My Money: Mortgage and Business Finance Auckland

Your mortgage expert for your home, investment and business loans, located in Auckland, NZ. 

Business loan requirements nz

What are the Business Loan Requirements in New Zealand?

Small business owners may well find themselves in a position where they require a loan to enable their business to grow so that it may thrive and be prosperous. One major hurdle to this can be trying to navigate your way through the complicated process of securing a business loan as the whole process can appear to be a daunting and difficult one.

First you will need to learn or at least understand the requirements needed to obtain a business loan in New Zealand after that you need to find the successful solution that fulfils your needs. Read on to discover the business loan requirements in New Zealand.

Lending Options

It is advisable to fully explore the requirements as well as the terms of all the lending options that are available in New Zealand. There are several types of business loan products available which you can choose from. Depending upon  the lender and your business needs, some lenders will be a better choice for you than others. Each loan product has its own qualifying criteria, payment schedules, benefits and risks.

There are four main types of lender for business loans, they are:

  • Banks

  • Small Business Administration Loans

  • Credit Unions

  • Alternative Lenders

There is a growing trend for small business owners to seek out and obtain the funding required from alternative lenders in preference to going down the route of the more traditional lenders such as banks. Here is a brief description of the business loan requirements from each of these lenders.

Business Loans Prospa


When applying for a business loan from any bank in New Zealand you are facing a tough task, the banks are looking for an excellent credit rating, require an extensive financial history and collateral. One way to look at the banks is if you are financially in a position where you do not need the money you will probably qualify. After the credit crisis in 2008 banks tightened up on their loan requirements and since that time they have not altered them and make qualifying difficult particularly so for small businesses. 

As an experienced commercial banker looking after owner operators of business with turnover above $2,000,000 I am very familiar with the streses and strains of business operators and cashflow holes that can and do occur at different times of the year. I am well positioned to help you obtain the right finance at the best rate with terms and conditions that allow flexibility and that all important sleep at night.

Requirements for a Bank Loan

Bank loans for business purposes require a different skill set and must be well presented and explained to achieve the desired outcome.

Your credit history will typically also need to be rated as excellent, without this your loan application will not even be considered by the banks. You will normally have to have been in business for a minimum period of two years and have all the relevant documentation to prove that you are financially stable. We have been successful in raising finance for contractors and business owners who have made the jump to self-employment or business ownership with only 6 months trading history. The difference is our experience and contacts within the banking industry who know how well we research client proposals.

Banks require that you provide them with an extremely detailed business plan. They will want to know everything down to the smallest detail about your business, your marketing plan, as well as your tax and bank records. The application process is very rigorous.

You will also have to provide proof of collateral or have a valuable property, they will take possession of your collateral should you default on your loan.

Credit Unions

Credit Unions are very similar to a bank but are privately owned by their customers and run as a non-profit organization. They do offer business loans, preferably to small businesses and their loan products are comparable to that of a bank.

The Requirements for a Loan from a Credit Union

You will need to have a good rating of your credit, some collateral and a business plan. Although it all sounds similar to the big banks the level at which they set the bar is lower than the major business lenders.

You have to become a member of the credit union. This is simple and not a complicated process, you just have to open an account with the credit union and meet their member qualifications.
Loans with a credit union are usually processed in 30 to 60 days.

Alternative Lenders

Alternative lenders are an increasingly popular way for small business owners to find the loan product they require and quickly. Alternative lenders offer numerous funding options including small business loans. The focus of their operation is on the ease of the qualification process, the speed in which they can get the money to you and their flexibility in their terms and repayment options.

The Requirements of a Loan from an Alternative Lender

This process is definitely the easiest of those listed. You fill out a single page application, which you can complete online. You need to provide the last few months of bank records. After a few days of processing your application you get the money required (there are some online lenders that claim they can approve your loan on the same day as you apply).


When you are seeking the options for a business loan it is vitally important that you learn about the requirements from each lender. There are several funding options available and some are better suited than others depending on your needs for funding. You should contact us in the first instance.

Contact My Money

Address: 50 Remuera Road, Remuera


Phone: 09 377 4433