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A small Auckland Finance company is bucking the industry trend and declaring a healthy profit.
So just how is Broadlands Finance thriving as bigger rivals hit the wall?
It's been open for business almost 30 years and Broadlands Finance is celebrating a $1.7 million profit.
"Hey, in the bad times, it's a great result for the company," says Rudi Kats, Broadlands Finance managing director.
Broadlands admits it's no high flyer but is proud of its lending record in the risky motor vehicle and personal finance market.
When other finance companies started failing, Broadlands reluctantly laid off staff and cut back lending.
"The secret is to know the people that you deal with, make sure they can afford to pay you," says Kats.
Broadlands Finance is owned by a reclusive multi-millionaire called Tony Radisich who has pumped millions into the business to make sure it survives the industry downturn.
That personal commitment now totals more than $24 million and one analyst says the support of a major shareholder is crucial.
"The model they're using now is where the shareholders lend their own money and don't borrow from the public. And I think for very small finance companies, that's a good model. It maybe is the model for the future," says Chris Lee, stockbroker.
And Broadlands believes it's important to provide local competition for the foreign-owned money lenders.
"You could only imagine that if there was no competition what the rates would do," says Kats.
And Timaru's South Canterbury Finance, owned by yet another recluse in Alan Hubbard, is expected to announce more good news with a record profit next week.
