Unsecured Business Loans NZ
Get business funding from $5K-$500K without asset security. Compare lenders and get approved in 24-48 hours.
What are Unsecured Business Loans?
Unsecured business loans provide funding without requiring assets like property, equipment, or inventory as security. Instead, approval is based on your business cash flow, credit history, and a personal guarantee from business owners.
Perfect for businesses needing quick funding without risking assets, unsecured loans offer faster approval and greater flexibility than secured alternatives. However, they typically come with higher interest rates and stricter eligibility criteria.
Key Benefits
No Security Required
No assets, property, or equipment needed as collateral
Quick Approval
Get approved within 24-48 hours with fast processing
Flexible Use
Use funds for any legitimate business purpose
Simple Process
Streamlined application with minimal documentation
Personal Guarantee Only
Based on business performance and personal creditworthiness
Competitive Rates
Access bank and alternative lender rates from 8.99%
Unsecured Loan Options
- Loan Amount
- $5,000 - $500,000
- Loan Term
- 6 months - 5 years
- Interest Rates
- Banks: 8.99%-15% | Alternative: 15%-35%
- Approval Time
- 24 hours - 4 weeks (varies by lender)
- Security Required
- Personal guarantee only
- Credit Requirements
- Fair to excellent (550-750+)
Unsecured Loan Lender Comparison
Traditional Banks
Rates: 8.99% - 15%
Max Amount: $50K - $250K
Approval: 2-4 weeks
Advantages
- • Lower rates
- • Larger amounts
- • Established reputation
Considerations
- • Strict criteria
- • Slow approval
- • Limited availability
Best For
Well-established businesses with excellent credit
Requirements: Excellent credit, 2+ years trading, strong financials
Personal Guarantee: Usually required
Alternative Lenders
Rates: 15% - 35%
Max Amount: $5K - $500K
Approval: 24-48 hours
Advantages
- • Fast approval
- • Flexible criteria
- • Higher amounts available
Considerations
- • Higher rates
- • Shorter terms
- • Additional fees
Best For
Businesses needing quick funding with limited security
Requirements: Trading 3+ months, $5K+ monthly revenue
Personal Guarantee: Always required
Peer-to-Peer Lenders
Rates: 12% - 25%
Max Amount: $10K - $300K
Approval: 1-2 weeks
Advantages
- • Competitive rates
- • Flexible terms
- • Individual investor backing
Considerations
- • Variable availability
- • Detailed application process
Best For
Businesses with strong fundamentals seeking competitive rates
Requirements: Good credit history, detailed business plan
Personal Guarantee: Usually required
Eligibility: Banks vs Alternative Lenders
Business Age & Performance
Traditional Banks
- • 2+ years in continuous operation
- • Consistent profitability for 12+ months
- • Strong industry reputation
- • Growing or stable revenue trends
Alternative Lenders
- • 3+ months in operation
- • $5,000+ monthly revenue
- • Consistent bank deposits
- • Clear business model
Credit History
Traditional Banks
- • Excellent personal credit score (700+)
- • No defaults or bankruptcies
- • Strong business credit history
- • Low debt-to-income ratios
Alternative Lenders
- • Fair to good personal credit (550+)
- • Recent credit issues may be considered
- • Focus on cash flow over credit
- • Some bad credit specialists available
Financial Documentation
Traditional Banks
- • Audited financial statements
- • 2 years tax returns
- • 12 months bank statements
- • Detailed cash flow projections
Alternative Lenders
- • 3-6 months bank statements
- • Basic financial statements
- • Recent tax returns (if available)
- • Simple cash flow assessment
Understanding the Risks & Mitigation
Higher Interest Rates
Without security, lenders charge higher rates to offset risk
How to Mitigate: Compare multiple lenders and maintain strong credit to access better rates
Personal Guarantee Required
You become personally liable for repayment if business cannot pay
How to Mitigate: Ensure strong business cash flow and have contingency plans
Shorter Loan Terms
Most unsecured loans are 1-5 years vs 10-25 years for secured loans
How to Mitigate: Plan for higher monthly payments and consider refinancing options
Lower Maximum Amounts
Unsecured loans typically limited to $500K vs millions for secured
How to Mitigate: Consider combining multiple funding sources for larger needs
Stricter Approval Criteria
Lenders scrutinize cash flow and credit history more carefully
How to Mitigate: Prepare strong application with clear business case and projections
Application Success Tips
Optimize Your Credit Score
Check and improve both personal and business credit scores before applying
Action: Pay down debts, correct errors, and avoid new credit applications
Prepare Strong Financials
Organize 6-12 months of bank statements and financial records
Action: Highlight consistent revenue, profitability, and cash flow trends
Clear Business Purpose
Articulate exactly how you'll use the funds and expected ROI
Action: Provide quotes, projections, and timeline for fund usage
Apply to Multiple Lenders
Different lenders have different criteria and rate structures
Action: Use SME Loans platform to access multiple options simultaneously
Consider Timing
Apply when business is performing well and cash flow is strong
Action: Avoid applying during slow periods or after poor financial performance
Understand Total Cost
Look beyond interest rate to include fees and total repayment cost
Action: Compare APR, origination fees, and early repayment terms
Alternative Funding Options to Consider
If unsecured loans don't meet your needs or you want to compare options, consider these alternatives:
Equipment Finance
Security: Equipment acts as security
Rates: 6% - 18%
Benefits: Lower rates, equipment ownership, tax benefits
Best For: Purchasing vehicles, machinery, or technology
Invoice Finance
Security: Invoices and customer creditworthiness
Rates: 1.5% - 4% per month
Benefits: Immediate cash flow, grows with sales
Best For: B2B businesses with quality customers
Business Line of Credit
Security: Personal guarantee or business assets
Rates: 12% - 25%
Benefits: Flexibility, pay only what you use
Best For: Ongoing working capital needs
Merchant Cash Advance
Security: Future credit card sales
Rates: 20% - 60% APR equivalent
Benefits: Very fast funding, based on sales volume
Best For: Retail/restaurant businesses with consistent card sales
Common Uses for Unsecured Loans
- Working capital for day-to-day operations
- Inventory purchases and stock management
- Marketing campaigns and business promotion
- Business expansion and growth initiatives
- Equipment purchase (when equipment finance not suitable)
- Emergency expenses and unexpected costs
- Staff recruitment and training
- Technology upgrades and software
- Professional services and consulting
- Debt consolidation and refinancing
Basic Eligibility
- 3+ months in continuous operation
- Minimum $5,000 monthly revenue
- NZ registered business with ABN
- Fair to good personal credit (550+)
- Ability to provide personal guarantee
Required Documentation
- 3-6 months business bank statements
- Recent financial statements or management accounts
- Personal and business tax returns (if available)
- Business registration and license documents
- Personal identification and proof of address
Frequently Asked Questions
What is an unsecured business loan?
An unsecured business loan is funding that doesn't require assets like property or equipment as security. Approval is based on business cash flow, credit history, and a personal guarantee from business owners.
How much can I borrow without providing security?
Unsecured business loans range from $5,000 to $500,000, with most lenders offering up to $250,000. The amount depends on your business revenue, credit score, and ability to service the debt.
What are the typical interest rates for unsecured business loans?
Rates vary significantly: banks charge 8.99%-15% for excellent credit, while alternative lenders range from 15%-35%. Your specific rate depends on credit history, business performance, and lender type.
Do I need a personal guarantee for an unsecured business loan?
Yes, almost all unsecured business loans require a personal guarantee from business owners. This means you're personally liable for repayment if the business cannot meet obligations.
How long does approval take for unsecured business loans?
Alternative lenders can approve in 24-48 hours, while banks typically take 2-4 weeks. The timeline depends on application completeness, credit checks, and lender processes.
What are the main eligibility requirements?
Common requirements include: 3+ months in business, $5,000+ monthly revenue, fair credit score (550+), and ability to service debt. Banks have stricter requirements than alternative lenders.
Should I consider secured loans instead?
If you have suitable assets, secured loans often offer lower rates and larger amounts. However, unsecured loans provide faster access without risking assets, making them ideal for urgent funding needs.
Can startups get unsecured business loans?
Yes, some alternative lenders work with startups as young as 3 months old. However, you'll need strong personal credit, consistent revenue, and may pay higher rates than established businesses.
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Compare unsecured business loans from banks and alternative lenders. No security required - just a personal guarantee and strong business performance.