Category: Asset Finance

From Equipment to Property: Exploring the Benefits of Asset Finance for Your Business

Posted on by jemma@spinach.co.nz

You’ll need a lot to succeed in the business world. You’ll need ambition, amazing ideas and – of course – money! Unfortunately, many businesspeople in New Zealand have heaps of ambition and countless new ideas but not much funding. What do you do if you’re one of them? The answer is actually pretty simple; consider asset finance loans.

Wait, what’s that? You’ve surely heard of loans before, but what makes this type of financing different from the others?

It’s crucial that you understand all of your options before you choose any kind of loan. One very important part of being successful is doing your research and staying informed, so keep reading to learn more.

What Is This Type Of Financing?

This type of financing allows businesses to acquire assets, such as equipment, vehicles or property, without having to pay for them upfront. The asset or assets you’re dealing with can be used as additional security for your loan. You’ll then pay your lender monthly payments until your loan is fully paid off.

Whether it’s physical equipment or a place to work, you’ll need quality assets so that you can continue to produce quality products. Asset financing is designed to help you acquire these crucial assets. They’re typically shorter-term loans than standard business loans.

If you are interested in this for your business, then there are a few things you need to do. Naturally, you need to find a lender that offers this type of financing.

It’s best to work with a professional to find the best lender for you rather than doing it alone. There are many lenders, and one may be better for you than the others.

So, we strongly recommend working with a business loan broker like the ones here at Spinach! It’s best to work with people with experience and connections to the best lenders in Aotearoa. Otherwise, you may end up choosing a lender who’s not quite right for you, and you may have to pay more than you need to.

Once you’ve worked with us to find a good lender for your asset finance loan, the process of getting you the financing you need can begin. We’ll work with you and the lender to find a deal that works for everyone.

How Can I Use A Loan To Make My Business Better And More Productive?

Basically, asset finance loans are there to give business owners what they need to grow and succeed. Well-structured loans can give your company the boost it needs to get out there and change the world.

So, what specific benefits are there?

  • Access To Capital: This can provide businesses with access to capital that they may or may not otherwise be able to obtain. This can be very helpful for businesses that are just starting or companies that need to finance a large purchase.
  • Improved Cash Flow: Asset finance can help businesses improve their cash flow by spreading out the cost of an asset over a longer period of time. This can free up cash that can be used for so many other purposes, such as marketing or hiring new staff.
  • Flexibility: This can be a flexible financing option that can be tailored to the needs of a business. You can work with your broker and your lender to choose the loan terms, the monthly payment amounts and so on. Working with an experienced loan broker can be a fantastic way to find the deal that works for you!
  • Increased Productivity. New equipment can help businesses operate much more effectively, which can lead to increased productivity. Just imagine how much a new vehicle or a new piece of equipment can change your daily operations! Specialised equipment can really help you streamline your business, regardless of what you’re doing or what you’re producing.
  • Improved Reputation. Overall, new assets provided by an asset finance loan can help businesses improve their reputation. You can work more efficiently, produce higher-quality products or provide higher-quality services and make your customers happier with your company. Your company can grow much faster when you have the right assets and equipment. This increased reputation can grow your customer base, improving your profits. Before you know it, your loan will be fully paid off and you will be thriving.

I’d Like Some Assistance, Where Can I Go For Help?

As you can see, this financing can be extremely helpful for business owners trying to succeed. Trying to save up money to purchase new assets on your own can take quite a long time, so financing can really give you a well-deserved boost.

But don’t do it alone! We at Spinach can help you find the best options for you. You can come and see our page on asset financing to learn more about this great opportunity.

Or you can also speak to us directly about your situation. Call us on 0800 774 622 or visit our contact page to learn how to reach us. Together, we can find the best option for you.

Spinach: helping businesses like yours grow and succeed!

The Right Business Finance Package For the Right Business

Posted on by jemma@spinach.co.nz

Running a business can make you money, but to run your business, you will need money first. If you don’t have the initial funds you need, a great commercial loan and the help of a professional business loan broker can truly get you the financial help you need.

Some people might think it’s best to start small and save money rather than go for a loan. However, doing so can take much time, and profits may not come in as quickly as you’d like.

With a loan, you can boost your business and see more profits much faster. This will expand your business, earning you more money and recognition, and you can pay off your loan in no time.

However, not every business is the same, and it’s very important that you get the right business finance package for your situation.

What Are Loans And What Kinds Of People They Can Help

Any business loan broker will tell you that the right loan can do wonders. It all depends on the type of loan you get and how you utilise it.

A business loan is where a lender lends you the money you can use for your company. You will be expected to pay the money back with interest. The amount you get and your interest rate will depend on the deal you strike.

As their name implies, business loans are primarily for business people. They can be used in many ways depending on how the person wants to improve their business.

Business loans are often utilised by:

  • People Who Are Starting New Businesses. Starting a company is never easy or simple. A good loan and help from a business loan broker can give you the finances you need to start your company.
  • People Who Are Growing Businesses. Once your business is started, you still need to do your best to grow it. More equipment, employees, space and more can help you expand your company.
  • People Who Need To Keep Their Businesses Running. Even if your company is already of a good size, you still need many things to keep it running smoothly. A loan can help you acquire inventory and other goods that’ll keep you in business.

Some people are put off by the thought that they’ll need to repay the loan with interest. While this may seem like a downside, the benefits that loans and a good business loan broker bring will strongly outweigh this.

You can seriously benefit from getting a loan because:

  • You’ll Save Time. If you try to save the money on your own, it will undoubtedly take much longer than if you decide to get a loan. Proper time utilisation is important. Instead of slowing down, speed up with a loan.
  • You’ll Have Better Assets. With the extra money, you can get better equipment, a better space, more employees and more. These higher-quality things and circumstances will definitely be appreciated.
  • You’ll Boost Your Profits. With all of this help, you will surely see your profits rise. Then, if you use your money smartly, you can grow your business further and pay off your loan in no time.

How Do I Know What Kind Of Loan To Get?

Working with a talented business loan broker is the best way to know what specific loan you should get. Their expertise and knowledge will allow them to look at your business, your goals and your available funding to get a loan that’s perfect for you.

Of course, you can do your part to make the process easier. Consider the following before you speak to a loan broker:

Know What You’ll Use Your Loan For. First and foremost, always know what you’ll use your loan for. Examine what you have and what you need to make a list of what you can use your loan for. There are plenty of helpful things you can do.

For example, a few things you can think about are:

  • Buying New Equipment.
  • Getting More Inventory.
  • Hiring New Staff.
  • Getting A New Commercial Space.

Create A Realistic Estimate. Compile everything you need and create a reasonable estimate of what it will all cost you.

Make A Plan. Always have a plan before you officially apply for a loan. Lenders appreciate it when the people they are lending to show that they’ll be smart with their loan.

Where To Learn More About How You Can Get A Great Loan For Your Business

Does it sound like you could benefit from a well-structured loan? At Spinach, we help business owners succeed by helping them get the best loans possible. We invite you to see our site to learn how you can start your journey today.

When you work with one of our business loan brokers, you’ll get a personalised experience. Rather than offering generic advice, we do our best to look at your circumstances to get a feel of what you need. This way, you’ll get results that are tailored to your needs.

Please call us at 0800 774 622 or visit our contact page if you’d like to speak to our team.

Enhance your business like never before with help from Spinach.

Asset Finance And How Does It Work?

Posted on by jemma@spinach.co.nz

What is Asset Finance And How Does It Work?

Wondering what asset financing is and how you can use it to help your business grow? Asset financing is a form of lending that allows you to buy, replace, or refinance assets while using them as security for the loan itself. Asset financing is thus a great way to free up capital flexibly and take advantage of new opportunities.

What is Asset Finance Used For?

Asset financing allows your business to gather immediate capital. There’s a range of things you can use this cash for – investing in equipment, paying your employees, or taking advantage of short-term growth opportunities. It’s most commonly used to purchase new assets, which can include inventory, machinery, vehicles, and even buildings!

What are the benefits of Asset Finance?

There are many benefits associated with choosing asset financing over traditional loans. Because the cost of purchasing an asset gets spread out over a more extended period, asset financing allows you to expand your business while protecting your cash flow. It’s also a great way to pay off investments in new assets while they benefit your business. Asset financing models are more flexible than traditional bank loans. Depending on your loan provider, you can tailor your interest rates to meet your business and borrowing needs. They also allow you to get cash loans much faster than with conventional financing arrangements. This makes them great if you need short-term cash. Asset financing is particularly beneficial for small companies, startups, and other businesses that lack the track record or credit rating necessary to qualify for alternative funding sources. With fixed payments, budgeting and cash flow become easy to manage. And if you fail to pay, you lose only your assets, not your business.

Asset Finance Models

There are several major types of asset financing:

Financial Lease

With a financial lease, ownership of the asset and the asset itself are transferred to the business for a certain amount of rent.

Hire Purchase

In a hire purchase model, a finance company purchases the asset on behalf of another company. The finance company owns the asset until the last payment is made, at which point it’s sold to the company using it.

Operating Lease

Like a financial lease, an operating lease also involves renting the asset. However, this is a shorter-term method, and the asset is ultimately returned to the company that originally owned it.

Equipment Lease

This also involves renting an asset. However, with an equipment lease, the ownership of the asset is never transferred. The agreement can also be cancelled at any time.

Asset Refinance

Asset refinancing involves using assets you already own to get a loan. The value of your asset will determine the amount you can borrow.

Can Asset Finance Help My Business?

Asset financing is fantastic if you need flexible, short-term funds. They’re very beneficial for start-ups and other small or new companies, especially since they aren’t based on a third-party evaluation of your business output. In any case, make sure you do your research before deciding on the best finance model for your business. If you’re looking for a leading provider of business loans in New Zealand, the friendly team at Spinach is here for you. Get in touch with us at 0800 774 622 to see how we can help your business grow today.

5 Key Points For Preparing a Winning Business Plan

Posted on by jemma@spinach.co.nz

Preparing a Business Plan

Your business plan is your ultimate decision-making tool. Without it, you are more likely to struggle to achieve your goals. A clear and concise business plan is your way to show your staff, your investors, and your bank that you know what you are doing. Anyone you approach for money will expect to see your business plan and without it, you won’t be getting any money because everyone knows that investing in a rudderless business is simply too risky. That’s why you must take certain things into consideration to make sure your business plan is effective.

Following are some tips that will help you when preparing a business plan:

1. Be Clear on What You Want to Achieve

Ask yourself what you want to achieve and what your company stands for. Think of everything you would want a potential employee, customer, partner, or investor to know about it. This include the following:

  • Vision Statement: Create a short and aspirational vision statement. It should be realistic. You should take your time to get it right.
  • Unique Selling Proposition: This includes the reasons why you believe that the customers will come to you instead of your competitors.
  • Target Market Identification: Although you would want to expand your customer base as much as possible, it pays to have a clear picture of the target market as it will make it easier for you to communicate with them.
  • Explanation of Products/Services: Make sure the explanation is in line with your Unique Selling Proposition and meets the needs of your target market.
  • Goals: List your goals. They should be measurable, realistic, and consistent with your financial plan.

2. Set Out the Details

The next step is to see how your vision will work. Specify what your business structure is and who will help you bring your vision to life. Following are some others things you should include:

  • Structure and History: Outlines the background of your business and introduce key people like managers, employees, investors, and partners.
  • Analysis of Competitors: Do a complete analysis of the competitive landscape, including information on the characteristics and size of the target market, industry, as well as your competitors’ strengths and weaknesses.
  • Business Assets: Identify what you have as well as what you need, including plant and equipment, premises, intellectual property, information systems, insurance and licenses.
  • SWOT Analysis: Identify the strengths and weaknesses of your idea along with potential opportunities and threats.
  • Goals and Milestones: Set out your key business goals for the period covered by the plan along with different milestones you want to reach. Make sure your goals are realistic and measurable.
  • Financial Forecasts: List your capital requirements and start-up costs as well as your projected cash flow, loss and profit, break-even analysis, and balance sheet forecasts.
  • Business Strategies: These should include sales, marketing, and customer retention strategies.

We recommend that you use Stats NZ’s Data for Business website in order to find useful business statistics and tools.

3. Keep it Short and Easy to Understand

When writing a business plan, make sure to keep it realistic, short, and easy to understand. It is important to consider that someone reading your business plan in the future might not be familiar with jargon or more technical terms. That’s why we recommend you write the business plan in plain English. It is also recommended that you do your research and provide evidence to support your conclusions (if possible) and include an action plan.

4. Review and Make Necessary Changes

After the above steps, you are finally ready to review your work and finalize the summary. Carefully review the business plan and make sure it presents a compelling and cohesive picture of your business in a professional format. After that, take the most important component of each section and use them to create an engaging executive summary. Your goal here is to create the summary that draws the reader into the rest of your business plan.

5. Put the Plan to Work

Once your business plan is ready, treat it as a guide to running your business. Keep in mind that business plans are dynamic documents which means that you should adjust your business plan as your business develops. If the circumstances and goals change, update the plan. The Stats NZ website has some great tools and information to get your business started.

 

As always, Spinach believe in business, and we are inspired by goals of growth. We want to be part of your success. To get us on board, please call us on 0800 SPINACH (0800 774 622) or email us info@spinach.co.nz

The Process of Gaining Patent Protection in NZ

Posted on by jemma@spinach.co.nz

If you are serious about an idea or basic product and want to transform it into an invention, it is very important that you get patent protection. Without patent protection, it is unwise to promote or advertise the idea, as it can be easily stolen. More than that, your idea will not be taken seriously by businesses you approach because without the patent protection, your idea is just that – an idea.

Patenting in New Zealand offers protection within the country. If you want to get patent protection in a foreign country, you will need to apply for a patent in that country or in a region that includes that certain country.

Before we get into the details of what to expect, it is important to note, that this process should be walked through with a Patent Attorney who specialises in this type of work. Our explanation has simplified what to expect, but is in no way being offered in place of solid legal advice!

Procedure for Obtaining a Patent

The process of patenting a new idea or product is not simple, in fact, it can be quite complex. Here is the procedure in a nutshell:

1. Search Existing Patents

The first step is to search in order to see whether your idea or product has already been patented. You may be out of luck if your basic idea or product has already been patented. If it isn’t, then you can proceed to complete your patent application. It may sound easy, but in truth, it’s not. Patent searches are likely to reveal a similar idea or product that has already been patented. If that is the case, then you might need to alter your idea/product to make it less similar.

2. Apply for a Patent

The next step is to apply for a patent. You will need to complete an application and submit it to IPONZ and also pay a $100 fee (provisional). You can either file a new application for a provisional specification or a complete specification. Keep in mind that the application for a patent is not similar to completing an employment application. It is a hectic procedure and must be done correctly so that your idea or product as well as your future rights to it are protected. Any mistakes may result in a quick denial from IPONZ.

3. Pending Application

Once you have submitted your application, it will become a pending application. The procedure after that depends on the route you have chosen for patent filing. In some jurisdictions, a patentability search will be carried out within 6 months of filing the application.

4. Publication

Patent applications are generally published on the IPONZ website approximately 18 months after they are first filed. From that date, anyone can access the contents of your patent application. It is also possible for you to see copies of correspondence with IPONZ as the application is examined.

5. Examination

Once your patent application is published, the next step is to request examination of the application. You can usually do this within 6 months of publication and you can expect to receive the first examination report within the 12 months period of requesting examination. You must also file a response to the examination report, generally within 3-6 months of receiving the examination report. In some cases, multiple examination reports will be issued. If successful, your patent will be granted within 6 months of filing a successful response to your examination report.

6. Acceptance

If there are no objections from the examination, your patent will be accepted and the accepted form of your application will be published in the IPONZ Journal. Once the patent is accepted and your application has been allowed, you will need to pay some form of official fee associated with the issue or grant procedure. Once granted, you will need to pay annual government renewal fees that are usually due each year up to and including the 20th year so that your patent is kept in force.

7. Renewal Fees

Annual renewal fees are payable in most countries, even on pending applications. They are generally paid from the third year onwards. In New Zealand, you are required to pay renewal fees in the 4th, 7th, 10th and 13th years after the date the application was first filed. The term of a patent is 20 years from the date of filing the complete specification.

Your patent is your most valuable asset and it lasts for 20 years. Most people who have gone through the process say that getting patent protection is a bit like buying a house. The procedure can be frustrating and overwhelming, but undeniably worthwhile once completed. To take that next step, contact a reputable and experienced attorney to discuss your idea.

We can recommend people if you need advice on where to go too, so give us a call if this applies to you.