Who lends to businesses in New Zealand?
Broadly, three groups:
- Banks — the registered banks, including the big household names. They hold most business lending in the country.
- Non-bank lenders — finance companies and specialist lenders that aren’t banks. Some focus on unsecured business lending based on bank statement data; others lend against property or assets.
- Private lenders — lenders funded by private capital, typically lending against property for short to medium terms.
The Reserve Bank’s May 2026 Financial Stability Report put it simply: small and medium businesses “rely largely on bank and non-bank lending for their external financing needs”, and smaller firms “more often face higher costs or lending terms that they find unacceptable”. That’s the gap non-bank and private lenders exist to fill.
How do they compare side by side?
| Bank | Non-bank lender | Private lender | |
|---|---|---|---|
| What they focus on | Financial statements, credit history, serviceability, often property security too | Turnover and bank statements (unsecured) or property (secured) | Property security and your exit plan |
| Paperwork | Usually the most — accounts, forecasts, tax returns | Lighter; bank statements for unsecured | Lightest; no financials needed at initial assessment |
| Credit flexibility | Lowest | Moderate — weaker credit considered | Highest — case by case |
| Speed | Slowest, often weeks | Fast — sometimes same-day decisions | Fast — sometimes within 24 hours of approval |
| Typical terms | Longer | Short to medium | Short to medium |
| Best for | Clean files, long-term needs, patient timelines | Trading businesses needing working capital | Urgent, complex or messy situations with property behind them |
When is a bank the right answer?
When your financials are current and strong, your credit file is clean, you have security the bank is comfortable with, and you can wait. Banks are also often the natural home for long-term lending such as buying premises. If that describes you, start there.
When does a non-bank lender make more sense?
When you’re trading well but don’t fit the bank’s boxes — accounts a year behind, a short trading history, a credit blemish — or when you need an answer this week, not next month. Unsecured non-bank lending is assessed mainly on turnover and bank statements, usually for businesses trading six months or more.
When does a private lender make more sense?
When there’s property involved and something about the situation is complicated: IRD debt to clear, a settlement date looming, defaults on file, or a deal that needs funding before the paperwork catches up. Private property-secured loans from $20,000 up to $1m can be first or second mortgages, and they’re usually designed to be repaid or refinanced within a short to medium term.
Whichever lender you use, ask one question before you sign: “What’s my plan to repay or refinance this, and what if that plan takes longer?”
How do I check a lender is legitimate?
- Search the Financial Service Providers Register (run by the Companies Office).
- Confirm they belong to an approved dispute resolution scheme.
- Be wary of upfront fees before approval, guaranteed approvals and pressure to sign fast.
- Make sure you get a full copy of the agreement and time to read it.
Our guide on how to tell a good lender from a bad one goes through this in detail.
Where does LendFriend sit?
We’re not a bank, and we’re not trying to be one. We’re the friend who knows lending: we look at your situation and match you with a suitable lender from our panel — or tell you honestly if a bank is your best bet. Every loan is priced on your individual circumstances, and we’ll find the sharpest option available for yours.
Start your enquiry and let’s work out which door to knock on.
The honest bit
Sometimes the honest answer is 'go to your bank'. If your accounts are current, your credit is clean and you can wait, a bank may well be the right place — and we'll tell you so. Our job is to match you with the right lender, not to keep you away from one.