Rural New Zealand runs on more than farms. Agricultural contractors, orchardists, vineyard operators, shearing gangs, rural transport firms, farm machinery dealers, vets and rural suppliers all keep the primary sector moving, and most of them carry seasonal cash flow that would test any business. fundU offers rural business loans from $20,000 to $1m, secured on New Zealand property. We're a direct private lender, so we make our own decisions. We're also upfront about where we fit: we are not a specialist farm lender, and we'll tell you early if your situation is better suited elsewhere.
Why is cash flow so seasonal for rural businesses in New Zealand?
Because costs arrive before and during the season, while income often arrives after it. Weather, commodity prices and a customer's own cash flow can all push payment further out.
An agricultural contractor might spend the winter servicing gear and buying a new mower or baler, then work flat out through spring and summer on cultivation, silage and harvest. Their farmer clients often pay on the 20th of the month following, and sometimes later after a tough season. Horticulture businesses pay for labour, sprays and packaging well before fruit is sold, and returns can arrive in instalments after harvest. Rural service businesses carry stock and extend credit to customers who are themselves waiting on the season.
A wet spring, a drought or a drop in prices can squeeze every link in that chain at once. Rural businesses are usually small too: MBIE's small business factsheets show 97.2% of New Zealand enterprises have fewer than 20 employees, so there's rarely a big cash buffer to fall back on.
Who do we lend to in the rural sector?
We lend to rural businesses that need funding for a business purpose and can offer suitable New Zealand property as security. That includes:
- Agricultural contractors. Cultivation, harvesting, baling, spraying, fencing, drainage and earthmoving.
- Horticulture businesses. Orchards, vineyards, market gardens, nurseries and packhouse operators.
- Rural service businesses. Machinery dealers and repairers, rural supply stores, vets, shearing and fencing contractors.
- Rural transport. Stock carriers, bulk cartage and rural freight operators.
- Rural tourism and hospitality. Farmstays, lodges, cafes and activity operators in rural areas.
Growers in regions like Hawke's Bay and Nelson Tasman know this cycle well. Our seasonal business cash flow guide covers budgeting for the quiet months in more detail.
Is fundU a farm lender?
No. fundU is not a specialist farm lender, and we'd rather say that plainly than waste your time. Our security is New Zealand residential property, commercial and industrial property, and some land and lifestyle blocks considered case by case.
If your main asset is a large working farm and you need farm-scale lending, your bank or a specialist rural lender is usually the better fit. Where we can help is when the rural business needs funding and there is other property to secure it: the owner's house in town, a rental property, a commercial workshop or yard, a lifestyle block with a good house, or property held in a family trust. A family member can also support the loan with their property.
Good to know: many rural business owners have more equity than they realise in a house, rental or commercial yard that sits outside the farm or orchard. Our guide to using home equity for business explains how that works.
What do rural businesses need funding for?
Rural funding usually covers equipment, seasonal costs or a pressure point with IRD or suppliers. Common reasons include:
- Machinery. Buying or upgrading tractors, harvesters, balers, sprayers, diggers or trucks.
- Pre-season costs. Fuel, wages, repairs, inputs and packaging before income arrives.
- Slow-paying customers. Bridging the gap when clients pay late after a poor season.
- IRD arrears. Clearing GST, PAYE or provisional tax that fell behind.
- Growth. Adding a new service, buying a competitor's run or building a workshop.
- Debt consolidation. Replacing several expensive loans or overdue accounts with one secured loan.
When buying new machinery, Investment Boost lets businesses claim 20% of the cost of eligible new assets acquired from 22 May 2025 as an upfront deduction, although second-hand New Zealand assets are excluded. Our equipment finance page explains how property-backed funding can pay for the machine in the meantime.
How does a property-secured loan fit a rural business?
A property-secured loan lets you borrow against equity in New Zealand real estate, so the decision rests on the property, the purpose and the exit. That suits rural businesses whose income swings from season to season.
We lend by first mortgage, or by second mortgage behind your existing bank loan so the bank loan stays in place. Property owned by you, your company, your family trust or a supporting party can be used, and our guide to borrowing against family trust property covers how trusts work as security. Repayment options can include interest-only, capitalised interest with no scheduled monthly repayments during the term, or principal and interest. Loans are typically repaid from season income, a sale or a refinance to a bank.
Situation → how fundU can help
| Situation | How a fundU loan can help |
|---|---|
| Contractor needs a new baler before spring | Funds the machine against a house or yard |
| Orchard costs due before fruit is paid for | Covers labour and inputs until returns arrive |
| Farmer clients paying late after a poor season | Bridges wages and fuel until invoices are paid |
| GST or provisional tax behind with IRD | Pays IRD out so penalties and enforcement stop |
| Main asset is a large working farm | We'll tell you early if a specialist lender fits better |
| Bank declined after a tough year | Assesses the property and full story instead |
What does a rural funding example look like?
Every application is assessed on its own facts, but strong rural applications show a clear purpose, suitable non-farm property security and a repayment plan timed to the season.
Example scenario
An agricultural contracting business in Southland wants to add silage wrapping to its services before spring, costing about $220,000 for a used baler and wrapper. It also owes about $40,000 in GST after late payments from farmer clients. The owners' home on the edge of town is worth around $800,000 with a bank mortgage of about $250,000, and they own a small commercial yard outright worth around $450,000.
fundU assesses a first mortgage of $280,000 over the yard for a 12-month term, with capitalised interest so there are no monthly repayments during the busy season. The loan buys the gear and clears the GST. The exit is summer contracting income, with any balance refinanced to the bank once the new service has a season of results. 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
- What the funds are for and how much you need
- Your repayment plan, such as season income, a sale or a refinance
- Quotes or invoices for machinery or equipment
- Customer contracts or regular client lists, if you're a contractor
- Recent business bank statements covering a full season if possible
- 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 business, the property you could offer and what you need, and a lending specialist will call you back, including if we think another option suits you better. You can also call us on 09 875 4577.
Whether you're gearing up for spring, waiting on harvest returns or catching up with IRD, see if you qualify today.
Frequently asked questions
Does fundU lend against farms?
fundU is not a specialist farm lender. We lend against residential property, commercial and industrial property, and some land and lifestyle blocks case by case. If your main asset is a large working farm, your bank or a specialist rural lender is usually the better fit. If you also own a house, a rental or commercial property, we may be able to help.
Can an agricultural contractor get a loan for new machinery?
Yes. fundU can lend from $20,000 to $1m against New Zealand property to fund a tractor, harvester, baler, digger or other gear. Because the loan is secured on property rather than the machine, it can also suit used or imported equipment. Repayment is often timed around the contracting season.
Can I borrow to cover costs before the season pays?
Often, yes. Contractors, growers and rural service businesses usually spend on fuel, wages, repairs and inputs well before the season's income arrives. A short-term, property-secured loan can bridge that gap, with repayment options such as capitalised interest so there are no scheduled monthly repayments during the term.
Can a lifestyle block be used as security?
Some lifestyle properties can be considered case by case. We look at the property's location, size, improvements and how easily it could be sold. A lifestyle block with a good house close to a town is generally easier to lend against than bare land. A lending specialist can tell you early whether your property is likely to suit.
Will fundU help a rural business with IRD debt?
We consider IRD debt, arrears and previous bank declines case by case. A poor season can leave GST, PAYE or provisional tax behind. Paying IRD out in full stops penalties building and removes the threat of enforcement action, giving you room to get through to the next season's income.
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.