Lease to Purchase Facility

Lease to Purchase Facility

New Zealand Breeders can secure top quality fillies, broodmares or stallions in a tax effective manner with the assistance of NZB Finance. Provided the horse meets NZB's general criteria of 'enhancing the standardbred stock of New Zealand' NZB Finance will purchase the horse on your behalf (you become the lessee) and lease it back to you. 

With an administration fee of NZ$200, 25% deposit and term of 36 months for fillies and mares (can be varied slightly but must not exceed 36 months) and 24 months for stallions, you can secure the horse you are after.

The interest rate will be fixed for the term of the lease with payments monthly in advance or tailored to suit the prospective lessee's cash flow i.e. annually in advance or arrears. The residual is 25% of the original cost for fillies and mares and 10% for stallions (fixed percentage cannot vary). The guarantee conditions are; Partnership — all partners joint and several or Company — all directors joint and several.

During the term of the lease the bloodstock is owned by the lessor (NZB Finance & Leasing Ltd) and leased to the lessee. The leased bloodstock must be insured through the insurance division of NZB during the term of the lease. 

Should the filly or mare race or breed during the term of the lease all stakes earned and all progeny born belong to the lessee. The lessee is responsible for all costs relating to the bloodstock during the term of the lease.

On payment of the residual, ownership is transferred to the lessee, the bloodstock becomes an asset of the lessee at the residual value and the lessee/owner can claim depreciation at the normal rate.

Each lease is subject to the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, and  The applicant acknowledges that they have made the decision to apply for finance or to obtain finance from NZB for the purchase of bloodstock on the basis of their own judgment and that they have not received financial advice from NZB or any of its employees in relation thereto, and they acknowledge that they have been recommended to obtain independent financial, taxation and professional advice.

Speak to the NZB Finance team today about how you can set yourself up with a commercial breeding prospect for the future.