A couple of Australian mortgage funders have found opportunities in New Zealand's damaged finance company sector. Business Finance Limited will get a fresh lease of life from Liberty Financial just when the company was contemplating a "phase-out". Liberty yesterday said it will take a 50 per cent stake in the firm by investing NZ$22 million."With new regulations coming into force, smaller companies need to make deals to get bigger or phase out," Business Finance managing director Leo Davis said. "We were effectively phasing out until we got a deal with Liberty."The Reserve Bank of New Zealand has laid out a series of regulations for the non-bank deposit takers, aimed at promoting a sound and efficient system and preventing damage to the financial system from failure of such companies. The RBNZ believes the difficult macro-economic conditions coupled with new eligibility criteria for risk-based fees for the Crown deposit guarantee, and new minimum regulatory standards, will lead to some finance companies exiting the sector.Business Finance specialises in equipment financing and has the policy of not financing property development projects or providing finance for consumer goods. The company raised funds via term deposits but has stopped accepting new term deposits.With the company's assets now expected to exceed NZ$20 million, it will now have to meet the RBNZ regulation of obtaining a credit rating from an approved rating agency.Meanwhile Resimac has emerged as the new investor in Allied Farmers Ltd.Allied disclosed yesterday that it issued NZ$7 million in convertible notes, perpetual bonds and warrants to Resimac. Resimac chief executive Warren McLeland will join the Allied Nationwide Finance board.