2 Cheap seals $5m trade facility

NZ Automotive Investments (NZAI) has announced it has entered into a new trade finance facility of $5 million with Finance Now.

The parent company of 2 Cheap Cars says the new facility is effective from June 1 and is “lower cost” than the previous arrangement it had with ASB.

NZAI, in announcing the execution of the deal to the NZX, says 2 Cheap Cars has enjoyed a “long-term strategic partnership” with Finance Now. 

Paul Millward, chief executive officer of NZAI, describes the new arrangement as a win-win because it is leveraging an “already strong relationship and providing 2 Cheap Cars access to working capital finance at a lower rate”.

“We are delighted to be extending our partnership with Finance Now, which has provided finance solutions to our customers for over nine years,” he explains. 

“The Finance Now team understands and actively supports our business, and we can confidently plan ahead knowing we have access to very well-priced capital.”

NZAI first revealed the change to a new trade finance facility was imminent at the presentation of its annual results on May 29.

The agreement follows ASB announcing in August last year it was unable to provide any long-term assurance of support for NZAI’s trade finance and motor finance facilities.

At the time, NZAI said the advice from the bank was understood to relate to boardroom upheavals at the company in July last year when executive director Eugene Williams and three non-executive directors resigned over a breakdown of trust with major shareholder David Sena.