Before you choose a lender
Questions to ask a business lender before you commit.
Getting business finance should be easy. Ask these questions, get straight answers, and have them backed up in writing.
The checklist
Nine questions worth asking every lender.
Use these with any lender you are considering. Here is what to listen for, and how HomeSec answers each one.
- 1
What if I want to repay early?
What to listen for: A clear written answer on whether early repayment is allowed and what it costs. Some loans lock you in or charge a penalty.
HomeSec: HomeSec loans can be repaid early at any time. Your offer sets out the costs in writing before you decide.
- 2
What if I can't repay when the loan is due and need more time?
What to listen for: Whether the lender can extend, how quickly and on what terms. Plans change, so a rigid loan can become a problem fast.
HomeSec: HomeSec loans are fully flexible and open term, so you can keep the loan while a refinance, sale or other exit comes together.
- 3
How will the loan costs be treated for tax?
What to listen for: An answer from your accountant, not the lender. Business-purpose finance costs are often treated differently from personal borrowing.
HomeSec: HomeSec lends for genuine business purposes only. Ask your accountant how the costs apply to your business.
- 4
Do I have to pay thousands of dollars up front before I even get a loan?
What to listen for: Any request for large fees before there is a written approval. Lenders who take big fees up front and rarely fund are a known trap.
HomeSec: There is no cost to apply. Any assessment fee is only requested after a conditional approval, and it is explained in writing first.
- 5
Do you need a slow, expensive formal valuation?
What to listen for: Whether a sworn valuation is required before an answer, how long it takes and who pays for it.
HomeSec: No formal valuation is needed to start. We use a quick property assessment, so you get an answer sooner.
- 6
Will you need to inspect my property?
What to listen for: What the lender needs to see, and when. Knowing this early avoids surprises close to settlement.
HomeSec: We explain exactly what is needed for your scenario at the start, so there are no late surprises.
- 7
How fast can you honestly fund this loan?
What to listen for: A realistic timeframe for your scenario, not a headline. If you need funds tomorrow, a two-week process is no use.
HomeSec: Funding may be possible in as little as 24 hours, subject to approval, documents, security, legal work and settlement.
- 8
Do I need to provide full financials?
What to listen for: Whether the lender needs years of accounts and cashflow records before it can give you an answer.
HomeSec: No cashflow records or tax returns are needed to start. HomeSec is a property-secured lender, not a cashflow lender.
- 9
Does bad credit, or being behind on my mortgage, rule me out?
What to listen for: Whether the lender looks at the whole scenario or simply declines on a credit report.
HomeSec: Credit checks are not the deciding factor for us. Bad credit history, arrears or tax debts are generally not an issue when there is suitable property security and a clear business purpose.
Compare properly
The cheapest rate is not always the cheapest loan.
A low headline rate can hide monthly fees, large upfront costs, early repayment penalties and a slow settlement that costs you the opportunity you were borrowing for. Compare the total cost, the flexibility and the timing together.
Read more on why a cheap rate can be misleading, how to spot a fake lender and avoid upfront fee traps, and how HomeSec's process works.
Common questions
About choosing a business lender.
Why should I get a lender's answers in writing?
Verbal promises are easy to make and hard to rely on. Written answers on fees, early repayment, extensions and timing let you compare lenders properly and hold them to what they said.
Is there a cost to apply with HomeSec?
No. There is no cost to apply. If HomeSec issues a conditional approval, any assessment fee is explained in writing before you decide whether to proceed.
How much can I borrow from HomeSec?
HomeSec considers business loans from $20,000–$1,000,000 for genuine business purposes, secured against New Zealand property.
Do I need a valuation or financials to apply?
No formal valuation or cashflow records are needed for the initial assessment. Further information may be requested as the scenario progresses.
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
Ask us anything. Get a straight answer.
Tell us about your scenario. Our team will come back quickly with a clear yes or no, and what we would need to see.