Working capital loans that keep the lights on

At a glance

• Working capital loans cover running costs while you wait for revenue to land
• Two pathways: property-secured ($20k to $1M, no financials needed) or unsecured (bank-statement based)
• Built for seasonal dips, slow-paying customers and awkward bill timing
• Fast funding is possible once approved
• 60-second enquiry, no cost, and no impact on your credit score

What are working capital loans in NZ?

Working capital loans in NZ are short-term business loans that fill the space between paying your costs and collecting your income. Think of them as a bridge, not a mortgage.

Most profitable businesses still hit moments where the bank balance is thin. Wages are due Thursday, the supplier wants paying on the 20th, and the big customer settles "end of next month". The business is fine on paper. The timing is the problem.

A working capital loan puts cash in the account so the business keeps humming until the money you're owed arrives.

Why do healthy businesses run short of cash?

Healthy businesses run short because income and costs rarely line up neatly. Here are the three usual suspects.

1. The seasonal swing

Plenty of Kiwi businesses make most of their money in a few busy months. A Queenstown ski-hire shop earns hard in winter and quietly pays rent all summer. A Hawke's Bay orchard contractor is flat out at harvest and much calmer afterwards.

The costs of getting ready for the busy season land before the income does. Stock, staff training, marketing and maintenance all need paying first.

2. The slow payer

You did the job. You sent the invoice. Now you wait. And wait.

A Christchurch builder finishing a commercial fit-out might be on 60-day terms with a head contractor. A Wellington IT consultancy might invoice a government agency and be paid on its schedule, not theirs. Meanwhile, PAYE and supplier accounts don't care.

3. The timing mismatch

Sometimes nothing is wrong except the calendar. Your GST return falls due the same week as a quarterly insurance premium. A large order needs materials bought up front. A provisional tax instalment lands right after you've restocked.

Which working capital option suits which gap?

The right option depends on the size and shape of the gap and whether you own property. Here's a quick guide.

If you own a home, investment property, commercial premises or land with equity behind it, the property-secured pathway can lend from $20,000 to $1 million. Your existing mortgage can stay put, because a second mortgage business loan sits behind it.

If you don't own property, or would rather keep it out of the picture, an unsecured business loan is assessed mainly on your business bank statements. The size depends on your turnover and cash flow.

How much working capital can I borrow?

With property security, you can borrow between $20,000 and $1 million, depending on the equity available and your exit plan.

With an unsecured loan, the amount is tied to how much money flows through your business account and whether the repayments are comfortable. There's no magic number. The lender looks at your real trading pattern.

A good rule of thumb: borrow for the gap, not for the dream. Work out what the shortfall actually is, add a sensible buffer, and ask for that.

How fast can I get working capital?

Property-secured loans can be funded in as little as 24 hours after approval, depending on documents, legal work and settlement. Often no formal valuation is needed up front, which trims the wait.

Unsecured loans move quickly too, often within a day or two, and sometimes on the same day. Sharing bank statements through a secure read-only link speeds things up.

Here's what typically happens:

1. You fill in the 60-second form
2. A real person calls or texts you back with next steps
3. You supply the few documents your pathway needs
4. The lender approves, and funds are released

What do I need to apply?

What you need depends on the pathway, and neither asks for a mountain of paperwork.

For a property-secured working capital loan:

• Photo ID
• Property details and existing loan details
• What the funds are for
• Your exit plan, such as a customer payment arriving, a refinance or a sale

For an unsecured working capital loan:

• An NZBN and an established trading business, usually at least six months
• Business bank statements, often via a secure link
• Basic business and owner details

No tax returns. No accountant-prepared financials for the property pathway. Just the basics.

What's a good exit plan for working capital?

A good exit plan is a clear, believable way the loan gets repaid. Private lenders love clarity.

Solid examples include:

• A large invoice due from a customer within a few months
• The peak season's takings arriving on a predictable timeline
• A planned refinance to a longer-term lender
• The sale of a property, vehicle or other asset
• A contract milestone payment

Picture a Tauranga landscaping company taking on a big subdivision job. They need crews and materials now, and the developer pays at practical completion. That completion payment is the exit plan, and it makes the whole conversation simple.

Is a working capital loan better than an overdraft?

A working capital loan suits a defined gap with a clear end date, while an ongoing facility suits businesses that dip in and out of cash all year.

Banks can be slow to set up or increase overdrafts, and they typically want full financials. Private lenders focus on security or bank statements instead, which suits business owners who need an answer this week. If you want something you can draw on repeatedly, have a look at our business line of credit page too.

Neither is "right" for everyone. It's about matching the tool to the job.

Ready to close the gap?

Cash-flow crunches are normal. Staying stuck in one isn't compulsory. A working capital loan gives you room to pay the team, keep suppliers happy and say yes to the next order without juggling.

It takes about a minute to tell us what's going on. From there, a real person works out which pathway fits and gets things moving.

Frequently asked questions