Second mortgage solutions for your business, property development or IRD arrears

If you are looking to start a new business you can have costs for vehicles, plant and equipment, stock, and working capital. If this is an existing business, there can also be goodwill. Banks have a preference to see 2 -3 years financial accounts prepared by an accountant prior to lending for business purposes, so if your business is a start-up, or an existing business that has had some hiccups, they are unlikely to assist.

In these instances, a second mortgage can give you access to the equity in your home to cover costs until such time as the business shows sustainable earnings at a level which allows a Bank to assist.

Other examples of how we have helped business owners with solutions, is with additional funding for expansion, seasonal stock, or a slow paying debtor. Funding can sometimes be needed at short notice, and you do not have time to prepare cash flow forecasts for your Bank or your latest financial accounts are not yet completed.

IRD payments can also be a concern with Banks, especially if they have accumulated and the IRD is putting pressure on you for late GST, PAYE or personal tax. If your Bank does help they may want this repaid over a 12-month term and this can cripple your cash flow. A second mortgage over a longer term or on an interest-only basis can assist with the option to refinance to a longer term first mortgage after say 6 – 12 months.

If your Bank is saying no, despite your best intentions to present a good case, give our team a call to discuss alternative options.