Business borrowing rates
Lenders for business loans typically charge their clients a rate made up of three parts.
The first part is the base rate, one that reflects the overall market costs of the funding and treasury management.
The second part is client-specific. It takes into account the balance between the security involved, the track record of the borrower, and the specific nature of the funding requirements, among other things. This second part is usually referred to as the "margin" or "margin over base" and is essentially an assessment by the lender of how "risky" that specific loan is. You can find the total actual rate your bank charges you on your latest bank statement.
An important aspect of business borrowing is the form of security required - property or business assets.
The third part is a monthly fee that most banks charge for the overall overdraft facility. This is not on your bank statement. This fee has various names. We have shown it below and labelled it "Overdraft Mgmt fee"; it applies to the value of the whole overdraft facility whether you use it or not. The rates listed below are the annual equivalents.
We maintain this page because the changes reveal important interest-rate trends that drive business lending, rather than revealing specific lending cost levels.
Business borrowing rates
| Institution | Product | Type | Security | Base rate % pa | Lenders Margin % pa | Mgmt fee % flat | Total % pa |
| ANZ | Corporate Indicator rate | Variable | ? | 5.22 | ? | ? | ? |
| Working Capital Base rate | Variable | ? | 11.27 | ? | ? | ? | |
| ASB | Business Lending Base Rate | Variable | ? | 11.52 | 1 to 5 | 1.44 | 13.96 - 17.96 |
| Rural base rate | Variable | ? | 8.76 | ? | 1.00 | ? | |
| Corporate Indicator rate | Variable | ? | 5.93 | ? | 1.00 | ? | |
 | Business credit | Variable | none | 0.00 | 0.00 | 0.00 | 0.00 |
| BNZ | Business Overdraft | Variable | ? | 10.95 | 0 to 9 | 1.80 | 10.95 - 19.95 |
| Cash Flow Funding | CFF Overdraft | Variable | Business assets | 10.50 | 0.00 | 0.00 | 10.50 |
| Fuelled | Invoice funding via Xero | Flexible | Unsecured | 15.00 | 0.00 | 12.00-48.00 | 27.00-63.00 |
| Heartland | Business Funding | Variable | ? | 10.00 | 1 to 5 | 1.44 | 12.44 -16.44 |
| Kiwibank | Business Overdraft Rate | Variable | ? | 7.50 | 1 to 5 | 1.20 | 9.70 - 13.70 |
| Business Home Equity Rate | Variable | ? | 6.15 | ? | ? | ? | |
| Taxi | Tax-backed working capital facility | Fixed | Provisional payment | 5.40 | 0.00 | 0 - 2.40 | 5.40 - 7.80 |
| Zip Business | Business Loan, P&I | Variable | Unsecured | 6.0-40.0 | 0.00 | 2.00-3.00 | 8.0-43.0 |
| Westpac | Overdraft more than $5,000 | Variable | ? | 13.95 | 1 - 5 | 1.20 | 16.15-20.15 |