A construction services business had a naturally seasonal income-cycle, with its busier period falling over winter. After a drier-than-usual summer resulted in lower income, the business needed working capital to purchase the materials and stock required to fulfil upcoming orders.
Line Capital looked at the seasonal nature of the business alongside its revenue, stable margins and existing commitments.
A growing marketing agency had secured a large new client with 30-day end-of-month payment terms. The additional work was positive for the business, but it also created a working-capital requirement while the agency delivered the work and waited to be paid.
The business wanted a term loan rather than invoice financing, with the intention of becoming self-funded over time. Line Capital considered the wider position, including year-on-year revenue growth, stable margins and the business's existing commitments.
A fast-growing e-commerce business selling seasonal consumer products needed to purchase stock and invest in marketing ahead of its peak trading period.
The business was relatively small and didn't have property available as security but its financials showed growing revenue, improving margins and strong earnings.
Line Capital provided an unsecured term loan, supported by a director guarantee, to fund the business ahead of its busiest period.
For a fast-growing direct-to-consumer e-commerce business, its peak season was by far its most important trading period.
That created a working-capital challenge: the business needed to spend money on inventory and marketing before the revenue from its busiest period arrived.
The business was growing strongly, but as a small, single-director operation without property to offer as security, traditional bank funding wasn't readily available.
Rather than looking at the size or age of the business in isolation, the Line Capital team considered what was happening in the underlying business.
Its financial information showed increasing revenue, improving gross margins and significantly stronger earnings.
The client was also able to provide signed financial statements, bank transaction data and further information about its margins, giving the team a clearer picture of the business and its ability to service the proposed funding.
Line Capital provided a $120,000 unsecured term loan over 24 months, supported by a personal guarantee from the director.
The funding provided the working capital required for inventory and marketing expenditure ahead of the peak trading season.
The reason you need working capital matters. So does the amount required, how long you need it for and how cash moves through your business. That's why the right funding option won't necessarily be the same for every working capital requirement.
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 achieve and what's happening in the business, and we can look at the requirement, the broader context and the funding options that may fit.
The numbers are important, but they don't always tell the whole story.
We want to understand what you're looking to achieve, why the working capital is needed, how cash moves through the business and what happens next.
A temporary cash-flow gap, investment ahead of growth and an ongoing working-capital requirement are different situations. The context helps us understand both the requirement and the options that may make sense.
"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 achieve and what's happening in the business. We'll ask the questions that help us understand the 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.