How to get a business loan, step by step

At a glance

• Getting a business loan in NZ takes seven simple steps
• Two pathways: property-secured (no financials) or unsecured (bank statements)
• Property-secured loans run from $20k to $1M
• Document checklist below covers both pathways
• The first step, a 60-second enquiry, won't affect your credit score

How do you get a business loan in NZ?

You get a business loan in NZ by working out what you need, picking the right pathway, gathering a few documents and submitting an enquiry. Then a lender assesses it, approves it and releases the funds.

That's the short version. Below, we break it into seven bite-sized steps so you know exactly what's coming. No jargon, no surprises.

Step 1: How much do you need, and why?

Start by pinning down the amount and the purpose. Lenders want to know what the money is for, and you'll make better decisions when you know too.

Write down:

• The exact amount you need, plus a sensible buffer
• What it's for (stock, equipment, tax, cash flow, a purchase)
• When you need it by

A Dunedin brewery upgrading its canning line has a very different need from an Invercargill accountant covering a quiet month. Both are fine. Being specific helps.

Step 2: How will you repay it?

Next, work out your repayment plan, often called the exit plan. This is the single most important thing a private lender looks at.

Good exit plans are clear and realistic. Examples include:

• Refinancing to a longer-term lender down the track
• Selling a property, vehicle or other asset
• A large invoice or contract payment arriving
• Regular business cash flow covering repayments

If you can explain your exit plan in one or two sentences, you're in great shape.

Step 3: Which pathway fits you?

Pick the pathway that matches your situation. There are two, and the enquiry form helps route you to the right one.

Pathway A: property-secured business loan

For business owners who own real estate with equity: a home, rental, commercial building or land, even with a mortgage already on it. Borrow $20,000 to $1 million. No tax returns, financial statements or cash-flow records. Bad credit and tax debt are considered case by case.

Pathway B: unsecured business loan

For businesses without property, or that prefer not to use it. You'll usually need an NZBN and at least six months of trading. Approval is based mainly on business bank statements. Loan size depends on turnover and cash flow. This is the low doc route.

Step 4: What documents do you need?

You need far fewer documents than a bank would ask for. Here's the checklist for both pathways.

Pop these in a folder on your phone or laptop before you start. It'll save time later.

Step 5: Check your credit file

Take a quick look at your credit reports before a lender does. It's free to request your personal report from Centrix, Equifax and illion.

You're looking for:

1. Errors, like debts that aren't yours
2. Old defaults you may have forgotten
3. Paid debts still showing as unpaid

A few dents won't necessarily stop you, especially with property security. But knowing what's there means no awkward surprises. Our business credit score guide walks you through it.

Step 6: Submit your enquiry

Fill in the online enquiry form. It takes about 60 seconds and asks a few simple questions about your business and what you need.

A few things worth knowing:

• It's an enquiry, not a credit application, so your credit score is untouched
• There's no cost to enquire or apply
• A real person reviews it, not a robot
• You'll get a call or text back fast with next steps

Step 7: Approval and funding

Once the lender has what they need, they assess your application and, if approved, release the funds. The timeline depends on the pathway.

For property-secured loans, timing depends on documents, any valuation or legal work, and settlement. Every loan is priced on your individual circumstances, and our lending partners go after the sharpest deal available for your situation.

What happens after the money lands?

After the funds arrive, you put them to work and stick to the repayment plan you agreed. That part is simple, but a little discipline goes a long way.

Keep the money for the purpose you borrowed it for. Diary the key dates, especially if your exit plan relies on a sale, a refinance or a customer payment. If something shifts, like a buyer delaying settlement or a client paying late, let your lender know early. Private lenders are used to real-world bumps and would much rather hear about them sooner.

And once the loan is repaid, you'll have a track record that makes the next conversation even easier.

What mistakes should you avoid?

A few common slip-ups slow things down. Steer clear of these:

• Applying everywhere at once. Multiple formal applications can dent your credit score.
• Being vague about purpose. "Business stuff" won't cut it. Be specific.
• Skipping the exit plan. It's the heart of a private loan.
• Hiding past issues. Lenders find out anyway. Upfront beats awkward.
• Waiting too long. If you've got tax debt or a cash-flow gap, the problem usually grows while you wait.

Ready for step one?

Now you know the whole journey, from working out what you need to money in the bank. It's simpler than most people expect, especially when you skip the bank-style paperwork.

Start with the 60-second enquiry, and a real person will take it from there.

Frequently asked questions