Benefits of diverse funding lines
As markets are always changing, you can never be certain what the future will hold for your business. At times, some financiers are eager to lend, but at other times they can be very risk adverse and unwilling to provide credit. Therefore, to maintain access to funds and keep your business going, it is important to build alternative funding lines.
Having different funders can also provide valuable credibility to your business with other lenders – it can help other finance companies view your business as a good risk. Also, having built a positive lending history with a lender by having small loan facilities increase the likelihood of larger loans being approved in the future.
A way to diversify your debt portfolio is to choose a different lender when you need finance on a new piece of equipment or want to refinance your assets.
We also find that the credit criteria of each lender varies widely when it comes to different items of machinery. Finance New Zealand has helped place many transactions where the best solution for the client has been to involve multiple lenders – each lending against the pool of assets they are most comfortable with.
Our wide range of funding partners means we can support your business through different stages in your business and different economic cycles. We understand the “sweet spot” of each of our funding partners and will structure deals that best align to each lender’s risk appetite and pricing.
If you think diversifying your funding lines is a good idea for your business, get in touch with your business partner at Finance New Zealand today. We do the running around, saving you the many hours involved in managing multiple funder relationships.