News - 12 June 2006

Problem Profile

How do you buy a business with less than 10% deposit??

Business finance requires creativity at the best of times, but when the purchasers have little spare money to put into the equation, way more creativity is needed!

Fortunately, there are several lenders who will lend on the basis of the asset value and cashflow of the business alone, with little collateral support required. For well established businesses, franchises, and people with a proven track record in business, there is generally a way of finding the finance. It just requires CREATIVITY!!

WHO DO YOU KNOW THAT IS LOOKING TO BUY A BUSINESS?? CALL STUART, THE CREATIVITY PROVIDER TODAY!

AND You can Still Get a

FREE TIME THIEF AUDIT!!

MAKE THE BEST USE OF YOUR TIME AND EMAIL ME NOW TO FIND OUT MORE (stuart@alphagroup.co.nz )

Food for Thought

Happiness is a habit - cultivate it. Elbert Hubbard.

Interest Rate and Currency Comments

Stable and Boring has been the theme over the past few weeks, and the Reserve Bank announcement last Thursday did little to change this outlook. Many lenders have tweaked their rates by a few percentage points to try and gain an advantage, but generally they are all moving together at present. Longer term rates continue to creep up slowly, on the back of continuing firmness offshore.

The kiwi has trampolined over the last 3 months, as the chart below shows (the red line). Much of this volatility has been driven by the US dollar bouncing around as US interest rate expectations change. The long term trend remains downwards, but expect more bouncing on the way!

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 12 June 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.48% (stable)
5 year bond rate 5.98% (up slightly)
NZ/US Dollar 0.6259 (down from 0.6300)

Current Range of Interest Rates for home and investment mortgages as at 12 June 2006.

Floating:
8.60 to 9.95% (stable)

Fixed For:
1 Year - 7.85% to 8.85% (stable)
2 Year - 7.70% to 8.95% (stable)
3 Year - 7.45% to 8.85% (down slightly)
4 Year - 7.75% to 8.23% (up)
5 Year - 7.55% to 8.30% (stable)

For a complete table of interest and exchange rates, click here.

The information stated herein was correct at the time of release, but is subject to changes without notice.