Working capital

By: Lock Finance  06-Dec-2011
Keywords: Cash Flow, Term Loan

The biggest obstacle to business success is not poor product development or lack of management control. In simple terms, it is a shortage of cash and the inability to maximise cash flow. Whether it is due to rapid growth, seasonality or lack of time to chase debtors or a long business cycle, the end results are the same pressure, under performance and the inability to grow.

Our working capital products:

  • Provide for shorter or longer term requirements
  • Separate business borrowing from personal borrowing
  • Can add to or replace existing funding facilities
  • Enable borrowings in NZ$ or in a foreign currency to match cash flow requirements and increase working capital

This option is ideal for companies who require immediate access to cash to improve cash flow and do not want to use personal property as security.

We have two working capital products:

  • Working capital limit - fluctuating funding requirement
  • Term loan - core debt funding requirement

Working capital limit - fluctuating funding requirement

This is generally advanced as stock funding against a company's stock and debtors' security, and is available on an interest only basis with the option to capitalise interest if required.

Benefits

  • Separates business borrowing from personal borrowing. You can protect your home and other personal assets whilst still accommodating your business requirements
  • Immediate access
    Irrespective of how it is to be used we can give immediate access to cash by adding to or replacing existing cash flow funding facilities
  • We have a pricing package tailored to your requirements, with emphasis on paying for what you use; not for what you can use. We do not charge a line fee, a commitment fee or an undrawn fee

Term loan - core debt funding requirement

This is generally advanced against a company's stock and debtors' security only and is available on an interest only and repayment basis.

Benefits

  • Separate business borrowing from personal borrowing. You can protect your home and other personal assets whilst still accommodating your business requirements
  • Immediate access
    Irrespective of how it is to be used we can give immediate access to cash by adding to or replacing existing funding facilities
  • We have a pricing package tailored to your requirements, with emphasis on paying for what you use; not for what you can use. We do not charge a line fee, a commitment fee or an undrawn fee

Fees

We believe that a company should only pay for what they use, therefore we do not charge a line fee, a commitment fee or an undrawn fee.

  • The fees applicable include an application fee, interest rate, and commission charge

Our normal lending criteria apply.

The information in this article was current at 02 Dec 2011

Keywords: Cash Flow, Term Loan

Other products and services from Lock Finance

06-Dec-2011

Trade Finance

Our extensive experience in international trade, including international payments means we can offer a full range of trade finance products that are supported by an individually focused service. Our trade finance facilities enable you to access cash tied up in debtors and stock effectively bringing future profits into your business for use today. The cost of holding stock or waiting for stock to arrive from overseas can slow sales growth.


06-Dec-2011

Debtor finance

This product is ideal for more established companies who are experiencing growth or seasonal constraints and want to maximise the amount of cash they can borrow against their business assets. Our Debtor Finance product can provide immediate access to cash tied up in the debtors ledger. Imagine how much easier life would be if most of your business sales were in cash. Establishment fees and interest charges apply.


06-Dec-2011

Factoring

In addition, we look after the day to day management of accounts receivable, so precious time is not wasted chasing customer payments. Factoring is ideal for developing/fast growing companies and businesses with low levels of equity or company assets. Our company Factoring product can provide immediate access to cash tied up in the debtors ledger. Imagine how much easier life would be if most of your business sales were in cash.


06-Dec-2011

Products - Business Finance

Whether you need funding for a new business start-up, MBO, an acquisition, cash flow financing, to consolidate debt or simply to support organic growth, we can help. We've helped businesses achieve their financial goals in all sectors including importers, distributors, wholesalers, manufacturers, exporters and service providers.