“Non-bank” covers a lot of ground. It includes century-old building societies and last year’s fintech; a Christchurch family office lending against a commercial building and a nationwide finance company funding vehicles. If you’re looking beyond your bank, a simple map helps you know which part of the market to approach for what.
How big is non-bank lending in New Zealand?
Small in share, significant in effect. The Reserve Bank reports that non-bank lending institutions account for just under 3% of intermediated credit. As at March 2024 their lending totalled around $23 billion, including roughly $7 billion of non-property business lending and $7 billion of consumer lending. Much of the rest of the financial system’s business lending sits with the registered banks.
The Reserve Bank’s May 2026 Financial Stability Report describes non-bank sources such as wholesale-funded lenders, private credit funds and fintechs as a smaller part of the SME finance market, tending to focus on niches such as equipment finance.
The main categories
1. Non-bank deposit takers (NBDTs)
Finance companies, building societies and credit unions that take deposits from the public. They’re licensed and supervised by the Reserve Bank. Since 1 July 2025, eligible deposits with licensed deposit takers, including these, have been covered by the Depositor Compensation Scheme up to $100,000 per depositor per institution. The Reserve Bank noted in 2026 that finance companies saw notable deposit growth after the scheme began, helping them compete.
What they lend for: a mix of property, business, vehicle and consumer lending, varying by institution.
2. Non-deposit-taking finance companies
Lenders funded by shareholders, investors or wholesale facilities rather than public deposits. The Reserve Bank doesn’t prudentially supervise them, though general law, including fair trading and anti-money-laundering obligations, applies.
What they lend for: equipment and vehicle finance, invoice finance, unsecured business loans, property-secured loans.
3. Private and fund-based property lenders
Individuals, family offices, syndicates and managed funds lending against registered mortgages. Often accessed through lawyers, brokers and specialist intermediaries.
What they lend for: short to medium term property-secured loans for business, development and bridging purposes, including second mortgages.
4. Fintech and data-driven lenders
Online lenders that assess businesses using live bank-statement or accounting-software data rather than annual accounts.
What they lend for: unsecured business loans, lines of credit, revenue-based finance.
5. Platforms: peer-to-peer and crowdfunding
Licensed by the Financial Markets Authority as peer-to-peer lending or crowdfunding service providers. They connect borrowers or issuers with many investors. Our guide to crowdfunding and P2P explains how they work.
6. Trade and supplier credit
Not usually thought of as “lending”, but supplier terms, trade accounts and business BNPL are credit, and for many small businesses they’re the largest source of short-term funding.
How is business lending regulated?
Briefly, and without the lecture:
- Deposit takers are licensed and supervised by the Reserve Bank.
- Consumer credit (personal, domestic or household purposes) falls under the Credit Contracts and Consumer Finance Act. Responsibility for the CCCFA moved from the Commerce Commission to the Financial Markets Authority on 1 July 2026. Business-purpose lending generally sits outside those consumer rules.
- Platforms are licensed by the FMA.
- Security over land is registered on the title; security over other assets is registered on the PPSR.
- All lenders are subject to anti-money-laundering rules, the Fair Trading Act and privacy law.
Who serves whom?
| Your need | Most active part of the market |
|---|---|
| Fast, property-secured business loan | Private lenders, fund-based lenders, some finance companies |
| Unsecured working capital | Fintech and finance-company lenders |
| Vehicles and equipment | Finance companies (asset finance) |
| Waiting on customer invoices | Invoice finance specialists |
| Growth capital from many investors | Crowdfunding platforms |
| Fixed loan from pooled investors | Peer-to-peer platforms |
What’s changing?
Three things are worth watching in 2026:
- Competition for deposits. The Depositor Compensation Scheme has helped smaller deposit takers attract funding, which may translate into more lending competition.
- SME lending transparency. The Reserve Bank has signalled it wants more transparency in bank lending to small and medium businesses, which could sharpen comparison over time.
- Capital markets reform. Proposals under consultation in 2026 would lift the caps on crowdfunding and peer-to-peer raises, which could widen those channels.
A note on choosing within each category
Within any category, lenders differ in appetite, speed and pricing. Rather than comparing brand names, compare on what matters for your situation: how quickly they can realistically settle, what security they take, how they treat credit history, and what early repayment costs.
How to use this map
Start with what you have (property, steady turnover, invoices, equipment, a loyal customer base) and match it to the part of the market built to lend against it. The alternatives matrix does exactly that across sixteen options.
We arrange property-secured business loans from $20,000 to $1m and unsecured loans and lines of credit through a panel of non-bank and private lending partners. We don’t promote other providers by name; we focus on finding the right fit for your situation.