A growing e-commerce business needed to invest ahead of its busiest trading period.
The requirement included both inventory and marketing, allowing the business to have stock available while also investing in generating demand for the period ahead.
Line Capital considered the wider trading position, including increasing revenue, improving margins and stronger earnings.
A specialist parts retailer serving the classic car restoration market had agreed to take over the stock of a retiring competitor, adding a significant new range on flexible payment terms.
To make the most of the opportunity, the business needed to reorganise its website to showcase the new stock, expand its storage and prepare to promote the range at major car shows in the new year.
Line Capital considered the business’s strong revenue growth under its current owners, steady monthly trading and the owners’ sales and marketing experience.
An established automatic door installation and servicing business had a plan to grow revenue by around 25% over the following year, supported by a step up in advertising.
Part of the funding refinanced an existing short-term business loan, reducing the business’s weekly repayments and freeing up cashflow to invest in that growth.
Line Capital considered the wider trading position, including increasing revenue, improving earnings and a healthy liquidity position.
A fast-growing e-commerce business was preparing for its most important trading period.
To make the most of the opportunity, it needed to invest before the resulting customer revenue arrived.
That meant purchasing inventory while also committing capital to marketing activity designed to support demand during the peak period.
The business was growing, but as a relatively small operation without property available as security, traditional bank funding wasn’t readily available.
Line Capital looked at the investment within the context of the wider business.
The financial information showed increasing revenue, improving margins and stronger earnings.
The business also supplied signed financial statements, bank transaction data and further information about its margins, giving the lending team a clearer picture of current trading and its ability to service the proposed funding.
Importantly, the marketing spend wasn’t being considered in isolation. It formed part of a wider plan that also included having sufficient inventory available to meet the anticipated customer demand.
Line Capital provided a $120,000 unsecured term loan over 24 months, supported by a personal guarantee from the director.
The funding supported inventory and marketing expenditure ahead of the business’s peak trading period.
The amount you’re looking to invest, what the marketing is intended to achieve and how it fits into the wider business can all influence the funding requirement.
That’s why the right funding option won’t necessarily be the same for every marketing investment.
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 change, what the project is intended to achieve and what’s happening in the business. We can look at the requirement, the broader context and the funding options that may fit.
Use our calculator to see how a simple interest rate compares with its annualised equivalent.
The size of the marketing budget matters, but it doesn’t tell us whether the investment makes sense for the business.
We want to understand what the business is trying to achieve, what sits behind the proposed activity and how the investment fits with its wider financial position and growth plans.
We also want to understand what happens if the return takes longer than expected and whether the business has the capacity to support both the marketing investment and any growth it generates.
That context helps us understand the requirement behind the numbers.
"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 do, what you want the investment to achieve and what’s happening in the business.
We’ll ask the questions that help us understand the marketing requirement, 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.