Can you get a business loan without up-to-date financials?
Yes, if the loan is secured on New Zealand property. This is one of the clearest differences between a bank and a specialist lender. A bank’s business lending process usually starts with the last two or three years of financial statements and tax returns. No accounts, no application.
The lending partners we work with start with the property instead. What’s it worth? What’s owing on it? Does the loan make sense, and how will it be repaid? Financials and tax returns aren’t needed for the initial assessment, so you can find out whether a loan is realistic before you’ve spent months catching up on paperwork.
Why so many businesses fall behind on returns
It’s rarely laziness. The pattern we see most often goes like this: cash gets tight, the accountant’s bill goes unpaid, the accountant stops work, the returns stop getting filed, IRD issues default assessments or penalties, and the owner, already stretched, can’t face opening the envelopes. Meanwhile the bank asks for accounts that don’t exist.
It’s a spiral that feeds itself. Breaking it usually needs two things at once: money to deal with the immediate pressure, and a plan to get the filings back on track.
What lenders look at instead of financials
| Instead of… | Lenders look at… |
|---|---|
| Profit and loss statements | The property’s value and existing lending |
| Tax returns | What the loan is for and how it’s repaid |
| Accountant-prepared balance sheet | A clear list of what the business owes |
| Serviceability ratios | Bank statements, where relevant |
| Credit score alone | Credit history in context, case by case |
How to get the returns back on track
While the lending conversation is happening, it’s worth starting the catch-up work:
- Find out exactly what’s outstanding. Log in to myIR and list every return that’s overdue, by tax type and period.
- Gather the raw material. Bank statements, invoices and receipts. Most accounting software can import bank feeds going back years.
- Engage an accountant for catch-up work. Be upfront about the backlog and agree a fee and timeframe.
- Tell IRD you’re working on it. IRD’s guidance is consistent: contact them early. Filing, even late, stops some penalties and shows you’re engaging.
- Prioritise GST and employer returns. These are the ones IRD pursues hardest.
Our guide to catching up on overdue tax returns covers this in detail, including how default assessments work.
Where the loan fits
A property-secured loan can do several jobs at once for a business in this position:
- pay IRD arrears so collection action stops;
- clear pressing creditors;
- pay the accountant to finish the overdue work;
- provide working capital while things settle.
Once the returns are filed and the business has a period of clean trading, many owners refinance to a bank. That’s the kind of exit lenders like to see.
Example scenario
Example scenario — for illustration only. A Napier landscaping business was three years behind on its accounts after the owner’s bookkeeper left. IRD had issued default assessments and a bank deduction notice. The owner and his partner had a home in Hastings with good equity. A second mortgage paid IRD’s current figure, covered an accountant to complete the missing years, and left working capital for the spring season. When the returns were filed, IRD’s figure fell because the default assessments had overstated income.
Getting started
You don’t need to fix the paperwork before you talk to us. Start an enquiry, tell us roughly how far behind things are, and a lending specialist will call to talk through the options.