With interest rates starting to ease in 2025 and the economic recovery that many hoped delayed, many Kiwi business owners are reassessing their financial structures. Refinancing and restructuring can be smart strategic moves - but they also come with legal risks that shouldn’t be overlooked.

Refinancing business loans may lower repayments or release working capital, but it usually comes with updated terms - new guarantees, fresh security, and tighter conditions. It's essential to review the loan agreement closely, especially around personal guarantees, early repayment clauses, and default triggers. The banks will always talke all the security they can get their hands on and it is important to know when to push back.

Restructuring - such as bringing in a shareholder, adjusting shareholdings, or buying someone out - needs more than a handshake. Informal changes often cause disputes if not legally documented in your shareholder agreement or company constitution.

Reorganising - Mid-year is a smart time to tidy up your legal framework, i.e. before things get too busy. Whether it's updating terms of trade or supply agreements, or checking your compliance with the regulations in your industry, getting legal input early helps avoid missteps later.

At ASCO Legal, we work alongside small and mid-sized NZ businesses to ensure transitions like these are well-executed and risk-managed. Don’t wait until after the fact - legal reviews are faster and cheaper before contracts are signed.

Restructuring, refinancing or reorganising yout business? Let’s talk through your next steps and make sure your business is protected.

Talk to ASCO Legal today

Call us: 09 308 8070 | Email us: [email protected]

Refinancing, Restructuring & Reorganising: What NZ Business Owners Need to Know Now