When your company is brand new, lenders have almost nothing to go on. There’s no trading history, no track record of repaying debt, and often no accounts yet. That’s normal — but it means the steps you take in the first 12–24 months shape how easy (and how well-priced) your future borrowing will be.
How business credit reporting works in NZ
New Zealand has three main credit reporting agencies: Centrix, Equifax and illion. Each keeps personal credit files, and each can produce business credit reports on companies.
According to Centrix, a business credit report can include (source):
- a credit score,
- company information, including previous registered and trading names,
- registration details and directors,
- shareholders and their shareholdings,
- credit defaults,
- Inland Revenue information about unpaid tax debts that meet the statutory reporting criteria,
- insolvencies and judgments,
- credit enquiries over the past one to two years,
- Personal Property Securities Register (PPSR) information.
For young companies, lenders nearly always look at the directors’ personal credit too, and usually ask for personal guarantees. So your personal file matters just as much as the company’s.
Step 1: Get the basics right on day one
- Incorporate properly through the Companies Office and keep your address and director details current.
- File your annual return on time each year. A company that’s overdue can end up removed from the register.
- Get your NZBN (companies have one automatically) and use it with suppliers.
- Register for GST when required — at $60,000 turnover, or voluntarily if it suits. See our GST threshold guide.
- Use your full legal company name consistently on invoices, accounts and applications.
Step 2: Separate the company’s money from yours
Open a dedicated business bank account in the company’s name and route every sale through it. This does two jobs:
- It creates the bank statement history unsecured lenders need (usually around six months).
- It makes the company look like a real, independent business rather than an extension of your personal finances.
Pay yourself through regular salary or drawings, not random card spending from the business account.
Step 3: Open a few trade accounts — and pay them perfectly
Trade accounts with suppliers (packaging, freight, wholesalers, building suppliers, fuel cards) are often the first credit a company gets. Some suppliers share payment information with credit bureaus, and all of them remember who pays on time.
- Start small with two or three accounts you’ll genuinely use.
- Pay on or before the due date, every time.
- Don’t open accounts you don’t need just to “build credit”.
Step 4: Stay current with Inland Revenue
IRD debt is one of the biggest red flags for lenders, and qualifying tax debts can appear on business credit reports. If you fall behind:
- contact IRD early and set up a formal instalment arrangement if you need one,
- don’t let GST and PAYE pile up while you pay other bills.
Our guide to IRD tax debt options covers what to do if it’s already happened.
Step 5: Be careful with credit applications
Every formal credit application can create an enquiry on your file. A cluster of enquiries in a short time can look like you’ve been declined elsewhere and are shopping around desperately.
- Start with enquiries that don’t affect your credit score (the Business Loanz enquiry doesn’t).
- Only proceed to formal applications once you know which lender and product fit.
- Space out applications where possible.
Step 6: Look after the directors’ personal credit
Because lenders look at directors, keep your own file healthy:
- pay personal bills, phone plans and credit cards on time,
- check your personal credit report once a year (free from each agency),
- fix errors promptly by contacting the agency,
- be cautious about guaranteeing other people’s debts.
Step 7: Use small facilities well
A modest business credit card, trade account or line of credit that’s used and repaid on schedule creates a positive record. Once you’ve traded about six months, an unsecured facility sized to turnover may be available — see line of credit for online sellers.
What if the credit history already has marks on it?
A past default or arrears isn’t the end of the road. Unsecured lenders consider weaker credit, and property-secured loans consider bad credit, defaults and arrears case by case. Be upfront, explain what happened, and show what’s changed.
A 12-month credit-building plan
| Month | Action |
|---|---|
| 1 | Business account open, NZBN in use, bookkeeping set up |
| 2–3 | Two or three trade accounts opened, paid early |
| 4–6 | GST registered if needed; tax savings account running |
| 6 | Check personal and company credit reports |
| 7–9 | Consider a small facility if useful |
| 12 | File annual return; review credit reports again |
Signs your credit profile is working
After a year of good habits, you should see: a clean company credit report with no defaults, a handful of trade accounts paid on time, a steady record of GST and tax payments, directors’ personal files in good shape, and — most usefully — lenders and suppliers offering you better terms without much chasing.
How Business Loanz helps
When you’re ready to borrow — or want to know what you’d qualify for today — send a 60-second enquiry. It doesn’t affect your credit score. A lending specialist will tell you where you stand and what would strengthen your position.