Ask the Hotline
Declined, new or complicated
A bank decline, a credit default, overdue accounts, sole trader income or a young business don't rule funding out — they change which lenders fit, because non-bank lenders assess property equity or recent bank statements rather than a bank's checklist.
Questions on this line
Plenty of good businesses don't fit a bank's checklist. Accounts are a year behind, a default from a rough patch is still on file, the business is young, or the owner is a sole trader whose tax return doesn't tell the full story. These answers explain who else lends in those situations and what they look at instead.
- The bank said no — who else will lend to my business? Non-bank business lenders will often fund what a bank won't, because they assess different things: equity in property you already own, or the turnover showing in…
- Can I get a business loan with bad credit? Yes, often. Property-secured business loans consider bad credit, defaults and arrears case by case because the property carries most of the risk, and some unsecured…
- Can I get a loan with no financials? Yes. Property-secured business loans need no financials or tax returns for the initial assessment, and unsecured lenders mostly rely on recent business bank…
- Can a sole trader get a business loan? Yes. Sole traders can apply for property-secured business loans from $20,000 to $1m and for unsecured loans or lines of credit sized to their turnover — lenders…
- How much can my business borrow without property? Without property, the amount is set by your business's turnover and what your recent bank statements show you can comfortably repay — unsecured lenders usually want…
- Can a new business get funding in its first six months? It's harder, but possible. Most unsecured lenders want about six months of trading history, so newer businesses usually fund through a property-secured loan against…
Why good businesses get declined
Banks lend at scale using standard criteria: filed financials, a clean credit file, two years of trading, no tax arrears. Miss one and the application can stall regardless of how the business is actually going. Non-bank lenders take different angles — property-secured lenders focus on equity, and cash flow lenders focus on turnover and bank statements, usually for businesses trading 6+ months, with weaker credit considered.
Avoiding the second decline
After a "no", the instinct is to apply everywhere. Each formal application can add a credit enquiry, and a cluster of them makes the next lender cautious. Talk first, then make one well-matched application. Enquiring with the Hotline is free, takes about 60 seconds and doesn't affect your credit score. Our guide on explaining a bad year to a lender helps you tell the story clearly.
Sole traders, partnerships, companies and trusts
All of them can apply. What matters is that the money is for a genuine business purpose and that the lender can see how the business earns. A dedicated business bank account helps more than almost anything else — see why keeping business and personal money separate matters.
Before you call about this
- Understanding offers Secured vs unsecured business loans, explained A secured business loan is backed by an asset — usually New Zealand property — so the lender focuses on equity; an unsecured loan has no property security, so the lender focuses on your turnover and bank statements and usually lends smaller amounts. Read the guide
- Getting ready How to explain a bad year to a lender Explain a bad year in four parts — what happened, why, what you did about it, and what's different now — backed by evidence such as recent bank statements, paid default notices or an IRD arrangement, and keep it to about two minutes. Read the guide
- Getting ready How to prepare a cash flow forecast A cash flow forecast lists the cash you expect in and out of the business week by week or month by month, starting from today's bank balance, so you can see your lowest point before you reach it — and how much funding, if any, you actually need. Read the guide
- Understanding offers Business borrowing vs personal borrowing: keep them separate A business loan must be for a genuine business purpose — stock, equipment, tax, wages, growth — and keeping business money in separate accounts makes it far easier for lenders to see your real turnover, which usually means better options and a smoother application. Read the guide
- Credit and security What a credit check is — and when it happens A credit check is a lender requesting your credit report from a credit reporter such as Centrix, Equifax or Experian, with your authorisation, usually once you formally apply — for business loans they often check both the business and the directors or owners personally. Read the guide
- Credit and security How to check your own credit report in New Zealand You can request your credit report free from each of New Zealand's three credit reporters — Centrix, Equifax and Experian — or pay for faster service; checking your own report doesn't count against you, and it's the best way to see what a lender will see before you apply. Read the guide
Quick answers: declined or complicated
Will a non-bank lender look at me if the bank said no?
Often, yes. Non-bank lenders assess different things — property equity or recent bank statements — so a bank decline isn't necessarily a barrier.
Does bad credit rule out a business loan?
No. Property-secured loans consider bad credit, defaults and arrears case by case, and some unsecured lenders consider weaker credit where recent trading is strong.
Do I need up-to-date financials?
Not for the initial assessment of a property-secured loan. Unsecured lenders mostly rely on recent business bank statements.
Rather talk it through?
A lending specialist will listen to what's going on and tell you straight what's realistic. Enquiring is free, takes about 60 seconds and doesn't affect your credit score.