• About Us
  • Advertise with Us
  • Contact Us
  • Offers
  • Events
  • Newsletter
  • Podcasts
  • Digital Magazine
  • Home
  • News
  • Opinion
  • Entrepreneurship
  • Self Development
  • Growth
  • Finance
  • Marketing
  • Technology
  • Sustainability
  • About Us
  • Advertise with Us
  • Contact Us
  • Offers
  • Events
  • Newsletter
  • Podcasts
  • Digital Magazine
NZBusiness Magazine

Type and hit Enter to search

Linkedin Facebook Instagram Youtube
  • Home
  • News
  • Opinion
  • Entrepreneurship
  • Self Development
  • Growth
  • Finance
  • Marketing
  • Technology
  • Sustainability
NZBusiness Magazine
  • News
  • Opinion
  • Entrepreneurship
  • Self Development
  • Growth
  • Finance
  • Marketing
  • Technology
  • Sustainability
Finance

Why should self-employed workers struggle to get finance?

Working for yourself can provide a lot of freedom – however it can also bring about…

NZBusiness Editorial Team
NZBusiness Editorial Team
August 31, 2017 2 Mins Read
619

Working for yourself can provide a lot of freedom – however it can also bring about frustration when it comes time to apply for a loan because it can sometimes be hard to prove your income.

There are more than 300,000 workers in New Zealand that classify themselves as self-employed, which represents about 10 per cent of the total workforce.

Unfortunately for many of these self-employed workers, an application for finance could result in an unexpected “sorry, but we can’t help you”.

Mike Pero Mortgages has a network of mortgage brokers across the country that specialise in helping customers reach their financial goals. To help you better understand why self-employed borrowers are treated differently, and what your options are, we’ve answered some key questions below.

Why do self-employed borrowers struggle to get finance?

Many self-employed workers earn an irregular income, especially when they first start out, and because of this, traditional lenders look at them in a different way to those that receive pay-as-you-earn (PAYE) income.

Unlike those that earn PAYE income, lenders will generally ask to see at least two years’ worth of balance sheets, annual accounts or tax returns in order to process a self-employed worker’s application. 

For some this may be easy to produce, however any self-employed worker that has only just started, or those that haven’t had time to do their tax returns may struggle.

What should I do if I’m self-employed and need finance?

Thankfully those self-employed borrowers who don’t meet the strict criteria of traditional lenders do have options – if they know where to look. There are lenders in New Zealand that offer ‘low-doc’ loans, which accept alternative forms of documentation, such as six months’ worth of bank statements, to verify the applicant’s income.

Many low-doc lenders will also consider other elements of the application, such as the strength of the underlying asset, rental income of an investment property, or other forms of income such as investments/share dividends to help them assess the loan.

Who do I talk to if I need a low-doc loan?

If you’re self-employed and think you’ll need a low-doc loan, talk to a Mike Pero Adviser. Mike Pero Advisers know the market well, so they’ll be able to guide you towards a lender that suits your individual needs.

While low-doc loans do require different types of documentation, some of the documents you’ll need to provide can take time to source, so it pays to have everything lined up before the application is submitted. Your adviser will be able to help you with this, so make sure you reach out to one early in the process.

You can find your nearest Mike Pero Adviser here

 

Share Article

NZBusiness Editorial Team
Follow Me Written By

NZBusiness Editorial Team

NZBusiness is a team effort, with article submissions curated by a small team of professionals under the guidance of Editor David Nothling-Demmer.

Other Articles

Getting to Know the CFO of Tomorrow
Previous

Getting to Know the CFO of Tomorrow

To the Loft (2)
Next

Making money from empty space

Next
To the Loft (2)
September 1, 2017

Making money from empty space

Previous
August 30, 2017

Getting to Know the CFO of Tomorrow

Getting to Know the CFO of Tomorrow

Subscribe to our newsletter

NZBusiness Digital Issue – September 2025

READ MORE

The Latest

AI comes to the back office as NetSuite Next brings enterprise intelligence within reach

October 8, 2025

Construction sector leads sustainability charge despite industry pressures

October 8, 2025

Tune into the brand: How Radio BurgerFuel amplifies a strong identity

October 1, 2025

Smart interest-free business lending

October 1, 2025

Turning data into answers for every business

October 1, 2025

The funding source that flies under the radar

September 25, 2025

Most Popular

Understanding AI
Economy, AI, and exports dominate 2025 business outlook
Cecilia Robinson’s mission to revolutionise healthcare
NZBusiness Digital Issue – June 2025
Confessions of a serial investor

Related Posts

Smart interest-free business lending

Smart interest-free business lending

October 1, 2025

The funding source that flies under the radar

September 25, 2025

Lending by people again

September 23, 2025

Smarter funding options to ease cashflow pressure

September 23, 2025
NZBusiness Magazine

New Zealand’s leading source for business news, training guides and opinion from small businesses to multi-national corporations.

© Pure 360 Limited.
All Rights Reserved.

Quick Links

  • Advertise with us
  • Magazine issues
  • About us
  • Contact us
  • Privacy policy
  • Sitemap

Categories

  • News
  • Entrepreneurship
  • Growth
  • Finance
  • Education & Development
  • Marketing
  • Technology
  • Sustainability

Follow Us

LinkedIn
Facebook
Instagram
YouTube
  • Home
  • News
  • Opinion
  • Entrepreneurship
  • Self Development
  • Growth
  • Finance
  • Marketing
  • Technology
  • Sustainability