Few businesses work harder for their margin than cafes, restaurants, bars, motels and tourism operators. Costs arrive every week, trade swings with the seasons, the weather and the school holidays, and one quiet month can undo a strong summer. fundU offers hospitality business loans from $20,000 to $1m to Kiwi hospitality and tourism businesses, secured on New Zealand property. As a direct private lender, we make our own decisions and look at the whole story, not just last year's accounts.
Why is hospitality cash flow so hard to manage in New Zealand?
Because costs are fixed and weekly, while revenue is seasonal and unpredictable. Rent, wages, food and power keep coming whether the dining room is full or empty.
Labour costs have climbed again in 2026. The adult minimum wage rose to $23.95 an hour from 1 April 2026, and the default KiwiSaver employer contribution rate went up to 3.5% from the same date. For a business with a large team of casual and part-time staff, those changes add up across every roster. Food, beverage and energy costs have also stayed high, and many customers are spending more carefully.
The strain is visible across the sector. The Centrix Credit Indicator for July 2026 recorded 421 hospitality liquidations in the year to May 2026, up 51% on the year before. Behind many of those numbers are owners who had loyal customers but ran short of cash at the wrong time.
How does seasonality affect hospitality and tourism businesses?
Most hospitality and tourism businesses make the bulk of their profit in a few peak months, then carry fixed costs through the quiet ones. Planning for that gap is the difference between a tough winter and a crisis.
A beachside cafe in the Bay of Plenty might take most of its annual revenue between December and March. A Queenstown operator may have two peaks, summer and the ski season, with shoulder months in between. A city bar can be busy through the year but quiet in January when offices close. In each case, the business needs cash on hand before the quiet period, not after it has already started.
Tourism operators feel this even more sharply. Tour companies, activity providers and accommodation businesses often have to spend before the season opens: servicing boats and vehicles, refreshing rooms, hiring and training staff, and marketing to visitors months ahead. If you run a business in a tourism centre, our pages on business loans in Queenstown and business loans in Rotorua cover the local picture.
Our guide to seasonal business cash flow covers budgeting for the off-season in more detail.
Good to know: the best time to arrange off-season funding is before you need it. A plan made in February is far easier to put in place than one made when the July wages are due.
What do hospitality owners usually need funding for?
Hospitality funding needs are usually either about getting through a pressure point or about growing into a new opportunity.
- Off-season working capital. Covering wages, rent and suppliers through winter or the shoulder months.
- IRD arrears. Clearing GST and PAYE that fell behind after a slow season.
- Fit-outs and refurbishments. Upgrading a tired dining room, adding outdoor seating or refreshing guest rooms.
- Kitchen equipment. Replacing a failed combi oven, coffee machine or cool room without waiting weeks.
- A second venue. Taking on a new lease or site while the first venue is trading well.
- Buying a business. Purchasing an established cafe, bar or accommodation business, including stock and goodwill.
- Landlord or supplier arrears. Settling overdue rent or trade accounts before they become a bigger problem.
For growth plans, see our pages on business expansion finance and finance to buy a business.
How can a property-secured loan help a hospitality business?
A property-secured loan lets you borrow against equity in New Zealand real estate, so the decision rests on the security, the purpose and the exit rather than a single year's trading figures. That suits hospitality, where results can swing sharply from one year to the next.
Most hospitality businesses lease their premises, so the security is often the owner's home, a rental property or property held in a family trust. Owners of freehold pubs, motels and commercial buildings can use that property too. We lend by first mortgage, or by second mortgage behind your existing bank loan so your bank loan stays in place.
Repayment options can include interest-only, capitalised interest with no scheduled monthly repayments during the term, or principal and interest. Loans are usually repaid from peak-season trading, the sale of a business or property, or a refinance to a bank.
Past setbacks don't automatically rule you out. We consider bad credit, arrears, IRD debt and previous bank declines case by case, because a bad year in hospitality doesn't mean a bad business.
Situation → how fundU can help
| Situation | How a fundU loan can help |
|---|---|
| Heading into a quiet winter | Funds wages and fixed costs until peak season returns |
| GST or PAYE behind with IRD | Pays IRD out so penalties and enforcement stop |
| Kitchen equipment breaks down | Replaces critical gear quickly so you keep trading |
| Chance to open a second site | Funds the fit-out, bond and opening stock |
| Buying an established cafe or bar | Contributes to the purchase price and working capital |
| Bank declined because of patchy figures | Looks at your property and full story instead |
| Supplier or landlord arrears | Clears overdue accounts and protects the lease |
If the pressure is coming from IRD, our IRD tax debt loans page explains how paying the debt in full compares with an instalment arrangement.
What does a hospitality funding example look like?
The details differ for every business, but a strong hospitality application usually has three things: a clear purpose, suitable property security and a realistic way to repay.
Example scenario
A family-owned restaurant in Hawke's Bay has a strong summer but a slow autumn after a wet season and higher wage costs. It owes about $60,000 in GST and PAYE, and two suppliers have put the account on stop. The owners have a rental property worth around $750,000 with a bank mortgage of about $300,000.
fundU assesses a second mortgage of $120,000 over the rental property, with capitalised interest for a 12-month term. The loan clears the IRD arrears, brings the supplier accounts current and gives the restaurant a cash buffer for winter. The exit is the next summer's trading, supported by a refinance with the bank once the accounts improve. This is an illustrative example only.
What you'll need
No financial statements or tax returns are needed for the initial assessment. It helps to have:
- Details of the property offered as security, including the record of title and any existing mortgage
- A short summary of what the funds are for and how much you need
- Your repayment plan, such as peak-season trading, a sale or a refinance
- Recent business bank statements showing seasonal trading patterns
- Your lease details, if the business operates from leased premises
- Any IRD statements or arrangements if tax debt is involved
- Your NZBN or company details, and ID for directors and any guarantors
How do I get started?
Enquiring takes a couple of minutes and doesn't affect your credit score. Tell us about your venue, the property and what you need, and a lending specialist will call you back. Prefer to talk now? Call us on 09 875 4577.
Whether you're bracing for winter, catching up with IRD or opening your next venue, see if you qualify today.
Frequently asked questions
Can a cafe or restaurant get a business loan if it leases its premises?
Yes. Most hospitality businesses lease their premises, so the security usually comes from other property, such as the owner's home, a rental property or property held in a family trust. A supporting party, such as a family member, can also offer property as security. fundU then assesses the purpose, the security and how the loan will be repaid.
Can I borrow to get through the winter off-season?
Often, yes. Many hospitality and tourism businesses earn most of their profit in a few busy months. A short-term, property-secured loan can cover wages, rent and suppliers through the quiet period, with repayment options such as capitalised interest so there are no monthly repayments while trade is slow.
Will fundU lend to a hospitality business with IRD debt?
We consider IRD debt case by case. GST and PAYE arrears are common in hospitality, especially after a slow season. Paying IRD out in full stops late payment penalties building and removes the risk of enforcement action, while you keep trading and focus on getting the business back on track.
Can I use a fundU loan to buy a cafe or open a second venue?
Yes. Business loans from fundU can fund the purchase of an existing hospitality business, a fit-out, kitchen equipment or a second site, provided there is suitable New Zealand property as security and a clear plan to repay. Loans range from $20,000 to $1m and are priced on your individual circumstances.
How quickly can a hospitality loan be funded?
fundU makes its own lending decisions, so there is no wait for a bank committee. Once approved, funding can happen in as little as 24 hours in some cases. The overall timing depends on the property, any valuation needed and how quickly the lawyers complete the mortgage documents.
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.