Business finance guide

How to Seek Business Finance When You Have Credit Problems

Learn how to present a business finance scenario when you have credit problems and suitable New Zealand property security.

Updated: 28 March 2023

New Zealand retail owner-operators receiving and arranging stock

Presenting a business finance scenario when you have credit problems

A credit issue or a previous decline does not automatically determine every business-finance outcome, because lenders assess different information and risks.

An open-term facility can give an approved borrower flexibility around timing under the contract, while suitable real estate provides the security for the business-purpose loan.

HomeSec's current lending range is $20,000–$1,000,000. The loan must be for a genuine business purpose and secured by suitable New Zealand real estate. First and second mortgage structures may be considered. No formal valuation or cashflow records are needed at the initial enquiry stage, although further information can be requested during assessment.

Where HomeSec may fit

HomeSec considers the genuine business purpose, suitable property security and the wider scenario. Credit events should still be disclosed accurately and may require explanation.

Funding may be possible in as little as 24 hours when the scenario, documents, security, legal work and settlement requirements align. Approved facilities may also provide up to six months with no payments, subject to the contract. These are possible features, not guarantees.

What to consider before applying

  • Check the reason for any decline before applying again.
  • Avoid unnecessary repeat applications that may create more credit enquiries.
  • Explain arrears, defaults, tax debt or unusual events early and clearly.

Prepare a clearer scenario

Start with the amount required, what the business will use it for, when it is needed, the property address and ownership, estimated property value, current mortgage balances and the intended repayment or refinance path. Raising difficult details early helps the team assess the scenario more efficiently.

See if you qualify or review how the HomeSec process works.

Next step

Talk through your business finance scenario.

A short scenario conversation can help establish whether property-secured business finance may fit.

Don’t miss out on $20,000–$1,000,000 in funding.

Business funds can be available in as little as 24 hours — with no payments for up to 6 months.

First and second mortgages. No valuations or cashflow records needed. Subject to assessment and approval.

See if you qualify