Since its launch in 1970, MTF Finance has become one of New Zealand’s most trusted finance brands, with a reputation for doing the right thing.

MTF Finance provides secured and unsecured loans to consumers and small businesses. Secured lending is collateralised by motor vehicles and approved plant and equipment. Lending occurs under a full-recourse or “originator guaranteed” business model.

The business operates from 52 franchise offices, from Kerikeri in the far north to Invercargill in the deep south, and the network continues to grow. This provides borrowers with an easy point of contact for private or business loan origination.

Being local businesses themselves, franchises have a unique understanding of the local economy and communities in which they live and work. MTF Finance also originates through a network of vehicle dealerships, also subject to the full-recourse business model.

For much of MTF Finance’s history, the business was a cooperative, owned by loan originators. Although MTF Finance transitioned to an investor-owned company in 2009, it retains many aspects of the cooperative model, with shareholding a requirement for all active franchises and vehicle dealerships. Along with the recourse business model, this ownership structure creates a powerful incentive for originators to lend responsibly and provide a market-leading level of service to borrowers.

First listed on the NZDX in 1994, MTF Finance has a well-established brand and reputation as a supplier of finance and a capital market issuer, regularly issuing ABS transactions to institutional investors in New Zealand and Australia.

MTF Finance has a long history in securitisation, beginning in 1995 with a euro commercial paper programme that it replaced with a rated warehouse in 2010. In 2012, the business issued the first ABS in New Zealand since the financial crisis and it has been a regular issuer since.

The importance and value of securitisation as a funding source is ingrained in the organisation. Loans are originated with the goal of creating a portfolio that will be attractive for investors, with ongoing reporting provided to each originator against key metrics in line with funding parameters. Securitisation funding is supported by a corporate banking facility, perpetual preference shares listed on the NZDX and shareholder equity.

MTF Finance is a stable and profitable business. Primary avenues of growth will come from expansion of the franchise network and introduction of new products.

Asset performance is strong, with recourse to originators providing cover for losses – meaning net losses are almost nonexistent.

Exceptional credit performance is also driven by a two-layer credit assessment. Each originator is assessed and regularly reassessed by the credit team at the support office, in addition to the credit assessment of each borrower undertaken by the originator.

Fraser Wilson
Head of Treasury and Funding
+64 3 742 6439
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Kyle Cameron
Deputy CEO
+64 3 474 6373
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www.mtffinance.co.nz