Cash Flow Challenges for Kiwi Businesses
From tourism operators in Queenstown to retail stores in Tauranga, many NZ businesses face seasonal highs and lows. A short-term business loan can help bridge the quiet months, keeping staff paid and suppliers satisfied until demand rebounds.
2.Late-Paying Customers
According to Xero’s Small Business Insights, NZ businesses are paid an average of 23 days late. That delay can create huge stress. Using a line of credit or invoice finance facility lets you access funds immediately instead of waiting for invoices to clear.
3.Stock and Supply Pressures
Rising costs and longer lead times mean many SMEs must hold more inventory than before. Borrowing can help you bulk-buy stock at better prices, protect margins, and ensure you’re ready when demand spikes.
4.Unexpected Costs
Equipment breakdowns, vehicle repairs, or sudden bills happen to everyone. A business loan or overdraft gives you a safety net so you can act quickly without disrupting operations.
5.Growth Outpacing Cash Flow
Fast growth sounds great — until your expenses hit before revenue does. Borrowing lets you cover short-term costs (like new hires or marketing) while growth catches up.
Keep Borrowing Smart
Match your loan to your need. Short-term cash gaps? Choose working capital finance. Bigger investments? Go for a term loan with structured repayments.
