Plenty of business owners don’t own property — they rent, or everything they have is already tied up in the business. That doesn’t rule out funding. It changes what the lender looks at: instead of equity, it’s cash flow.
How do unsecured lenders decide the amount?
Unsecured business loans and lines of credit are sized to your turnover and to what your bank statements show you can comfortably repay. In practice, the lender is asking four questions:
- How much comes in each month, on average? Deposits from customers, card settlements and platform payouts. Transfers between your own accounts and loan drawdowns don’t count.
- How steady is it? Consistent deposits are worth more than the same total arriving in unpredictable lumps.
- What’s already going out? Existing loan repayments, lease payments, IRD instalments and merchant advance deductions reduce the room for new repayments.
- How is the account run? Regular dishonours, frequent overdrawn days or gambling transactions all weigh against you.
The result is a figure the lender is comfortable the business can service without strain. It won’t be the same at every lender, which is one reason calling a specialist before you apply saves time.
What’s the typical trading requirement?
Unsecured lenders usually want the business to have been trading for 6+ months, so there’s enough history in the bank statements to see a pattern. Some want longer for larger amounts. If you’re newer than that, see our answer on funding for businesses under six months old.
How can I increase the amount I’m offered?
You can’t invent turnover, but you can make sure the lender sees all of it and sees it clearly:
- Put all takings through the business account. Cash deposits that go into a personal account don’t count toward business turnover.
- Include every business account. If you have a separate account for card settlements, online sales or GST, provide those statements too.
- Tidy up dishonours. A few months of clean conduct makes a real difference.
- Consolidate small advances. Several merchant cash advances deducting daily can make a healthy business look stretched. It’s sometimes better to refinance them first.
- Time the application. If your business is seasonal, applying straight after your busiest months shows the strongest average.
Our guide to what lenders look for in bank statements goes through it line by line.
Loan or line of credit?
Without property, you’ll usually be choosing between:
- An unsecured business loan — a lump sum, repaid in regular instalments over a short to medium term. Best for a one-off purchase or a known project.
- A business line of credit — a limit you draw on and repay as needed, paying only on what you use. Best for recurring gaps, like paying suppliers before customers pay you.
We’ve written a separate answer on whether you need a line of credit.
Is unsecured funding more expensive?
Every loan is priced on the individual situation. Without property security the lender carries more risk, and that is reflected in pricing and in how long they’re comfortable lending for. On the call, we’ll compare options across our lending partners and explain the total cost in dollars, not just the headline, so you can judge whether the funding earns its keep.
What about a personal guarantee?
Unsecured doesn’t mean no one is on the hook. Lenders commonly ask directors or owners to personally guarantee the loan, and some register a general security interest over business assets on the PPSR. Read our explainer on directors’ guarantees before you sign one.
If you do have access to property
If a family member or business partner owns property and is willing to support you, a property-secured loan from $20,000 to $1m may open up a larger amount than turnover alone would. That’s a serious ask of someone, and they’ll need independent legal advice — but it’s worth knowing the option exists.
Get a straight number
The quickest way to find out what your business can borrow is to ring the Hotline with a rough monthly turnover figure. A specialist will give you a realistic range before anyone runs a credit check. Or request a call back.