The PPSR (Personal Properties Security Register) is a central register of all the security interests in companies and individuals. The PPSR is managed by the New Zealand Companies Office.
Every time security taken for a loan this is registered on the PPSR at www.ppsr.govt.nz. This ensures that the same security cannot be used for a loan twice and enables the lender to take possession of the security and sell it in the event of a default.
Property and vehicles are the best form of security. This is because they have verifiable valuations and can be registered on the PPSR. Vehicles can be funded to up to 100% of their value and property can generally be funded to 80%. If there is a first mortgage on your property this can still be topped up to 80% but there may be a limit on the amount that can be borrowed.
Plant and equipment can be used as security but the percentage funded will depend on the resale market of the items.
Funding can generally not be provided against general schedules such as office equipment because this cannot be tracked and there is no resale market.
Generally it is quite difficult to fund start up businesses as there is no security or proven cash flow history. Lenders would usually require some sort of collateral security (such as property or vehicles) to fund a start up business.
Invoice finance can be a good option for a start up business as it will grow as the business grows.