Access to cash flow funding provides businesses with the agility to navigate daily operations, respond to unexpected expenses, and capitalize on growth prospects without depleting their working capital.
By leveraging cash flow funding, businesses can swiftly allocate resources to marketing, innovation, and expansion, catalyzing growth, amplifying market presence, and fostering industry competitiveness.
Cash flow funding acts as a safeguard, ensuring operational continuity during economic fluctuations, shielding businesses from cash shortages, and enhancing overall risk resilience.
Below is a list of benefits of getting a business loan:
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.
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/.
For further information about businesses, you can go directly to their website here.
| Short Term loan | Long term Loan |
| Purchase stock and materials | Vehicle or Machinery purchase |
| Cover Wages or contractor expenses | Upgrade IT or Phone System |
| Invoice financing | Fund an advertising campaign or promotion |
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.
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
It is important you take the right loan for your business and these are some of the risks:
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.
You can apply for a business loan with Pioneer Finance if you are:
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:
Depending on the security offered for the loan we may require further information such as rates notice, mortgage statements or proof of purchase.
Depending on the security offered we will do checks with the following registers:
Don’t worry if your credit check has a couple of bumps and bruises we may still be able to help you.
Business loans will have various fees attached, which may include:
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.
For more details on our fees and charges go to our Interest rates and fees page in the important information section.
That’s easy through our Offices in Wellington & 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.
Rather than having set fees & interest rates we prefer to work with ranges as not every application is the same. So if it is a short term Bridging loan, Debt consolidation, Personal Loan, Home renovations, Car Loan, Holiday, Funeral or Business loan we have the loan for you.
For further information please, see our rates and fees.
Understanding the exact cost of a personal 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.
$3,000
24 Months
13.95% (annually)
If you are over the age of 18 (up to the age of 21 you may require a guarantor), a permanent resident of New Zealand, earn a regular income, and can demonstrate the ability to repay the loan, you may qualify for a personal loan.
We offer loans from $5,000 to $100,000 on a business loan in New Zealand. The amount we lend does depend on the security offered for the loan. The more security offered the better chance we will be able to lend the amount you require. We will also need to check your affordability and credit profile.
Approval time depends on some variables:
In saying that we do endeavour to give a same day answer on all applications received.
Yes, you can make extra repayments; or you can increase your minimum repayment to help pay your loan off earlier. We do charge a small early settlement fee of $75.
