Finding Commercial Finance for Your Business in NZ
When a business or entrepreneur wants to make a significant investment they rarely use their own cash. In fact few have sufficient cash available. So to fund their investment or development, they look to financiers or lending institutions to arrange some form of commercial finance. There are many lenders who are willing to grant commercial financing but they each have their own lending criteria and of course different terms associated with that funding. Before you begin a search for commercial finance it will pay you to carry out some basic homework and research beforehand.
What finance you need and why?
You should have a clear idea about your financial requirements and repayment abilities before requesting a commercial loan from a lender. A clear idea about these parameters will definitely help you to find the most suitable financial deal in the market. The terms and condition of the commercial loan should always benefit you as a customer than the lending agency. There is no doubt that any commercial lender will try to gear the loan towards their benefit by extending the repayment period etc. But, you as the customer should be wise enough to see the pitfalls in such actions, and choose the best terms that would suit you. This is why you should do a thorough research before applying for a commercial loan from any lending agency.
Who should you approach for commercial finance in New Zealand?
Your research should be started by going online. When you search for commercial finance in your town, there would be several lending institutions that would rank on the first page of the search results. Visiting these websites will give you a good idea about the type of finance and the sort of projects they provide financing for.
You can narrow your search to 3-4 commercial financiers that have the types of finance which you are interested in. It is also useful if they have worked in an industry similar to you or provided finance for a project like yours. You can find examples of their commercial lending activity on a case study page or similar on their website.
Choosing the most suitable commercial finance lender will help to obtain your cash under the best terms and conditions to meet your needs. Once you have found the best lender, you can check their website for more details about the product. There may be past customer reviews for the financial services that the company offers. If possible, try calling some of these customers will help to get a better idea about the service provided by the lending agency. This would definitely facilitate your efforts of obtaining commercial financing to suit your particular project or investment.
Documents you need for commercial finance applications
Once you have chosen potential lenders, the next part is to prepare the documents needed for the finance application. Balance sheets, profit & loss statements and tax returns are some of the main documents needed for obtaining a commercial loan whatever type of lender you go to. Apart from these documents, you should have a well-prepared project plan for your loan requirement. Most of the financial lending agencies will request for such a plan when you go to them. It will look better if you have a plan already.
Commercial finance companies in New Zealand
The choices for businesses in New Zealand have expanded in recent times. Even so, the business arm of the main commercial banks is still the first option for many business owners. However, they can be quite restricting in the lending criteria. As a result, more people are turning to specialist commercial lenders for financing options.
There are plenty of potential commercial finance companies in New Zealand to talk to. They will each have their own areas of preference (such as business finance rather than property development) and some will have areas of expertise too (such as asset finance compared to mortgages). One commercial financier in Auckland is Global Pacific Ltd. They operate all around the country and also have a wide ranging portfolio of projects they have arranged finance for. IN the business finance arena they have funded franchises, leases, refinancing of existing loans, business expansions and many others. In short, if you have a project or investment your company wants to have funded, talk to Global Pacific. You can find more details about them on their website.
Commercial finance is an important requirement for most businesses whether in manufacturing or services. They will need to finance most of their business projects with commercial loans of one type or another especially as they may already have invested all their spare cash in the business. Selecting the best commercial lender is vital to get the best deal for your project and to help your business grow.