Private Credit in NZ: What Borrowers Need to Understand Before Approaching a Lender

Private credit has moved from niche alternative to mainstream capital source for New Zealand borrowers over the past five years. Tighter bank credit policies, faster decision timelines, and more flexible structuring have made non-bank lenders the first call for many property developers and business owners — not the last resort.

But private lenders are not banks. They assess risk differently, price differently, and have different expectations of their borrowers. Understanding this before you approach a private credit provider materially improves your chances of a successful outcome.

What private lenders care about most

Security is paramount. Private credit lenders will typically require first or second ranking security over real property or business assets, and they will conduct a thorough valuation before committing. The quality of the security — its liquidity, the LVR, the nature of the asset — is as important as the borrower's financial history.

Exit strategy matters as much as entry. Private credit is almost always short to medium term. A credible, well-documented exit — refinance to a bank, asset sale, business liquidity event — is a non-negotiable part of any strong credit application.

Documentation quality signals credibility. A borrower who arrives with clear financials, a coherent capital plan, and a realistic project timeline gets faster credit decisions and better terms than one who is figuring it out during the process.

Capital Connect's approach

Capital Connect, Fox Partnerships Group's private credit fund, applies these principles to every lending decision across its portfolio. Asset-backed, security-registered, and governance-driven — with independent investment committee oversight on every facility.