M.T.F. stock issue

Press, 14 April 1984, Page 23

M.T.F. stock issue

Motor Trade Finances, Ltd, the Dunedin-based financier of motor vehicle hire purchase and leasing at point of sale, is seeking $4,000,000 in an issue of secured debenture stock. Rates offered by the issue are 10 per cent for a term of three months; 10.5 per cent for six months; 11.5 per cent for 12 and 18 months; 12 per cent for terms of two to five years. The minimum investment is $lOO in any term and the asset backing for each $lOO of stock will be $ll5, assuming the issue is fully subscribed. The company, which services 403 motor vehicle dealers from 27 regional offices, earned a profit of more than $3 million in its last financial year, and had a net value of outstandings of $ll.B million. These were increases of 36 and 57 per cent. The directors say in the prospectus that the company adopts stringent lending policies, and in addition to the security over the motor vehicle, Motor Trade Finances, Ltd, requires the dealer introducing the business to indemnify it in the event of default by the borrower or lessee. Close control is exercised over instalment arrears which have been maintained within the company’s guideline of not more than 2.5 per cent of instalments receivable. In its 13-year trading history, the company has never had cause to write off bad debts, the directors say.