It’s straightforward: you (as a wholesale investor) provide funding to a business or property borrower and earn interest for a set period. Each offer is a specific loan with a clear interest rate (often 10–13% p.a.) and a defined term—and it’s secured by the borrower’s property (usually via a first-ranking mortgage). Blossum is the peer-to-peer platform matching borrowers seeking finance with investors who can fund them.

Borrowers seek funding from Blossum for short-term, flexible funding (e.g., bridging or working capital) when timing, structure, or security requirements don’t fit standard bank lending. Each loan is assessed on creditworthiness and security, with terms set out in the loan agreement.

Yes. Interest paid to NZ-resident investors is generally subject to Resident Withholding Tax (RWT). Non-resident investors are generally subject to Non-Resident Withholding Tax (NRWT) or, where applicable, Approved Issuer Levy (AIL). We deduct and remit withholding tax as required by law. (This isn’t tax advice; please seek advice for your situation.). Find out more here.

We look at a borrower’s ability and willingness to repay, including (as relevant) cash flow, leverage and liquidity, security values/LVR, sector conditions, and exit strategy. We also review credit history of the borrower and key principals (e.g., defaults, judgments, insolvency, litigation) and complete standard KYC/AML checks. 

If a borrower repays early, we pass through principal and any interest accrued up to the repayment date, as set out in the loan agreement. Early repayment can reduce the total interest you receive compared with holding to maturity. You can redeploy funds into another available opportunity if you choose.

Loans are secured, typically by a first-ranking or second-ranking mortgages over the borrower’s property and/or other acceptable security. We generally target a maximum LVR of up to 75%, subject to the specifics of each loan. Security and ranking are detailed in each investment memorandum.

Terms are loan-specific and usually 6–12 months. The contracted maturity date is set out in the loan agreement. Extensions or early repayments can occur in line with the agreement, which may change the timing of interest and principal.

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.