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General Finance doubles loan book

Brent King, General Finance managing director, says advisers will play a key role as it continues to grow its residential lending book and deposit-taking businesses.

Tuesday, July 30th 2019, 5:03PM

Loan receivables for General Capital Limited, the parent company of General Finance, more than doubled last year from $8.5 million in 2018 to $17.2 million, according to company accounts.

King, who orchestrated General Finance’s backdoor listing on the NZX last year, told TMM Online he expects further growth in short-term lending and bridging finance in New Zealand.

General Capital’s annual report shows first mortgage advances grew from $7.6 million in 2018 to $15.1 million in the year to March.

The growth comes as the finance company looks to build its secured deposits business as well as its lending footprint after UDC signalled its exit from the market.

General Capital plans to increase total assets to $50 million next year, increase deposits to $38 million and will consider an acquisition in the second half of the financial year to March, according to the annual report.

King said a strong relationship with advisers would be central to its expansion in deposit-taking and lending.

“We welcome advisers on both sides. It’s great to see our base developing, and on any given day we’re seeing 4-20 advisers coming to talk to us.”

King thinks “niche players” like General Finance will prosper in the coming years as the second-tier lending market opens up to new players.

“You've got a number of parties competing well against the banks, and no question, there’s strong demand for smaller players in the sectors.”

With its mortgage book growing quickly, King says shareholders are keen to provide more backing, but at the moment, the company has no further plans to raise capital.

“We’re receiving approaches from parties, particularly shareholders who have warrants in the company. We are seeing an interesting market, as it’s hard for investors to find reasonable returns,” he added.

Tags: General Finance Lending

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
SBS Bank Special - 2.79 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 3.59 3.49 3.79
TSB Special 4.54 ▼2.65 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.65 2.69 2.79
Median 4.55 3.19 3.22 3.39

Last updated: 8 July 2020 8:57am

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