A practical business loan application checklist for NZ owners

A strong business finance discussion starts with three questions: what is the money for, how much is needed and how will it be repaid? A clear request is more useful than asking for the largest available facility.

Define the purpose and amount

Separate equipment purchases, fit-out, stock and everyday working capital. Support costs with quotes or a calculation. Include your own contribution and explain when the funding is required. Different purposes can call for different terms and repayment arrangements.

Business.govt.nz notes that funding choices involve trade-offs and that new businesses can find borrowing difficult. Debt is not the only option; consider whether staged spending or additional owner capital would reduce the requirement.

Assemble the evidence

Prepare the business structure, ownership details, financial accounts, recent trading information, existing liabilities and relevant contracts. Include a forecast with stated assumptions. A forecast should show what happens when customers pay later or sales are weaker, not just the desired outcome.

Explain the repayment source

Show how cash generated by the business would meet principal, interest and other obligations. Profit on paper does not necessarily arrive in the bank before a repayment is due. Match the payment pattern to the underlying activity without hiding seasonal shortfalls.

Understand the obligations

• What security and personal guarantees are requested?
• What fees, reporting duties or financial conditions apply?
• Can the facility be repaid early, and at what cost?
• What is the plan if expected growth does not arrive?

Get legal advice on guarantees and security documents. Our business loan service can discuss financing options, and our cash-flow guide helps distinguish a temporary timing gap from a persistent shortfall.