# Start-up business loans

> Getting a start-up business loan in New Zealand is hard because most lenders want to see a trading history. See what options are out there for new businesses, like home loans and asset finance.

By Jason Dark, last checked 2026-11-05. Part of [Loans](https://smallbusinessloan.co.nz/loans) on Skipper.

## The short version

- Most lenders want to see a trading history, so brand new businesses usually can't get an unsecured loan.
- Borrowing against your home is often the cheapest option, and it puts your house at risk.
- Asset finance can work for vehicles and equipment, because the asset itself is the security.
- A few months of clean trading records make every later application easier.

## Why start-ups struggle to borrow

Lenders mostly want to know whether a business can repay the loan. Without a trading history they have nothing to judge that on, so most banks and online lenders want to see months or even years of revenue before they lend to a business on its own.

## Borrowing against your home

If you own a house, you can often top up your home loan or take out a separate loan secured on the property. Because the house is the security, the rate is usually close to a mortgage rate. If the business fails, you still have to repay the loan, and your home is at risk.

Use Nester's [mortgage repayment calculator](https://buyingahouse.co.nz/tools/mortgage-repayments) to see how extra borrowing affects your repayments.

## Asset finance

If you need a vehicle, a machine or other equipment, asset finance lends against the item you're buying. The lender can take it back if you stop paying, which makes them more willing to lend to a new business. You'll still need a reasonable credit history.

## Other ways to fund the start

Your own savings, help from family and deposits from customers all come without interest. Credit cards are easy to get but expensive if you don't clear them quickly, so keep them for short gaps.

## Getting ready for a business loan

Lenders will look at your bank account, so keep business money in a business account from the start and use accounting software. After a few months of steady income, you'll have records a lender can assess. The [business loans guide](https://smallbusinessloan.co.nz/loans/business-loans) explains what they'll ask for.

## Sources

- [Prospa: Frequently asked questions](https://www.prospa.co.nz/frequently-asked-questions)
- [Bizcap: FAQs](https://www.bizcap.nz/faqs)