Refinance for cashflow easing

In the current economic climate it may seem like its taking forever for the economy to get going with echoes of ‘survive to 25’ long faded in the distance, it’s a slow train coming. GDP is still low and OCR / interest rate easing taking a while to take effect, it was always going to be a long slow pull. Getting through is key but how.

Insights with Infinance by Brian Coogan

One way to look at it is to restructure lending you already have in place, rather than taking on more debt, spin it out or consolidate and give yourself some breathing space. Banks will work with you to a point then there are non-bank lenders that can structure property lending and finance companies for equipment that will take what you have, reassess its useful life and restructure to suit which could include the likes of seasonal payments with interest only in the off season, or releasing equity in equipment for liquidity, you can change it back once things pick up again.

With the Govt pushing for further OCR easing and interest rates cuts into stimulative territory along with incentives such as the Investment Boost allowing a further 20% depreciation on new equipment and the rural sector performing strongly along with Govt spending projects, it’s only a matter of time before everything comes together and we start to see GDP pull away which is the key driver for everything … growth.

So, talk to your accountant, approach your finance broker and thrash out a plan to see you through, there are ways to restructure that can make all the difference.

Written by Brian Coogan, Licensed Financial Adviser and Director at Infinance – Taupo.

Money grows on the tree of persistence – Japanese proverb