Who it may help
Possible fit
- Owners comparing finance options
- Businesses a bank cannot help in time
- Owners with property equity and a clear business need
Business finance NZ
Business finance in New Zealand: find the right fit
The right business finance depends on what the money is for, how soon you need it and what you can offer as security. HomeSec is a direct, privately funded lender of open-term, property-secured business finance from $20,000 to $1,000,000. This page sets out the main options, so you can choose the one that fits.
Appropriate uses
Business needs
- Working capital and stock
- Paying IRD
- Equipment, vehicles and fit-outs
- Buying a business or premises
Consider carefully
Important factors
- Match the type of finance to the purpose
- Compare the total cost, not just the rate
- Property offered as security may be at risk
The main types of business finance in New Zealand
Bank term loans and overdrafts are usually the cheapest money. Banks look for trading history, up-to-date financial statements and often security, and approval can take weeks.
Property-secured private lending, which is what HomeSec does, uses equity in residential or commercial property to secure a loan for a business purpose. It is generally faster and more flexible than a bank, and it costs more.
Unsecured business loans, often called cash flow loans, are assessed mainly on turnover and bank statements. They can be quick, but amounts are usually smaller and repayments are often taken daily or weekly.
Asset and equipment finance is secured over the vehicle or machine being bought. Invoice finance advances money against unpaid customer invoices. Supplier credit terms and an instalment arrangement with Inland Revenue can also ease cash flow without a new loan.
Matching the finance to the need
For a vehicle or a machine, asset finance spreads the cost over the asset's working life. For seasonal stock or slow-paying customers, an overdraft or invoice finance may be enough. For a large one-off need, such as an IRD debt, buying a business or settling premises, a lump-sum loan secured over property is often the better fit.
Timing matters too. When a deadline is days away, a lender that can decide on the property and the plan to repay can move faster than one that needs full financial statements and a valuation.
When HomeSec business finance fits
HomeSec suits business owners who own property, need $20,000 to $1,000,000 for a genuine business purpose, and want a decision based on the whole scenario rather than a credit score alone. Our loans are open term, so there is no fixed early date to repay, and approved facilities may offer up to six months with no scheduled payments. Interest still accrues during that time.
No valuations or cashflow records are needed to start. Funding may be possible in as little as 24 hours, subject to approval, documents, security, legal work and settlement requirements. If your bank can help in the time you have, it is usually the cheaper option.
How the assessment works
Purpose, property and repayment path.
A useful scenario is not only a requested amount. It connects the business need to suitable security and a realistic way for the facility to be repaid or refinanced.
- 1. Explain the opportunity.
Provide the amount, intended use and timing. - 2. Outline the property.
Share ownership, location, estimated value and current lending. - 3. Show the exit.
Describe how and when repayment or refinance is expected. - 4. Review terms and risks.
Understand the documents, total cost, obligations and alternatives before proceeding.
Top tips for a faster, smoother assessment.
The right level of documentation depends on the proposed structure and what the team needs to verify.
Identity, property ownership, existing lending, the source and use of funds, and the proposed exit may all need evidence. Legal work can also apply.
Raise difficult details early. Tax obligations, arrears, a recent credit event or an urgent deadline can be assessed more effectively when they are explained upfront.
Common questions
What business owners usually ask next.
What is business finance?
Business finance is any money a business borrows or raises to run or grow: loans, overdrafts, asset finance, invoice finance and investment. Most small New Zealand businesses use a mix over time.
What is the easiest business finance to get in NZ?
It depends on what you can offer. Without property, unsecured lenders look mainly at turnover and trading history. With property equity, a property-secured lender such as HomeSec can often help where a bank or an unsecured lender cannot, because the loan is secured.
Can I get business finance with bad credit?
Possibly. HomeSec looks at the business purpose, the property security and the plan to repay. Tell us about any defaults, arrears or tax debt upfront so they can be assessed properly. Approval is never guaranteed.
How fast can I get business finance?
Funding may be possible in as little as 24 hours, subject to approval, documents, security, legal work and settlement requirements.
Is HomeSec business finance secured or unsecured?
Secured. HomeSec lends against a first or second mortgage over suitable residential or commercial property almost anywhere in New Zealand.
How much business finance can I get?
HomeSec lends $20,000 to $1,000,000. The amount available depends on the property, any existing lending on it, the purpose and how the loan will be repaid.
What does business finance cost?
It varies widely by type and lender. HomeSec does not publish a standard rate, because pricing depends on the full scenario; the interest, fees and conditions that apply to you are set out in writing before you proceed. Compare the total cost over a realistic timeframe.
Can I use business finance to pay IRD?
Yes. Paying tax owed by the business is a business purpose. Inland Revenue may also agree an instalment arrangement, so talk to your accountant about which option costs less.
Related pathways
Compare the nearby options.
Information is general only and is not an offer or approval of finance. Lending is subject to assessment, acceptable property security, documentation, legal requirements and final approval. Independent legal, financial and tax advice may be appropriate for your circumstances.
Next step
Discuss your business finance scenario.
A short scenario conversation can help establish whether property-secured business finance may fit.