Quick summary
This guide sets out practical steps to help you identify, compare and qualify for business finance in New Zealand. It is general information, not financial advice.
1. How a Revolving Facility Works
Unlike a term loan, a business line of credit gives you a pre-approved limit to draw from as and when you need it. You pay interest only on the amount you have drawn, and as you repay, the limit becomes available again. Used well, it is one of the most efficient tools for managing working capital.
2. Covering Short-Term Cash-Flow Gaps
Lines of credit suit short-term situations: bridging the gap between paying suppliers and being paid by customers, covering payroll in a quiet month, buying materials for a new contract, or taking an early-payment discount from a supplier. They are not a fix for a business that is losing money month after month.
3. Look Beyond the Interest Rate
Compare the total cost of each facility. Look for arrangement fees, drawdown fees, monthly or annual facility fees, and any charge on the unused part of the limit. A facility with a lower headline rate can turn out to be more expensive once its regular fees are added up.
How we work
- No credit check is run to show you indicative options.
- Rates and terms are set by the lender, not by Bizzloans.
- We are a commercial finance broker, not a lender.
- Your information is handled under the NZ Privacy Act 2020.
