10.09.2018

Lending with an asset-only entity

Obtaining funds for your business when you have your assets in an asset-only entity is more complex than to a stand-alone trading company, and it does make presenting a case to a lender more complicated. Simply, this is what you will need to do before applying for finance:

  • The accounts of the asset-only entity and the trading business will need to be assessed on a consolidated basis before they can be presented to a potential lender.
  • The guarantee structure between the trading business and the asset-only entity needs to be clearly identified.  A lender will almost certainly want this guarantee to link the trading cash flows to the repayment of the lending.
  • All assets owned by the asset-only entity must be registered correctly on the PPSR (Personal Property Securities Register). 

The business partners at Finance New Zealand are well versed in working with asset-only entities and presenting companies that utilise this structure to various funders to obtain finance solutions. Talk to us if you have funding requirements and utilise an asset-only entity and we will do what we can to make the process easier for you.