Who it may help
Possible fit
- Self-employed owners and sole traders a bank struggles to assess
- Businesses with credit issues or IRD arrears
- Owners who need an answer and funds quickly
Non-bank lending
Non-bank lenders in NZ: a direct alternative for business owners
Non-bank lenders fund the scenarios banks decline or can't finish in time. HomeSec is a direct non-bank lender of open-term business loans from $20,000 to $1,000,000, secured by New Zealand property and assessed on the security, the purpose and the plan to repay.
Appropriate uses
Business needs
- Working capital and cash flow
- Tax and creditor obligations
- Buying or growing a business
- Refinancing out of a bank or finance company
Consider carefully
Important factors
- Non-bank loans usually cost more than bank loans
- Compare total costs, fees and how the loan ends
- HomeSec lends for business purposes only
What is a non-bank lender?
A non-bank lender is any lender that isn't a registered bank. In New Zealand that includes finance companies, building societies and credit unions, private lenders that lend their own or investors' money, and online lenders. Non-bank lenders don't have to follow bank lending policies, so they can be more flexible about income evidence, credit history and timing. In return, their loans usually cost more than a bank's.
Types of non-bank business lending
Online cash flow lenders offer smaller unsecured amounts based on bank statements and turnover, usually with daily or weekly repayments and a fixed end date. Finance companies often fund vehicles and equipment. Property-secured private lenders like HomeSec lend against the equity in real estate, which allows larger amounts and more flexible terms without a turnover or serviceability test.
HomeSec loans are open term, interest can be capitalised for up to six months so there are no scheduled payments at the start, and you can repay early at any time.
Why business owners use a non-bank lender
Banks assess against fixed policy: years of accounts, serviceability and clean credit. Owners who are self-employed, recently started, have a credit issue or simply need money before a bank can decide often turn to a non-bank lender.
HomeSec doesn't need cashflow records or a sworn valuation to start, and there is no minimum trading period. We look for sufficient equity in New Zealand property and a genuine business purpose. Funding may be possible in as little as 24 hours once the scenario is complete, subject to approval, documents, security, legal work and settlement.
Non-bank home loans and personal lending
Many people searching for non-bank lenders want a home loan. HomeSec lends only for business purposes, so we don't offer home loans or personal loans, and a mortgage adviser can help you compare non-bank home lenders. If you own property and need money for your business, we can help.
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 a non-bank lender?
A non-bank lender is a lender that isn't a registered bank, such as a finance company, building society, credit union, private lender or online lender. HomeSec is a direct non-bank lender of property-secured business loans.
What is the difference between a bank and a non-bank lender?
Banks lend under fixed policies and usually need full financials, serviceability and clean credit, which takes time. Non-bank lenders set their own criteria, so they can move faster and take on scenarios banks decline, but their loans usually cost more.
Are non-bank lenders safe to borrow from?
Borrowing from an established non-bank lender is common in New Zealand. Check who the lender is and that they are on the Financial Service Providers Register, get every fee in writing, and take independent legal advice before you sign.
Do non-bank lenders check your credit?
Most run a credit check, but a non-bank lender may put less weight on it. HomeSec focuses on the property security and the business purpose, so credit issues are assessed rather than automatically declined.
Can self-employed people borrow from a non-bank lender?
Yes. Self-employed borrowers are a big part of non-bank lending because banks find their income harder to assess. HomeSec lends to companies, trusts and sole traders, including start-ups, against suitable New Zealand property.
Do non-bank lenders offer second mortgages?
Some do. HomeSec lends on first or second mortgages, so you can keep your existing bank mortgage and add a separate business facility behind it.
How much can I borrow from a non-bank lender?
HomeSec lends $20,000 to $1,000,000 for business purposes. The amount for your scenario depends on the property's value and existing lending, the purpose and how the loan will be repaid.
Do non-bank lenders offer home loans?
Some non-bank lenders do, but HomeSec doesn't. We lend only for genuine business or commercial purposes. A mortgage adviser can help with a non-bank home loan.
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
Talk to a direct non-bank lender today.
A short scenario conversation can help establish whether property-secured business finance may fit.