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Invest in Business Property Loans

Earn competitive returns of 5.0%p.a. by lending to Kiwis who are seeking funding for small developments or property investments primarily for residential property.

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Earning great returns has never been easier

Our unique peer-to-peer Business Property Loan is for credit-worthy businesses who are borrowing to use property as an investment themselves. These loans are all secured by first registered mortgages primarily over residential property with a maximum of 80% LVR.

  • Earn 5.0%p.a. floating interest returns
  • Regular monthly or fortnightly interest-only repayments
  • Secondary market gives the opportunity to get your money out early
  • Our Reserve Fund helps protect against any missed payments

Current market interest rate for Business Property Loans

2 year net rate
T&Cs apply. For more information on how our rates work, have a read of our Investor Booklet.

Why choose to invest in a Business Property Loan?

Great returns

Letting your money work hard for you has never been easier. Receive regular repayments, at the interest rate shown above.

Our Reserve Fund lowers risk for investors

Our Reserve Fund helps protect against missed borrower repayments and defaults, provided there are sufficient funds available. Find out how it works here.

The power to get your money out early

The Secondary Market provides Investors the opportunity to sell an investment and get their money out early. Find out more here.

From Kiwis to other Kiwis

Investing in our peer-to-peer Home Loans means your money is staying on NZ shores and you're helping out other Kiwis. Win win.

We do our due diligence

Our credit policy is tight with no high LVR lending, no poor servicing capacity, and definitely no cowboy property developers.

Manage your investment anywhere, any time

We have a fast, easy, online registration process and a mobile app to manage your ongoing investments.

Funds currently available to the business property loans reserve fund1, 2


Funds currently available to the Reserve Fund for Business Property Loans

1Our number one priority is looking after your invested money. One of the main ways we do this is through our Reserve Fund. Find out about how it works here
2The Reserve Fund for Home Loans includes cash on hand and an overdraft facility of $100,000 provided by Squirrel Money Limited supported by a bank guarantee

Thinking about investing?

Our Investor Booklet has everything you need to know. In here you can read up about how we look after your money and exactly how Loan Shield works, how we carefully select our borrowers, everything you want to know about how peer-to-peer works and how we manage risk.

The risk and return

It's important to remember that no investment comes without some risk. The interest you earn is also indicative of the potential risk for the type of investment you choose.

For this type of loan we only lend to credit worthy business owners with the loan secured by a first registered mortgage, primarily over residential property. We also ensure no lending is done above 80% LVR, the property is generally in metro locations, and the owner has a clear exit plan. This image shows each of our investment types relative to each other. Jump over here if you want to find out more about the potential risks with investing.

All Squirrel peer-to-peer investment products shown on a risk scale
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Investing in other like-minded Kiwis

People who take on Business Property Loans are business-minded, savvy people who are building their own wealth through property.

Investments in this type of loan provide funding for property investors, small-scale developers or builders looking for lending up to $1m per security and $2m total lending. This is used to fund a property purchase/development or pre-development funding of a property purchase. All Business Property Loans are secured by first registered mortgages primarily over residential property in metro locations.

The nitty gritty on our peer-to-peer Business Property Loans

This type of lending is for property owners who are using the funds primarily for business purposes. The most common purpose is small developments and investment properties.

The loans are short-term, typically about 12 months. They are primarily secured against residential property and borrowers will have a clear exit strategy. They are generally within metro locations (urban areas with a population over 150,000).

Loan features and terms:

  • Maximum loan size is $1m per security, $2m in total
  • Maximum term is 2 years
  • Maximum LVR (loan-to-value ratio) is 70% of registered valuation, or up to 80% of sale price if the property is pre-sold
  • Interest-only monthly repayments
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We've answered a few common questions below. If you're after more information, we recommend downloading our Investor Booklet or giving our friendly team a call on 0800 21 22 33.

Who can invest with Squirrel P2P?

We only allow NZ tax residents over 18 years of age to invest through our platform.

How much interest can I expect to receive on a Business Property Loan investment?

The Prevailing Interest Rate for Business Property Loan investments is shown above and is variable (floating). The interest rate you are presented with when creating your investment order on the Platform is the gross interest rate you will receive on your investment after any fees are deducted but before Resident Withholding Tax (RWT) is deducted.

What is the Prevailing Interest Rate?

The Prevailing Interest Rate is the current Investor interest rate applicable to an Investment Class and Investment Term.  It is set by us from time to time after consideration of the current market interest rates and Platform fees, levies and margins. The Prevailing Interest Rate will be displayed when an Investor places an Investment Order. Investors with open Investment Orders or live investments will receive at least five Business Days’ notice before a change to the Prevailing Interest Rate is applied.

What is the minimum investment?

The minimum amount you can specify when creating an Investment Order is $500. The maximum you can invest through our platform is $2 million. So, you’re free to invest anywhere within that range.

How safe is my money?

Investor funds are held in an Independent Trust and do not form part of Squirrel’s business or assets. We rigorously check our Borrowers to ensure as best we can that they’re creditworthy. We have Reserve Funds to help cover expected credit losses and insurance to protect against acts of cyber-crime and fraud. In a nutshell, although we work hard to look after your money, we cannot guarantee your investment will be entirely protected in event of one or more unforeseen events.

Get started with your investment

*Squirrel investment promotion details: 
We are offering a one-off promotion payment of $500 for every $50,000 you have invested in Home Loans and/or Business Property Loans (in aggregate) on our peer-to-peer platform as at 30 June 2020. Before making any investment, you will need to read our investor documents, and ensure you understand the risks.

Terms and conditions
Eligibility: This promotion is open to retail investors on our peer-to-peer platform that have active investments totalling at least $50,000 in the Squirrel Home Loan and/or Business Property Loan investment classes (in aggregate) as at midnight on 30 June 2020 (Promotion End Date). Eligible investors will receive $500 for every $50,000 currently invested as at that date. For example: if an investor has $80,000 of active investments in the Home Loan investment class and $40,000 of active investments in the Business Property Loan investment class i.e. $120,000 invested in total, they will qualify for a promotional payment of $1,000 (2 x $500). This promotion is open to both new and existing Squirrel retail peer-to-peer investors. Only investments into the Home Loan and Business Property Loan investment classes will count towards the $50,000 investment threshold.  Investments into the Personal Loan investment class do not count towards the investment threshold used for this promotion. Investments can be made throughout the promotion period and are not required to be in one lump sum – they must however be active investments as at midnight on the Promotion End Date. Un-matched investment orders are not eligible for inclusion in this promotion. Promotional payments will be deposited into the investors on-call account on Squirrel’s peer-to-peer platform on 31 July 2020 and may be invested or withdrawn at any point following payment. Squirrel’s normal  Terms & Conditions apply to all investments made during the promotion period.