Business borrowing rates
The best way to work out the actual cost of a business overdraft from a bank is to use our business overdraft calculator which is here. You can find the total actual rate your bank charges you on your latest bank statement.
The resources in this story may also be helpful.
Lenders 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
|Mgmt fee %
|ANZ||Corporate Indicator rate||Variable||?||
|Business Bank Indicator rate||Variable||?||8.35||?||?||?|
|Business Overdraft||Variable||?||10.60||1 to 5||1.44||13.04 - 17.04|
|Agri Current account||Variable||?||6.55||?||?||?|
|ASB||Business Lending Base Rate||Variable||?||9.88||1 to 5||1.44||12.32 - 16.32|
|Rural base rate||Variable||?||6.68||?||1.00||?|
|Corporate Indicator rate||Variable||?||4.08||?||1.00||?|
|BNZ||Business Overdraft||Variable||?||10.20||1 to 5||1.80||13.25 - 17.25|
|Farm First Overdraft||Variable||?||8.90||?||?||?|
|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||?||9.75||1 to 5||1.20||12.10 - 16.10|
|Business Home Equity Rate||Variable||?||6.15||?||?||?|
|Spotcap||Business Loan, P&I||Variable||Unsecured||6.0-40.0||0.00||2.00-3.00||8.0-43.0|
|TSB||Business Fixed Rates||1 year||?||6.05||?||?||?|
|Business Fixed Rates||2 year||?||5.99||?||?||?|
|Business Fixed Rates||3 year||?||6.65||?||?||?|
|Commercial Property Fixed Rates||1 year||Property||6.05||?||?||?|
|Commercial Property Fixed Rates||2 year||Property||5.99||?||?||?|
|Commercial Property Fixed Rates||3 year||Property||6.65||?||?||?|
|Westpac||Overdraft more than $5,000||Variable||?||13.95||1 - 5||1.20||16.15-20.15|