Free Finance Agreement Template for New Zealand

A Finance Agreement is a legally binding contract that sets out the terms for borrowing money or accessing credit in New Zealand. It spells out how much you're borrowing, the interest rate, repayment schedule, and any security the lender requires. These agreements are covered by the Credit Contracts and Consumer Finance Act 2003, which protects borrowers' rights.

Most Kiwis encounter finance agreements when getting a car loan, mortgage, or business funding. The document must clearly show all fees, payment details, and your rights to early repayment. Lenders need to follow strict responsible lending rules and provide a disclosure statement that breaks down all the key information in plain language.

You need a Finance Agreement anytime you're borrowing money or extending credit in New Zealand. Common situations include taking out a home loan, financing a vehicle, setting up business equipment payments, or arranging a personal loan. The agreement protects both parties by clearly documenting the loan terms and meeting legal requirements.

Having a proper Finance Agreement becomes essential when dealing with significant amounts, complex repayment terms, or multiple parties. It helps avoid misunderstandings about interest rates, payment schedules, and default consequences. For business lending especially, these agreements need careful review to ensure compliance with the Credit Contracts and Consumer Finance Act.

• Business Loan Agreement: For company funding with specific commercial terms and security requirements
• Car Finance Agreement: Specialized for vehicle purchases with the car as collateral
• Equipment Lease To Own Agreement: Combines leasing with eventual ownership for business equipment
• Contract For Personal Loan: Simpler structure for individual borrowing with flexible terms
• Car Loan Contract: Detailed vehicle financing with specific repayment schedules and ownership conditions

• Banks and Financial Institutions: Create and issue Finance Agreements as lenders, following NZ lending regulations and responsible credit practices
• Borrowers: Individual customers or businesses seeking loans, who must understand and comply with repayment terms
• Legal Advisors: Review and customize agreements to protect client interests and ensure compliance with NZ finance laws
• Business Owners: Use these agreements for equipment financing, expansion loans, or working capital
• Compliance Officers: Monitor adherence to Credit Contracts and Consumer Finance Act requirements within their organizations

• Loan Details: Gather exact loan amount, interest rate, term length, and repayment schedule
• Party Information: Collect full legal names, addresses, and contact details of all borrowers and lenders
• Security Details: Document any assets being used as collateral, including current valuations
• Compliance Check: Review current Credit Contracts and Consumer Finance Act requirements
• Payment Terms: Specify payment methods, dates, and consequences of default
• Document Generation: Use our platform to create a legally-sound Finance Agreement that includes all required elements
• Final Review: Check all details match your gathered information before signing

• Parties Section: Full legal names and addresses of lender and borrower
• Loan Details: Principal amount, interest rate, term length, and total cost of credit
• Payment Terms: Clear schedule, method, and frequency of repayments
• Security Provisions: Description of any collateral or guarantees securing the loan
• Default Clauses: Consequences and remedies for missed payments
• Disclosure Statement: Key information as required by NZ consumer credit laws
• Early Repayment: Terms and any fees for paying the loan off early
• Signatures: Space for dated signatures of all parties

A Finance Agreement differs significantly from an Asset Purchase Agreement in several key ways, though both involve financial transactions. While Finance Agreements focus on lending terms and repayment schedules, Asset Purchase Agreements deal with the outright sale and transfer of specific assets.

• Purpose: Finance Agreements create a lending relationship with ongoing obligations, while Asset Purchase Agreements facilitate a one-time transfer of ownership
• Payment Structure: Finance Agreements involve regular installments with interest, whereas Asset Purchase Agreements typically involve a single payment or defined installments without interest
• Legal Requirements: Finance Agreements must comply with NZ consumer credit laws and lending regulations; Asset Purchase Agreements focus on property transfer laws and warranties
• Duration: Finance Agreements remain active until the loan is fully repaid, while Asset Purchase Agreements generally conclude once the asset transfer is complete