The alternatives matrix
Sixteen ways to fund a New Zealand business, compared honestly
The matrix compares every mainstream way to fund a New Zealand business on speed, security, paperwork, ownership, who it suits and what to watch for. Use the filters to narrow it down, or answer four questions in the finder below for a shortlist.
| Option | Speed | Security | Paperwork | Ownership | Best for | Watch for |
|---|---|---|---|---|---|---|
| Bank business loanDebt | Weeks; longer if credit committee is involved | Usually property or a general security agreement, plus personal guarantees | Heavy: financial statements, tax returns, forecasts | You keep 100% | Established, profitable businesses that can wait | Declines often arrive late in the process |
| Bank overdraftDebt | Weeks to arrange; instant once in place | Often secured; reviewed regularly | Moderate to heavy | You keep 100% | Smoothing everyday ups and downs | Limits can be cut or called in at review |
| Business credit cardDebt | Days | Unsecured; personal guarantee common | Light | You keep 100% | Small purchases cleared each month | Low limits; costly if balances roll over |
| Business BNPL and trade creditDebt | Minutes to days | Unsecured | Light | You keep 100% | Stock and supplies from participating suppliers | Small amounts; easy to stack commitments |
| Invoice financeDebt | Days to set up, then ongoing | Your unpaid invoices | Moderate: debtor ledger and customer details | You keep 100% | B2B firms waiting on customer payments | Only as big as your debtor book; customers may be told |
| Asset and equipment financeDebt | Days | The asset itself, registered on the PPSR | Light to moderate | You keep 100% | Vehicles, plant and machinery | Money can only buy the asset |
| Revenue-based financeDebt | Days | Future sales; usually unsecured | Connect sales or bank data | You keep 100% | Online and subscription sellers | Repayments take a slice of every sale |
| Peer-to-peer lendingDebt | Days to weeks | Varies; often unsecured | Moderate | You keep 100% | Clean credit, fixed repayments | Credit history weighs heavily |
| Equity crowdfundingEquity | Months: campaign build and raise | None; you issue shares | Heavy: offer page, disclosure, marketing | Shared with many small investors | Consumer brands with a loyal following | Raise caps, public failure risk, shareholder admin |
| Angel or venture investorsEquity | Months | None; equity | Heavy: pitch, due diligence, term sheet | Shared, often with board seats | High-growth, scalable businesses | Control and exit expectations |
| Family and friendsDebt | Fast, if they say yes | Whatever you agree | Should be a written agreement | Kept, unless you give equity | Small sums from people who can afford the risk | Strain on relationships if it goes wrong |
| Selling assetsSelf-funded | Weeks to months to sell well | Not applicable | A sale process | You keep the business, lose the asset | Assets that are genuinely surplus | Fire-sale prices; losing capacity you need |
| IRD instalment arrangementTax arrangement | Days to weeks to agree | None | May need a cash flow forecast | You keep 100% | Tax debt you can clear from trading | Penalties and interest keep accruing; a missed instalment can end it |
| Property-secured business loanDebt | Days; funding within 24 hours of approval in some cases | NZ property as a first or second mortgage | Light: no financials or tax returns for the initial assessment | You keep 100% | Owners with property equity who need speed or were declined | Your property is on the line; plan your exit |
| Unsecured business loanDebt | Decisions sometimes same day | No property; sized on turnover | Bank statements | You keep 100% | Businesses trading 6+ months with steady turnover | Smaller amounts than property-secured lending |
| Business line of creditDebt | Days | Usually no property; sized on turnover | Bank statements | You keep 100% | Recurring, uneven cash flow needs | Easy to lean on permanently |
The alternative finder
Four questions. An honest shortlist.
It won't always point to us. If property security or at least 6 months of trading isn't there, it'll say so and suggest what might work instead.
Your shortlist
Answer the four questions and we'll suggest where to start reading, including when an alternative lender is not the right answer.
Common starting points:
How to read the matrix
Speed is typical time from a complete application to money in the account. Four bars means days or less; one bar means weeks to months.
Security is what the funder relies on if things go wrong: property, business assets, invoices, future sales, or nothing but your promise and perhaps a guarantee.
Ownership tells you whether you give away shares. Debt keeps 100% with you; equity doesn't.
Watch for is the catch every option has. None is free of one.
Three rules of thumb
- Match the funding to what you already have: property, turnover, invoices, equipment or a loyal following.
- Match the term to the need. Short gaps want short, flexible money; long-life assets want longer funding.
- Know the exit before you sign. Here's how.
About the matrix
Why doesn't the matrix show interest rates?
Because rates on alternative business lending depend on the individual situation: the security, the purpose, the business and the exit. Any rate we printed would be wrong for most readers. Every loan we arrange is priced on the borrower's own circumstances, and we look for the sharpest option available for that situation.
How were the speed ratings decided?
They're qualitative: typical elapsed time from a complete application to funds for each type of funding in New Zealand, based on how each product works. Individual lenders and situations vary.
Which options do you arrange?
Three: property-secured business loans from $20,000 to $1m, unsecured business loans, and business lines of credit. They're highlighted in the matrix. We explain the others so you can compare fairly.
Is the finder a credit check?
No. The finder runs entirely in your browser, stores nothing, and doesn't touch your credit file. It simply suggests where to start reading.