Quick answer
Non-bank lenders are businesses that lend money but aren't registered banks. In New Zealand they range from licensed deposit takers such as building societies and credit unions to finance companies funded by investors or wholesale facilities. They're often quicker and more flexible on credit history, documents and security, but usually cost more than a bank. Shop them by checking registration, asking for all fees in dollars and comparing offers on total cost.
Key points
- Non-banks include licensed deposit takers and finance companies that don't take deposits.
- The Reserve Bank supervises licensed deposit takers, not non-deposit-taking lenders.
- Expect more flexibility and speed, priced for the extra risk they take.
- Check the Financial Service Providers Register and get every fee in writing.
Right next to the banks is a stall that’s grown busier every year: the non-bank lenders. For many New Zealand businesses they’re the difference between a deal that happens and one that doesn’t. They’re also the stall where a shopper most needs to know what they’re looking at, because “non-bank” covers a very wide range of businesses.
Who are the non-bank lenders?
The Reserve Bank describes non-bank lending institutions as two groups:
- Non-bank deposit takers (NBDTs). These offer debt securities to the public, such as term deposits, and lend the money out. They include building societies, credit unions and some finance companies. In August 2026 the Reserve Bank’s register listed 14 licensed NBDTs.
- Non-deposit-taking finance companies. These lend money but don’t take deposits from the public. They’re funded by shareholders, private investors or wholesale facilities from banks and other funders.
The Reserve Bank regulates licensed deposit takers but not the non-deposit-taking finance companies. Together, non-bank lenders account for just under 3% of intermediated credit in New Zealand according to the Reserve Bank, but they punch well above that weight for small and medium businesses that sit outside bank policy.
What do non-bank lenders sell?
Shelves vary a lot from one non-bank to the next. Between them you’ll find:
- short and medium-term business loans, secured or unsecured;
- property-secured loans, including second mortgages behind a bank;
- lines of credit and working-capital facilities;
- equipment, vehicle and asset finance;
- invoice finance; and
- bridging and short-term loans with a planned exit.
Some non-banks specialise in one product and do it very well. Others are generalists. A good first question is simply: “What do you do most of?”
What do they look for that banks don’t?
Non-banks usually still want to know the business can repay, but they’re more willing to look at the whole picture. Where a bank may decline on a single policy point, a non-bank might accept a shorter trading history, use recent bank statements instead of last year’s accounts, look past old credit issues, or rely more on property security than on profit history.
| Shopper’s question | Typical bank answer | Typical non-bank answer |
|---|---|---|
| Can I use recent bank statements instead of full accounts? | Rarely | Often, for smaller amounts |
| Is old bad credit a deal-breaker? | Often | Considered case by case |
| How quickly can you decide? | Weeks for complex deals | Often days, depending on the deal |
| Will you lend behind a bank’s first mortgage? | Uncommon | Common among property-focused non-banks |
| Is the price higher? | Lower | Higher, varies widely |
That flexibility isn’t free, and it isn’t unlimited. A non-bank will still decline deals where repayment looks unlikely or the security doesn’t stack up.
How do you check a non-bank lender out?
This is where shopping smart matters. Before you hand over documents or sign anything:
- Search the Financial Service Providers Register. You can search by name, FSP number or NZBN, and filter by the services a provider is registered for. Registration isn’t an endorsement, but an absence is a reason to ask questions.
- Check the Companies Office. Look up the company, its directors and how long it’s existed.
- Never pay an upfront fee before you have a written offer. The Financial Markets Authority warns that loan scammers impersonate real lenders and ask for advance fees. Our scams and red flags page lists the tells.
- Ask for every cost in dollars. Establishment, broker, legal, valuation, monthly account fees, default fees and early repayment costs.
- Ask how they exit you. For short-term loans especially, know what happens at the end of the term.
If checking all that sounds like a lot of walking, talk to us first. There’s no credit check, and we only point you to lenders we know.
How do you compare a non-bank offer with a bank offer?
Not on the headline. A bank offer may be cheaper per year but take six weeks and require guarantees you’d rather not give. A non-bank offer may cost more but settle in days and only need security over business assets. Line them up in our offer comparer, which shows total cost of finance, cost per $1,000 borrowed, flexibility and risk flags side by side. Then decide what the speed and flexibility are worth to you.
What does a non-bank deal look like in practice?
Illustrative example. A Hawke’s Bay landscaping company has traded for 18 months, with strong recent sales but only one set of annual accounts. Its bank wants a second year of financials before it will consider a $120,000 loan for two new machines and a larger yard. A non-bank lender reviews six months of bank statements and the machinery quotes, takes security over the equipment and the company’s assets, and asks the two directors for guarantees. The price is higher than the bank’s would have been, and the lender charges an establishment fee, but the machines arrive before the spring rush. The directors plan to refinance to a bank once the second year of accounts is in, so they make sure the offer has a modest, clearly stated early repayment cost.
When is a non-bank the right stall?
Non-banks are a strong fit when you need a decision quickly, when your story doesn’t fit a bank’s policy, or when you want to borrow against property behind your bank without disturbing that relationship. They’re a poorer fit if you have plenty of time, spotless financials and a bank that wants your business, because you’ll usually pay more than you need to.
Want help picking a non-bank?
The non-bank stall is crowded, and quality varies. Tell us what you need and a real person will match you with a lender that suits your situation rather than lobbing your enquiry at everyone with a website. There’s no credit check when you ask. Fill in the form honestly, including any credit or IRD issues, so we can pick the right lender first time. Start your enquiry.
Frequently asked questions
Are non-bank lenders regulated in New Zealand?
It depends on the lender. Licensed non-bank deposit takers are supervised by the Reserve Bank. Lenders that don't take deposits from the public aren't supervised by the Reserve Bank, but they still operate under general New Zealand law, and providers of financial services are generally expected to be registered on the Financial Service Providers Register.
Why would I use a non-bank instead of a bank?
Usually because the bank can't help in the time available, or because your situation sits outside bank policy: a short trading history, credit bumps, IRD debt or a deal the bank simply doesn't like. Non-banks also suit owners who value speed and simplicity over the lowest possible cost.
Do non-bank lenders cost more?
Generally, yes. They pay more for their own funding and take on deals with more risk, so their pricing and fees tend to be higher. The difference varies a lot between lenders, which is why comparing total dollar cost matters.
Can I move from a non-bank back to a bank later?
Often, yes. Many owners use a non-bank loan to get through a rough patch or seize an opportunity, then refinance to a bank once their financials or credit improve. Check the early repayment terms before you sign so that move doesn't cost more than it should.