Plenty of good New Zealand businesses don't have perfect paperwork. The owner is on the tools six days a week, the accountant is behind, and last year's financials won't be finished until after the busy season. None of that means the business can't afford a loan. It just means a traditional bank application is hard to complete. Low doc business loans are designed for exactly this. fundU lends $20,000 to $1m secured on property, and we don't need financial statements or tax returns for the initial assessment.
We're a direct lender, so our own credit team looks at your application and decides. We focus on the property, the purpose, the exit and the full story, and we use whatever evidence genuinely shows how your business is going.
What does "low doc" actually mean?
Low doc means the lender assesses your loan without relying on a full set of financial statements and tax returns. It doesn't mean no information at all.
With fundU, the core of the assessment is the property you're offering as security, what the money is for and how the loan will be repaid. Documents play a supporting role. Instead of two years of accounts, we might use recent bank statements to see money moving through the business, a signed contract to confirm upcoming income, or a short letter from your accountant.
You'll sometimes see lenders advertise "no doc" loans. Be wary of the phrase. Any responsible lender still needs to confirm your identity, the property's value and ownership, and a sensible exit. What you can expect from us is less paperwork, a faster start and a lender who understands that self-employed income rarely fits a neat template.
Who uses low doc business loans?
Mostly self-employed people and owner-operators whose business is sound but whose paperwork hasn't kept pace. Typical examples:
- Tradies and contractors whose income is lumpy, with big payments on completion and quiet weeks in between
- Owners whose accounts are behind, often by a year or more, because they've been flat out running the business
- New businesses that haven't completed a full financial year yet
- Businesses that have changed shape, such as a sole trader who has just incorporated, or a company that has sold or closed a division
- Seasonal operators in tourism, horticulture or hospitality, where one year's accounts don't reflect the trend
- Owners recovering from a rough patch, where the last set of accounts shows a loss that's already behind them
What these owners have in common is a business that's doing better than its paperwork suggests. A bank's process is built to read historical accounts, so when those are missing, late or out of date, the answer is often "come back later". We'd rather look at what's happening now.
If you're a sole trader, our guide to business loans for sole traders covers the particular questions lenders ask.
Full doc bank loan vs low doc fundU loan
The difference is where the lender puts its weight. A bank looks mostly at historical accounts. We look mostly at the property, the purpose and the exit.
| Typical full doc bank loan | fundU low doc business loan | |
|---|---|---|
| Financial statements | Usually two years required | Not needed for the initial assessment |
| Tax returns | Usually required and up to date | Not needed for the initial assessment |
| Main evidence | Historical profit, serviceability ratios | Property, purpose, exit and supporting documents |
| Irregular income | Can be a problem | Considered case by case |
| Accounts behind | Often a decline or a long delay | Common and workable |
| Security | Property plus a general security agreement | First or second mortgage over property |
| Who decides | Bank credit, often head office | fundU's own credit team |
What evidence can I use instead of financial statements?
Whatever genuinely shows how the business is going and how the loan will be repaid. You won't need all of these; a lending specialist will tell you which matter for your situation.
- Recent business bank statements, showing turnover and regular outgoings
- GST returns filed in myIR, which show sales even when annual accounts aren't done
- Your IRD statement, especially if there are arrears we need to understand
- Signed contracts, purchase orders or letters of award for upcoming work
- Invoices and an aged debtors list showing what you're owed
- A letter from your accountant confirming trading and the status of your accounts
- Sale agreements or valuations if the exit is a property sale
- A bank's letter of offer if the exit is a refinance
For more detail, our guide to what lenders need for a low doc business loan explains how each document is used.
Your GST returns are often the most underrated document in a low doc application. They show real sales, period by period, even when the annual accounts are months away.
How can I make a low doc application stronger?
A few simple steps make a big difference to how quickly we can say yes.
- Tell the full story up front. Explain what the business does, how it's tracking and why the paperwork is behind.
- Be clear about the purpose. Show exactly what the money will do and how much you need.
- Show the exit. Point to the sale, refinance, contract or cash flow that will repay the loan.
- Disclose the difficult bits. IRD arrears, a default or a past bank decline won't automatically rule you out, but surprises later slow things down.
- Get your accountant on side. A short letter confirming the business is trading and when the accounts will be finished carries real weight.
- Have the property details ready. Address, owner, a rough value and what's owed on it.
How quickly can a low doc loan be arranged?
Often faster than a full doc bank loan, because there's less to collect and our own team makes the decision. Funding can happen in as little as 24 hours once approved in some cases.
The time usually goes into three things: confirming the property's value, gathering the handful of documents that support your story, and lawyers completing the mortgage documents. Owners who move fastest tend to have their property details, recent bank statements and exit evidence ready before the first call.
What slows things down is rarely the lack of accounts. It's usually a surprise, like a second mortgage nobody mentioned, a trustee who needs to sign but is overseas, or an IRD balance that turns out to be larger than expected. Raise these early and we can plan around them. Our guide on how fast you can get a business loan covers the typical timeline in more detail.
What security is needed?
A low doc loan from fundU is secured on New Zealand property by a first or second mortgage. The security does a lot of the work that full financials would otherwise do, which is why we can be flexible about paperwork.
Security can be residential property such as your home or a rental, commercial or industrial premises, or some land and lifestyle property case by case. It can be owned by you, your company, your family trust or a supporting party such as a family member acting as guarantor. If you already have a bank mortgage, a second mortgage lets you leave it in place. Our secured business loans page explains the security side in more depth.
Repayments can be interest-only, capitalised interest with no scheduled monthly repayments during the term, or principal and interest, depending on the approved terms.
Example scenario
A Dunedin builder running a small crew had two years of accounts outstanding after a string of big residential jobs. He'd been offered a commercial fit-out worth about $600,000 but needed $160,000 for materials and extra labour before the first payment claim. His bank wanted the overdue accounts before it would consider anything.
He owned a rental in Mosgiel worth around $610,000 with a modest mortgage. fundU assessed the loan using his GST returns, recent bank statements, the signed contract and a letter from his accountant. We lent $160,000 on a second mortgage with capitalised interest, repaid from the contract's progress payments. The accounts were finished during the job.
What you'll need
To start a low doc enquiry, have these ready:
- Photo ID for the people involved
- Your business name and NZBN or company details
- The loan amount and what it's for
- The property offered as security, its owner, approximate value and any existing mortgage
- Recent business bank statements, if you have them to hand
- Anything that supports the exit, such as a contract, sale agreement or refinance offer
- A quick note on what's outstanding, such as accounts, returns or IRD arrears
That's usually enough for a first conversation. We'll only ask for more if it's genuinely relevant.
Get assessed on the real business
If your business is solid but your paperwork is behind, you deserve a lender who'll look at the whole picture. fundU is a private business lender that makes its own decisions and works with the evidence you actually have.
Enquiring is free, takes a couple of minutes and won't affect your credit score. Call 09 875 4577 or see if you qualify now.
Frequently asked questions
What is a low doc business loan?
A low doc business loan is a business loan that doesn't rely on full financial statements and tax returns to be assessed. Instead, the lender uses alternative evidence and security. fundU's low doc loans are secured on New Zealand property and assessed on the property, the purpose, the exit and supporting documents like bank statements, contracts and invoices.
Are there genuine no doc business loans in New Zealand?
Not in the sense of no information at all. Any responsible lender needs to confirm who you are, what the property is worth and how the loan will be repaid. What fundU offers is a loan that doesn't need financial statements or tax returns to start, with far less paperwork than a traditional bank application.
Can I get a low doc loan if my tax returns are behind?
Yes, that's one of the main reasons owners come to us. Many self-employed people are a year or two behind with their accounts because they've been busy running the business. fundU can assess your application using bank statements, contracts, invoices and your IRD statement while the accounts are being brought up to date.
What documents can I use instead of financial statements?
Useful alternatives include recent business bank statements, GST returns, signed contracts or purchase orders, invoices, an aged debtors list, a letter from your accountant and your IRD statement from myIR. Which ones matter depends on your situation. A fundU lending specialist will tell you exactly what's relevant rather than asking for everything.
Can sole traders and contractors get a low doc business loan?
Yes. Sole traders, contractors and self-employed people with irregular income are a big part of who we lend to. As long as the loan is for a business purpose and secured on New Zealand property with enough equity, fundU will look at your situation case by case, including uneven or seasonal income.
Is a low doc loan harder to get than a full doc loan?
With fundU, not necessarily. Because our loans are secured on property and built around a clear exit, the amount of paperwork matters less than the strength of the security and the plan. A clear story, honest disclosure and a credible way to repay the loan often count for more than a perfect set of accounts.
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.