When cash gets tight, the eye naturally wanders to what the business owns: the spare ute, the second machine, the rental property, the stock in the back room. Selling can be exactly the right move. But under time pressure it’s often an expensive one, and selling a productive asset to solve a short-term problem can leave the business weaker when the pressure passes.
Is the asset surplus or productive?
Ask of each asset:
- Does it earn money or save money every month? A vehicle that services a run, a machine that produces, a property with a tenant.
- Would you need to replace it within a year? If so, selling now and buying again later costs twice.
- What would a patient sale achieve versus a rushed one? The gap is often large for specialist equipment and property.
If an asset is idle and unlikely to be needed, sell it, calmly. If it’s productive, look at the alternatives first.
The alternatives to selling
Borrow against property you already own
A property-secured business loan from $20,000 to $1m, as a first or second mortgage, can release cash without selling anything. No financials or tax returns are needed for the initial assessment, and funding within 24 hours of approval is possible in some cases. See second-mortgage business funding.
Bridge to a proper sale
If selling is the right long-term answer, a short-term loan can let you sell properly rather than urgently. The eventual sale repays the loan. This is one of the clearest, lowest-drama uses of short-term lending, because the exit is concrete.
Unsecured loan or line of credit
For businesses trading 6+ months, borrowing on the strength of turnover keeps every asset in place. See unsecured alternative lending.
Equipment refinance or sale-and-leaseback
Some funders will lend against equipment you own outright, or buy it and lease it back. You keep using the asset while releasing cash. Terms depend heavily on age and resale value.
Selling vs borrowing: a quick comparison
| Sell | Borrow against it | Bridge then sell | |
|---|---|---|---|
| Keeps the asset working | No | Yes | Until sold |
| Speed to cash | Weeks to months | Days | Days |
| Price achieved | Risk of discount if rushed | Not applicable | Full, patient sale |
| Ongoing cost | None | Loan costs | Loan costs until settlement |
| Best when | Asset is surplus | Asset is productive | Sale is right, timing isn’t |
Don’t forget the other costs of selling
Agent commissions, auction fees, marketing, legal costs, and the tax consequences of selling (depreciation recovery on plant, or bright-line and other rules on property) can all reduce what you actually receive. Your accountant should run the numbers before you list anything.
An example
Example scenario (illustrative only): A Tauranga landscaping firm has a quiet winter and an IRD bill due. The owners consider selling their second excavator, but it’s booked for spring work that pays well. Instead, they take a short property-secured loan against their home, pay IRD in full, and repay the loan from the spring contracts. Selling the digger would have cleared the bill but cost them the season.
How we help
We arrange property-secured business loans from $20,000 to $1m and unsecured loans and lines of credit for businesses usually trading 6+ months. If selling is the smarter move, we’ll say so. Start with a 60-second enquiry.