Business Credit, Explained for NZ Businesses
How the PPSR works and when to register, whether a retention of title clause protects you on its own, what separates a director's guarantee from a personal guarantee and how to negotiate one, and what a business credit check looks at when you apply for a trade account.
Why Business Credit Matters
Every trade account is a credit decision made by two sides. Suppliers decide how much risk to take and what protection to ask for. Buyers decide what they are willing to sign. This guide covers both: the tools suppliers use to protect what they sell on credit (the PPSR and retention of title), and the things buyers meet when they open an account (credit checks and personal or director's guarantees). Start with what the PPSR is if you supply goods on credit, or how a business credit check works if you are applying for an account. It sits alongside the Trade Accounts guide and the Trade Credit guide.
Every Business Credit Article
For Suppliers: Protecting What You Sell on Credit
- What Is the PPSR in NZ? (And Do You Need to Register?) — the public register of security interests, and when to register
- Retention of Title Clauses in NZ: Do They Protect You Without PPSR Registration? — why a clause alone isn't enough
- What Is Trade Credit? — the basics of selling on credit
- The Pros and Cons of Offering Trade Credit to Customers
For Business Customers: Guarantees and Credit Checks
- Director's Guarantee vs Personal Guarantee: What's the Difference in NZ? — the wording that changes your exposure
- Can You Negotiate Away a Personal Guarantee? What to Ask For in NZ — caps, time limits and release clauses
- How Does a Business Credit Check Work in NZ? — what suppliers see and how it affects your limit
- What Is a Personal Guarantee on a Trade Account? — the basics
- What Happens If You Default on a Trade Account in NZ?
- How Does a Trade Account Application Work in NZ?
- What Are Trade References and How Many Do You Need?
- What Is a Credit Limit on a Trade Account?
Related Reading
- Trade Accounts guide — how trade accounts work and what happens if you default
- Trade Credit guide — how credit between businesses works
- Payment Terms guide — what Net 30, EOM and the 20th of the month following mean
- Cash Flow guide — working capital, the cash conversion cycle and seasonal cash flow
Buying From an NZ Supplier and Want to Spread the Cost?
Apply with your supplier's invoice and we'll review it. If you're approved, PaidTerms pays your NZ supplier and you repay in monthly instalments. See your fee before you confirm.