What is a "finance company"?
In New Zealand, a finance company is a non-bank lender — it offers loans, often personal loans, vehicle finance or point-of-sale credit, but it does not take everyday deposits or offer transaction accounts the way a registered bank does. Names like Avanti Finance, Instant Finance, MTF Finance and Geneva Finance are examples of finance companies operating in the New Zealand market, alongside banks such as ANZ, BNZ, ASB, Westpac and Kiwibank that also offer personal loans.
How finance companies are regulated
Finance companies lending to consumers must be registered on the Financial Service Providers Register (FSPR) and belong to an approved dispute resolution scheme (such as Financial Services Complaints Limited or the Banking Ombudsman Scheme, depending on the lender). Their consumer lending is governed by the Credit Contracts and Consumer Finance Act (CCCFA), which sets responsible lending obligations — including affordability checks and clear disclosure of fees and interest. Since 1 July 2026, the Financial Markets Authority (FMA) took over enforcement of the CCCFA from the Commerce Commission, consolidating consumer credit conduct regulation under one regulator.
Why borrowers use a finance company instead of a bank
Finance companies typically assess applications more flexibly than the major banks — useful if you're self-employed, have a shorter credit history, or a bank has already declined you. They also tend to have faster, fully online application and decision processes. The trade-off is usually a higher interest rate than a bank would offer a borrower with an excellent credit file, which is why it pays to compare more than one option rather than applying with the first lender you find.
How to check a finance company before you apply
- Search the lender's legal name on the Financial Service Providers Register to confirm it is actively registered.
- Check which dispute resolution scheme it belongs to — a legitimate lender will state this clearly, usually in its footer or terms.
- Read the full loan contract, not just the headline rate — ask for the total cost of the loan including all fees before signing.
- Be wary of any lender that guarantees approval before checking your income or credit history; the CCCFA specifically requires an affordability assessment.
Compare real finance company and bank offers
CoolFinance NZ lists both finance companies and banks side by side so you can compare like for like. See our reviews of Avanti Finance, Instant Finance and MTF Finance, or browse all personal loans and online loans to compare rates and terms across the whole market.