Mortgage Broking in the Fishing Industry
New Zealand has a relatively large fishing fleet the size by population, and fisherman are always upgrading their boat or fleet, upgrading equipment for entering or leaving the industry. In almost every case the fisherman or fishing company will require specialist finance to make their purchase.
The fishing industry in New Zealand is highly regulated, and this means that the fishing boats all need to be fully equipped with the proper safety equipment and the correct fishing equipment, and this does not come cheap. All but the very cheapest of boats will cost at least $500,000, and a large proportion of the New Zealand fleet is worth well over $2,000,000.
Fisherman and fishing companies will need a good relationship with their bank, and this may extend to obtaining mortgages for purchasing new boats and equipment. However there is still a strong need for specialist mortgage brokers who understand the ins and outs of the fishing industry even to make sure that their clients get the best deal on the market or are properly advised. Visit this link for mortgage brokers Wellington.
The fishing business is quite complicated, as there can be long gaps between catches, and their revenue can come in very short intense bursts. The business requires careful cash flow management, and an efficient company needs a good accountant and a compliant bank to make sure the financing of their day-to-day operations proceeds trouble-free.
The mortgage broker task can be quite complex, as they need to make certain that any purchase the fisherman makes is sensible business, and hence they will need to be able to provide a very good business plan and balance sheet supporting any application for a mortgage. An accompanying vital requirement for a mortgage in the fishing industry is the appropriate insurance supporting the lending, and a good mortgage broking firm will also have and insurance broking arm to provide this service.
Many fishing businesses are seasonal, especially during mid winter when it may not be practical to go out as often as in summer. Also the fish stocks themselves can move in and out of the fishing zones, and so the business model for the fisherman needs to be able to cope with sometimes fairly extreme seasonality. The mortgage broker will need to be able to weigh all the risks up including the seasonality and the very high operational costs associated with a fishing boat especially relating to fuel. This is a complex business and only experienced and committed mortgage brokers succeed. Go to NZMortgageBroker.org for more details.