Motor Trade Finance said it is trading profitability and doesn't have any exposure to property assets but it will need new capital to keep regulators happy.

The co-operatively owned finance company is putting a restructuring proposal to its shareholders.

"The proposal includes additional capital, capitalisation of undistributed profits and conversion to an investor-owned company," Motor Trade said.

Co-operative capital, because of its redeemable nature, does not meet the test for equity under international accounting standards and may not meet Reserve Bank requirements.

The plan does not affect the rights of perpetual preference shareholders.

Motor Trade said its loan book, which is made up of a large number of relatively small loans throughout the country, continues to perform well.