tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, May 20th, 11:27AM

Mortgages

rss
Latest Headlines

How SMEs can ease late payment pain to facilitate growth

As New Zealand continues to recover from the global pandemic, now is an opportune time for businesses to focus on growth.

Friday, July 2nd 2021, 6:05PM

However, late payment terms continue to be a point of stress for the SME community, hurting their cash flow and hampering growth opportunities.

Recent data from the Ministry of Business, Innovation & Employment shows that half of New Zealand’s 530,000 SMEs say that late payments hurt their cash flow and increase stress levels. Nearly a third say late payments restrict growth opportunities.

Financial stress is often very much part of running a small business, and the effects of cash flow instability can be vast. Waiting 30, 60 or even 90 days for invoices to be paid can cripple a business. Any squeeze on a business is also likely to be felt in their personal life too (particularly if assets are tied up with the business).

In order to combat this issue, Government departments are seeking to lead by example, setting themselves the target of paying 95% of all invoices within 10 working days. New legislation has been proposed by the Government, which sets minimum standards for payment terms. The Minister for Small Business Stuart Nash recently commented, “Cash flow is king, yet late payments or extended payment terms are undermining the small business landscape.”

While these are steps in the right direction, it’s important for SMEs to look to their specialist advisors when it comes to bridging the gap of delayed payment terms. Alternative finance options are fast emerging that provide the opportunity to take on new business, grow by hiring more staff, build inventory or purchase new equipment.

Apricity Finance CEO Linden Toll understands the cash flow struggles of SMEs dealing with delayed payment terms. “We support any initiative that challenges those that have been responsible for creating unfair payment terms to smaller suppliers. Every small business owner has experienced the anxiety of waiting for bills to be paid, but there are simple solutions out there” said Toll.

For SME businesses considering growth opportunities but have concerns about taking on additional debt, the solution can be found in unlocking tied up working capital. An alternative to bank finance, invoice finance gives businesses access to the funds from their invoices as soon as they are approved. The result is cash flow certainty, increased production capability and the ability to plan ahead.

Invoice finance is not a loan, the business is not taking on further debt, putting the house at risk or giving away control to an investor. This effectively closes the gap between when an invoice is raised and when the business receives payment.

Apricity Finance is ideal for businesses providing goods or services to high credit customers.  With no lock-in contracts or personal assets required as security, Apricity Finance is the flexible funding solution to support SMEs growth needs. 
 

For more information about Apricity Finance, click here.

 

Tags: Apricity

« ANZ eases apartment lending rulesBNZ and Westpac stay out of new build loan battle »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 ▼6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 ▼6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - ▼7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 ▼7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼6.79 - -
Co-operative Bank - Owner Occ 8.40 ▼6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 ▼7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 ▼7.74 7.29 6.59
SBS Bank Special - ▼7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 ▼6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.21 7.29 6.65

Last updated: 20 May 2024 10:01am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com