Can I get a business loan without collateral?

Last reviewed: 2026-05-07 · General information only — not regulated financial advice.

Who qualifies for unsecured lending

Established businesses (typically 1–2+ years of trading).
Demonstrable revenue and serviceability via 6–12 months of bank statements.
Clean or near-clean director credit profile.
NZ-registered company or sole trader with NZBN + GST.
No major recent IRD arrears.

When unsecured is the right choice

Short-term working capital needs (3–24 months).
Speed matters more than rate — opportunity-cost financing.
You don't have appropriate security (no business property, equipment new and not yet financed, etc.).
You want to preserve secured-lending capacity for a larger future need (e.g., property purchase).

When secured beats unsecured

Loan amount over the unsecured cap.
Long-term lending (5+ years).
Property purchase (always secured by definition).
Equipment purchase — chattel mortgage / hire purchase against the asset is usually cheaper.

Frequently asked questions

Can I get a business loan in NZ without collateral?

Yes — NZ alternative lenders and some banks offer unsecured business loans for established businesses with strong cash flow, with caps that vary by lender — confirm specifics directly. The trade-off is higher pricing and a smaller maximum loan size compared with secured options. A director's personal guarantee is almost always still required even on unsecured loans.

How is unsecured different from no personal guarantee?

Unsecured refers to the absence of asset security on the loan (no mortgage, no equipment charge, no debtor assignment). It does not mean the loan has no recourse — most NZ unsecured business loans still require a personal guarantee from each company director, making the directors personally liable for repayment if the company defaults.

What rate premium does unsecured carry?

Unsecured loans carry a meaningful pricing premium because the lender accepts more risk. The premium varies by lender, business profile, and credit cycle — confirm with each lender. The trade-off is faster approval (often 24–48 hours) and no asset pledge.

Is unsecured the right choice for property buyers?

Generally no. Commercial property purchases should be funded with a property-secured loan — the loan amount is too large and the term too long for unsecured lending to make economic sense. Unsecured suits short-term working capital, equipment top-ups, and quick cash-flow needs.

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