Who it may help
Possible fit
- Business owners waiting on a property sale or settlement
- Businesses with a refinance or receivable on the way
- Owners who need to act before the money arrives
Business bridging finance
Bridging finance for New Zealand business owners
Cover the gap between a business need today and a sale, refinance or payment you are waiting on. HomeSec is a direct, privately funded lender of open-term, property-secured bridging loans from $20,000 to $1,000,000 for genuine business purposes, subject to assessment.
Appropriate uses
Business needs
- Settling a commercial property purchase
- IRD and other tax obligations
- Supplier commitments and stock
- Buying a business or a time-sensitive opportunity
Consider carefully
Important factors
- A credible exit plan is essential
- Allow a timing buffer for a slower sale or refinance
- Interest and costs accrue for as long as the loan runs
How business bridging finance works
A bridging loan gives your business the money it needs now, secured against New Zealand property, and is repaid from a later event: usually the sale of a property, a refinance with a bank or another lender, or a large payment the business is owed. That repayment event is called the exit.
HomeSec can lend as a first or second mortgage, depending on the property and any existing lending. Because the loan is open term, it does not have to be repaid by a fixed early date, and an approved facility may offer up to six months with no scheduled payments while you wait for the exit. Interest and other costs still accrue, so the sooner the exit happens, the less the loan costs.
Planning the exit
The exit is the heart of every bridging application. A property on the market, a signed sale and purchase agreement, a refinance underway or an invoice due from a reliable customer all help show how the loan will be repaid. The firmer the evidence, the easier the scenario is to assess.
Sales and refinances often take longer than planned, and a property can sell for less than hoped. Build in a buffer for time and price, and tell HomeSec early if anything changes, so options can be discussed before costs build up.
Business bridging, not home-move bridging
Most bridging loans in New Zealand help people buy a new home before they sell their current one. That is personal lending, and a bank or mortgage adviser is the right place to start. HomeSec lends only for genuine business or commercial purposes.
Typical business uses include settling a commercial property purchase before another property sells, paying IRD while a sale or refinance completes, buying stock or equipment ahead of a large customer payment, and acting quickly on a business purchase. HomeSec is based at 152 Fanshawe Street, Auckland, and lends against suitable property almost anywhere in New Zealand.
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.
How much does bridging finance cost?
HomeSec does not publish a standard rate, because pricing depends on the amount, the property security, the exit, the timing and the full scenario. The interest, fees and conditions that apply to you are set out in writing before you proceed. Compare the total cost over a realistic timeframe, including a delay, not only a headline rate.
How much equity do I need for a bridging loan?
There must be enough equity in the property after any existing mortgages to secure the loan, with room for the sale or refinance to take longer or achieve less than expected. HomeSec lends $20,000 to $1,000,000 and assesses each property and exit on its merits. No valuations or cashflow records are needed to start an enquiry.
Do I have to make payments during the bridging period?
An approved HomeSec facility may offer up to six months with no scheduled payments, which can suit a bridging period. Interest and other costs still accrue and are usually repaid from the exit. The exact payment settings are set out in your loan contract.
How long can I have bridging finance for?
HomeSec bridging loans are open term, so they do not have to be repaid by a fixed early date. You still need a realistic exit, and because interest and costs accrue for as long as the loan runs, repaying sooner costs less.
What if my sale or refinance takes longer than expected?
Tell HomeSec as soon as you know. An open term gives room for delays, but costs keep accruing and the contract terms still apply. Building a buffer for time and price into your plan from the start makes a delay much easier to manage.
Can I get bridging finance with bad credit?
A credit issue does not automatically rule you out. HomeSec looks at the business purpose, the property security and the strength of the exit. Tell us about any defaults, arrears or tax debt upfront so they can be assessed properly. Approval is never guaranteed.
Can I use bridging finance to buy a home before I sell?
Not with HomeSec. We lend only for genuine business or commercial purposes. For a home move, talk to your bank or a mortgage adviser.
How quickly can bridging finance be arranged?
Funding may be possible in as little as 24 hours, subject to approval, documents, security, legal work and settlement requirements. Having your exit evidence ready helps the team move faster.
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 bridging finance for business purposes scenario.
A short scenario conversation can help establish whether property-secured business finance may fit.