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Invest with Blossum for 10% - 20% p.a* Fixed Returns Interest Paid Monthly.
* All returns are pre-tax – Wholesale and Eligible Investors Only
Blossum offers the highest return on investment
Blossum aims to provide investors with high yielding commercial, asset and property loan opportunities while minimising risk and ensuring the safety of capital repayment.
Our management team and advisors actively assist investors in making informed decisions to maximise returns while mitigating risk reduction and capital safety through stringent credit analysis.
Blossum is well positioned to deliver strong net returns for investors in the debt security market.
*Blossum does not operate in the personal consumer or payday lending market and therefore is not subject to the requirements of the CCCFA.
Here Are A Few
Reasons Why You Will
Love Investing With Blossum
Low Barrier to Entry
We make the concept of Debt Investing easy for you to understand. Investment starts from NZD$10,000 with the ability to re-invest quickly with monthly repayment for most products. Options to invest up to 60 months
Looking Out to Protect Your Interests
We advocate ‘Skin in The Game’ philosophy by investing into the notes put up on our platform alongside our investors. We are in this with you.
Seamless Investor Experience
Smooth onboarding process from start to finish.
Investing With Blossum in 5 Steps
Register For An
Account
Create an investor account in minutes and verify your email address.
Fill In Your Information
Complete the sign-up form or fill in your information manually.
.
Once your application is approved, schedule a 30 minute onboarding call with us.
.
Make an initial deposit of NZD $10,000 to activate your account.
.
Access on investment opportunity and start investing.
First Mortgage Investment
10% – 11% Fixed Interest p.a, minimum investment $100,000
Blossum offers a range of value-added opportunities for investors that are unique in the market. Our combination of high yield and security make Blossum a financial product that stands out amongst the competition.
Our First Mortgage funds arebacked by first mortgages over land and buildings with relatively conservative loan to valuation ratios (LVR) across diversified property sectors and markets and spread across New Zealand.
We don’t lend more than 60% of the value of the property asset which the loan is secured against. Blossum registers a first ranking mortgage against the borrower’s property asset every time a loan is advanced.
Second Mortgage Investment
13% fixed interest p.a, minimum investment $100,000
Blossum offers a range of value-added opportunities for investors that are unique in the market. Our combination of high yield and security make Blossum a financial product that stands out amongst the competition.
Our Second Mortgage funds are backed by second mortgages over land and buildings with relatively conservative loan to valuation ratios (LVR) across diversified property sectors and markets and spread across New Zealand. We don’t lend more than 70% of the value of the property asset which the loan is secured against.
Blossum registers a second ranking mortgage against the borrower’s property asset every time a loan is advanced
Business Term Investment
15% p.a, minimum investment $25,000
Blossum offers a range of value-added opportunities for investors that are unique in the market. Our combination of high yield and security make Blossum a financial product that stands out amongst the competition.
Our Business Term Investment make investments, in the form of loans and other debt products, which will be provided to New Zealand businesses. This will include businesses which are either New Zealand based, owned or domiciled and their various holding, parent or subsidiary companies. Loan investments are contracted agreements which generate interest.
The fund is designed to deliver stable returns by diversifying its iinvestments and the income sources these create across credit market segments, borrowers, industries and origination channels. The risk of capital impairment or loss will be mitigated by targetinginvestment in senior-secured loans, which will comprise at least 80% of NAV at the time any investment in a new asset is made (excluding, for the avoidance of doubt, equity investments acquired as a result of a restructuring or insolvency process).
Blossum registers a first ranking security against the company and its asset every time a loan is advanced.
Investor Advantages With Blossum
01
Highest Returns on your Investment
Blossum offers the highest returns on investment range from 11% to 20% compared to other available options in the market while mitigate the default risk and its repayment ability.
02
Auto Invest
Don’t have the time to view and decide on specific loans? You can set lending parameters via the Platform, which will auto-invest your capital anytime a new offering matches your criteria.
03
Dedicated Investment Managers
Not exactly what to invest in or understand the risk parameters? We have dedicated Investment Managers to assist you with any questions or deployment of capital, at no additional cost.
04
Secondary Market
Should you wish to exit your shares in any debt security, you can liquidate these positions at any time via our market to other Blossum Investors.
Recently Funded Opportunities
Second Mortgage Investment
- Security Description: A 2,170m2 freehold section with a 180m2 building
- Loan Request: $550,000
- Value (Land Value): $7,900,000
- Adopt 30% discount on Land Value as Conservative Value: $5,530,000
- LVR (based on discounted value): 60%
- Rate: 13.00%p.a. paid monthly in arrears
- Term: 12 months
- Purpose: Equity release to settle a new property
- Exit Strategy: Sell the security property
Business Term Investment:
Loan Opportunity 1: Refinance existing debt – Trucking Company
- Loan Request: $235,000
- EBITDA: $789,570 (FY2024)
- Security: GSA on business and unlimited personal guarantee
- Rate: 15.00%p.a. interest paid monthly in arrears
- Term: 12 months
- LVR: 45%
- Risk Ratio: Low Risk
- Purpose of funds: Refinance their existing lender debt and working capital as the business just secured a $1M contract with Mainfreight
- Exit Strategy: Using the company profit to repay partial or full loan amount and refinance with the main bank if needed or selling the business to repay the loan
Business Term Investment:
Loan Opportunity 2: Funding for business purchase
- Loan Request: $50,000
- Security: GSA on business and unlimited personal guarantee.
- Rate: 15.00%p.a. interest paid monthly in arrears
- Term: 12 months
- LVR: 30%
- Risk Ratio: Low Risk
- Purpose of funds: Upfront stock investment (as the stock levels are very low)
- Exit Strategy: Using the company profit to repay partial or full loan amount and refinance with the main bank if needed or selling the business to repay the loan.
Minimise Your Risk
All investments bear risks. Diversification is one of the ways you can minimise your risk.
Maximising Investments
Reinvest using your capital gains to fund other SMEs while maximizing your returns.
Start Investing Today with Blossum
Frequently Asked Questions
What does debt investment lending mean?
Debt investment lending is a way to raise money, awareness, and support for a project or a business from the people around you. It’s all about how you persuade each individual to give you a small donation or capital for your project or idea.
Debt investment lending allows people with great ideas but lack of financing to raise the money they need to turn their initiatives into reality. In return, the donors and investors will get rewarded.
Why do companies borrow from Blossum?
Many SMEs do not have many assets to pledge, but are very cash flow positive. Unfortunately for these companies, or if they’ve already reached the maximum limit on their bank facilities with no more assets to pledge, securing funding can be a difficult ride.
Are the interests earned taxable?
All returns on investments with Blossum as subject to resident withholding tax. This is applicable for NZ tax residents. Foreigner investors are subject to non-resident withholding tax. Find out more here.
Making a Deposit
If this is your first deposit, the minimum amount to transfer is NZD$10,000 and subsequent deposits can be of any amount. We recommend maintaining a balance of at least $10,000 to ensure sufficient funds to invest in our note volumes.
Start investing: A beginner's guide
Once your investment account has been activated, you can begin to invest in the various notes that are available on our platform.
Set up auto-invest:
Setting up auto-invest enables you to automatically invest into notes that you are comfortable with.
Our credit assessment explained
Credit assessments are based on the SME’s and buyer’s (in case of invoice financing) ability and willingness to pay.
For assessing ability, Blossum looks at a number of financial tools to evaluate the credit worthiness of an SME. Much of the evaluation relies on analyzing the SME’s P&L, balance sheet, cash flow statements, inventory turnover rates, debt structure, management performance, and market conditions with the context of the note quantum and tenor.
To assess credit worthiness, Blossum looks into the history of trustworthiness, moral character, and continued performance that demonstrate a debtor’s ability to repay. Mainly via the SME’s and director’s past credit obligations, repayment records and litigation (if any).
What is auto-invest?
Note Selection
Our algorithm works by first running through all the filters to see which investors have the settings that match the note. Then it will check the total amount of all investors that are on auto-invest. However, the entire note amount will not be open for auto-invest. A percentage of the note amount (between 10%+) will be left open for crowdfunding.
Available Balance
When your available balance is lower than the minimum auto investment amount you have specified, you can still be auto-invested if you have selected to exhaust your balance. However, to ensure that you can participate in as many notes as possible, do maintain a healthy available balance.
E.g. of selecting to exhaust your balance: If you specified a minimum auto-investment amount of $10,000 but your available balance is $8,000, you will be able to exhaust your balance of $8,000 if your balance falls within the minimum and maximum investment limits of the note.
Pro-rata
If the total auto-investments are more than the amount we are opening for auto-invest, the system will pro-rate it downwards to the nearest $10. However, the lowest the system will pro-rate your auto-investment amount to is the minimum amount you stated when selecting your range.
Priority
If there really are too many investors on auto-invest and the note amount is not enough to accommodate all investors, the system will prioritise the investors who were not auto invested recently. This is to be fair to our investors, to give everyone an opportunity to invest however much they have deposited with us.
Fund another opportunity
However, not getting auto-invested into the note does not mean you cannot invest. You can always participate when the note is open for funding! Similarly, if you wish to top-up the amount that you were auto-invested, you can do so during the funding round!
What happens in the event of early repayment?
If the borrower repays early, Blossum will return all of the investor’s funds plus any accrued interest. The full amount is paid back to the investor as soon as we receive it from the borrower. You will then be able to redeploy funds into another investment if you choose to do so.
Diversifying your portfolio
Defaults are inevitable in debt investment lending. Our thorough credit assessment is one way we reduce the risk of defaults.
The simple interest rates on each listing is an indicator of the credit risk of the SME. The higher the interest, the higher the credit risk, which is summarised in the fact sheet that is published along with each listing.
There are various strategies that our investors have used to diversify.
Minimum amount into each and every note
Some investors prefer to invest the minimum amount possible into each and every single note. This way, even if one note were to default, the principal amount lost would not impact the entire portfolio heavily.
E.g. $100 minimum into 50 notes at average 12% p.a. yields you $600 in gross returns. Assuming a 3% default rate on principal, your portfolio would still yield you $450 in gross returns.
Higher amount into lower yield and lower amount into higher yield.
Some investors prefer to invest more into lower yield notes, since they are assessed to be stronger SMEs and smaller amounts into the higher yield notes.
A stronger SME would be charged between 11% – 15% in simple interest, while the ones assessed to have higher credit risk will pay between 12% – 35% p.a.
Importance of reinvesting repayments
The power of debt investment lending is truly demonstrated when investors reinvest their repayments. Since all the listings on our platform have note tenors between 1 to 12 months, investors receive repayments in monthly instalments or bullet repayments within 4 months. This gives you the opportunity to further compound your returns by reinvesting the repayments into new notes, generating additional returns on both your principal and interests earned.
