News } Tabak

Securing Funding in Today's Market

The ramifications of the current turmoil in the global financial markets are yet to become clear, so I’ve held off sending my August economic Capital Comment newsletter until things settle down.

The ramifications of the current turmoil in the global financial markets are yet to become clear, so I’ve held off sending my August economic Capital Comment newsletter until things settle down.

Meanwhile the availability of finance continues to be a large obstacle for property and business in New Zealand. So I thought I should I should send you a reminder of how we can help.

Here’s how we can help

  • Banks are lending. But because their criteria are tougher now, the way a proposal is presented and negotiated can mean the difference between a yes and a no. We have the experience to act on your behalf.
  • While some of the non-bank lenders that survived the Global Financial Crisis have ceased business or merged, there are a number still active and new ones are appearing. These tend to provide shorter term interest only loans outside the banks’ lending criteria. Useful for shorter term financing and refinancing. On satisfactory performance loans can be renewed.
  • Sometimes it is beneficial to look at moving loans to a non-bank lender. A major advantage is the isolation of the security required so performing assets cannot be called upon if a non-performing one comes under pressure. Also cash flow servicing requirements for interest only loans can be less that P&I requirements, even at higher interest rates.
  • We have access to private lenders. One in particular is interested in providing first mortgage, interest only finance for property in the $2 million to $5 million range. There are not many non-bank lenders who are willing or able to make loans of this magnitude.

Examples of loan finance we are able to arrange include:

  • Residential and commercial real estate.
  • Finance for developments and subdivisions.
  • Almost completed developments requiring short term funds to finish for bank takeout.
  • Growing businesses strapped by lack of working capital. This can be resolved through bank and non-bank lenders.
  • Buyers or owners of properties looking to add value by re-furbishing and/or re-tenanting. Banks are reluctant as this falls into “development” territory but happy to re-finance when completed.
  • Plant, equipment and debtor finance. Good for financing expanding businesses.

We also have access to investors looking for equity participation opportunities. These include established businesses looking to expand, commercial property and completed property developments with established tenancies.

So if you’re interested in looking for assistance in obtaining loan finance, or at alternative funding options, give me a call or respond to this email.

Cheers

JP

John Paine
TBK Capital Limited

Email: john.paine@tbkcapital.co.nz

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