asset finance New Zealand

Asset based finance is a way of providing working capital and loans that are secured by accounts receivable, inventory, machinery, tools and / or your real estate. This class of investment is fantastic for startup companies, refinancing existing loans, financing growth, mergers and acquisitions, and management buy-outs (MBOs) and buy-ins (MBIs).

asset finance New Zealand

A case of asset-based finance would be purchase order financing which may be alluring to a company that has stretched its credit restrictions with vendors and has reached its lending capacity at the bank. The inability to finance raw materials to fill all orders would leave a company operating under capacity. The asset-based lender finances the acquisition of the raw material, and the purchase orders are then assigned to the lender. After the orders are filled, payment is made to the lender, and the lender then deducts its costs and fees and remits the surplus to the business. The weakness of this type of financing, however, is the high interest typically charged - which can be as high as prime plus 10per cent.

asset finance New Zealand

We like to acquire a more commercial view of the expression "assets". So our bankers may be in agreement that your tangible and intangible assets can permit you considerable borrowing power for your company.

Even if your present bank thinks another way.

Because every corporation has a unique set of issues, solutions are based on a mixture of asset based finance, cash flow or equity finance. Typically, it would be for raising finance between $2m and $30m. And solutions are provided on both a revolving and fixed term basis.

What's in it for me then?

Continuity of funding is guaranteed.
You maintain command of your business, as that's what you do best.
We contour the facility to suit. Since that's what we do best.

asset finance New Zealand

Am I eligible?

Asset based finance could fit:

Businesses that actually need some ready cash. Conceivably you are considering a management buy-out, a buy-in, streamlining, acquisition, refinancing or turnaround opportunity.
Businesses recognized for at least a year with turnovers from $5m up to $200m.

Contrasting other finance, factoring is available against your invoicing and not your abode or your business but you will need a business plan.

asset finance New Zealand

So what do I do?

Compose a business plan and send it to us and we will ensure that your business receives the correct financing and in a way that relieves you of so much administration, stress and headaches.

It does not matter what your business does
It does not matter where your business is
It does matter that you get the right finance for your business
Write your business plan and contact us

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