At BNZ we’re, quite frankly, in awe of the construction and contracting sector, in particular, we love their ability to come up with innovative construction methods to solve complex drainage and excavation problems. For myself, well, I’m based in Christchurch and am acutely aware of just how much construction, of all varieties, is going on.
With so much work taking place, not just in Christchurch but in Auckland and all around New Zealand, it might be tempting to relax and think the work will always come. However, there’s a real pressure for those companies working in the sector to continue to adapt and evolve their operations if they want to flourish. To keep on getting the quality jobs, they need to place themselves at the forefront of activity, and that means acquiring and maintaining the right equipment. It doesn’t matter if it’s directional drilling equipment, trucks, vans or diggers, there’s always going to be some vital (and expensive) piece of equipment that needs to be added to your inventory. It’s a capital intensive industry, and that means sorting out your funding is a priority.
The trick is freeing that cash flow up so it can be put to good use as working capital, rather than tying it up in capex. This is just the kind of situation that asset finance is made for. You can borrow to help get the assets you need now, then pay them off while they’re working for your business.
BNZ is a significant, standalone asset financier in the New Zealand market, providing nationwide coverage through a network of dedicated asset finance specialists, and we want to see contractors moving away from expensive 2nd and 3rd tier lenders.
We tailor the funding to suit your income with varied terms, flexible repayments and either fixed or variable rates. Since construction is a highly competitive sector with many physical, mental and financial challenges that must be met on an ongoing basis — contractors need to constantly fine-tune their operations for efficiency. By having pre-approved facilities and financial structures in place ahead of time based on the upcoming year’s capex plans, you can make full use of the funding available to you.
The upshot of all this is that asset finance makes it possible to scale and grow your business. By upgrading or expanding your vehicle fleet, your equipment and machines, you can take full advantage of growth opportunities as and when they arise — without requiring bricks and mortar security for lending.