Who it may help
Possible fit
- Businesses declined by an equipment or vehicle financier
- Buyers of used, specialist or privately sold assets
- Owners with property but limited trading history or credit issues
Asset and equipment finance NZ
Asset finance for New Zealand businesses, secured by property
Need a vehicle, machinery, equipment or a fit-out, but the asset finance company says no, or won't fund the whole cost? HomeSec lends $20,000 to $1,000,000 for genuine business assets, secured against New Zealand property rather than the asset itself. That means used, specialist and private-sale assets, installation and fit-out costs, and several items at once can be funded in one loan. Funding may be possible in as little as 24 hours, and approved facilities may offer up to six months with no scheduled payments. Every application is subject to assessment.
New to it? Read what asset finance is and how it works in NZ .
Appropriate uses
Business needs
- Vehicles, trucks and trailers for business use
- Machinery, plant and tools
- Technology, fit-outs and installation
- Deposits and several assets bought together
Consider carefully
Important factors
- Your property is the security, not the asset
- Equipment finance is often cheaper for a new, standard asset
- Match how long you borrow to the asset's working life
How asset finance usually works in New Zealand
Most asset finance is secured on the thing being bought. The lender pays the seller, takes a security interest in the vehicle or machine and registers it on the Personal Property Securities Register (PPSR), and you repay in regular instalments over a fixed term, often with a balloon payment at the end. The common forms are hire purchase, finance leases, operating leases and equipment loans.
That works well for a new, standard asset with a strong resale market, bought from a dealer by a business with a good trading record. It works less well when the asset is used, specialised or sold privately, when much of the cost is installation, software or fit-out that has no resale value, or when the business is new or has a credit problem.
When property-secured finance can suit better
HomeSec lends against a registered first or second mortgage over suitable residential or commercial property, so the asset does not have to carry the loan on its own. That can help when an equipment lender will not fund an older or specialist machine, a private sale, a fit-out, or the delivery and installation costs on top of the purchase price. It can also fund several assets at once, or a deposit that lets another lender do the rest.
Our loans are open term, with no fixed end date, and you can repay early at any time, for example once a contract pays or your bank is ready to refinance. Interest and other costs accrue for as long as the loan runs, so plan how you will repay it. If you are buying a new, standard asset and your business fits an equipment lender's criteria, that is usually the cheaper option, and we will say so.
Before you sign any asset finance
Compare the total cost over the whole term, including fees, any balloon payment and what happens if you pay off early, not only the instalment. Check who owns the asset during the term and at the end, and what insurance the lender requires.
The structure affects tax. Under a hire purchase agreement, a GST-registered business can generally claim the GST on the full price in the period it signs the agreement, to the extent the asset is used to make taxable supplies; leases are treated differently. Ask your accountant which structure suits your business before you commit. If you are buying a used asset, search the PPSR first to check that no one else holds a security interest over it.
How the assessment works
Purpose, property and repayment path.
A useful scenario is not only a requested amount. It connects the business need to suitable security and a realistic way for the facility to be repaid or refinanced.
- 1. Explain the opportunity.
Provide the amount, intended use and timing. - 2. Outline the property.
Share ownership, location, estimated value and current lending. - 3. Show the exit.
Describe how and when repayment or refinance is expected. - 4. Review terms and risks.
Understand the documents, total cost, obligations and alternatives before proceeding.
Top tips for a faster, smoother assessment.
The right level of documentation depends on the proposed structure and what the team needs to verify.
Identity, property ownership, existing lending, the source and use of funds, and the proposed exit may all need evidence. Legal work can also apply.
Raise difficult details early. Tax obligations, arrears, a recent credit event or an urgent deadline can be assessed more effectively when they are explained upfront.
Common questions
What business owners usually ask next.
What is asset finance?
Asset finance is borrowing to buy something your business uses to earn money, such as a vehicle, machinery or equipment. Usually the asset itself secures the loan. HomeSec takes a different approach: the loan is secured against New Zealand property, which lets us fund assets and costs that equipment lenders often will not.
How much can I borrow for equipment or a vehicle?
HomeSec lends $20,000 to $1,000,000. The amount depends on the property's value, what is already owed on it, what you are buying and how the loan will be repaid, not on the asset's resale value alone.
Can I finance used equipment or a private sale?
Yes. Because the loan is secured on property rather than the asset, used, older, specialist and privately sold assets can be considered. Search the PPSR before you buy to check the seller owns it outright.
Can I include installation, fit-out and other costs?
Yes, where they are part of a genuine business purpose. Delivery, installation, software, training and fit-out costs can be included in the same loan, so budget for the full installed cost, not only the purchase price.
Can I get asset finance with bad credit or no trading history?
Possibly. HomeSec has no minimum trading period, and a default, arrears or tax debt does not automatically rule you out. We look at the property, the purpose and the repayment plan together. Approval is never guaranteed.
Do I need to insure the asset?
You should insure any asset your business relies on. Because HomeSec's security is the property, the insurance required is set out in your loan documents; equipment lenders usually require the asset itself to be insured and the lender noted on the policy.
Is property-secured finance cheaper than equipment finance?
Not usually. For a new, standard asset bought by an established business, an equipment lender or your bank is often cheaper. HomeSec suits the cases they decline or cannot fund in time. HomeSec does not publish a standard rate; the interest, fees and conditions that apply to you are set out in writing before you proceed.
Do I have to start repayments straight away?
Not always. An approved HomeSec facility may offer up to six months with no scheduled payments, which can give a new machine or vehicle time to start earning. Interest and other costs still accrue during that time.
Related pathways
Compare the nearby options.
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
Discuss a asset finance secured by property scenario.
A short scenario conversation can help establish whether property-secured business finance may fit.