Not every bank problem is a “no”. Often it’s silence. The application went in, the relationship manager was positive, and then two weeks became four while a credit team asked for another set of numbers. Meanwhile the supplier wants paying, the lease needs signing, or IRD’s letter has a date on it.
Why are banks slow with business lending?
It’s rarely personal. Common causes:
- Credit committee cycles. Larger or non-standard deals go to a committee that meets on a schedule.
- Information requests. Updated management accounts, aged debtors, forecasts, a valuation, or explanations for a bad year.
- Policy exceptions. If anything sits outside standard policy (industry, loan-to-value, trading history), it needs extra sign-off.
- Workload. Business lending teams juggle many files; a small loan can wait behind big ones.
The Reserve Bank has publicly pushed for more transparency in SME lending and competition for smaller firms, but process speed still varies bank by bank.
Step one: find out exactly where it’s stuck
Before you look anywhere else, ask your bank three direct questions:
- What exactly is outstanding? Get a list, not a vibe.
- Who makes the decision, and when do they next sit? A date lets you plan.
- Is there anything that would make this a no? Better to hear it now.
Send what’s missing the same day. Many stalled applications are waiting on one document.
Step two: decide whether the deadline can move
Some deadlines are firm: settlement dates, IRD enforcement dates, a supplier’s early-payment discount window, a tender that needs proof of funds. Others can be negotiated. Call the other party and ask. A short extension can save a bridging cost entirely.
Step three: if it can’t move, bridge it
A non-bank bridge covers the gap until the bank approves. The two usual options:
- Property-secured loan. If you own property with equity, a first or second mortgage from a non-bank lender. No financials or tax returns for the initial assessment, and funding within 24 hours of approval in some cases. See second-mortgage business funding.
- Unsecured loan. If you’ve traded 6+ months, a loan sized on bank statements, with decisions sometimes the same day. See unsecured alternative lending.
Is the bridge worth it?
Put rough numbers on both sides:
| Cost of waiting | Cost of bridging |
|---|---|
| Lost supplier discount | Interest for the bridging period |
| Penalty or enforcement from IRD | Establishment and legal costs |
| Losing the lease, contract or opportunity | Early repayment costs, if any |
| Staff or supplier goodwill | Your time |
If the left column is clearly bigger, bridging is rational. If it’s close, waiting may be smarter. Our guide on when paying more for speed makes sense works through this properly.
Protect the refinance
If your plan is to repay the bridge with the bank loan:
- keep the bank informed that you’ve bridged, and why;
- make sure the bank’s approval won’t be affected by the second loan (ask directly);
- check early repayment terms on the bridge;
- have a fallback exit if the bank says no.
An example
Example scenario (illustrative only): A Palmerston North engineering workshop wins a contract that needs a large materials order paid within ten days. Its bank is supportive but needs updated accounts that the accountant can’t finish for three weeks. The owners use a second mortgage over their rental property to pay the supplier, then refinance into the bank’s facility when it’s approved.
Where we come in
We arrange property-secured business loans from $20,000 to $1m, unsecured business loans and lines of credit. If your bank is slow and your deadline isn’t, start a 60-second enquiry and a lending specialist will call to work out whether a bridge makes sense.