Business Loans

Business Loans

Owning a business has its risks and rewards. The Kiwi ingenuity. New Zealand has around 460,000 small to medium businesses which account for nearly 97% of all kiwi business. Sadly many businesses fail within 3 years of starting out.

Business failures are often attributed to one of the following:

  • Have a business plan-Sir Michael Hill once spoke to a group and asked the audience to show hands if anyone had a 30 year business plan.
  • Under capitalised business- Not having enough capital or credit facilities before venturing out into business.
  • Lack of management expertise- You may be a great lawyer or electrician working for someone however operating a business requires a separate set of skills.
  • Competitor activity- If you are a small retailer trying to compete with Briscoes or The Warehouse- Its almost suicidal and a recipe for disaster.
  • Over-trading- Business which grows faster than the resources that are available to fund the expansion.
  • No business succession plan in place.

Be realistic with your business aspirations and always plan. Failing to plan is planning to fail.

As a country, we have produced big businesses names like The Warehouse, Independent Breweries, Michael Hill Jeweller and Mike Pero Mortgages (Don’t rush to them for your home loan) to name a few.

With good planning and advice, you can avoid a lot of pitfalls and frustrations.

Talk to us first and we will guide you in the right directions and also offer you with good advice on business funding options that are available to you.

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