What lenders are really asking
However the forms are laid out, every lender assessing a business under pressure is trying to answer four questions:
- What happened? Is the cause understood, and is it behind the business?
- What will the money do? Will the loan make the business safer?
- How does the loan get repaid? Is there a believable exit?
- What protects the lender if things go wrong? Security, cash flow, or both.
If you can answer these clearly and honestly, you’re most of the way there.
1. What happened
Write two or three sentences. Specific beats general.
- Weak: “Trading has been tough.”
- Strong: “A builder we supplied went into liquidation owing us $140,000 in March. That left us unable to pay GST and PAYE for two periods. Trading since has been steady.”
Lenders see difficult situations every day. What worries them is a story that doesn’t add up, or one that suggests the cause is still active.
2. What the money will do
List it. For example:
| Use | Amount |
|---|---|
| IRD arrears (GST and PAYE) | $96,000 |
| Supplier who has threatened a statutory demand | $22,000 |
| Short-term loan with weekly repayments | $38,000 |
| Working capital buffer | $15,000 |
| Loan and legal costs | As quoted |
Uses that reduce risk, like clearing IRD, paying a creditor who’s threatening court action, or replacing expensive short-term debt, make a strong case. Vague “working capital” with no detail makes a weak one.
3. How the loan gets repaid
This is the exit. Common exits for short-to-medium-term business lending:
- Refinance to a bank once IRD is clear, the accounts are filed and there’s a clean run of payments.
- Sale of a property or asset on a planned timeline.
- Repayment from trading, supported by a realistic forecast.
Our guide to exit strategies for short-term loans covers what makes an exit credible.
4. What protects the lender
For property-secured lending, it’s the property. Lenders want to know:
- the address and who owns it;
- what’s owed on it now, and to whom;
- anything unusual: lifestyle block, bare land, commercial use, a trust as owner.
For unsecured lending, it’s the business’s cash flow, shown in bank statements, usually for six months or more of trading.
The documents, and what you don’t need
| Usually helpful | Often not needed upfront |
|---|---|
| ID for each owner or director | Full financial statements (for property-secured initial assessment) |
| Property details and current mortgage statement | Tax returns (for property-secured initial assessment) |
| A list of all debts, including IRD’s current figure | A formal business plan |
| Any demand, court or deduction notice paperwork | An accountant’s report |
| Recent business bank statements (essential for unsecured) | Perfect credit history |
| A 13-week cash flow forecast, if you have one |
Property-secured loans through our lending partners don’t need financials or tax returns for the initial assessment. Bad credit, defaults and arrears are considered case by case. That’s why owners whose paperwork is behind can still find out quickly whether a loan is possible.
What lenders don’t hold against you
Business owners in trouble often expect to be judged. In practice, specialist lenders see these situations constantly, and some things that feel damning to you are routine to them:
- IRD arrears. Paying IRD out is one of the most common reasons for property-secured business lending.
- Late accounts. For a property-secured loan, no financials or tax returns are needed for the initial assessment.
- A bank decline. That’s usually why you’re talking to a specialist lender in the first place.
- Older defaults. Considered case by case, especially if they’re paid or the loan will pay them.
- A rough year. What matters more is what the business looks like now and what the money will fix.
What does concern lenders is a story that changes, debts that appear late, or a plan that depends on everything going perfectly.
Honesty is the fastest route
The single most common reason a lending approval falls over late is something that wasn’t mentioned early: an extra IRD debt, a caveat on the title, a second statutory demand, a court judgment. Lenders don’t expect a spotless file from a business in trouble. They do expect to hear the whole story.
A useful rule: if you’re wondering whether to mention something, mention it.
Presenting it well
- One page. What happened, what the money does, how it’s repaid, what security is available.
- One list. Every debt, with amounts and status.
- One forecast. A simple 13-week cash flow forecast, if you can.
That’s enough for a lending specialist to give you a realistic view quickly.
Getting started
You don’t need all of this to make a first enquiry. It takes about a minute, it’s free, and it doesn’t affect your credit score. Start an enquiry and a lending specialist will tell you what’s needed for your situation.