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Introduction To Business Lending

As most self-employed clients know seeking and securing business finance from the Bank – secured solely against the business assets or at higher levels than standard home lending ratios will allow – is never easy and is usually met by your banker asking the question “What property assets will you be using to secure the lending?”. Alternatives outside of the main Banks are many and varied ranging from Debtor Factoring, Plant & Machinery finance, Invoice Discounting, bare General Security Agreement working capital lending for example but some of these facilities can be complicated, complex and much more expensive than traditional lending. The Devil is always in the detail at times and accordingly it is vital that businesses have a thorough understanding of these type of facilities before committing to something that may in fact not be the best option.

Our KPM Specialist Lending division specialises in these areas and we have relationships with many lenders in this market. It is not to say it is ever easy or always possible but we have had a number of fantastic successes over the last 12 months with both Banks and Non-Banks alike that have enabled our clients to be suitably capitalised and to get on with what they do well and not worry about the finances side. These clients have included both Newstart businesses and existing businesses needing more capital to take advantage of opportunities, expand or simply restructure their finances so that the family home has been removed from the business banking finance arrangements.

We have a strong relationship with a mainstream NZ Bank who are backing good SME’s and we have arranged a number of Unsecured Working Capital facilities of up to $100k for these clients and at a cost of only 0.50% to 1.00% above usual home lending interest rates.
Critical to the success or otherwise of business finance applications is always the quality of information provided to the Lenders, proposed structuring of the finance arrangements and provision of all the necessary information at time of application – the quality of the input will always have a direct bearing on the quality of the outcome and that is where our experience in this market can often make a huge difference.

If you wish to discuss business finance options please contact us on (09) 476 1199 or email on info@krispedersen.co.nz and we would be delighted to discuss your individual position and arrange a no obligation finance review meeting to more fully understand your business, present finance structure and goals moving forward and advise on options.