Banks tightening credit? Blossum could fill the gap
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With traditional lenders tightening criteria, specialist funders like Blossum are offering mortgage advisers new tools to support quality borrowers through market transitions
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With fixed-rate loans maturing into higher-interest environments, construction projects are facing funding gaps mid-build, and property investors are finding themselves caught between equity positions that look solid on paper and banks that won’t budge on policy.
For mortgage advisers working with business owners and developers, the question isn’t whether alternative funding exists. It’s whether it can be trusted.
Helen Nguyen, managing director at specialist funder Blossum, has watched this tension play out across hundreds of loan applications. Her firm operates in the space between traditional banks and higher-risk alternative finance, providing property-backed lending through second mortgages and development facilities. The work requires a particular kind of discipline.
Blossum is a New Zealand-based private lender specialising in second mortgages and short-term property finance for borrowers who need fast, reliable funding. We understand that timing is critical, which is why we focus on streamlined assessments, clear communication and rapid credit decisions. Our experienced team works closely with borrowers to structure practical solutions alongside existing bank facilities, helping unlock equity and resolve cash flow challenges quickly. With disciplined risk management, transparent terms and efficient settlement processes, Blossum delivers funding certainty when it matters most – supporting property owners, developers and business operators to move forward without unnecessary delays.
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“We prioritise transparency, accountability and sustainability in our lending practices, which advisers value when placing their clients’ trust with us”
Helen Nguyen,
Blossum
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Published 16 Mar 2026
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“Our objective is to be a trusted long-term partner in New Zealand’s alternative lending ecosystem”
Helen Nguyen,
Blossum
“We work closely with advisers and aggregators to support quality borrowers, typically SME owners, property investors and developers who need fast, flexible and commercially driven funding solutions,” says Helen.
What governance actually means The private credit sector has grown rapidly in recent years around the globe, with the Asia-Pacific one of the fastest-growing regions. In the real estate sector, the rising prominence of private credit is reshaping the funding landscape, providing borrowers with a credible and competitive alternative to traditional bank financing.
Helen points to three non-negotiables when evaluating a private credit partner. The first is governance: clear credit committees, independent oversight and proper compliance frameworks. The second is credit discipline, which means conservative loan-to-value ratios, realistic exit strategies and thorough due diligence. The third is funding certainty, backed by diversified capital sources and proven deployment capacity.
“At Blossum, we operate institutional-grade governance structures and maintain disciplined portfolio controls to ensure long-term reliability,” says Helen.
The emphasis on structure reflects something Helen has observed throughout her career. Private credit attracts capital quickly when markets tighten, but sustaining that capital
Managing risk through transparency The challenge for advisers is distinguishing between lenders that understand credit risk and those that are simply willing to take it. Helen’s view is that the difference shows up in the process.
Advisers should look for lenders that conduct independent valuations and full serviceability assessments, ensure exit strategies are realistic and documented, clearly disclose loan terms and maintain ongoing communication throughout the loan term.
“Blossum works closely with advisers to ensure alignment and protect both client outcomes and professional reputation,” says Helen.
Her firm assesses every deal holistically, considering not just the numbers but the structural and ethical dimensions of the transaction. The approach takes longer than a purely automated credit model would allow, but Helen believes it produces better outcomes.
“At Blossum, every deal is assessed holistically – financially, structurally and ethically,” she says. “We prioritise transparency, accountability and sustainability in our lending practices, which advisers value when placing their clients’ trust with us.”
What the market is showing The deals crossing Blossum’s desk over the past 18 months reflect a market adjusting to tighter credit conditions and higher funding costs. Refinancing pressure has intensified as fixed-rate loans mature, construction funding gaps widen and borrowers increasingly adopt more conservative equity positions.
“In response, we structure loans with conservative leverage, strong covenants and proactive monitoring,” says Helen. “Our focus is on preserving capital while supporting viable projects through periods of market volatility.”
The refinancing wave is particularly notable. Borrowers who locked in historically low fixed rates are now facing materially different market conditions as those loans mature. In many cases, servicing calculations and bank policy requirements have shifted, even where underlying asset values and business performance remain sound.
Construction projects present a different challenge. Senior lenders have tightened presales requirements, loan-to-value thresholds and covenant structures. As a result, developers with strong track records are finding it more difficult to complete projects that may have been financed more readily in previous cycles.
Helen views these conditions as market dislocations rather than systemic failures. The borrowers are not subprime, and the projects are not speculative. Instead, the primary constraint is a contraction in banks’ risk appetite.
The future of specialist lending Private credit is likely to become more important in future as regulatory pressures on banks continue. This is particularly true for the Asia-Pacific region, which lags Europe and the
US in the amount of commercial lending sourced from private credit. The very high proportion of lending in the region that is conducted by banks is almost certain to slip as private credit funding levels increase in line with a maturing market.
Helen also expects the sector to professionalise and become more institutionalised. Expectations around governance and reporting will rise.
“Blossum’s role is to lead this evolution, providing institutional-quality private credit solutions while remaining agile and adviser-focused,” says Helen. “Our objective is to be a trusted long-term partner in New Zealand’s alternative lending ecosystem.”
Private credit share of capital markets growing globally
2023: 11%
2024: 9%
2025 H1: 19%
Source: Knight Frank Research, The Rise of Real Estate Credit in Asia-Pacific – Bridging the Gap (2025)
Bank finance share of credit market highest in Asia-Pacific
Banks' share of total credit market
US: 38%
Europe: 79%
Asia-Pacific: 94%
Source: Knight Frank Research, The Rise of Real Estate Credit in Asia-Pacific – Bridging the Gap (2025)
through cycles requires systems that institutional investors recognise. Blossum also has a not-so-secret advantage when it comes to making sure the t’s are crossed and i’s dotted.
“Being a women-led business brings a strong emphasis on governance, risk management and relationship-driven decision-making,” she explains. “We focus heavily on long-term partnerships rather than transactional outcomes.”
The second-mortgage opportunity Second mortgages carry a reputation problem. The term suggests desperation, last-resort funding or borrowers who couldn’t qualify anywhere else. But Helen argues the product has been misunderstood.
Demand is rising for structured second mortgages with staged drawdowns; short-term bridge facilities with clear refinance pathways; hybrid structures combining mezzanine and second-ranking security; and development-support facilities with milestone-based funding.
It’s also increasingly common for senior lenders to reach their maximum loan-to-value ratio limits, leaving otherwise strong borrowers with funding shortfalls. In these situations, a well-structured second mortgage can provide a top-up facility that enables transactions or projects to proceed without forcing premature asset sales.
“These structures allow advisers to support quality clients through transitional phases while maintaining strong downside protection,” says Helen.
The use cases are specific. A property developer might need 12 months to complete a subdivision before triggering bank finance. A business owner might be consolidating debt ahead of a planned sale. An investor might be restructuring a portfolio after interest rate changes made the original financing model unworkable. In other cases, a borrower may have secured first-mortgage funding but still face a capital gap due to conservative LVR limits.
In each scenario, the borrower isn’t failing. They’re managing timing. Second mortgages, when properly structured, provide the bridge without forcing asset sales at the wrong moment.
The shift she describes is already underway. Institutional capital is flowing into private credit vehicles that meet governance standards. Advisers are becoming more sophisticated in the way they evaluate non-bank lenders. Borrowers are recognising that price matters less than execution certainty when timing is tight.
What emerges isn’t a replacement for banks but a parallel system that serves different needs with different risk appetites. Helen positions Blossum at the point where those two systems intersect: structured enough to be panel-ready, flexible enough to move quickly when opportunities require it.
“Our role is to bridge the gap between mainstream banks and alternative finance, providing certainty of execution, disciplined credit assessment and reliable capital,” says Helen.
In the first half of 2025, private credit fundraising directed towards the global real estate sector reached a share of 19% of total capital market lending, compared to just 9% in 2024 and 11% in 2023, according to Knight Frank Research.
Even so, not all lenders operate with the same rigour. For advisers, this distinction matters.
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Copyright © 1996-2026 KM Business Information NZ
Companies
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Copyright © 1996-2026 KM Business Information NZ
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