Who it may help
Possible fit
- Sole traders and self-employed owners
- Owner-operated companies
- New and established small businesses
Small business finance NZ
Small business loans in New Zealand, from a direct lender
Borrow $20,000 to $1,000,000 for your small business, secured against New Zealand property. HomeSec is a direct, privately funded lender of open-term business loans for sole traders and companies. We look at the business purpose and the property, not the size of your business. Every application is subject to assessment.
Appropriate uses
Business needs
- Stock and inventory
- Equipment and vehicles for business use
- Fit-outs and premises costs
- Working capital and IRD obligations
Consider carefully
Important factors
- Suitable property security is required
- Interest and costs accrue for as long as the loan runs
- Borrow only where the business benefit supports the risk
What counts as a small business loan in New Zealand
MBIE describes small businesses as those with fewer than 20 employees, and they make up around 97% of New Zealand businesses. There is no single legal definition of a small business loan, and lenders set their own limits.
HomeSec does not set a turnover or staff cut-off. What matters is a genuine business or commercial purpose, suitable New Zealand property to secure the loan, and a realistic way to repay or refinance it. Sole traders, companies and other business structures can all be considered.
Secured or unsecured small business loans
Unsecured small business loans are assessed mainly on trading history and cash flow. They are usually for smaller amounts, over a fixed term, with regular repayments that start straight away.
A property-secured loan works differently. Because the loan is secured against property, it can suit larger amounts, newer businesses and businesses with uneven cash flow. HomeSec loans are open term, and an approved facility may offer up to six months with no scheduled payments. Interest and costs still accrue, and the property is at risk if the loan obligations are not met, so compare both options on total cost and risk.
Starting out or already trading
A new business may not have years of accounts. HomeSec can consider a start-up where there is suitable property security and a clear plan for the money, such as buying a business, fitting out premises or funding the opening months.
Established small businesses use HomeSec loans for stock, equipment, fit-outs, a tax bill or a cash-flow gap. HomeSec is based at 152 Fanshawe Street, Auckland, and lends against suitable property almost anywhere in New Zealand.
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 a small business loan?
A small business loan is finance for a business purpose, such as stock, equipment, a fit-out or working capital. HomeSec small business loans are secured against New Zealand property, range from $20,000 to $1,000,000 and are open term, subject to assessment.
Can I get a small business loan as a sole trader?
Yes. You do not need to own a company. Sole traders, companies and other business structures can be considered, as long as the loan is for a genuine business purpose and suitable property is offered as security. HomeSec does not lend for personal or household purposes.
How much can a small business borrow?
HomeSec lends $20,000 to $1,000,000. The amount available depends on the equity in the property after any existing mortgages, the business purpose and the plan to repay or refinance.
Can I get a start-up business loan in New Zealand?
Possibly. HomeSec can consider a new business without an established trading history where suitable property security is available and the plan for the money is clear. Approval is never guaranteed.
What do I need to qualify for a small business loan?
A genuine business purpose, suitable New Zealand property security and a realistic repayment or refinance path. To start, share the amount, what it is for, the property address and ownership, an estimated value and current mortgage balances. No valuations or cashflow records are needed to make an enquiry.
Do I have to start repayments straight away?
Not always. An approved HomeSec facility may offer up to six months with no scheduled payments. Interest and other costs still accrue, and the exact payment settings are set out in your loan contract.
What interest rate will I pay?
HomeSec does not publish a standard rate, because pricing depends on the amount, the property security, the purpose and 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, not only a headline rate.
Can I get a small business loan with bad credit?
A credit issue does not automatically rule you out. HomeSec looks at the business purpose, the property security and the repayment plan. Tell us about any defaults, arrears or tax debt upfront so they can be assessed properly. Approval is never guaranteed.
How quickly can a small business loan be arranged?
Funding may be possible in as little as 24 hours, subject to approval, documents, security, legal work and settlement requirements.
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 a small business loans secured by property scenario.
A short scenario conversation can help establish whether property-secured business finance may fit.