It says the new rates allow it to pass on to investors the cost of the guarantee.
Viaduct chief executive Nick Wevers is still unsure about the reason Treasury withdrew the guarantee. He says there has been some discussion, however he still doesn't understand the reason and has made up his own mind why it happened.
"We believe a part of the reason Treasury withdrew the guarantee was because it didn't like the idea of a small finance company becoming a large one using the guarantee to do so. Furthermore, we think Treasury has misunderstood our business model."
Currently Viaduct has around $14 million in deposits and is lending in two key markets. One is for working capital to businesses, and the other is property lending. He says there are opportunities here as banks aren't particularly willing to lend at present.
"Property lending is in the form of either purchasing existing loans from other lenders at a discount, new loans over assets at current market valuations or loans where the company can enjoy an enhance security position."
Viaduct isn't lending to property developers as it is too hard to put the deals together in this market, he says.
Wevers describes the company as having a sound business model, a good balance sheet and a solid management team.
Wevers took over Priority Finance last year, the business had $3.4 million worth of debentures on issue at September 30 last year.
Investements made when the guarantee was in place are still covered by the Crown.
Viaduct's rates range from 4% on call through to 10.45% for 18 month terms. See their one to five year rates here
Earlier story: Viaduct Capital loses Crown guarantee
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