How a New Zealand E‑Bike Wholesaler Outpaced the Banks and the Market

Summary 

When a rapidly scaling e-bike wholesaler secured exclusive rights to a sought-after American brand, he found himself caught between booming demand and a crippling lack of working capital. Traditional bank finance proved inadequate. Lock Finance structured a combined trade and invoice finance facility, enabling the business to seize market opportunities, import at scale, and operate with newfound financial flexibility.

The Backdrop: A Green Revolution, Interrupted

Since launching in 2011, a boutique e-bike wholesaler in Auckland has championed the convergence of climate-conscious mobility and design-led retail. Founded by a former marketing executive and cycling enthusiast, the company had grown from a single retail unit to a respected distributor of premium electric bikes, curated from global suppliers.

Recent years have brought positive tailwinds, including spiking fuel prices, local government investment in cycleways, and heightened climate awareness, which have created a groundswell of demand. However, as is often the case in growing markets, the challenge was not sales—it was cash management.

The wholesaler had secured exclusive distribution rights for a high-demand US brand. Customers were waiting. Stock was not. 

Importing at scale required capital well beyond daily cash flow, and his retail bank was not equipped to provide it.

The Problem with Conventional Lending

Despite a strong trading history, robust orders, and confirmed supplier arrangements, the business encountered a familiar institutional barrier: the bank could not structure a facility that reflected the commercial dynamics of wholesale importing.

Bank financing, constrained by inflexible risk models and a preference for hard collateral, simply failed to account for the timing mismatch between supplier pre-payment and invoice realisation. Without a solution, the opportunity would be lost—or passed to a competitor.

The Alternative: Lock Finance Steps In

Where the bank saw risk, Lock Finance saw a supply chain problem, and structured a dual facility to solve it:

1. Trade Finance Facility (NZD $500,000) Used to fund confirmed purchase orders with US suppliers, allowing stock to be brought into New Zealand without exhausting internal cash reserves.
2. Invoice Finance Facility (NZD $500,000) Once goods arrived and were invoiced to retailers, the facility unlocked immediate liquidity, repaying the trade finance facility and keeping operations well-funded.

The integrated solution ensured that capital flowed in lockstep with commercial activity, not in defiance of it.

The Outcome: Growth Funded on Merit, Not Guarantees

With financing secured, the business increased import volumes, cleared backorders, and strengthened relationships with downstream retailers by ensuring timely delivery.

• Inventory turnover increased by 40% in the first quarter post-implementation
• The founder was able to maintain full ownership, avoiding equity dilution or personal guarantees
• The business now operates on rolling liquidity, with finance rising and falling with trade cycles

“The banks asked for more security. Lock asked better questions. We didn’t need more collateral—we needed a partner who understood timing and trust.” — Founder & Managing Director

Lessons for Mid-Market Importers

In sectors like mobility, fashion, or food importation, product timing is a commercial advantage. Banks, geared toward balance sheets and fixed assets, frequently misread the risks and timeline.

Specialist financiers, such as Lock Finance, offer an alternative: facilities structured to therhythm of trade, rather than the rigidity of conventional debt.