Are you a New Zealand-based small or medium-sized business wondering how to apply for a business loan?

The process and requirements can differ noticeably from personal loan applications – and even between business loan applications from banking institutions and non-banking institutions such as ScotPac.

To help you unravel the complexities of how to get a business loan in NZ, we have put together this introductory article.

Understanding Business Loan Applications

There are a few crucial aspects to factor in when considering applying for a business loan.

Approval Process

Traditional banks tend to have lengthy approval times, ranging from weeks to even months, and strict regulatory and eligibility criteria.

Thanks to streamlined processes and a more holistic financial assessment, non-bank lenders can approve loans at a much faster rate. For example, at ScotPac, our technology-driven processes allow for approval in as little as 24 hours, with funds available in just one business day.

Documentation Requirements

When you are working out how to apply for a business loan, the documentation you need to collate can differ significantly.

Banks typically require extensive documentation – going beyond just bank statements to include tax returns or even a business plan. With a ScotPac loan application, however, the only documentation you’ll need to provide is six months’ worth of bank statements, along with ID for all business owners and applicants.

Eligibility Criteria 

Both the application process and supporting documentation are used to verify that your business meets the criteria to be eligible for a loan.

At ScotPac, our eligibility criteria are far more flexible, as we tailor our loans to suit the needs of SMEs. If you’re a New Zealand business with less-than-perfect credit or have been unable to secure a loan through a traditional lender like a bank, make sure to reach out to our team.

Step-by-Step Guide: How to Apply for a Business Loan

1. Assess your business needs

This is an important preparatory part of the application. It is critical that you understand the purpose of the loan you are seeking to acquire. What do you need it for and what will the funds be used for?

Not only can this form an important part of your application, but it will also guide your decisions around loan amounts and terms.

2. Check you are eligible

To save time and effort, it’s worth checking that your business meets the basic eligibility criteria before applying for a business loan.

With ScotPac, your business will need to have been operating in the same location in New Zealand for at least 12 months and have a demonstrable monthly turnover of at least $10,000.

3. Prepare your documentation

At ScotPac, we have cut through the red tape of traditional business loan applications and minimised the number of documents you need to provide.

To ensure a hassle-free and fast application process, make sure you have the following ready for uploading:

  • Identification documents for all business owners and applicants
  • Bank statements for your business stretching back at least 6 months

4. Complete the application online

The application process for a business loan with ScotPac is easy, simple and fast. We use a fully online application that can take just five minutes to complete.

To find and complete an application form, click here.

5. Receive an application assessment

Our loan approvals team can review your application in as little as 24 hours. Whilst we take into account your business’s eligibility, we do this – as mentioned above – by considering the holistic financial health of your company. In other words, we don’t just look at your credit score – we also consider your average monthly sales to get a clearer picture of your business’s performance.

6. Receive business loan funds

Once your application is approved, we will ensure you understand the proposed terms, interest rate and repayment schedule. Our lending specialists are always here to help – but it’s important that you understand the terms and conditions associated with your business loan.

Once you accept the loan offer, we can make funds available in as little as one business day – helping you support your operations or growth immediately.

How to Apply for a Business Loan Successfully

To help you increase your chances of a successful business loan approval, here is a brief guide.

  • Apply for a loan amount that meets your business’s eligibility i.e., at ScotPac we offer loans of up to 150% of one’s monthly turnover.
  • Have a clear outline of how the loan funds will be used to support your business.
  • Get your documentation ready prior to beginning the loan application.
  • While not necessarily a dealbreaker, having a good credit score can improve your borrowing capacity.
  • Consider whether a secured or unsecured loan will be better for your needs.
  • If you would like custom advice, support or assistance before or during the application process, make sure to reach out to the ScotPac team.

Contact ScotPac to Discover How to Get a Business Loan in NZ

ScotPac is the largest non-bank lender in New Zealand and Australia. For over 35 years, our lending specialists have been helping small and medium-sized businesses access faster, more flexible, and more customisable business loans to fuel their success.

We work with our clients as partners – not transactions – to help ensure their business goals are achieved in a realistic, sustainable way.

Whether you’re ready to start your business loan application and would like support, or you’re interested in a custom consultation with a lending specialist,, make sure to reach out to the ScotPac NZ team today.