In New Zealand, most business lending runs through a handful of registered banks. Everything else, from finance companies to private lenders to specialist funds, is “non-bank”. According to the Reserve Bank, non-bank lending institutions account for just under 3% of intermediated credit, and a large slice of what they do lend goes to businesses and consumers rather than home buyers. Small as a share, but for the businesses that need them, they matter a great deal.
What exactly is a non-bank lender?
A non-bank lender is any organisation that provides credit without holding a banking registration. In New Zealand that includes:
- Non-bank deposit takers: finance companies, building societies and credit unions licensed by the Reserve Bank to take public deposits.
- Non-deposit-taking finance companies: lenders funded by their owners, investors or wholesale facilities.
- Private lenders: individuals or pooled funds lending against property security. See private lender business loans.
- Fintech and platform lenders: online lenders using bank-statement data to assess unsecured loans.
The Reserve Bank’s May 2026 Financial Stability Report noted that finance companies saw notable deposit growth after the Depositor Compensation Scheme began on 1 July 2025, which has helped some compete harder for lending.
How does a non-bank business loan differ from a bank loan?
Think of it as a different set of priorities rather than a worse version of the same product.
| Bank | Non-bank | |
|---|---|---|
| Main question | Do your historical financials service the debt under our model? | Is the security or cash flow strong, and is there a clear way out? |
| Typical speed | Weeks | Days; sometimes same day |
| Credit history | Past defaults often decisive | Considered case by case |
| Paperwork | Financial statements, tax returns, forecasts | Varies: property details, or bank statements |
| Price | Usually lower | Usually higher, priced on the situation |
| Term | Short to long | Usually short to medium term |
Who are non-bank business loans for?
They tend to suit businesses in one of these positions:
- Declined or stalled at the bank. The bank said no, or hasn’t said anything for a month.
- Time-critical. A supplier discount, a stock opportunity, a tax deadline or a lease you need to lock in.
- Asset-rich, paperwork-poor. You own property with equity but your accounts are behind or show a weak year.
- Credit-bruised. A default, arrears or an old judgment makes bank policy say no automatically.
- Seasonal or lumpy. Vineyards before vintage, tourism operators before the season, builders between progress payments.
What are the trade-offs?
Being straight about them:
- Cost. Non-bank lenders usually fund themselves at a higher cost than banks, and they take risks banks avoid, so pricing is generally higher. Every loan is priced on the borrower’s circumstances; there’s no rate card that tells you the answer in advance.
- Shorter horizons. Non-bank loans are typically short to medium term. That’s fine for bridging a gap, but you need a plan for repaying or refinancing. Read planning your exit.
- Security matters. A property-secured loan puts that property on the line if things go wrong. Treat it with the same seriousness as a mortgage, because it is one.
What does a good non-bank loan look like?
A good one has a clear purpose, a sensible size relative to the security or turnover, straightforward terms you can read in one sitting, and an exit you can explain in a sentence: “We’ll repay from the sale of the Hamilton unit”, or “We’ll refinance to the bank once the next two years of accounts are done.” Our guide to reading a business loan offer lists what to check.
How we arrange non-bank business loans
We work with a panel of non-bank lending partners across three products:
- Property-secured business loans from $20,000 to $1m, on residential, investment or commercial property or land, as a first or second mortgage. No financials or tax returns for the initial assessment.
- Unsecured business loans for businesses usually trading 6+ months, sized on turnover and bank statements, with decisions sometimes the same day.
- Business lines of credit for businesses that need a facility to draw on repeatedly.
Start with a 60-second enquiry. A lending specialist will call to talk it through, and if a non-bank loan isn’t the right answer, we’ll tell you what might be.