Ask the Hotline
Buying, fitting out and equipment
Growth is usually funded with a property-secured loan for larger or harder-to-secure costs — goodwill, fit-outs, a business purchase — or an unsecured loan sized to existing turnover for equipment, vehicles, stock and seasonal gaps.
Questions on this line
Growth costs money before it makes money. Buying a going concern, fitting out a bigger site, adding a vehicle or a machine, or carrying stock through a quiet season all need cash up front. These answers look at how each one is usually funded and how to structure it so repayments line up with the income it creates.
- Can I get funding to buy an existing business? Yes. The most common way to fund a business purchase in New Zealand without a long bank process is a loan secured on property you or a supporter already own, which…
- Can I borrow to fit out new premises? Yes. Because a fit-out is hard for a lender to take back and resell, it's usually funded with a property-secured loan against property you or a supporter own, or an…
- How do I fund equipment or a new vehicle for the business? Most NZ businesses fund equipment and vehicles with either an unsecured business loan sized to turnover, a property-secured loan when the purchase is larger or the…
- How do I fund a seasonal business through the quiet months? Seasonal businesses usually bridge the quiet months with a business line of credit or short-term loan sized to their annual turnover, drawn before the off-season…
Match the funding to what it pays for
The most common growth-funding mistake is a mismatch between the loan and the thing it funds. Long-lived assets suit longer repayment; seasonal stock suits a facility that's repaid as the season sells through. Fit-outs and goodwill can't easily be taken back and resold, so lenders rely on property or cash flow instead. Our guide on working out how much to borrow helps you size it properly.
Build in the ramp-up
A new site, crew or machine rarely pays its way from week one. Include working capital for the first months — rent before opening, wages for staff hired early, opening stock, marketing — and talk about structuring repayments around when the new income actually starts. A cash flow forecast makes that conversation much easier.
Check the fundamentals first
Before borrowing for growth, check the things a loan can't fix: the length and renewal rights of a lease, the real profit of a business you're buying, and whether a new asset has enough work to keep it busy. Then ring, and a specialist will help you put the funding together.
Before you call about this
- Getting ready How to work out how much to borrow Add up the full cost of what you're funding (including fees, GST timing and working capital), subtract the cash you can safely contribute, add a sensible buffer, then check the repayments fit comfortably inside your monthly surplus — that's your number. Read the guide
- Understanding offers How to read a business loan offer Read a loan offer in this order: who the parties are, the amount you'll actually receive, the total cost including every fee, the repayment schedule, the security and guarantees, the conditions still to be met, and what counts as a default. 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
- Tax and cash flow GST and provisional tax: planning the cash GST is usually due on the 28th of the month after each taxable period (7 May for March periods, 15 January for November periods), and standard-option provisional tax for a 31 March balance date is due on 28 August, 15 January and 7 May — so plan cash around those dates, not around when you feel flush. Read the guide
- Credit and security The PPSR and general security agreements, explained The Personal Property Securities Register (PPSR) is the public register where lenders and suppliers record security interests over business assets; a general security agreement (GSA) lets a lender take security over all of a business's personal property, which is then registered on the PPSR. Read the guide
Quick answers: growth & assets
Can I borrow to buy an existing business?
Yes. Property-secured loans from $20,000 to $1m are commonly used to fund the deposit or the full price, including goodwill.
Will a lender fund a fit-out?
Yes, usually through a property-secured loan or an unsecured loan sized to existing turnover, because fit-outs themselves have little resale value as security.
What's best for seasonal businesses?
A line of credit sized to annual turnover, drawn through quiet months and repaid in the busy season, is usually the best fit.
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.