New Zealand banks are earning a lot of money and are not hesitant to charge their customers high-interest rates. If you're a business owner, you're probably feeling the pinch. You may be tempted to use your mortgage to finance your business, but there's a better option: invoice finance.
Invoice finance is a way to get the money you're owed from customers quickly, without waiting for them to pay. You simply finance your invoices with a finance company receiving up to 80% of the value immediately. Your clients paying their invoices as normal repays the facility, you just pay the interest.
There are several advantages to using invoice finance over a mortgage to finance your business:
If you're a business owner who is looking for a way to finance your business, invoice finance is a great option. It's faster, cheaper, and more flexible than a mortgage. And it won't put your personal assets at risk.
Here are some additional reasons why you might want to consider invoice finance over a mortgage:
Do you want to have to keep a high level of equity in your business just to keep the bank happy? With invoice finance you do not need to.