Successfully Acquire A Business Loan for Your Next Big Investment Move
If you want to start your own business, expand operations, or seize new investment opportunities, a business/commercial loan is the ticket to making it happen. Business loans provide the necessary capital to overcome unexpected hurdles that arise in your entrepreneurial journey
Types Of Business Loans In NZ
There are two different types of business loans in NZ, each with its own set of advantages and drawbacks, and terms and conditions depending on the bank or the specialist business lender you choose.
- Secured Business Loans
- Secured business loans require a personal guarantee, security over the purchased assets, or a lien on business assets. It’s common for your home to serve as collateral. While secured loans offer a higher borrowing limit and lower interest rates compared to unsecured loans (as the lender can claim assets if repayments aren’t met), the risks are substantial. If your business faces challenges, and you’re unable to repay the loan, the lender can claim your home, car, or business assets.
- Unsecured Business Loans
- Unsecured business loans involve borrowing without using your home or business as collateral. This means that if you’re unable to repay the loan, the lender won’t automatically have the right to seize any of your assets. However, the trade-off is that the interest rates are typically higher than those for secured loans, reflecting the increased risk.
Now Is the Time To Start Your Business
Business loans provide a sense of repayment certainty, typically with a fixed interest rate and a predetermined repayment period. This means that your monthly cash outflow for the loan term is established upfront and remains unchanged, allowing for effective budgeting. Moreover, certain lenders may extend the option of a repayment holiday, allowing you to temporarily pause repayments while awaiting payments from your customers. However, it’s important to note that this convenience comes with a potential drawback – the possibility of incurring additional interest charges, ultimately making the overall cost of the loan higher.
At Hello Financial Services, we help you acquire a business or commercial loan from a trusted lender. One that offers not only low-interest rates but also flexible repayment schedules. We evaluate your current financial circumstances and conduct market research to find lenders that align with your current financial circumstances and your business objectives.
From the initial pre-approval stages to the final signature and complete repayment of the loan, we stand by you, providing expert guidance along the way.
Dream it, and let us help you find the best lender to make it happen.
