Finance firm gets fresh start

A former Blue Chip managing director has bought a South Island finance company and wants to raise $50 million in term deposits.

Nick Wevers and his associates bought Priority Finance, a Christchurch business founded by Noel and Kent Gillman, which has since had its name changed to Viaduct Capital. A new prospectus has been registered for the term deposit issue.

The money would be backed by the Government's deposit guarantee scheme, Wevers said.

The property sector had a desperate demand for money yet traditional bank lending was extremely hard to get.
Viaduct saw a gap in the market and believed it could satisfy a strong demand.

Wevers said the new business was aiming to provide money for real estate and business investments.

Priority's loan book stood at $7.39 million last month.