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.

​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.

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.

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).

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.

Blossum believes in providing secure investments to our clients. We always ensure that the loan amount does not exceed 75% of the property value and it is secured with a first ranking mortgage registered on the title.

The term of investment depends on the loan being offered. Loans are short-term, the usual minimum being 3 months with the maximum term available up to 1 year. Every loan is different and the terms are always made clear to investors before they make any commitments.

Although Blossum has never suffered any loss of investor capital or interest, it is important to understand that there is risk involved with investing. These risks could involve the borrower defaulting on a payment, or being unable to exit the asset to recover the full amount of capital.

Blossum takes steps to ensure that all funds invested are secure. We do not lend more than 75% of the property value. However, as with any form of investments, there is always an element of risk involved so it is important to understand these risks.