There's Something Brewing at New Ground Coffee
The challenge: For the New Ground team, working out how to fund their ongoing payables while securing a large contract with a well-known company in Australia was a real challenge. This is where the team at New Zealand Export Credit (NZEC) came into the picture.
The solution: NZEC was able to partner with ASB to support New Ground access additional capital. With the support of NZEC’s Loan Guarantee ASB provided an Access loan facility, 50% guaranteed by NZEC.
The benefit: This has helped the New Ground team to access capital, fund their existing payables, and commit to expanding their customer base.
This innovative company has worked with the likes of Havana Coffee Works and Coffee Supreme here in New Zealand. If you have had your daily coffee from a can you may well know what this is all about. When a company is looking to expand its offerings and move into the ready-to-drink coffee market, New Ground is often there, working behind the scenes.
You’ve heard of the concept of sharing things 50/50… well, this has never looked better for the Auckland based team who managed to secure a $1.5million loan facility with the help of NZEC and ASB.
To make this happen, New Ground’s bank ASB partnered with NZEC and utilised the 50/50 streamlined Loan Guarantee initiative to help New Ground access capital. This meant that NZEC could rely on the due diligence undertaken by ASB, and therefore approve a 50% guarantee of a loan facility in a very short time frame.
“The new streamlined 50/50 initiative with NZEC is a great way for banks to partner with NZEC. It provides us with certainty knowing that NZEC will be there to share 50% of the risk on new lending, which increases our appetite to support our exporting customers with confidence.”
- Liam Tressler, ASB
This facility will enable the funding of raw goods and support the flow of cash for payables, meaning the focus can shift to supporting a large contract with a well-known company in Australia. Ultimately, this means that ASB had faith that New Ground could deliver on its promises and the flow of coffee would remain strong, not bitter…
“Securing this trade finance facility through NZEC was a seamless process. Their speed and support meant we could align funding with our growth strategy and focus on scaling what we do best – making world-class coffee products.”
- Connor Nestor, New Ground
NZEC’s 50/50 streamlined Loan Guarantee can help you to access additional loan facilities from your bank to help you fund your export growth. If you are wondering how you will fund your export endeavours, or how you can get your business ready to grow, NZEC’s Loan Guarantee might be able to help. Call one of the team for a chat today.