Quick answer
Many New Zealand lenders can read your financials through a read-only Xero or MYOB connection, or from exported reports such as profit and loss, balance sheet, aged receivables and aged payables. Reconcile your bank feeds and code uncategorised transactions before sharing, because lenders compare your accounts with your bank data. You can disconnect the app once the assessment is complete.
Key points
- Read-only access lets a lender pull reports without changing anything
- Profit and loss, balance sheet and aged receivables are the core reports
- Reconcile and code transactions first; lenders compare accounts with bank data
- Exported reports work just as well if you prefer not to connect
If bank statements show what happened, your accounting software explains why. Xero and MYOB are the default ledgers for a large share of New Zealand small businesses, and both can share data with a lender in a few clicks. Done well, that connection answers questions before they are asked. Done carelessly, it creates new ones.
What does a lender pull from your accounting software?
Most lenders focus on a handful of reports:
| Report | What it tells the lender |
|---|---|
| Profit and loss (12 months, monthly columns) | Revenue trend, margins and seasonality |
| Balance sheet | What the business owns and owes, including tax liabilities |
| Aged receivables | Who owes you money and how late they are |
| Aged payables | Who you owe and whether suppliers are being stretched |
| GST returns or GST reports | Whether filing and payments are up to date |
For invoice finance, aged receivables are the main event, because the lender is advancing money against those invoices. For a line of credit or an unsecured loan, the profit and loss and balance sheet carry more weight.
How does a read-only connection work?
The lender or its software provider sends you a link. You log into Xero or MYOB as normal, choose the organisation, and see a permission screen listing what the app can access. You approve, and the lender can now pull the reports it needs. Nothing is changed in your file.
A few points to check on that permission screen:
- Is it read-only? It should be.
- Which organisation? If you run several entities in one login, pick the one applying.
- Who is the app? It should match the lender or service named on the call.
When the assessment is done, you can disconnect the app from your software’s connected-apps settings. Some facilities, such as invoice finance, may ask for ongoing access, and that should be explained in plain words before you agree.
What should you tidy before connecting?
Lenders compare your accounts with your bank data. When they disagree, someone has to explain the gap. Fifteen minutes of housekeeping prevents that:
- Reconcile bank feeds up to the end of last month.
- Clear the uncategorised pile. A large “suspense” or “ask my accountant” balance raises eyebrows.
- Check GST coding. At 15%, mis-coded GST can noticeably distort margins.
- Chase or write off ancient debtors. A receivable from two years ago that will never be paid makes your ledger look healthier than it is, and lenders know it.
- Record loans properly. Existing finance should appear as a liability, not buried in expenses.
If that sounds like a weekend job rather than a quarter-hour, start with the online-ready score to see how much it matters for your situation.
Do you have to connect, or can you send reports?
You can send exported reports instead. Some owners prefer not to connect third-party apps at all, and that is a reasonable choice. Export the reports as PDF from Xero or MYOB and upload them through the secure portal. The lender sees the same numbers; it just takes a few more minutes. Want to know which suits your lender? Start the enquiry and ask on the call.
How do lenders read the numbers?
They are not looking for a perfect business. They are looking for one that can comfortably meet repayments and that is honest about its position. In practice, that means:
- revenue that is steady or growing, or a clear reason it is not;
- margins that match your industry;
- tax liabilities that are recorded and either current or under an arrangement with Inland Revenue;
- receivables that are collected within reasonable terms.
Worked example (illustrative): a Christchurch IT support company wants a $90,000 line of credit. Its Xero file shows strong monthly contracts but a $38,000 GST liability. Because the owner also shares a screenshot of the instalment arrangement in myIR (see your IRD records from myIR), the lender treats the tax balance as managed rather than ignored.
Does sharing accounting data make approval faster?
Often, yes, because it reduces follow-up questions. A lender who can see the full year’s numbers in one go does not need to ask for three separate reports over three separate days. It is not a guarantee of approval, but it removes a common source of delay.
Keep your data safe while you share it
Turn on two-factor authentication for your Xero or MYOB login, keep the list of connected apps short, and remove access you no longer need. The National Cyber Security Centre’s Own Your Online service recommends the same basics for every cloud tool a business uses.
What if you run several companies in one login?
Many owners have a trading company, a property-holding company and maybe a family trust, all inside one Xero or MYOB subscription. When you approve a connection, choose only the entity that is applying, unless the lender has asked to see related entities too — sometimes it will, if one company guarantees another or rent flows between them. Keep it tidy: one connection per entity, clearly named, and disconnected when the assessment is complete.
Next step: see what fits
The enquiry is the easy part: about a minute, no credit check, and handled by one team rather than spread across a pool of lenders. A real specialist reads it and tells you whether your accounting data needs to be linked, exported or left alone. Give accurate turnover and mention any tax balances up front. Start your business loan enquiry.
Frequently asked questions
Can a lender change anything in my Xero or MYOB file?
A read-only connection lets the lender view and pull reports, not edit transactions. Check the permission screen before you approve, and disconnect when the assessment is done.
Do I need accounting software to get a business loan?
No. Many lenders work from bank statements alone, especially for smaller unsecured amounts. Accounting data helps with larger requests, invoice finance and property-secured lending.
My books are three months behind. Should I still connect?
Catch up the reconciliation first if you can. Out-of-date books create questions. If you cannot, say so on the call and rely more on bank data.
Will my accountant need to be involved?
Not always. For larger loans a lender may want accountant-prepared annual accounts or a short letter, and your specialist will tell you early if that is the case.
What about QuickBooks or other software?
The same principle applies. If a direct connection is not available, exported reports in PDF or CSV are fine.