We have launched the Bridging Finance NZ in 2017 as part of our commitment to providing bespoke short-term financial solutions to companies where traditional banking lending is inflexible and lacking.
Capital markets are having to play a bigger role in financing companies given the reduced bank lending resulting from the recent economic and financial crisis. As banks deleverage traditional credit sources are diminishing and SMEs are looking for alternative non-bank debt financing instruments for credit. CFS is positioning itself so its investors can benefit from this opportunity in the financial market through forming a high yield alternative securitised debt fund. We call it the Bridging Finance NZ.
Bridging Finance NZ targets potential high yield project financing seeking short-term, fast turn-around loans as well as underwriting specific development projects. Such companies are primarily property developers or traders requiring additional capital to bring a project to completion. Secondarily the fund also targets importers needing trade finance, or trader of precious metals seeking to take advantage of the global market instabilities. Finally, the fund also provides specialist technical equipment financing via an operating lease model.
For the businesses seeking finance, this fund provides an efficient way to alleviate credit constraints and improve the diversity of credit supply. Companies obtain market funding without the need for (high) individual company credit ratings required when issuing debt directly in formal bond markets.