Summary
An established New Zealand engineering company faced a funding crisis when a personal relationship breakdown forced the sale of the director’s home, which had previously secured the firm’s bank facilities. The bank refused to continue funding at previous levels without personal guarantees. Lock Finance provided a scalable invoice finance solution, allowing the business to retain working capital, manage seasonal fluctuations, and continue growth without sacrificing control or stability.
The business was solid. Orders were steady, equipment was productive, and the client base was loyal. But a personal relationship breakdown changed everything. The family home, used as collateral for the company’s bank funding, had to be sold as part of the separation.
When the property went, so did the bank’s confidence. Despite the business's performance, the bank declined to maintain existing funding levels without further personal guarantees or property backing. The company suddenly faced the risk of losing access to the working capital it relied on to meet payroll, purchase materials, and deliver on contracts.
The message was clear: the business itself wasn’t the problem but the bank’s credit model couldn’t flex to fit the new reality.
At a time when liquidity was critical, the bank was no longer an option. The business’s accountant stepped in and recommended a more strategic approach: rather than relying on generalist lending, the company should engage with finance providers that understood the asset profile and cashflow cycles of engineering firms.
Lock Finance was brought in to assess the company’s debtor book and trading activity. The conclusion was simple: the business didn’t need to downsize. It needed funding that matched the rhythm of engineering work, not residential mortgages.
Lock Finance offered an Invoice Finance Facility, designed to unlock capital from the company’s accounts receivable. Instead of waiting 30 to 60 days for payment, the business could now access up to 80% of the value of its invoices within 24 to 48 hours.
Key benefits of the facility included:
The shift to specialist finance brought immediate operational stability:
“The bank saw the family home as the anchor. Lock Finance saw the business for what it was—productive, profitable, and worth backing.”
— Managing Director
This case is not unique. Across New Zealand, engineering firms and asset-heavy businesses often face funding gaps when banks retreat from personalised risk. Yet many of these companies hold significant value in their receivables, contracts, and machinery—value that traditional lenders overlook.
Invoice finance for engineering companies is a practical alternative, providing timely access to cash tied up in invoices. When paired with equipment finance or asset-backed lending, it creates a robust, fit-for-purpose structure that supports business continuity and long-term growth.
If your business is well-run but constrained by outdated bank models, Lock Finance can help. We work with manufacturers, engineering firms, and project-based businesses to unlock working capital from within.
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