If you’ve been following the news, you’ve probably heard a lot about falling mortgage rates in New Zealand. But what about business lending? While the spotlight’s been on homeowners, business owners are quietly navigating a changing credit landscape of their own—and it’s a mix of opportunity and caution.
Thanks to recent cuts to the Official Cash Rate (OCR), commercial lending rates have started to ease. Some banks are offering base rates around 4.28% p.a. for revolving credit and 5.51% p.a. for overdrafts, though these figures don’t include margins or risk adjustments. In practice, your actual rate will depend heavily on your financials, industry, and the strength of your application.
But here’s the catch: even with slightly lower rates, lenders aren’t throwing open the doors. Banks are still being selective, especially when it comes to startups or businesses with limited trading history. They’re looking for stability—strong cash flow, solid security, and a clear plan for how the funds will be used.
That means the documentation you submit matters more than ever. Most lenders now expect detailed business plans, cash flow forecasts, historical financials, and security arrangements. Missed payments or overdraft breaches can trigger penalty rates up to 10% above base, so it pays to be prepared and proactive.
For businesses ready to grow, this environment offers real potential—but only if you’re well-positioned. Whether you're expanding, acquiring, or just shoring up working capital, having your financial story straight is key.
Need help pulling that together? Better Business & Tax Ltd (bbtax.co.nz) specialises in preparing lender-ready documentation for New Zealand businesses. From cash flow modelling to strategic business plans, they’ll help you present a compelling case to banks and finance providers—so you can focus on growth, not guesswork.
