Mr's short answer
It depends on the loan. Bank-style lending usually needs recent filed returns and financial statements. Unsecured cash-flow lending leans on bank statements instead, and property-secured lending can sometimes proceed while returns are being caught up. But unfiled returns always raise questions, and getting them lodged, even if you can't pay yet, is usually the most valuable step before you borrow.
Key points
- Unfiled returns worry lenders more than tax owing does.
- You must file GST returns for every period, even nil ones; no extensions for GST.
- Cash-flow lenders read bank statements; banks read financial statements.
- Property-secured lending can bridge the gap while your accountant catches up.
Mr has a soft spot for owners who are brilliant at their trade and hopeless with paperwork. They’re often the busiest people in the room. But when it comes to borrowing, a pile of unfiled returns can close doors faster than a tax bill ever would. Here’s why — and how to get moving.
Why do unfiled returns matter more than tax owing?
A tax debt is a known number. A lender can see it, plan around it, maybe even clear it with the loan. An unfiled return is an unknown. It could hide a refund or a big bill. IRD may also have issued default assessments in the meantime, which may not match reality.
Lenders hate unknowns. So the first question about tax is usually not “how much do you owe?” but “are your returns up to date?”
Which returns do lenders look at?
| Return | Why it matters |
|---|---|
| GST returns | Show turnover period by period; must be filed every period, even nil |
| Income tax return (IR3, IR4, IR6, IR7) | Shows profit and the tax position for the year |
| Employment information | Shows payroll is being reported properly |
| Financial statements | Used by banks and for larger loans to judge profitability |
IRD is firm on GST: you can’t get an extension of time to file a GST return, so it needs to be filed on time even when you can’t pay.
What can I borrow while returns are behind?
It depends on the type of lending:
- Bank lending: usually needs the last one or two years of financial statements and filed returns. Being behind generally means waiting.
- Unsecured cash-flow lending: leans on recent business bank statements, typically $5,000 to $500,000. Lenders may still ask about tax and want GST returns that match the deposits.
- Property-secured lending: relies mainly on equity and an exit, with loans from $20,000 to $5,000,000. It can sometimes proceed while returns are being finished, often with the plan to refinance to a bank once they’re filed.
That last route is a common bridge: borrow against property now, get the accounts done, then move to cheaper long-term finance. See what’s a second mortgage and when does it make sense?
How do I catch up quickly?
- Book your accountant now, and tell them you’re planning to borrow — it changes the urgency.
- Gather bank statements and invoices for the missing periods. Your bank and accounting software make this quicker than it feels.
- File GST first. GST returns are shorter and show lenders current trading.
- Then the income tax returns, most recent year first if a lender needs it.
- Check the myIR balance once filed, so you know the real number.
- Contact IRD about any resulting debt — an instalment arrangement may be available.
If you can’t afford to pay what the returns show, file anyway. IRD’s guidance for people struggling to file and pay is to get in touch early so a solution can be worked out.
What dates should I know?
For a 31 March balance date, end-of-year income tax is generally due 7 February of the following year, or 7 April if you’re with a tax agent who has an extension of time. GST is due on the 28th of the month after each period, with 15 January and 7 May exceptions. The tax due dates tool lays out your next 12 months.
Want to know what’s possible while your accountant catches up? Ask a specialist — there’s no credit check to ask.
What can I give a lender in the meantime?
- Six months of business bank statements.
- GST returns filed so far.
- Management accounts from your software, even unaudited.
- A short letter from your accountant with the filing timetable.
- A myIR statement of account.
Paired with property security, that’s often enough to get a short-term loan moving.
An illustrative example: two years behind, property available
This scenario is made up.
A Rotorua tourism operator fell two years behind on financial statements and income tax returns through a combination of a staff change at the accountant’s office and a very busy season. GST returns were filed, but late. The bank won’t consider new lending until the accounts are done. Meanwhile, the operator wants to buy a second vehicle before peak season.
What’s realistic:
- Bank lending: on hold until the accounts and returns are filed.
- Unsecured lending: possible for a modest amount, based on bank statements and GST returns, with questions about why the income tax returns are late.
- Property-secured lending: the owner has equity in a rental. A short-term loan secured on it could fund the vehicle now, with the plan to refinance to the bank once the accounts are filed.
The operator’s accountant writes a short letter confirming both years will be completed within three months, and the owner sets up a myIR check to confirm GST is current. That letter, plus property security and a clear exit to the bank, makes a short-term loan straightforward.
How long do catch-up returns take?
It depends on your records. As a rough guide:
- good software records, receipts in order: often a few weeks per year;
- paper records or a shoebox: longer, because your accountant has to rebuild the picture;
- multiple entities (company plus trust plus partnership): each needs its own work.
Ask your accountant for a realistic date and build in a buffer. Lenders would rather hear “three months” and get it in two than hear “next week” and wait three.
Tell us where your paperwork is at
No judgement — just tell us which returns are behind and what you need the money for. There’s no credit check to ask, your details aren’t passed to a pile of lenders, and a real person will explain which options work while you catch up.
Please be straight on the form about which returns are outstanding. Accuracy here saves you from being steered towards a loan that will stall. See if your business qualifies now.
Frequently asked questions
Can I get a loan if my last tax return isn't filed?
Sometimes. Unsecured lenders may rely on bank statements, and property-secured lenders may proceed with a plan to file. But the further behind you are, the fewer options there will be. A letter from your accountant confirming when returns will be filed helps.
Why do lenders care so much about filing?
Unfiled returns mean nobody — including IRD — knows the true tax position. IRD may issue default assessments, and a lender can't tell whether there's a large bill waiting. Filing removes that uncertainty.
Should I file even if I can't pay?
Yes. Filing and paying are separate. Filing on time avoids late filing penalties and lets you arrange payment properly. IRD itself encourages people to get in touch early if they're struggling to file and pay.
What's the end-of-year tax due date?
For a 31 March balance date, end-of-year income tax is generally due on 7 February the following year, or 7 April if you have a tax agent with an extension of time. The 2026 end-of-year tax is due 7 February 2027 for those without an agent.