Who it may help
Possible fit
- Business owners declined or delayed by a bank
- Owners with past credit issues, arrears or IRD debt
- Property owners who need a first or second mortgage quickly
Private lending
A direct private lender for New Zealand businesses
When the bank says no, or can't move fast enough, a private lender can look at the property, the purpose and the plan to repay rather than a credit score alone. HomeSec lends its own money, from $20,000 to $1,000,000, for genuine business purposes, secured by New Zealand property and subject to assessment.
Appropriate uses
Business needs
- IRD and creditor obligations
- Urgent supplier or settlement payments
- Stock, equipment and expansion
- Refinancing a loan that is due to end
Consider carefully
Important factors
- Private finance usually costs more than a bank loan
- Ask every lender for all fees in writing before you commit
- Have a clear plan to repay or refinance
What a private lender is
A private lender is a lender that isn't a registered bank. Some private lenders lend their own capital. Others place money for investors or a fund, and some brokers present themselves as lenders. Most private lenders in New Zealand lend against property, which lets them focus on the security, the purpose of the loan and how it will be repaid instead of strict bank serviceability tests.
HomeSec is a direct private lender. The money is our own and the credit decision is made in-house, so no bank, fund or outside investor has to sign off your loan, and approval can't be pulled because someone else's funding line changed.
Private lending when you have bad credit
Defaults, arrears, a thin credit file or an IRD debt don't automatically rule you out with a private lender. HomeSec looks at the equity in New Zealand property, the business purpose and the way the loan will be repaid. Tell us about any credit issues upfront so they can be assessed properly. Approval is never guaranteed.
If the bank has already declined you, a private loan can bridge the gap while you sort out your credit, your accounts or a sale, and then be repaid or refinanced back to a bank.
Urgent private finance and second mortgages
Private lenders are often used when timing matters: an IRD deadline, a settlement, a supplier, or an opportunity that won't wait weeks for a bank. HomeSec can lend on a first or second mortgage, so your existing bank mortgage can stay in place.
Funding may be possible in as little as 24 hours once the scenario is complete and the security is acceptable, subject to approval, documents, legal work and settlement. Approved facilities can offer up to six months with no scheduled payments.
How to choose a private lender in New Zealand
Check whether you are dealing with the lender itself or a broker. Ask for every fee in writing, including any upfront, application or valuation fees. Ask who approves the loan and whether funding depends on an outside investor. Ask how the loan ends and what happens if you need longer. Get independent legal advice before you sign.
HomeSec doesn't use valuers, so there is no valuation and no valuation fee. Our loans are open term, so there is no fixed end date to race against, and you can repay early at any time.
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.
Who are the private lenders in New Zealand?
Private lenders in New Zealand range from individuals and family offices to finance companies and funds, plus brokers who place loans with them. HomeSec is a direct private lender of business loans from $20,000 to $1,000,000, secured by New Zealand property and funded from our own capital.
Can I get a private loan with bad credit?
Often, yes. A private lender like HomeSec looks mainly at the property security and the business purpose, so defaults, arrears or tax debt are assessed rather than automatically declined. You still need enough equity and a realistic way to repay, and approval is never guaranteed.
What is a private mortgage?
A private mortgage is a loan from a non-bank lender secured by a registered mortgage over property. It can rank first, or second behind an existing bank mortgage. HomeSec offers private first and second mortgages for business purposes only.
Do private lenders offer second mortgages?
Many do. HomeSec lends on second mortgages behind an existing first mortgage, so you keep your bank loan and add a separate facility for the business need. Your first lender's consent may be required, and we check this early.
How fast can a private lender fund a loan?
Funding may be possible in as little as 24 hours from a clean, complete scenario, subject to approval, documents, security, legal work and settlement requirements. A first lender's consent or a complex title can add time.
Do private lenders need a valuation?
Many private lenders require a registered valuation at your cost, which can add a week or more. HomeSec doesn't use valuers, so there is no valuation and no valuation fee.
Are private lenders more expensive than banks?
Usually, yes. Private lenders take on scenarios banks decline and fund faster, and pricing reflects that. HomeSec prices each loan on the amount and the security, and every cost is set out in the loan documents before you sign.
Do you lend for home loans or personal loans?
No. HomeSec lends only for genuine business or commercial purposes. For a home loan or personal borrowing, a bank or mortgage adviser is the right place to start.
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 private lender today.
A short scenario conversation can help establish whether property-secured business finance may fit.