Guides
Guides to property-backed business lending
Straight answers to the questions that come up most often, written for New Zealand lenders and business borrowers.
For lenders
How peer-to-peer lending works for New Zealand lenders
Peer-to-peer lending lets registered lenders review individual lending opportunities and choose whether to participate in each one. A licensed peer-to…
Is peer-to-peer lending safe in New Zealand?
Peer-to-peer lending is not risk-free. The real risks are borrower default, delayed payments, and recovery costs and delays that can reduce or elimina…
How is peer-to-peer lending interest taxed in New Zealand?
Interest earned through peer-to-peer lending is generally treated as taxable income in New Zealand, and platforms often deduct resident withholding ta…
How to assess a peer-to-peer lending opportunity
Assessing a lending opportunity means working through the offer material systematically: who the borrower is and why they need funding, what security …
First-ranking vs second-ranking mortgage investment
For a lender, ranking determines the order in which recovery proceeds are applied if a borrower defaults. A first-ranking mortgage is paid before any …
Ways to get property-related investment exposure in New Zealand
Getting property-related exposure without buying property directly generally means one of a few routes: peer-to-peer property lending, listed property…
For borrowers
How property-backed business finance works in New Zealand
Property-backed business finance is business-purpose lending where the loan is supported by registered security over property. The security gives a le…
Short-term and bridging finance for a business purpose
Business bridging finance is short-term funding used for a genuine business purpose while a defined exit, typically a sale, refinance or settlement, i…
Second mortgage finance for a business purpose
Second mortgage business finance NZ businesses use is lending secured by a mortgage that ranks behind an existing first mortgage on the same property.…
How peer-to-peer lending compares with a bank business loan
A bank business loan and a peer-to-peer facility can fund the same purpose, such as working capital, a property purchase, or bridging a settlement, bu…
Can a business refinance using property security?
Yes. A New Zealand business can refinance existing facilities using property security, provided the funding is for a genuine business purpose. The app…
Understanding security
What property security helps with, and what risk remains
Property security gives a lender a defined position to pursue if a borrower defaults, which may support recovery. It does not guarantee repayment, the…
What loan-to-value ratio is and why it matters
Loan-to-value ratio (LVR) is the loan amount expressed as a percentage of the assessed value of the property securing it. A lower LVR means more headr…
What first-ranking mortgage security means
A first-ranking mortgage is security over a property that ranks ahead of other registered mortgages on that title. In a recovery, proceeds are applied…
Unfamiliar with a term? See the lending glossary.
Last reviewed: 7 September 2026