Waikato Hospo & Events

A better banking structure saved over $270K a year

A Waikato hospitality and events group was growing well. Turnover sat above $10 million, and the owners held several commercial properties plus a few rentals. Behind the scenes, their banking setup was working against them.

Across $7 million in lending, the bank had applied its highest commercial rate to most facilities. Some debt warranted rates near 9 percent, however much of it should have been priced lower. The result was unnecessary cost and a structure that didn’t reflect how the business operated.

The owners asked Finance Link to complete a full review. We analysed every facility across trading, commercial and residential entities, then prepared a complete application and tendered it to multiple banks to test the market.

The outcome was a simpler, smarter structure. Commercial investment properties moved to interest-only terms. Rates were aligned with the true risk of each facility. Reporting and covenants were right-sized for the business.

All up, the business achieved $277K in annual interest savings, along with stronger cash flow and more flexibility for growth.

This shows how a fresh look at structure can turn a costly setup into a supportive one. The right banking mix does more than lower interest, it gives owners confidence to plan ahead.