A specialist services business was growing rapidly after securing additional contract work and needed custom equipment to support that growth.
The equipment was being manufactured overseas, and the supplier required both a deposit and final payment before it could be shipped to New Zealand.
That created a timing gap before the business’s longer-term asset-finance arrangement could take effect once the equipment arrived and cleared customs.
Line Capital looked at the wider trading position, including the business’s growth, profitability and ability to support the proposed lending.
To be confirmed.
To be confirmed.
A growing specialist services business had secured additional contract work and needed custom equipment to support the increased activity.
The equipment was being manufactured overseas.
The supplier required a deposit and the final purchase payment before shipping the equipment to New Zealand, which meant the business needed to commit a significant amount of capital before the asset arrived and could begin contributing to operations.
The business already had an asset-finance arrangement intended to fund the equipment once it had arrived in New Zealand and cleared customs.
The immediate challenge was therefore the period before that longer-term funding could take effect.
Line Capital looked at the equipment purchase within the context of the wider business.
The business was growing strongly, with increasing income and scalable profitability.
The team considered the contracts and growth supporting the equipment requirement, the business’s existing financial commitments and whether it could service the additional lending.
The timing of the equipment purchase and the proposed longer-term funding arrangement were also important.
This was not simply a decision about the value of the equipment itself. The lending assessment considered the business that would be using it and the cash flow available to support the facility.
Line Capital provided a $400,000 FundingLine facility in two tranches over 36 months.
The facility helped fund the payments required before the equipment could be shipped to New Zealand.
The type of equipment, the amount required and what the investment is intended to achieve can all influence the funding need.
That’s why the right funding option won’t necessarily be the same for every equipment purchase.
For established small businesses with more modest funding requirements, including working capital, business investment, equipment purchases or growth.
For established SMEs looking to fund working capital, business growth, equipment or investment, with funding to support the next stage of the business.
You don’t need to work that out before talking to us.
Tell us what you’re looking to purchase, why the business needs it and what you expect the equipment to change.
We can look at the requirement, the wider business context and the funding options that may fit.
The purchase price matters, but it doesn’t tell the whole story.
We want to understand why the equipment is needed, how it will be used and what effect it is expected to have on the business.
That might mean understanding the work it will support, the capacity it adds, the productivity improvement it creates or why an existing asset needs to be replaced.
We also look at the wider financial position and whether the business can comfortably support the lending.
An equipment purchase backed by existing demand or a clear operating requirement is different from investing heavily in capacity the business may not yet need.
That context helps us understand the commercial case behind the purchase.
"Better outcomes start with better questions."
Our lending team works with New Zealand businesses across a broad range of funding needs and business situations. The team brings practical lending experience to assessing not just the numbers, but the context behind a funding request.
Tell us what you’re looking to purchase, why the business needs it and what you expect the equipment to make possible. We’ll ask the questions that help us understand the investment, the wider business context and the funding options that may fit.
The information on this page is general in nature and does not take into account the specific circumstances of your business. Any lending is subject to Line Capital's lending criteria, assessment and applicable terms and conditions.