Use Equity in your Home to finance a new business,  expansion, or to fund new plant, equipment, stock and working capital needs.

Many New Zealand business owners have good equity in their homes, but pay higher commercial rates for business funding

To start a new business, or as it grows, business finance can be required for stock, plant and working capital. The need for Business Bridging finance may also arise to cover say a large one off contract, a slow paying debtor or seasonal operating peaks.

Traditionally business funding has attracted higher rates, as it is seen as being higher risk, both through banks and specialist finance companies. Whilst the lender may use the business as security for the loan, they can also have a first mortgage on your home which is their preferred security. There is therefore no greater risk than a standard home loan so why should they penalise the Business owner. Any bank lending secured against your home should be at residential rates.

There are a number of lenders who allow funds to be raised against your home to pay back existing business debt which is usually at higher rates or provide capital to inject into your business at standard housing rates.

Are slow paying debtors making it hard for you to pay your bills?

Another option is to raise finance against your debtors. This is known as debtor factoring and provides cash upfront against sales invoices. This is a very convenient way to access the cash that's due to you on invoices, often before it's even been posted as an account payable by your debtor!

Contact us for more information on how to fund your business

businessfinance@firstratemortgages.co.nz
or Freephone 0800 178 7283 (0800 1ST RATE)