12.05.2020

COVID-19 Update: Level 2 - Moving towards the 'new normal'

We are thankful for the announcement that the country will move to Alert Level 2 this Thursday. We are also grateful New Zealand has escaped the worst health impacts of Covid-19, and as a nation we are better positioned than the rest of the world to return to some degree of domestic normality.  It is evident that many other parts of the world are in a far worse position as they grapple with the challenges of trying to restart an economy whilst also dealing with widespread Covid-19 in their communities.  While the economic challenges in front of us are huge, at least we are moving in the right direction.  We look forward to the government budget announcements on 14 May to see what these might hold to aid the road to recovery.
 
Over the last fortnight, we have seen a significant increase in enquiry for new lending as businesses move forward with new capital purchases.  Our team is busy with working capital requests ensuring businesses have short term cash available to meet their commitments and resume trading post lockdown.  We are also seeing a large number of new transactions where incumbent lenders have declined to fund deals they may have previously approved.  However, we remain well positioned to look at all types of business funding requests.

One particular area of enquiry is foreign exchange trading.  With a renewed focus on costs, businesses are looking to ensure they get the best possible rates on FX. We are also hearing of some businesses struggling to get support from their banks for necessary limits on their FX trading activities.  If your business has FX requirements, and you would like to ensure you are getting the best possible rates and service, talk to our team.
 
We are also working closely with a number of our dealer partners to assist them to move stock.  Using our range of finance options, we are well positioned to support any machinery dealer.  Regardless of the client profile purchasing the equipment, we can almost always find a funding solution to facilitate the sale.  As an example, we support TR Group’s customers fund the purchase of used truck and trailer assets.  TR Group currently has a number of truck and trailer units available for sale through their network locations in Auckland, Tauranga and Christchurch. They can be found in their latest TR Group 5-50 Magazine link here: https://issuu.com/trgroup/docs/5-50_fleet_sales_april_2020-2.  If you are in the market, or are looking for a truck and trailer unit, please email trgroup@financenz.co.nz and we will have a member from the TR Group team get in touch with you.
 
All the best with moving forward into Level 2. We look forward to hearing from you to discuss any funding solutions you may require.