The briefing room
Before You Call
Eighteen practical guides that answer what New Zealand business owners search for before they look for a loan — so when you do ring a lender, you know what they'll ask, what the paperwork means and which option fits.
01
Getting ready
What to gather, what to ask and how to size the loan before you pick up the phone.
- Getting ready What to have ready when you call a lender Have five things within reach: who the business is (NZBN, owners), what you need and why, recent business bank statements, photo ID, and — if property is involved — the address, owners and current mortgage balance. Read the guide
- Getting ready Questions to ask any lender before you sign Ask every lender five things: what the loan costs in total dollars, what fees apply and when, what it costs to repay early, what security and guarantees they're taking, and what happens if a repayment is missed. Read the guide
- Getting ready How long business funding really takes in NZ — and what slows it down Unsecured business loans can sometimes be decided the same day; property-secured loans usually take a few days to a couple of weeks overall and can in some cases be funded within 24 hours of approval; bank business loans often take several weeks — and the biggest delays are usually missing documents and signatures, not the lender. Read the guide
- 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
- 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
02
Understanding offers
How the main types of business funding work, and how to read the paperwork.
- 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
- 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
- Understanding offers First vs second mortgage: what's the difference? A first mortgage ranks first on a property's title and is repaid first if the property is sold; a second mortgage is a separate loan registered behind it, which lets you borrow for your business against remaining equity without disturbing your existing home loan. 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
03
Tax and cash flow
GST, provisional tax, PAYE and IRD arrangements — the dates and the choices.
- 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
- Tax and cash flow IRD instalment arrangement or a business loan? An IRD instalment arrangement is often best for smaller tax debts you can clear within months from normal trading; a business loan tends to suit larger or mixed tax debts, situations where penalties are escalating, or when you need a clean IRD record for a bank, tender or sale. Read the guide
- Tax and cash flow Paying staff and PAYE when cash is tight Staff wages and employer deductions (PAYE, KiwiSaver, student loan and child support) come first: most small and medium employers file employment information each payday and pay deductions to Inland Revenue by the 20th of the following month, and falling behind is costly. Read the guide
04
Credit and security
Credit checks, credit reports, guarantees, the PPSR and what lenders read in your statements.
- 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
- Credit and security What lenders look for in your business bank statements Lenders read business bank statements for four things: how much genuinely comes in, how consistent it is, what's already committed to other lenders and IRD, and how well the account is run — dishonours and frequent overdrawn days count against you. Read the guide
- Credit and security Directors' guarantees explained A director's guarantee is a personal promise to repay the company's debt if the company doesn't — it puts your own assets behind a company loan, so understand whether it's capped, what it covers, and how it ends before you sign. 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
Read enough? Talk to a person.
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.