Why preparation matters
Two businesses with identical numbers can have very different funding experiences. One arrives with a clear purpose, clean statements and a repayment plan, and gets a quick decision. The other sends statements in dribs and drabs, can’t quite explain what the money is for, and waits. Preparation doesn’t change your numbers, but it changes how clearly they’re read.
What lenders look at: unsecured funding
For unsecured lines of credit and business loans, the assessment centres on how the business actually trades.
Turnover
How much money flows through the business, and how consistent it is. Seasonal patterns are fine — they just need explaining.
Business bank statements
Lenders read these closely. They look for:
- Regular deposits from customers.
- How close the account runs to zero.
- Dishonoured payments or declined transactions.
- Existing loan, lease and finance repayments.
- Tax payments to IRD, and whether any look overdue.
- Large or unusual transactions that may need explaining.
Time trading
Usually six months or more for unsecured funding.
Credit history
Weaker credit is considered. A past default with a clear explanation and good conduct since is viewed very differently from recent arrears.
What lenders look at: property-secured funding
For property-secured loans of $20,000 to $1m, the focus shifts:
- The property — its type, location and value, and any existing mortgage.
- The purpose — what the money is for.
- The exit — how the loan will be repaid: seasonal income, a sale, a refinance, a payment you’re owed.
No financials or tax returns are needed for the initial assessment. Bad credit, defaults and arrears are considered case by case, and IRD debt can be refinanced or paid out.
Your preparation checklist
| Item | Why it helps |
|---|---|
| Recent business bank statements | The core of most unsecured assessments |
| A one-line purpose | “To fund winter wages until the season starts” |
| The amount you need, and how you worked it out | Shows it’s based on a real gap |
| Your repayment plan | Names the source of repayment |
| A short explanation of your seasons | Stops a quiet month being misread |
| Details of existing debts | Avoids surprises later |
| NZBN and business structure | Company, sole trader, partnership or trust |
| Property details, if relevant | Address, rough value, existing mortgage |
| IRD position | Any arrears or arrangements |
Tell your story in three sentences
Lending specialists appreciate clarity. Try:
- What the business does and how it earns. “We run guided walks and transport in Queenstown, with peaks in summer and winter.”
- What’s happening now. “We need to cover staff wages and vehicle servicing through May and June.”
- How it will be repaid. “Winter bookings from late June will clear it by the end of September.”
That’s often enough for a specialist to know which options are worth exploring.
Things that slow applications down
- Mixing business and personal banking. Lenders have to untangle it.
- Unexplained large transfers. Have a quick note ready.
- Undisclosed debts. They’ll show up on statements; better to mention them upfront.
- An unclear purpose. “General working capital” is fine, but a specific need is easier to assess.
- Waiting until the last minute. Arrange funding while statements look healthy, if you can.
Questions to ask the lender
A funding conversation goes both ways. Ask:
- What’s the total cost, including any charges beyond the ongoing cost?
- Can I repay early, and is there any cost to doing so?
- How do draws and repayments work day to day?
- What happens if my circumstances change?
- What will you need from me, and by when?
We never publish rates, because every facility is priced on the individual situation. A good lending specialist will set out every cost clearly before you commit.
If your bank has already said no
A decline from your main bank doesn’t mean every door is closed. Banks apply their own policies, and seasonal businesses, younger businesses and those with a patchy year often fall outside them. Non-bank lenders assess differently:
- Unsecured lenders focus on current trading shown in your bank statements, and weaker credit is considered.
- Property-secured lenders focus on the property, the purpose and the exit, with no financials or tax returns needed for the initial assessment.
When you talk to a lending specialist, be upfront about the decline and the reason you were given. It helps them go straight to lenders whose criteria suit your situation, rather than repeating the same outcome.
Before you enquire
Take ten minutes to answer three questions: what the money is for, how much you need, and how you’ll repay it. Then start Capital On Call’s 60-second enquiry. It’s free and doesn’t affect your credit score, and a lending specialist will call to talk through options — whether that’s a line of credit, unsecured working capital or a property-secured top-up.