Can I get a business loan with no trading history?
Last reviewed: 2026-05-07 · General information only — not regulated financial advice.
Realistic NZ funding paths for pre-revenue founders
- Personal-asset-secured business loan. Pledge residential property or term deposits; bank lends against the security and the funds go to the business. Most accessible path for founders with property.
- Specialist startup / pre-revenue lender. Some NZ alternative lenders explicitly underwrite businesses with limited or no trading history. Smaller amounts, higher rate, faster decision.
- Government grants. Callaghan Innovation R&D, Regional Business Partner co-funding, Te Pūnaha Hihiko innovation grants. Typically cover a percentage of qualifying spend, not the whole need.
- Equity investment. Angel investors or seed VC funds. Trades cost (control + dilution) for capital that doesn't need to be repaid on a fixed schedule.
- Friends and family debt. Often the bridge to the first 6–12 months of trading history. Document properly to avoid disputes later.
What lenders look at when there's no trading history
- Founder credit profile. Personal Equifax / Centrix / illion file is the primary credit signal.
- Founder experience. Industry experience, prior business success, relevant qualifications.
- Personal asset position. Net worth (especially equity in residential property) drives loan size and pricing.
- Business plan + forecasts. 24–36 months of monthly P&L + cash-flow forecasts; clear narrative on revenue model + key risks.
- Co-borrowers / guarantors. A creditworthy co-borrower (e.g., a parent or partner) materially expands options. Get legal advice before involving anyone.
Frequently asked questions
Can I get a business loan with no trading history in NZ?
Yes, but the path is narrower. Mainstream NZ banks usually require 1–2 years of trading history for unsecured lending. Pre-revenue and early-stage businesses typically qualify by pledging personal assets (residential property, term deposits) and giving a personal guarantee, or by approaching specialist startup lenders that price for the risk.
What's the alternative to a startup business loan?
Common pre-revenue funding alternatives include: equity investment from angels or VCs, founder loans into the company, friends-and-family debt, government R&D and innovation grants (Callaghan Innovation), and personal loans secured against personal property. Each has different cost, control, and risk implications.
Can I use my house as security for a startup loan?
Yes — pledging residential property is a common path for pre-revenue NZ founders. The bank lends against your home (typically up to a maximum LVR), and the loan funds your business. Get legal and accounting advice before doing this — your home is at direct risk if the business cannot repay.
Are NZ government grants a substitute for a startup loan?
Grants supplement rather than replace commercial lending. Callaghan Innovation R&D Project Grants, Regional Business Partner co-funding, and Te Pūnaha Hihiko grants are all worth checking — but applications take weeks to months and most cover only a percentage of qualifying spend, not the whole funding need.
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