possible for smaller sums | $20k – $250k same day possible; up to $5m in 24 to 48 hours |
| Best when | Takings are steady and the need is modest | The need is large, urgent or the track record is short |
Plenty of owners start with unsecured cash because it is quick and nobody’s house is involved. Where the number is bigger than takings can carry, security does more of the work. Our page on property-backed cash covers that route.
Not sure how much you actually need? Work it out with the cash gap calculator, then start a 60-second enquiry.
What do lenders want to see?
Expect questions about five things:
- Turnover. What goes into the business account each month, and how evenly.
- Account behaviour. Overdrawn days, bounced payments, other lenders being repaid.
- Time trading. How long the NZBN has been active.
- Purpose. What the money is for and where repayment will come from.
- The owner’s position. Directors usually provide a guarantee on unsecured lending.
Credit history and Inland Revenue debts are looked at case by case. They are not automatic refusals, and it pays to mention them early. The bank statements guide explains how to present the account well.
How to choose the right amount and term
Borrow the size of the problem, not the size of the offer. A few rules of thumb:
- Add up the bills the money must cover, including GST on any purchases.
- Check the repayment against your quietest realistic fortnight, not an average one.
- Prefer a term that ends soon after the money has done its job. A stock loan should be gone shortly after the stock sells.
- Compare offers on total dollars repaid, weekly cash leaving the account and early repayment terms. Skip headline figures that don’t tell you those three things.
Common uses
- Buying stock ahead of a busy period
- Covering a pay run while a customer pays late
- Meeting a GST or PAYE bill on time
- Repairing or replacing equipment
- Paying a bond or fit-out cost on new premises
- Funding an advertising push
Each has its own page in the cash-for section of the site if you want the detail.
What if timing is the whole problem?
If your pain is waiting for payment, rather than a one-off purchase, a lump sum might not be the neatest answer. A working capital loan or a standby line can follow the rhythm of your invoices more closely. The which business cash fits me quiz sorts this out in four questions.
An illustrative example
Illustrative only. A café owner in Nelson wants to replace a failing espresso machine and refit the bar before the summer rush. She applies for an unsecured loan sized on twelve months of daily card takings. Repayments are set weekly, and because trade is strongest from December to February, the loan is largely cleared by the end of the season.
Ready to see what fits?
Tell us how much, what for and roughly when your own money returns. A real person reads it, not a form-processing engine, and rings you with sensible options. Enquiring takes about a minute and asking does not involve a credit check. Your details stay with one team rather than being sent around the market.
Honest figures for the amount, turnover and any property you own let us get to the right option on the first call.
Frequently asked questions
What can I use a business cash loan for?
Anything that belongs to the business: stock, a pay run, a GST bill, repairs, a vehicle, advertising or a bond on new premises. Personal spending is not allowed.
How quickly could the money arrive?
For smaller unsecured sums, funding on the day is possible once statements and ID are checked. Property-secured sums take a little longer, though $20k to $250k can still land the same day and larger amounts within a couple of days.
Does enquiring affect my credit file?
No. Asking the question does not involve a credit check. Any credit enquiry happens later, and only if you decide to go ahead.
What will I be asked for?
Usually recent business bank statements, photo ID and your NZBN. Bigger or secured requests may also need GST returns, accounts and property details.
Is a loan better than a cash line?
A loan suits a single, defined need. A line suits shortfalls that keep returning, because you draw only when needed and repay as customers pay.