Questions answered
SME business loan questions, answered
Established New Zealand businesses can borrow $20,000 to $1m secured on property, or on turnover without property. Enquiring takes about 60 seconds and does not affect your credit score. The answers below cover eligibility, security, documents, costs and uses.
Eligibility
Who is SME Business Loans for?
Established New Zealand small and medium enterprises: owner-managed businesses with staff, real turnover and a trading history. We arrange finance for business purposes only.
Which business structures can apply?
Companies, trusts, partnerships and sole traders can all apply.
How long does my business need to have been trading?
For unsecured loans and lines of credit, usually six months or more. Property-secured loans focus more on the security and the purpose, but most of the businesses we help have traded for several years.
Can I apply if I have bad credit or a past default?
Yes. For property-secured loans, bad credit, defaults and arrears are considered case by case. For unsecured facilities, weaker credit is considered.
Do you arrange personal or consumer loans?
No. Every facility is for business purposes, even when personal property such as a home is used as security.
Amounts and security
How much can I borrow?
Property-secured loans range from $20,000 to $1m. Unsecured facilities are sized on turnover and bank statements.
What property can be used as security?
New Zealand property that you or a supporting party already own: a home, a rental or investment property, commercial property or land. See property-secured loans.
Can I use a property that already has a mortgage?
Yes. A property-secured business loan can be a second mortgage behind an existing loan, subject to the available equity.
Can a family member provide security?
Yes, as a supporting party. They should take independent legal advice before signing.
Do unsecured loans need a guarantee?
Unsecured business lending commonly involves a guarantee from the owners or directors. Your lending specialist will explain what each option requires.
Documents and process
Do I need financial statements or tax returns?
Not for the initial assessment of a property-secured loan. Unsecured facilities are assessed mainly on recent business bank statements.
How long does it take?
Unsecured decisions are sometimes made the same day. Property-secured funding is possible within 24 hours of approval in some cases, depending on valuation and documentation.
Does the enquiry affect my credit score?
No. The 60-second enquiry is free and does not affect your credit score.
What happens after I enquire?
A lending specialist calls to understand the business, the purpose and the security, then outlines options. See how it works.
Do I have to go ahead once I have enquired?
No. There is no obligation to proceed.
Costs
What interest rate will I pay?
Every loan is priced on the business's individual circumstances: security, purpose, trading history, credit and exit. We do not publish rate cards because headline figures rarely match what a particular business is offered. We find the sharpest option available for your situation.
Are there fees?
Lenders may charge establishment, legal or valuation costs depending on the facility. All costs are set out in writing before you commit.
Can I repay early?
Many facilities allow early repayment. Terms vary, so ask about early repayment when comparing options.
Using the money
What can the funds be used for?
Any genuine business purpose, including working capital, buying a business, succession, expansion, refinancing, fit-outs, contracts and seasonal stock.
Can I use a loan to pay IRD?
Yes. IRD debt can be refinanced or paid out with a property-secured loan. See options if you are behind with IRD.
Can I use a loan to buy out a business partner?
Yes. Partner buyouts and succession are common purposes. See partner buyout and succession funding.
Do you fund businesses outside the main cities?
Yes. We arrange finance throughout New Zealand. Our regional pages cover 14 regions in detail.
How short or long are the loans?
The facilities we arrange are short to medium term. Your lending specialist will explain the options that suit the purpose.
Next step
Still have a question?
A lending specialist can answer it directly. Start a 60-second enquiry, or call us.