Protect your business
How to avoid fake business lenders and upfront fee traps.
Business finance can be a minefield. Here is how to check a lender's credentials before you hand over a cent.
Warning signs
Six signs you are not dealing with a real lender.
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Big fees before any approval
Every other lender has said no, then one suddenly says yes, as long as you pay thousands of dollars first. Lenders who say yes to everything, take large fees up front and fund almost nothing are the oldest trap in the book.
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No real address
A genuine lender publishes a physical office address and tells you who owns and runs the company. A PO box, a virtual office or no address at all is a red flag.
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Not the actual lender
Ask whether they are lending their own money. Many sites are lead sellers or middlemen who pass your details around, or simply disappear once a fee is paid.
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Pressure to pay now
Urgency, deadlines that suddenly appear, or a 'today only' offer are designed to stop you checking. A real lender will let you take a breath.
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Unusual payment requests
Requests to pay into a personal bank account, by cryptocurrency, gift cards or a money transfer service should stop you in your tracks.
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Nothing in writing
No written offer, vague terms and answers that change each time you ask. If it is not in writing, you cannot rely on it.
Check before you pay
Four checks that take ten minutes.
- Look the company up. Search the Companies Office and the Financial Service Providers Register. Being registered is not an endorsement, but a lender with no trace at all is a warning sign.
- Check the warnings list. The Financial Markets Authority publishes warnings about businesses, including overseas entities falsely claiming to be registered in New Zealand.
- Confirm a real address and real people. Who owns the company, who runs it, and where is the office?
- Call back on an official number. Use the number on the lender's own website, not one in an email or text you received.
If you think you have already paid a fake lender, call your bank immediately, then report it through Own Your Online, run by the National Cyber Security Centre.
How HomeSec works
A straight yes or no, from the actual lender.
HomeSec is a direct, privately funded lender. We assess and fund our own business loans, and we give you a straight yes or no rather than a yes to everything.
- Company
- HomeSec Business Finance Limited
- NZBN
- 9429047936010
- Office
- 152 Fanshawe Street, Auckland
- Phone
- 09 888 6550
There is no cost to apply. If we issue a conditional approval, any assessment fee is explained in writing first.
Common questions
About fake lenders and upfront fees.
Does a genuine business lender ever charge fees?
Yes, legitimate lenders charge fees, but they explain them in writing and you should only be asked to pay once there is a written approval or offer you understand. Be very wary of large fees demanded before any approval at all.
How does HomeSec handle fees?
There is no cost to apply with HomeSec. If we issue a conditional approval, any assessment fee is explained in writing first, and payments are only ever made to HomeSec Business Finance Limited.
How can I check a lender is real?
Check the company on the Companies Office and the Financial Service Providers Register, look for it on the Financial Markets Authority's warnings list, confirm a physical address, and call back on a number from the lender's own website rather than one you were sent.
What should I do if I think I have paid a fake lender?
Contact your bank straight away, as they may be able to stop or recover the payment. Then report it to the National Cyber Security Centre through Own Your Online, and keep every email, message and receipt.
Information is general only and is not an offer or approval of finance. Lending is subject to assessment, acceptable property security, documentation, legal requirements and final approval. Independent legal, financial and tax advice may be appropriate for your circumstances.
Next step
Talk to a real New Zealand lender.
Tell us about your scenario. There is no cost to apply, and you will deal directly with the team that makes the decision.