How to Get a Commercial Loan in NZ
Published
Written by Mark de Groot-McKenzie · Head of Strategy and Partnerships, Orange Network
Reviewed by Chad Weber · Head of Lending
To get a commercial loan in NZ: define what the loan is for — buying business premises, a commercial investment, or refinancing; prepare two to three years of business financials and tax returns, the deposit, and the property and lease details; get a registered valuation; and have the application placed with a lender whose commercial appetite fits that property. Approval turns on the property, who occupies it, the entity borrowing, and the deposit — not on a residential rule of thumb.
What lenders assess
- The property: type, location, and what a registered valuer will support
- Who occupies it: your own business trading from it, or a tenant on a lease — lenders read those files differently
- The entity: company, trust, or a mix, and who is guaranteeing the loan
- The deposit: usually substantially larger than a home loan deposit
- The business: financial statements, tax position, and whether the loan is serviceable after the property costs
The process, step by step
- Outline: the property or the plan, the amount, and what you already own and owe
- Finance indication: which lenders will look at this property type and what deposit they will need
- Documents: business financials and tax returns, personal statements of position, the sale and purchase agreement and lease if there is one
- Valuation: a registered commercial valuation ordered through the lender
- Approval and conditions: entity and guarantee documents with your lawyer and accountant on the file
- Settlement: the loan is documented against the property and drawn down
Owner-occupied or investment?
Buying the workshop, office, or yard your business trades from is assessed on the business and the building together. Buying a property with a tenant is assessed on the lease and the tenant. Tell an adviser which one it is at the start — the paperwork, the deposit, and the lender list are not the same. Money for stock, wages, or equipment with no property involved is business lending, which is a separate application again.
How long does it take?
Longer than a home loan. The valuation, the lease review, and entity documents each take time, and commercial credit teams ask more questions. Start before you sign, or make the agreement conditional on finance with a realistic date. We run commercial files from Paraparaumu and by video across New Zealand, with your accountant, lawyer, and valuer on the file when it needs them.
This is general information, not personalised financial advice. There is no charge for the first commercial lending conversation — bring the property, or the plan for one.
