Most equipment finance in New Zealand is secured on the equipment itself. That works well for a brand-new ute from a dealer, but it gets awkward fast when you want a fifteen-year-old excavator from a farm clearing sale, a specialised CNC machine from Europe, a commercial kitchen fit-out or a fishing vessel. fundU takes a different approach. We lend against your property, not the asset, so the equipment you choose is up to you.
We're a direct New Zealand lender offering $20,000 to $1m for business purposes, secured on residential, commercial or industrial property.
How does property-backed equipment finance work?
You borrow against the equity in a property and use the funds to buy the equipment, vehicles or fit-out your business needs. The property is the security, so the loan isn't tied to a particular asset, seller or age limit.
In practice it's simple. You tell us what you want to buy and roughly what it costs, which property can secure the loan, and how the loan will be repaid. Our credit team makes its own decision, and once approved and settled the funds are available to pay the seller. You own the equipment outright from day one.
Why use property rather than the equipment as security?
Because it removes most of the restrictions that come with traditional asset finance. When a lender relies on the machine, it cares about the make, the age, the seller and what it could be resold for. When the security is property, those questions largely fall away.
That gives you some real advantages:
- Buy from anyone. Dealers, auctions, clearing sales, private sellers, liquidation sales and overseas suppliers are all fine.
- Buy older gear. A well-maintained used machine can be the smartest purchase, even if it's past a typical finance age limit.
- Bundle purchases. One loan can cover several items from different sellers.
- Negotiate like a cash buyer. Sellers often give a better deal when payment is certain and quick.
- Fund things that can't be repossessed. Fit-outs, installation, freight, commissioning and training are hard to finance against the asset, but easy to include in a property-secured loan.
What can you buy with property-backed equipment funding?
Almost any business asset, as long as the loan is for a genuine business purpose. Common examples include:
- earthmoving machinery, diggers, loaders and attachments
- trucks, trailers, utes and specialist vehicles for transport operators
- workshop machinery, CNC equipment, lathes and presses for manufacturers and engineers
- commercial kitchen equipment, coffee machines and full hospitality fit-outs
- retail fit-outs, shelving, signage and point-of-sale systems
- tractors, harvesters, irrigation and dairy shed upgrades for rural businesses
- fishing vessels, boats and marine equipment
- medical, dental and professional practice equipment
- technology, servers and specialised software setups
If you work in a particular sector, our pages on construction and trades and transport and logistics cover the wider funding picture.
Can you buy equipment at auction or from overseas?
Yes, and this is where property-backed funding really earns its keep. Auctions and clearing sales usually want payment within days of the hammer falling, and overseas suppliers often want a deposit up front and the balance before shipping. Traditional asset finance struggles with both, because the lender can't inspect or register the asset in time, or at all.
With fundU, the approval is based on your property, so you can line up funding before auction day and bid with confidence, knowing your limit. For imports, the loan can cover the supplier deposit, the balance, freight, customs clearance and GST on importation, so the whole landed cost is funded in one go. The same applies when a competitor is retiring or a business in your industry is selling off its plant. Good second-hand gear tends to go to whoever can pay first, and being ready gives you that edge.
How does it compare with traditional equipment finance?
Both have their place. Traditional equipment finance is often a good fit for a new vehicle from a dealer on a long term. A property-secured loan suits purchases that don't tick the standard boxes.
| Traditional equipment finance | Property-backed funding from fundU | |
|---|---|---|
| Security | The equipment itself | New Zealand property you nominate |
| Age of asset | Often limited | Not the deciding factor |
| Who you can buy from | Often approved dealers | Any seller, including auctions and overseas |
| Fit-outs and installation | Hard to fund | Can be included |
| Several items at once | Separate agreements | One loan |
| Repayments | Usually fixed monthly | Interest-only, capitalised or principal and interest, depending on terms |
| Term | Often three to five years | Short to medium term with a clear exit |
For a deeper look at the trade-offs, read our guide to equipment finance vs a property-secured loan.
How does Investment Boost fit in?
Investment Boost can make buying new equipment more attractive. According to Inland Revenue, businesses can claim a 20% upfront deduction on the cost of eligible new assets, including assets that are new to New Zealand, acquired from 22 May 2025. Second-hand New Zealand assets and residential buildings are excluded.
That matters for timing and cash flow. If you're buying new plant or imported machinery, the deduction may reduce your tax bill for the year, which can help with the repayment plan. Your accountant can confirm which purchases qualify. Our guide on Investment Boost and equipment funding explains how some businesses plan purchases around it.
Good to know: Freight, installation and commissioning often add a surprising amount to the cost of imported machinery. Include them in your funding request so you're not caught short when the container arrives.
How can you match repayments to when the equipment starts earning?
This is one of the most useful parts of a property-secured loan. New equipment rarely pays for itself on day one, especially if it needs installing, testing or a new contract to keep it busy.
Depending on the approved terms, repayments can be:
- Interest-only, so you're only covering interest while the equipment ramps up
- Capitalised interest, with no scheduled monthly repayments during the term, which can suit a machine bought for a contract that pays out later
- Principal and interest, if the equipment is earning straight away and you'd rather reduce the loan as you go
Because our loans are short to medium term, we'll talk about the exit. For equipment purchases, that's often a refinance to a bank once the business has a longer track record with the new asset, a contract payment, business cash flow, or the sale of another asset or property.
How do you get equipment funding from fundU?
The process is quick and doesn't need a mountain of paperwork.
- Find the equipment. Get a quote, invoice, auction listing or supplier pro forma.
- Enquire. Tell us what you're buying, the property you can offer and what you need. It takes a couple of minutes.
- Speak to a lending specialist. We'll talk through the purchase, the property and the repayment plan.
- Receive indicative terms. Our credit team sets out the loan amount, structure and term.
- Valuation and legal documents. A registered valuer may confirm the property value, and the lawyers prepare the mortgage documents.
- Settle and buy. Funds are available to pay the seller, so you can collect the equipment and put it to work.
Example scenario
A joinery business in Nelson Tasman has a chance to buy a used CNC router, an edgebander and a dust extraction system from another workshop that's closing down. The package is about $210,000, plus $25,000 for relocation, electrical work and installation. An equipment lender will only fund the router and wants a dealer invoice, and the seller needs payment within two weeks.
The owner has a rental property worth about $780,000 with a small bank mortgage. fundU lends $240,000 by second mortgage over the rental, covering all three machines, the installation and a small buffer. Interest is capitalised for the term, giving the workshop time to lift output with the new gear. The plan is to refinance to the bank once twelve months of stronger trading is on the books.
What you'll need
For the initial assessment, you won't need financial statements or tax returns. Have these ready:
- A quote, invoice, listing or pro forma for the equipment, vehicles or fit-out
- A rough breakdown of extra costs such as freight, installation and commissioning
- Details of the property offered as security, who owns it and what's owing
- A short explanation of how the equipment will be used and earn income
- Your plan for repaying the loan
- Recent business bank statements if you have them handy
- Your NZBN or company details
Ready to buy the equipment your business needs?
If the right machine is available now, don't let the finance hold you back. A property-backed loan lets you move quickly, buy from the seller you choose and structure repayments around when the equipment starts earning.
See if you qualify in a couple of minutes, with no effect on your credit score, and a fundU lending specialist will call you back. Or give our team a ring on 09 875 4577 to talk through the purchase.
Frequently asked questions
Does fundU take the equipment as security?
No. fundU lends against New Zealand property, such as your home, a rental, or commercial or industrial premises. The equipment, vehicle or fit-out you buy isn't the security for the loan. That gives you the freedom to buy older, specialised or imported gear, and to buy from any seller, including auctions and private sales.
Can I use a property-backed loan to buy second-hand machinery?
Yes. Because we're not relying on the machine itself, its age, make and resale value aren't the deciding factors. We look at the property offered as security, what you're buying and how the loan will be repaid. That makes it practical for used diggers, older trucks, workshop machinery and equipment bought at auction.
Can I fund a shop or restaurant fit-out with fundU?
Yes. Fit-outs are hard to finance with traditional equipment lenders because joinery, plumbing, electrical work and signage can't easily be taken back and resold. With a property-secured loan, that isn't an issue. We can fund the fit-out, the kitchen equipment and the opening stock together in one loan.
Can I still claim Investment Boost if I use a fundU loan?
How you fund a purchase doesn't usually change whether the asset itself qualifies. Investment Boost gives an upfront deduction on the cost of eligible new assets acquired from 22 May 2025, with second-hand New Zealand assets and residential buildings excluded. Your accountant can confirm which of your purchases are eligible.
How quickly can I get equipment funding from fundU?
We make our own lending decisions, so we can move fast when a machine is on offer or an auction date is set. Funding can happen in as little as 24 hours once approved in some cases. The timeline depends on the property valuation and the legal documents, so tell us about any deadline early.
Can I buy several pieces of equipment with one loan?
Yes. A property-secured loan can cover several items from different sellers at once, such as a truck, a trailer and a set of attachments, or an entire workshop fit-out. You deal with one lender and one set of loan documents rather than a separate finance agreement for every item.
A practical next step
Ready to see what's possible?
Tell us what the business needs, when you need it and what property is available. A fundU lending specialist will call you back to talk it through — enquiring is free and won't affect your credit score.