Traditional banks serve millions of Kiwis well. But they're built for standard scenarios—employees with steady pay cheques, straightforward property purchases, and businesses that fit neatly into lending criteria boxes.
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What happens when your situation is solid but doesn't fit the mould?
You're a property developer with a brilliant project that falls outside bank servicing criteria. You're between jobs but have a signed contract starting next month. You've won a major contract but need working capital until payment arrives. Your property needs retrospective consents before banks will touch it.
These aren't risky scenarios—they're just different. And different doesn't work in standardised lending systems.
That's where alternative lending comes in. Not as a last resort, but as a strategic solution for complex, time-sensitive, or non-standard situations that deserve funding on their merits.
This guide walks you through 11 lending scenarios where Luminate Financial Group steps in when traditional banks can't help.
Banks operate under strict regulatory frameworks. They need:
These requirements make perfect sense for their business model. But they create gaps for:
Property developers who need flexible funding structures Business owners with irregular cash flow from contract work Career professionals in transition between roles Portfolio owners needing strategic breathing room Anyone facing urgent deadlines banks can't meet
Alternative lending fills these gaps—not by lowering standards, but by assessing risk differently.
Below is your navigation hub to every lending solution we offer. Each scenario links to a detailed guide with case studies, eligibility criteria, and real-world examples.
| Loan Type | Best For | Typical Term | Learn More |
|---|---|---|---|
| Residential Bridge Loans | Buying before selling, property timing mismatches | 3-12 months | Full Guide |
| Property Development Funding | Projects outside bank servicing criteria | 12-24 months | Full Guide |
| Development Bridge Loans | Funding during property selldown periods | 6-18 months | Full Guide |
| Retrospective Consent Funding | Properties needing code compliance work | 6-24 months | Full Guide |
| Portfolio Refinancing | Multi-property owners needing breathing room | 12-36 months | Full Guide |
| Loan Type | Best For | Typical Term | Learn More |
|---|---|---|---|
| Childcare Business Funding | Leveraging ECE government contracts | 12-24 months | Full Guide |
| Asset Sale Bridging | Cash flow while selling business assets | 3-12 months | Full Guide |
| Contract-Based Working Capital | Irregular payment schedules, large contracts | 6-18 months | Full Guide |
| Non-Bank Refinancing | When existing lenders won't extend | 12-24 months | Full Guide |
| Loan Type | Best For | Typical Term | Learn More |
|---|---|---|---|
| Employment Transition Loans | Between jobs with confirmed new role | 6-12 months | Full Guide |
| Emergency Settlement Funding | Urgent deadlines, expired settlement notices | 1-6 months | Full Guide |
Contact us with your scenario. We'll assess feasibility within hours, not weeks.
We need to know:
If we can help, we'll request:
We move fast because we understand time pressure.
We assess based on:
We structure loans creatively—first mortgages, second mortgages, mezzanine funding, or combinations.
For urgent situations, we can settle in days. Standard settlements take 1-2 weeks.
Total timeline: 1-3 weeks from first contact to funds (faster for emergencies)
| Stage | Luminate | Traditional Bank |
|---|---|---|
| Initial response | Same day | 2-5 days |
| Application processing | 1-3 days | 1-2 weeks |
| Approval decision | 2-5 days | 2-4 weeks |
| Settlement | 3-10 days | 2-4 weeks |
| TOTAL | 1-3 weeks | 6-10 weeks |
Let's be transparent: alternative lending costs more than bank lending. Here's why—and when it makes financial sense.
Speed: We move in days, not months. That requires dedicated assessment resources.
Flexibility: We handle complex scenarios banks systematically decline. Higher risk requires higher returns.
Shorter Terms: Most of our loans are temporary solutions (6-24 months). We're not spreading costs over 25-year mortgages.
Specialised Assessment: Your scenario gets expert analysis, not just automated calculator inputs.
Scenario 1: Time Pressure You'll lose a $100,000 deposit if you can't settle in 7 days. A bank needs 4-6 weeks minimum. Paying 2-3% more in interest for 6 months ($1,500-2,000) vs. losing $100,000? Easy decision.
Scenario 2: Opportunity Cost You're a developer with a project that will generate $500,000 profit, but banks won't fund it because it doesn't fit their criteria. Paying higher interest on a 12-month construction loan costs you perhaps $30,000-50,000 extra. Not funding the project costs you $500,000 in profit.
Scenario 3: Strategic Timing You own a property portfolio. The market is soft right now. Selling under pressure might cost you $200,000 vs. waiting 12-18 months for better conditions. Higher interest costs for that period: $40,000-60,000. Net benefit: $140,000-160,000.
| Fee Type | Purpose | Typical Range |
|---|---|---|
| Interest Rate | Cost of capital | 8-15% p.a. |
| Establishment Fee | Assessment and setup | 1-3% of loan |
| Valuation Fee | Security assessment | $800-3,000 |
| Legal Fees | Documentation | $1,500-5,000 |
| Exit Fee | Early repayment (if applicable) | 0-2% |
Note: Actual costs depend on loan size, term, security quality, and complexity.
We're New Zealand specialists in alternative lending solutions. While banks focus on standard scenarios, we focus on the complex, the urgent, and the non-traditional.
Our approach:
We don't compete with banks. If you fit bank criteria and have time for their process, that's usually your best option. We're here for everything else.
→ Residential bridge loan lets you buy now, sell strategically later
→ Development funding structured to the project's merits, not just calculators
→ Employment transition loan with capitalised interest bridges the gap
→ ECE contract funding treats your government contracts as the solid security they are
→ Contract-based lending funds you through the payment cycle
→ Emergency funding can settle in 3-7 days when you're out of time
→ Consent bridging funds you through the compliance process
→ Non-bank refinancing gives you breathing room or selldown time
Use this decision tree to identify which loan type might suit your situation:
START HERE: What do you need funding for?
↓ Do you need to buy before selling?
Is it a development project?
Does the property need consents/compliance work?
Do you own multiple properties needing refinance?
↓ What's your business type?
Why do you need working capital?
↓ Are you currently employed?
How urgent is your timeline?
Back to Alternative Lending Solutions Guide
For straightforward scenarios with clear security, we can provide indicative approval within 48 hours and formal approval within 3-5 days. Emergency situations can move faster—we've settled loans in 72 hours when necessary.
We primarily lend against NZ property (residential, commercial, development sites, land). We also consider:
Yes, but we assess it differently than banks. We want to understand your credit history in context. Occasional late payments or resolved issues won't automatically disqualify you. We're looking for patterns of meeting obligations and your current capacity to service debt.
Often, yes—but it depends on why they declined. If it's because:
If they declined because of serious credit defaults, insolvency, or fraud—we probably can't help.
Rates typically range from 8-15% per annum, depending on:
We provide exact rates in our formal proposal after assessing your specific situation.
We charge establishment fees (typically 1-3% of the loan amount) which cover assessment, due diligence, valuation, and documentation costs. We're transparent about all fees upfront—no hidden costs.
We've funded loans from $50,000 to $10M+. Maximum loan amount depends on:
For very large loans, we sometimes syndicate with other lenders to spread risk.
Most of our loans have these repayment structures:
Your exit strategy might be:
We focus heavily on exit strategy during assessment because we want you to succeed.
Most of our loans allow early repayment. Some have early repayment fees (typically 1-2%) to cover our cost of capital commitment. We disclose these in your loan agreement.
Communication is key. If you're approaching your loan term and need more time:
We want you to succeed. Extensions are often possible if the security remains solid and you have a credible plan. That said, we're not long-term lenders—our loans are designed as temporary solutions.
Yes, we lend throughout New Zealand. Our head office is based in Auckland, but we assess and fund loans across the country.
Total timeline: 1-3 weeks for standard scenarios, faster for emergencies.
Each of the 11 lending solutions below has a complete guide with:
Click through to the scenario that matches your situation:
Not sure which applies? Contact us—we'll help you identify the right solution.
Every situation is different. While this guide provides frameworks and examples, your specific scenario deserves individual assessment.
We offer no-obligation initial consultations to discuss:
Contact Luminate Financial Group:
📞 Call 0800 333 400
📧 Email askus@luminate.co.nz
🌐 Visit luminate.co.nz
Back to Alternative Lending Solutions Guide
Understanding your lending options is the first step toward solving complex financial challenges. Whether you're navigating property timing issues, business cash flow gaps, or urgent deadlines, Luminate Financial Group specialises in creating funding solutions when traditional banks can't help. Contact us to discuss how our alternative lending expertise can provide the strategic financing your situation requires.