Debt Advisory vs Going Direct to Your Bank: Why Independence Matters

When a property developer or investor needs funding, the instinct is usually to call their existing bank. The relationship is established, the process is familiar, and there's comfort in continuity. But familiarity comes at a cost — and that cost is often measured in basis points, covenant terms, and missed alternatives.

An independent debt adviser's value isn't in having better relationships than your bank. It's in having relationships with every lender in the market — and knowing which ones are actively lending to your asset class, at what terms, and on what timeline.

What a debt adviser actually does

The role begins well before lender engagement. A good adviser assesses your capital stack, stress-tests your assumptions, identifies the optimal structure — senior debt, mezzanine, equity — and then goes to market with a properly prepared information memorandum. They run a competitive process, manage lender communication, and negotiate terms with your interests, not a lender's, as the priority.

That last point matters. Your bank's relationship manager is employed by the bank. An independent adviser is engaged by you.

The NZ market in 2026

The New Zealand debt market has diversified significantly. Non-bank lenders, private credit funds, and offshore institutional lenders now compete actively alongside the major banks — often with faster credit decisions, more flexible structures, and competitive pricing on certain asset classes. Property developers who accessed only their existing bank in the past two years left money on the table.

When to engage

The best outcomes come from early engagement — before the structure is set, before heads of agreement are signed, and before the project timeline is locked. Engaging a debt adviser after you've already committed to terms narrows options significantly.