Resources & Investment Finance Limited has been supporting the finances of PNG businesses for generations.
Mining equipment can be expensive. Excavators, haul trucks, drills, and dozers don’t come cheap.
And now, more than ever, operators need financing they can rely on.
That’s why Papua New Guinea (PNG)-owned Resources & Investment Finance Limited (RIFL) is working to ensure the Pacific nation’s mining industry is prepared.
Not a new business in PNG, RIFL was originally incorporated by Papua New Guinea Banking Corporation in 1979.
RIFL operated as a merchant bank until the late 1990s when it transitioned into a small finance company.
Current shareholders purchased the company in September 2012 as a licensed financial institution and it is now regulated under the Bank of Papua New Guinea.
RIFL chief executive officer Peter Boutcher said the company’s legacy of supporting PNG businesses speaks for itself.
“We are 100 per cent PNG-owned company,” Boutcher told PNG Mining. “Our main focus is financing heavy machinery such as excavators, rollers, backhoes, trucking, and agricultural machinery.”
RIFL also services its customers with consumer lending, insurance premium funding, and provides working capital finance for selected clients.
“We do not charge any upfront fees or loan approval fees, and our interest is capped at 25 per cent.” Boutcher said. “We pride ourselves on our ability to turn around applications within 48 hours of receiving all of the relevant financial information from clients.”
Boucher said RIFL puts its combined 100 years of finance experience into action to help companies make the most of their finances.
“It’s all part of our vision to exceed client expectations, reward our shareholders commitment with strong returns and foster a positive working environment for our staff,” he said.
A major part of RIFL’s offering is its mainstream lending product – asset finance – whereby the customer has title of the asset financed and RIFL register a charge over that asset as the loan security.
Boutcher said RIFL can provide finance for new or used equipment.
“Asset finance is a fixed interest rate product allowing you to confidently budget future payment costs,” Boutcher said. “You conserve cash flow that could be used to invest in more productive and profitable areas of your business.”
From a taxation perspective, if the asset is used for business purposes, then businesses can claim the interest charged on the loan and the depreciation of the asset against their pre-tax earnings.
If a business is registered for GST, customers can claim back the GST on the tax invoiced price of the goods financed.
RIFL also provide master asset finance agreements for clients requiring multiple ongoing asset acquisitions.
All financing thereafter is undertaken through the execution of a one‐page schedule by an authorised signatory for all future requirements
This avoids onerous paperwork and the inconvenience of having directors and guarantors together every time you need to finance another asset.
If a client requires a flexible arrangement, RIFL can tailor its loan agreements to meet a range of cash flow requirements.
Most asset classes are covered under RIFL agreements, including trucks and other mining equipment.
As a licenced financial institution, RIFL also offers interest bearing deposits, meaning the company can offer and accept deposits from the public, as well as from private and public institutions like insurance companies and superannuation funds.
Boutcher said this is suitable for businesses interested in securely investing surplus funds for specific periods.
“Interest earned can be compounded or paid monthly, quarterly, half yearly, annually and at deposit maturity,” he said. “Our interest rates are extremely competitive in the market and we accept amounts of K100,000 ($38,466) and above.”
Clients of RIFL also have the benefit of choosing to spread the cost of their annual insurance funding.
The benefits of this mean that the appropriate insurance cover that may have previously been unaffordable would become achievable by spreading the cost of annual insurance funding.
Cancellable insurance premiums are financed over a 10–12-month repayment term, and fixed monthly repayments allow for more accurate cash flow forecasting.
This provides for the prompt payment of premiums to brokers and insurance companies.
RIFL has been servicing the financial needs of PNG businesses for generations. That kind of experience and expertise is a rare gift, one Boutcher said sets RIFL apart.
“We work with you and your company to devise the best outcomes,” Boutcher said. “Move your business forward with our range of financial solutions.”
This feature appeared in the August–September 2024 issue of PNG Mining.