Secured Business Loans

This will depend on how much money you’d like to borrow; but all applications require you to provide a personal statement of position, and at least three months of bank statements for your business. You will also need to provide a home loan statement so we can see how much is owing against the property being used for security. For loans over $50,000, we will also need to see the business financials: profit and loss statement and balance sheet. In some cases we might want to see evidence of a payment arrangement with IRD if you are behind in your payments.

Generally we require you to have been in business for at least six months. That said, if you’re putting in plenty of cash yourself and have a robust business model and an immediate income stream, then we may consider your application.

We aim to review your initial application within 24 hours (excluding weekends) of receiving it. If we have all the information we need, we could give you an immediate answer. Sometimes we need to ask for more information, or clarification, and that will extend the time it takes to make a decision on your application. The more complete and accurate the information you provide us, the quicker we can get you an answer.

When interest is ‘capitalised’, you pay nothing for the first six months of the loan. At the six-month anniversary of loan drawdown, the amount of interest that you would have paid during the first six months, plus any applicable fees are added to your loan balance, creating a new loan amount. From here you can repay the loan in full (through your own cash or a refinance), pay interest only, or interest and principal on the new loan amount.

Strong trading history – in business for at least six months.

No defaults to banks or finance companies in the business bank accounts.

What other financial institutions have taken security over your business.

Evidence of future income, eg confirmed orders, to show your ability to meet loan repayment obligations.

Good discipline, eg minimal IRD debt or a debt repayment plan in place.

Up to date profit and loss statement and balance sheet, showing profitability and liquidity.

We won’t penalise you if you want to pay your loan off early. We don’t like to burn our bridges – we’d like to have you as a customer again in the future as your business goes from strength to strength.

Residential property in urban areas are our preferred security. Rural property, farms and lifestyle blocks are not suitable. In some cases we may consider commercial property.

All owners of the property will need to sign some documentation. When a trust owns the property, then the trustees will need to sigh documentation. We always recommend that any person not connected to your business who must sign loan paperwork should seek independent legal advice.