Focusing on the outcome, rather than current income
A Manawatu farmer wanted to subdivide several lifestyle blocks off his farm. He already had a mortgage of $600,000 and based on the farm's income his bank would not lend more to fund the subdivision.
When we were contacted, we could immediately see that the value of the lifestyle blocks alone would more than secure the funding he required, and that's without taking into account the residual value of his main farm.
We provided funding of $1.1m to allow the subdivision to proceed.
Recognising the developed value, rather than current vacant value
After the Canterbury earthquake, a Christchurch couple wanted funding to build 72 self-storage units on part of their vacant industrial land. To their dismay, the bank would only lend up to 40% of the land's vacant value.
As soon as we were contacted, we could see the value of a storage unit business in post-quake Christchurch and immediately arranged funding for the couple.
The storage facility is now complete and 100% occupied.
Allowing a promising idea to become a proven winner
A farmer near Rotorua understood the value of large pumice deposits under his farm. However, he did not yet have a resource consent to quarry the pumice and the farm income was not very strong.
Following a request to help with funding, we met with the farmer and the council on several occasions before deciding to back the farmer's plan.
A fully operational quarry is now up and running and the farmer has been able to refinance with traditional bank funding.
Buying time to save a good wine
Around 2010, wine making across the globe hit the doldrums and our celebrated local wine industry was not immune. Many banks asked their New Zealand winery clients to repay loans in full, even though they were not in default.
Following calls for help, we funded three separate wine makers who had reasonable equity but temporarily poor cash flow. This gave the owners valuable time to sell on their own terms or work towards better times and refinance with a different bank.
Today, the efforts of our talented wine makers continue to be rewarded and enjoyed.