What would it cost?
Understanding the exact cost of a business loan is crucial. Use our easy-to-use calculator that provides you with an accurate estimate, taking into account all fees typically involved. We believe in transparency, so you can make informed decisions about your finances.
You can apply to borrow $2000 - $100000
Interest rate 13.95% (comparison rate 13.95%)
Your repayment estimate
$0.00
Weekly repayment
Estimate includes establishment fee of $195.00
Get a quoteWon't affect your credit score.
*This is an example of a common loan request and gives you an indication of what the monthly loan repayments will approximately be. Your establishment fee may be different depending on the security used, complexity and the time taken to process your application. You may also optionally take payment protection insurance which would increase your total cost.
Trusted by thousands since 1995
"They approved my loan when others didn't. Really helped consolidate everything into one payment!"
Ana
"Professional, understanding staff. Fast and very efficient service."
Lynda
"Easy, quick, amiable & dependable. Been using them for years."
David
"Excellent support. Money was deposited quickly. Really great experience!"
WS
"Helped me celebrate my big day without financial stress."
Tuaine
"Very easy to deal with, flexible and highly reliable."
Malcolm
"Very good connection, fast services. Definitely coming back!"
Alexander
"Everything was simple. Great understanding from the team."
Peter
"They approved my loan when others didn't. Really helped consolidate everything into one payment!"
Ana
"Professional, understanding staff. Fast and very efficient service."
Lynda
"Easy, quick, amiable & dependable. Been using them for years."
David
"Excellent support. Money was deposited quickly. Really great experience!"
WS
"Helped me celebrate my big day without financial stress."
Tuaine
"Very easy to deal with, flexible and highly reliable."
Malcolm
"Very good connection, fast services. Definitely coming back!"
Alexander
"Everything was simple. Great understanding from the team."
Peter
"They approved my loan when others didn't. Really helped consolidate everything into one payment!"
Ana
"Professional, understanding staff. Fast and very efficient service."
Lynda
"Easy, quick, amiable & dependable. Been using them for years."
David
"Excellent support. Money was deposited quickly. Really great experience!"
WS
"Helped me celebrate my big day without financial stress."
Tuaine
"Very easy to deal with, flexible and highly reliable."
Malcolm
"Very good connection, fast services. Definitely coming back!"
Alexander
"Everything was simple. Great understanding from the team."
Peter
Grow your business with Pioneer
Financial Flexibility
Business loans provide the much-needed financial flexibility to cover operational expenses, invest in growth initiatives, and seize opportunities without disrupting day-to-day cash flow.
Growth and Expansion
With access to business loans, companies can secure capital to expand their operations, enter new markets, invest in technology, and hire skilled talent, ultimately propelling sustainable growth and market competitiveness.
Cash Flow Management
Business loans assist in maintaining steady cash flow by bridging gaps between receivables and payables, ensuring businesses can meet their financial obligations, manage unexpected costs, and maintain operational stability.
Types of business loans
The benefits?
Below is a list of benefits of getting a business loan:
- •Using a loan to fund the purchase of a new vehicle, machine or stock means you will spread the business expense out over a period of time rather than in one large lump sum
- •Helps the business retain funds for working capital
- •Enables your business to gain the assets you need to grow your business
What are the risks?
One of the main risks for businesses these days is getting the wrong type of loan for the business. It is important to ensure the loan you take does not put your business under any undue financial strain.
Some things to think about are:
- •What am I getting the loan for and how will I be repaying the loan
- •If I take it over the short term how will that impact my business cash flow
- •What extra fees will be charged if I take it over a long term but settle early
For more information on things, you need to consider have a look at this website by the Ministry of Business, Innovation and employment www.business.govt.nz/getting-started/funding-your-business/borrowing-money/.
How to decide what term?
Short Term loan
- • Purchase stock and materials
- • Cover Wages or contractor expenses
- • Invoice financing
- • Fund an advertising campaign or promotion
Long term Loan
- • Vehicle or Machinery purchase
- • Upgrade IT or Phone System
Depending on the finance company and the conditions of the loan it may be ok for you to take a loan over a long term for a short-term reason but you should settle the loan early when the funds become available.
Short-term loans are usually taken as you need funds until a large sale is finalised or a job you have been working on is completed.
Example:
Simon is working on a project which is going to take him a year to complete and get paid. He does not have enough money to cover the cost of completing the project without it impacting the rest of his business.
He has decided to borrow $50,000.00 to cover the cost of materials and staffing for this project. Once the project is completed he stands to receive a payment of $120,000.00 so this is of great benefit to him.
The decision has been made to borrow the funds in the short term and he has two options in front of him a short-term unsecured loan or a 5-year loan using his property as security:
| 12 Month Loan | 5 Year Loan | |
|---|---|---|
| Loan Amount | $50,000.00 | $50,000.00 |
| Establishment Fee | $1,250.00 | $1,250.00 |
| Caveat Fee | $0.00 | $315.00 |
| Interest Rate | 37% | 16.95% |
| Monthly Fee | $0.00 | $12.00 |
| Weekly Repayments | $1,184.83 | $295.43 |
| Early Settlement Fee | $0.00 | $75.00 |
| Final Settlement | $1,184.83 | $44,358.37 |
| Total Paid | $61,610.58 | $59,875.73 |
As you can see both loans give Simon access to the funds he requires however the 12-month loan comes at a higher interest rate and larger weekly repayments.
Using his property as security and taking the loan over 5 years means he can use the money he receives from his completed project to pay back the loan. He will also have the benefit of his weekly repayments being $889.40 less putting less strain on his cash flow and saving himself $1,734.85 in interest repayments
What are the risks?
It is important you take the right loan for your business and these are some of the risks:
- •Taking a long-term loan say over 4 years to cover the purchase of materials to complete a job means you have committed to making repayments on a loan for 4 years while the job may have been completed within months of the loan being taken.
- •Likewise taking a short-term loan to pay for a new vehicle because you are waiting on funds from some work you have completed may leave you short on cash flow.
What you need to look at is the early exit fees from a long-term loan and compare these with the Interest rate you will be paying on a short-term loan. Our early settlement fee is $75 and may be worthwhile taking as the interest rate is likely to be lower.
How to apply
You can apply for a business loan with Pioneer Finance if you are:
- •Over the age of 18; and
- •A New Zealand Citizen, Permanent Resident, or in some instances on a work visa; and
You do need to show that you have the affordability for the loan and that you are who you say you are. You can do this by providing the following:
- •Proof of Identity – i.e passport or driver's license
- •Proof of Address – Bank statement, utility bill or a letter from a government department
- •3 Months bank statements
- •Most recent Financial Accounts
Depending on the security offered for the loan we may require further information such as rates notice, mortgage statements or proof of purchase.
What checks will you complete using my information?
Depending on the security offered we will do checks with the following registers:
- •Credit checks with 1 or more of the following Equifax, Centrix or Illion
- •PPSR
- •Land online
- •New Zealand transport
- •Driver Check
Don't worry if your credit check has a couple of bumps and bruises we may still be able to help you.
Business Loans or Business Asset Finance Fees and Charges
Business loans will have various fees attached, which may include:
- •An establishment fee once your loan is approved and you have accepted the terms
- •Ongoing monthly account fees
- •Security registration fees
- •Caveat registration fee
- •Penalty fees for late payment
- •Early settlement fee
- •Caveat removal fee
- •One-time broker fees if using a finance broker
Some of these fees will be charged to the loan upfront or are calculated in your weekly, fortnightly, or monthly installments. Other fees can be charged at the end of the loan term such as early settlement fees or if you used your property as security a caveat removal fee can be charged.
What areas in New Zealand do you cover?
That's easy, from our office in Auckland - we cover the whole of New Zealand and a large part of our application process can be done via our website, e-mail, and telephone.
What types of Business Loans or Business Asset Finance do Pioneer Finance offer?
We offer a standard principal and interest term loan from 1 month to 7 years depending on the security offered.
Some of our shorter-term loans could be done as an interest-only loan and in certain circumstances, we could do a fully or partially capitalising loan.
The difference between Secured and Unsecured?
Secured Business loans or Business Asset Finance means the business or the directors have offered some security to the finance company until the loan is repaid. Offering security can gain you better finance terms such as lower interest rates and longer terms. This makes lending to your business a lower-risk proposition and will give you a greater chance of having your loan approved.
An unsecured business loan means the finance company has not taken any security for the loan and makes this a higher risk proposition for them. What this means for you is usually a higher interest rate and a shorter term meaning the repayments will be higher. The reason for the shorter term is the risk to the finance company and they will try to get the funds they have lent back quickly.
What security can be used?
We can use the following securities:
- •Property
- •Motor vehicles – Including cars, trucks & motorbikes
- •Boats & Jetskis
- •Business assets
- •Household chattels
For some applicants, we may be able to help you with an unsecured loan.
Business Loans or Business Asset Finance Terms
The loan terms we are able to offer depending on the security offered. Below is a table detailing the terms we can offer:
| Security | Maximum term |
|---|---|
| Property | 7 Years |
| Motor Vehicles less than 10 years old | 4 Years |
| Motor vehicles older than 10 years | 3 Years |
| Motor vehicles older than 18 years | 2 Years |
| Boats & Jetskis | 3 Years |
Rates, fees and features
Rather than having set fees & interest rates we prefer to work with ranges as not every application is the same.
* Complex loans may have a higher establishment fee
* Administration fees may apply
Questions?
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