Business loans in NZ don't need to be slow, confusing or buried in paperwork. With fundU, you tell us what the money is for, we look at the property you can offer as security and how the loan will be repaid, and our own credit team makes the call. We are a direct private lender for New Zealand businesses, lending $20,000 to $1m for business purposes.
There's no panel of lenders, no application disappearing into a head office queue, and no stack of financial statements before anyone will talk to you. This page walks through how our business loans work: who can apply, what the funds can be used for, what security we lend against, how repayments are set up and what happens from first call to settlement. If you need money in a hurry, our page on urgent business loans covers the fast track.
What is a fundU business loan?
A fundU business loan is a short to medium term loan for a business purpose, secured by a registered mortgage over New Zealand real estate. The property gives us the confidence to lend on the strength of your whole situation, not just last year's accounts.
That one idea explains most of what makes us different. Because the loan is backed by property, we can look past the things that often stop a bank: a patchy trading year, a tax arrears, a thin credit file or a business that's only been going a few months. We still lend responsibly. We just weigh up more than a spreadsheet.
- Loan amounts from $20,000 to $1m
- Secured by a first or second mortgage over property
- Business purposes only
- Repayments structured around your cash flow and your exit
- Priced on your individual circumstances, with the sharpest rate available for your situation
And because we're the lender, not a middleman, the people assessing your loan are the people funding it. You get one conversation, one set of questions and a straight answer.
Who can apply for a business loan in New Zealand?
Any New Zealand business with a genuine business purpose and access to property security can enquire. That includes sole traders, companies, partnerships and trusts.
Small businesses are the backbone of the economy here. MBIE's 2026 factsheets show 97.2% of New Zealand enterprises are small businesses with fewer than 20 employees, and the Reserve Bank has noted that smaller firms rely on bank and non-bank lending and more often face tougher terms. That's exactly who we built fundU for.
We regularly hear from tradies and builders waiting on progress payments, cafe and restaurant owners, retailers, transport operators, manufacturers, farmers and rural businesses, and professional services firms. Many are property-owning directors whose wealth sits in their home or a commercial building while the business itself is short of cash. See how we help construction and trades businesses in particular.
We also consider these situations case by case:
- Bad credit, defaults or arrears
- IRD debt, including GST and PAYE arrears
- A previous decline from your bank
- New businesses with a short trading history
- Self-employed owners with irregular income
None of these is an automatic no. What matters is whether the loan makes sense for your business and how it will be repaid.
What can you use a business loan for?
You can use a fundU business loan for almost any genuine business purpose. The key test is simple: the money has to be for the business, not personal spending.
Common uses include:
- Paying Inland Revenue, whether it's GST, PAYE, provisional tax or terminal tax (see IRD tax debt loans)
- Clearing expensive short-term debt or several pressing creditors in one go
- Working capital to cover slow-paying customers or a seasonal quiet patch
- Funding a big contract before the first payment claim is paid
- Buying equipment, vehicles or stock
- Buying a business, a competitor's client base or opening a second site
- Fit-outs, renovations and expansion projects
- Bridging a gap while a property sells or a bank refinance is completed
If your plan doesn't fit neatly into a box, that's fine. Tell us what you're trying to achieve and we'll tell you honestly whether we can help.
What property can you use as security?
We lend against residential, commercial and industrial property across New Zealand, and consider some land and lifestyle property case by case. The property doesn't have to be the premises your business trades from.
| Property type | Typical examples | How it's often used |
|---|---|---|
| Your home | House, townhouse, unit | Popular with owner-operators, usually by second mortgage behind the bank |
| Rental or investment property | Residential rental, holiday home | Owned personally, by a company or by a family trust |
| Commercial property | Shop, office, hospitality premises | Including the building your business trades from |
| Industrial property | Warehouse, workshop, yard | Common for trades, transport and manufacturing |
| Land and lifestyle | Lifestyle block, rural land, bare land | Considered case by case |
The property can be owned by you, your company, your family trust or a supporting party such as a family member acting as guarantor. For a closer look at how equity works, read how much can I borrow against my property, or visit our page on secured business loans.
Should your business loan be a first or second mortgage?
If the property has no mortgage, or the current lender needs to be paid out, the loan is a first mortgage. If you want to keep your bank loan in place and borrow against the equity above it, it's a second mortgage.
Most owners with a bank home loan prefer a fast second mortgage, because the bank loan stays exactly as it is. A first mortgage suits freehold property, or a situation where an existing loan has reached the end of its term and needs replacing.
How do repayments work on a fundU business loan?
Repayments are set to suit your cash flow and the approved terms. Depending on the loan, the options can include:
- Interest-only – you pay the interest during the term and repay the loan amount at the end
- Capitalised interest – no scheduled monthly repayments during the term; the interest is added to the loan and paid out when it ends
- Principal and interest – regular repayments that reduce the balance as you go
A business that's already stretched might prefer capitalised interest, so the loan doesn't add another monthly bill while things recover. A business with healthy cash flow might prefer to chip away at the balance. We'll talk through what fits.
Every loan needs a clear exit: a property sale, a refinance to a bank once the accounts are up to date, a contract payment or business cash flow. We discuss it on day one because it shapes the term and structure. We will help you test that plan before you commit.
How does the fundU business loan process work?
It's a short, practical process with real people at each step. Here's what to expect:
- Enquire online. It takes a couple of minutes, costs nothing and doesn't affect your credit score.
- Talk to a lending specialist. We'll call you back to understand the purpose, the property and how the loan will be repaid.
- Initial assessment. No financial statements or tax returns needed at this stage. If it stacks up, we'll outline indicative terms.
- Valuation and supporting information. We confirm the property's value and gather anything else needed for your situation.
- Approval and loan documents. Once approved, documents go to your lawyer, who explains them and handles the mortgage paperwork with ours.
- Settlement. Funds are paid out. In some cases this can happen in as little as 24 hours once approved.
You can see more detail on how our process works.
What does a fundU business loan look like in practice?
Every loan is different, but the pattern is the same: a clear purpose, property security and a realistic way out.
Example scenario
A joinery business in Waikato wins a commercial fit-out several times bigger than its usual jobs. Timber, hardware and two extra staff need paying up front, but the head contractor pays monthly against payment claims. The owners' bank wants two years of accounts and a fresh business plan, and can't give an answer for weeks.
The owners have a home worth about $1.1m with a bank mortgage of around $450,000. fundU lends $180,000 by second mortgage over the home, with capitalised interest so there are no monthly repayments while the job runs. The bank loan stays untouched. When the final payment claims are paid about eight months later, the loan is repaid in full and the business has a larger project on its track record.
What you'll need to get started
To begin, you need very little. Have these details handy for your first conversation:
- A short explanation of what the funds are for
- The address of the property you're offering as security, and who owns it
- A rough idea of its value and any existing mortgage balance
- How and when you expect to repay the loan
- Photo ID for borrowers and property owners
- Your NZBN or company details if you're borrowing through a company
- Recent bank statements, contracts, invoices, an accountant's letter or IRD statements, if we ask for them
That's genuinely it to start. There's no need to chase your accountant for financials before you enquire.
Ready to see if your business qualifies?
If you've got a business need and property to support it, we'd like to hear from you. It takes a couple of minutes, it's free and it won't affect your credit score. A lending specialist will call you back to talk it through, or you can ring us on 09 875 4577.
See if you qualify for a fundU business loan today.
Frequently asked questions
How much can I borrow with a fundU business loan?
fundU lends from $20,000 to $1m for business purposes. The amount we can offer depends on the value of the property you provide as security, any existing mortgage on it, what the money is for and how the loan will be repaid. A lending specialist can give you a realistic idea after a short conversation about your situation.
Do I need financial statements or tax returns to apply for a business loan?
No. fundU doesn't need financial statements or tax returns for the initial assessment. We focus on the property, the purpose of the loan, the exit plan and the full story behind your business. If we need more later, bank statements, contracts, invoices, an accountant's letter or IRD statements can often do the job.
Can I get a business loan with bad credit or IRD debt?
Often, yes. fundU considers bad credit, defaults, arrears, IRD debt and previous bank declines case by case. Because our loans are secured on property, a credit blemish or a tax arrears isn't an automatic no. We look at whether the loan makes sense, whether it improves your position and how it will be repaid.
How fast can a business loan be funded in New Zealand?
Because fundU makes its own lending decisions, loans can move quickly. In some cases funding can happen in as little as 24 hours once a loan is approved. The overall timeframe depends on things like the valuation, title checks and how quickly both sides' lawyers can finalise the documents, so we'll give you an honest timeline early.
Can I use my home as security for a business loan?
Yes. Many owner-operators use equity in their home to secure a fundU business loan, usually by a second mortgage that sits behind the existing bank home loan. Your bank loan stays in place. The funds must be used for a business purpose, and the home can be owned by you, your family trust or a supporting party.
Is fundU a broker or a lender?
fundU is a direct private lender. We assess and fund loans ourselves, so your application isn't passed to a panel of lenders or a comparison service. The people you talk to are part of the team that makes the decision, which keeps things clear and helps loans move faster.
A practical next step
Ready to see what's possible?
Tell us what the business needs, when you need it and what property is available. A fundU lending specialist will call you back to talk it through — enquiring is free and won't affect your credit score.