HELP MY BANK WILL NOT ASSIST MY BUSINESS WITH FUNDS
Even in normal times Banks in NZ reject 60% of Business applications primarily because firstly your business risk profile does not pass Bank standards (the % is probably higher than 60% at present) or that the borrower has misrepresented the financial status of the business to the bank concerned. A lot of the above is also because you do not have equity in residential property sufficient to secure your borrowings.
If you have residential property security available we can arrange 12 month loans at 8.5% p.a. PLUS a Lenders Loan Establishment Fee of 2% max = Total Lenders cost of 10.5% which can be renewed annually and is repaid by way of monthly Principal and Interest payments. The Banks operating in NZ as shown at interest.co.nz total charges stretched from a low of 12.1% p.a. lowest to 20.15% p.a.
Note the lowest Bank Loan/Overdraft rate assumes that they only take a interest rate margin of 1% out of what they say is their spread choice of 1% to 5% which I have never ever seen from a Bank in NZ and Australia since 1976.
Our Lender of choice can also switch-hit to Invoice Discounting - which is far more expensive on the surface than using residential property to secure the lower rates shown above. Only one Bank in NZ can switch hit being the BNZ but your credit sales p.a. have to exceed $3.5 M nzd.
The advantage of using Invoice Discounting is two fold, Firstly despite the cost it super charges your cashflow and secondly the resultant liability from selling invoices to the Lender is that the debt is extinguished when payment of the invoice is made by the customer.
Rick 0204-0203663 rick.otavicpartners@gmail.com
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