Read before you borrow
Friend-to-friend guides
The things a good friend in finance would tell you over a coffee — written for New Zealand business owners, updated for 2026, and free of jargon and rate talk. Most people read one or two of these before they ever search for a loan. That's exactly the idea.
Before you borrow
- 01 10 things to check before you sign a business loanBefore signing any business loan, check the total cost, the repayment schedule, early repayment terms, what happens if you're late, what security and guarantees you're giving, all fees, and your exit plan.
- 02 How to tell a good lender from a bad oneA good lender is registered, belongs to a dispute resolution scheme, explains the total cost clearly, gives you time and a full copy of the documents, and asks sensible questions about your business.
- 03 The true cost of borrowing, explained without numbers gamesThe true cost of a business loan is everything you'll pay over the life of the loan — interest and every fee — weighed against how long you have the money, how flexible it is, and what the loan lets you earn or avoid.
- 06 How much should a small business borrow?Borrow enough to fully solve the problem plus a sensible buffer — and no more than your cash flow can comfortably repay if things go slower than planned.
- 07 Red flags in loan offersWalk away, or at least slow right down, if a lender wants fees before approval, guarantees approval without asking questions, pressures you to sign today, won't give you the full agreement or total cost in writing, or can't be found on the Financial Service Providers Register..
- 13 Secured vs unsecured business loans: which suits you?A secured business loan is backed by an asset — usually property — so lenders focus on the security and can often lend more with less paperwork.
- 16 When not to borrow (yes, really)Don't borrow to cover ongoing losses you haven't fixed, to repay other short-term loans in a cycle, for something you can't explain in one sentence, or when the repayments only work if everything goes perfectly.
- 18 How to plan your exit from a short-term loanAn exit plan is how you'll repay a short to medium term loan in full — from business cash flow, from selling an asset, or by refinancing to a longer-term lender.
Credit and paperwork
- 08 Understanding your credit score in New ZealandNew Zealand has three credit reporting agencies — Centrix, Equifax and Experian (which absorbed illion's NZ bureau).
- 10 What happens after you apply?After you send a LendFriend enquiry, a lending specialist calls you back to understand what you need.
- 14 The paperwork to have ready before you applyFor most business loans you'll need photo ID and proof of address for everyone involved, recent business bank statements, and details of what the money is for.
- 15 How to read your bank statements like a lenderLenders read business bank statements for a story: how much comes in and how regularly, how often the account runs low or bounces payments, what other lenders are already taking, and whether tax and bills are paid on time.
Money habits
- 09 Cash flow habits that make lenders say yesLenders like businesses whose bank statements tell a calm, consistent story: all income through one business account, tax set aside as it's collected, bills paid on time, few overdraft dips, and an owner who knows what's coming next.
- 17 Buying equipment: new, used or imported?New equipment costs more but brings reliability, warranty and — for eligible assets bought since 22 May 2025 — a 20% upfront Investment Boost deduction.
Property and family
- 04 Personal guarantees in plain EnglishA personal guarantee is your promise to repay a business debt yourself if the business can't.
- 05 How to talk to your partner or family about using home equity for the businessHave the conversation early, before you've applied.
- 11 First vs second mortgage for a business loan, explainedA first mortgage is first in line to be repaid if a property is sold; a second mortgage sits behind it.