Comparing the best small business banks for Kiwis

Still using a personal account for business purchases? It might be time to make the switch. The best banks for small businesses in New Zealand offer many benefits, from streamlining bookkeeping to simplifying tax time.

But with so many competing options, what’s right for you? This post covers the top business banking considerations and outlines the key players in New Zealand.

Table of contents
What should small businesses look for in a bank? The best banks for small businesses in New Zealand ASB BNZ ANZ Westpac KiwiBank Wise Business - Alternative Choosing wisely when it comes to business banking

Sign up for the Wise Business account! 🚀

What should small businesses look for in a bank?

As a business, it is always important to ensure that business and personal expenses remain separate. Infact, it's all the more important for small businesses as it can help simplify record-keeping and slash taxation headaches. But not all banks offer the same features. So let us dive deep into some of the factors to consider when looking for business banking in New Zealand.

Small business-friendly products

A bank that ticks the boxes for a nationwide corporation won’t necessarily suit your small startup. Some banks offer accounts specifically for small businesses, covering perks like cash flow management tools, merchant services, and small business credit cards. Identify what is best for your business financial and operational need.

Setup procedures

To open a bank account in New Zealand, you’ll typically need ID and utility bills to verify your identity and residency. Some banks let you set up a business bank account online with a RealMe Login, while others require in-person visits. You may also need:

• A New Zealand Business Number (NZBN)
• An IRD number
• Contact details (business name, address, NZ-registered phone number)
• A Certificate of Incorporation

The process becomes significantly trickier for foreigners, who may also need to prove work rights and translate foreign documents.

This is where banking alternatives like Wise Business simplifies the setup procedure for non-citizens. It offers a multi-currency account gives businesses access to local account details in 8+ currencies including AUD, USD, and NZD. This helps foreign businesses avoid the hassle of visiting a physical bank and having manage finances across multiple providers.

Sign up for the Wise Business account! 🚀

Account fees

There’s no such thing as a free lunch–nor a free business bank account. A bank has an array of creative ways to extract funds from customers: monthly account fees, off-network ATM fees, transaction fees, overdraft fees, service fees, and hidden fees.

Some fees won’t make a big difference to your business's bottom line, while others can cost you dearly. For example, if you regularly send money abroad, SWIFT transactions can be expensive.

International transfer fees

With a standard SWIFT transfer, the sending bank charges a fee, an intermediary bank offers a rotten exchange rate, and the recipient bank whacks another fee on top. This triple whammy adds up quickly.

A bank alternative like Wise Business offers a single, transparent transfer fee and uses the mid-market exchange rate. For Kiwi businesses sending money across borders, that could entail significant savings.

Loans & overdrafts

Most New Zealand banks offer business loans to help you invest and grow. Businesses with a strong credit rating and fiscal track record often qualify for larger loans. Compare interest rates when planning to borrow.

Overdrafts can help small businesses better manage cash flow. Although fees apply, this handy loan type can help you navigate tight situations.

Software integration

As a business, ensuring your finances are synced alongside your accounting software can help businesses automate payment reconciliations to reduce manual data entry and tedious cross-checks. Customers will also like making online purchases without a separate payment portal. It is worth considering business banking solutions that offer accounting software integration with leading applications, such as QuickBooks, Xero, and Zoho.

Learning how to use a new accounting platform can be a pain. Consider using a bank that already integrates with your preferred bookkeeping application.

Business credit cards

Banks offer business credit cards for small and large enterprises. Some lure customers with travel perks and rewards, while others boast low overdraft fees or interest rates.

When paid off promptly, a credit card offers an invaluable cash flow management tool. Low-interest-rate cards can prove useful for businesses that struggle to settle debts before the interest-free period expires. Everyday Rewards can appeal to high-purchase-volume companies, while frequent business travellers might prefer the perks of Airpoints Dollars.

👆Checkout our comparison guide on best business credit cards in New Zealand

ATM & branch locations

Contactless payments, such as Google Pay, Apple Pay, and PayWave, have become the go-to for convenience-seeking Kiwis. Nonetheless, some New Zealand businesses still use cash, especially in service sectors such as hospitality and the trades.

Widespread branch and ATM availability make deposits convenient and reduce reliance on costly off-network cash withdrawals. Also, some business owners prefer in-person consultations when discussing complex financial matters like business loans.

Business support

The best banks for business want you to succeed. Some offer customised advice from qualified financial advisors, providing a much-needed helping hand for a reasonable fee. Many banks publish business-related content on their websites, including resources like blogs, tools, and loan payment calculators.

The best banks for small businesses in New Zealand

The Big 4 New Zealand banks–ANZ, ASB, BNZ, and Westpac–offer competitive products. Customers can also consider smaller players, such as KiwiBank, or banking alternatives like Wise.

ASB

A long-standing Kiwi institution, ASB¹ caters to small businesses with annual revenues of under $250,000. Perks include multiple payment methods, online banking, a fee-free Visa debit card, business loans, speedy merchant settlements, insurance, and integration with Xero/MYOB accounting systems.

An ASB Relationship Manager oversees business accounts, and the bank offers foreign currency management tools. The well-established bank has a wide range of ATMs, regional banking hubs, and service centres across both islands.

BNZ

BNZ² provides “Big benefits for your small business” through its Big Small Business Package. The offer includes a Business First Transact account with no monthly fees, BNZ Visa credit or debit cards, free nationwide meeting spaces, overdrafts, and customised advice from a local Small Business Partner.

Customers also get 12 months of free cybersecurity protection with Falcon Go from Crowdstrike. The bank has a solid selection of branches and ATMs, especially on the North Island.

ANZ

ANZ³ entices start-ups with its ANZ HOWTWO Small Business Support Programme. The package waives fees for 2 years on its ANZ Business Current account, ANZ Visa Business Card, and ANZ Business Flexible Facility for cost-effective short-term loans. Fees apply once the 2-year period expires.

Customers also get comprehensive business insights and access to an ANZ Business Banking Specialist. As New Zealand’s largest bank, ANZ offers widespread ATM and Regional Banking Hub coverage on both islands.

Westpac

While Westpac doesn’t offer SMB-specific services, the major player provides various business accounts, including Business Transact, Business Interest, Business Saver, and Business Overdraft.⁴

Convenient payment methods include cards, direct debits, bill payments, and Westpac One online banking. Loans and overdrafts are available, and Westpac has multiple credit card options–its Airpoints Business Mastercard is popular among frequent flyers.

Customers receive complimentary business tools, including cash flow forecasts, profit and loss projections, and cost calculators. To help you grow, Westpac offers consultations with specialists in various industries.⁵

KiwiBank

The Big 4 are Australian-owned and dominate the industry with an 84% loan market share.⁶ For Kiwis keen to keep it local, KiwiBank⁷ is a small, New Zealand-owned competitor with a repertoire of enticing business products.

• Business Edge: $5 monthly fee, free online transactions, 25 free in-branch deposits, free Visa debit or EFTPOS card
• Term Deposit: 4.10% p.a interest on a 6-month term with no setup fees
• Business Visa credit card: A low 12.50% p.a. rate with a 55-day interest-free period.

KiwiBank also offers overdrafts with a variable interest rate and no set repayments, as well as fixed/variable business loans for revolving credit, asset acquisitions, and property investments. Merchant services, bulk payments, EFTPOS terminals, and KiwiBank QuickPay simplify transactions.

Wise Business - Alternative

As a bank alternative, Wise Business facilitates international business transactions at affordable and transparent pricing. While Wise Business is not a banking solution with products like loans or credits, the alternative solutions offer comprehensive features that help make cross-border transactions and reconciliation easier.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 40 NZD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

Choosing wisely when it comes to business banking

From the Big 4 to small local banks and fintech alternatives, New Zealand businesses are spoilt for choice. Review the top considerations and study the fine print of each competitor to determine what works best for you.

---

Sources:

1. ASB Small business banking
2. BNZ Banking for small business
3. ANZ Business Start Up Package
4. Westpac Business accounts
5. Westpac Accepting Payments
6. RBNZ: About the New Zealand banking sector
7. KiwiBank Business Banking