It wasn’t all too long ago that a simple one-paragraph mention in the Lonely Planet guidebook could be all it took to attract a healthy stream of international visitors to your tourism business. Now, things are a little more complicated.
These days you need to interact on Facebook, market on Instagram, regularly review your Google listing, upload flashy promos on YouTube, respond on TripAdvisor – oh, and actually run your tourism business.
It’s enough to make you want to take a holiday yourself.
So, how can you connect with would-be international visitors in 2020?
“The best tourism operators that we work with have got an extremely strong digital presence, via their website and social media pages,” she says.
“Make sure you’re on the newzealand.com website, your Regional Tourism Organisation’s website and that your page is search engine optimised.”
Stevenson also stresses the importance of having well-developed Google My Business and TripAdvisor listings.
“Ensure that these are up-to-date and that reviews are responded to,” Stevenson says.
Know your audience
A one-size-fits-all approach to attracting international visitors is probably not going to cut it in today’s highly competitive landscape.
Instead, tailor your marketing messaging to different international audiences and demographics, says Trent Yeo, founder of Ziptrek Ecotours in Queenstown.
For example, a marketing strategy that appeals to a Millennial in Europe may not necessarily appeal to a Boomer in Asia.
Yeo, who won the PATA New Zealand Trust Emerging Tourism Leader Award at the 2019 NZ Tourism Awards, says depending on the audience, their marketing messages sometimes centre on demonstrating Ziptrek’s values and ethos, while at other times they focus more heavily on the product itself, and what visitors can expect.
“Typically, when we’re marketing to Europe it’s more of a deeper eco-tourism story, whereas in the Asian context that’s not so much a decision driver.”
Embrace social media
Knowing your audience is also important when it comes to social media, says Stevenson.
“Some operators with products which have strong appeal to the Chinese market have had great success with WeChat marketing and using influencers,” says Stevenson.
“The use of social influencers to disperse content is starting to take off in NZ but is still very much in its infancy. Operators could take advantage of it a lot more.”
Another social media tip is to use video to show-off New Zealand’s natural beauty, says Yeo.
“Video has always been quite strong [as a tourism marketing channel] and lately we have been trying 360° video content,” he says.
Yeo says marketing in the tourism business is not set and forget – instead, it needs to be regularly tweaked to match the tastes of your target markets.
Build industry relationships – online and off
It may seem counterintuitive to team up with the competition, but building relationships with other tourism operators can be good for your own business, says Stevenson.
“In Taupo, they’ve got combo products where operators bundle and resell each others’ products,” she says.
Online travel agents (OTAs) also present a huge opportunity to attract international visitors.
“Make sure your product is bookable on third-party online travel agents such as Book Me, Get Your Guide and Viator,” Stevenson says.
Yeo adds, “OTAs are taking increasing volumes and having an increasing influence on the way in which tourism is moving forward.”
Need a boost for your next big tourism marketing push? Talk to Prospa about how a small business loan could give you the capital to help reach bigger audiences.
Image credit: Ziptrek Ecotours
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
Sourcing funding can cause worry lines for small business owners, as Sarndra (Sandy) Urwin discovered when she wanted to expand the retail offering within her small business. That’s why she partnered with Prospa, which she now calls the best anti-wrinkle cream around.
Hear more about Sandy’s small business story:
All her life, Sandy has had a firm belief that “nature knows best”, and this became a foundational value for her business Animal Natural Health Centre, based in Orewa, New Zealand.
“I’ve always felt that prevention is better than cure,” she says.
Sandy left her work as a nurse to pursue her passions for natural healthcare and working with animals, while also filling what she saw as a gap in the market.
“There was nobody offering choices in healthcare for animals, so I thought, ‘Why aren’t we doing this?’,” she says.
She opened Animal Natural Health Centre in 2008, offering both consultation services and natural products for animals, many of which are handmade in house under her White Tui label.
“My purpose and vision for the business was to offer people a choice in animal healthcare. I really wanted to take a holistic approach,” she says.
Offering more to customers
As her customer base grew, Sandy felt it was time to expand the retail side of the business to meet the growing demand for her natural animal healthcare products, including sunburn creams, pain relief, allergy treatments and sprays to ease anxiety or stress caused by noise.
“We had a very limited range of stock because we didn’t have the capital to invest in the new products that our customers were looking for,” she says.
At one point, Sandy considered selling part of the business to an investor in order to gain more capital. But in her view, that would mean abandoning some of the reasons why she began Animal Natural Health Centre in the first place.
“It would have been quite heartbreaking, actually,” she says.
As many small business owners know, you can’t buy trust. Sandy was concerned that the reputation she had spent years building within the community and with her customers “wouldn’t have gone along with the sale”.
“We didn’t want to compromise,” Sandy says.
A win-win situation
Instead, Sandy turned to Prospa for a small business loan, which she felt would enable her to achieve her business goals without having to make trade-offs.
From the very start, Sandy felt Prospa was the right partner for her small business.
“When I first contacted Prospa, I was impressed by their enthusiasm and interest. They really wanted to listen to my story, and they were just as enthusiastic as I am about my business,” she says.
“Working with banks can be like pushing water uphill with a straw, whereas Prospa was quick in their actions. You know exactly where you stand with them at any moment of the day, and I like that.”
She says Prospa’s attention to detail, prompt customer service and general willingness to find a win-win situation gave her a lot of confidence.
“With a small business loan, we’ve been able to expand our range of products and give our customers better service, and equally important, I no longer have the thought that I need to sell,” she says.
A focus on the customer
Now that Sandy isn’t worried about cash flow, she’s looking forward to her future plans for the business, especially expanding her education and outreach programs. She is currently looking to develop course material and protocols for natural animal healthcare.
She also wants to share her passion for holistic animal health with the wider community, and in doing so, empower people to make more informed choices about what’s right for their pet.
“The customers are what drives you and your business – they are my favourite part of being a small business owner,” she says – and that includes the animals and their humans.
“Small businesses do have the opportunity to make huge changes in our communities, and thanks to Prospa, we can keep doing that.”
A Prospa Small Business Loan has helped Sandy and Animal Natural Health Centre to:
Increase the variety and volume of stock available for customers.
See an increase in monthly turnover.
Not compromise on quality or her vision for the business by selling a stake to an investor.
Whether it’s growing your business, funding an opportunity or just covering cash flow, find out how Prospa can help keep your small business moving. Talk to one of our small business finance specialists on 0800 005 797 to discuss your options, or find out more.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
New Zealand has always punched above its weight when it comes to innovation and two new tax policies are aimed at further helping small businesses to continue to do so.
The new policies are aimed at reducing some of the risk of trying new things in your small business, making it easier to finance new methods and products, and are set to be in effect from the start of the 2020-2021 financial year.
So, if you’ve got a bright idea burning away at the back of your mind, now could be the time to start planning how to put these new incentives to work for you.
Tax credits for R&D
KPMG New Zealand Director, Byran Theunisen, says one of the most attractive incentives for small businesses is a new research and development (R&D) tax credit.
“Businesses will get back 15% of what they spend on qualifying R&D through a reduction in their tax bill,” he says.
To qualify, the R&D effort must be conducted systematically with the purpose of creating new ways and better processes, and services or products. It could be a new healthcare app, an algorithm or an improved method of manufacturing. Businesses must spend at least $50,000 on the R&D in a financial year for it to qualify.
Costs that are eligible for the tax credit include employee wages, depreciation on the R&D assets or the cost of plant used for the venture.
Theunisen says in addition to tax credits, businesses can also access the existing R&D grant funding, and expert and scientific assistance through Callaghan Innovation, including incubators, accelerators and researchers.
Through the combination of Callaghan Innovation and another government agency, New Zealand Trade & Enterprise, there is support for business planning and development, technology and market testing, as well as connections to international markets and capital.
Funding the feasibility ‘black hole’
In September 2019, the government also announced that from the next financial year onward, tax deductions would be available for “feasibility expenditure”.
This is money spent on pursuing a new process or product which does not ultimately lead to a depreciable asset for the business. Traditionally, these costs have not been deductible for tax purposes, making them known as black hole expenditure.
KPMG Tax Partner, Darshana Elwela, says feasibility expenditure is costs incurred to determine the practicality of a new initiative.
“This is where a business is looking to invest in a particular asset, either to construct or acquire a piece of plant and equipment, and there are costs associated with exploring how they do that,” he says.
“It will help businesses to make investments by providing greater certainty over the tax treatment of their project costs.”
Under the new rules, businesses will be able to write off the entire cost of any feasibility expenditure up to $10,000 in the same financial year. For larger sums, the expenditure can be written off over a period of five years.
Kirk Hope, the CEO of small business peak body BusinessNZ, says the current cost of exploring new enterprise is a “significant barrier to innovation”.
“This new tax rule will make it easier for more businesses to innovate and become more productive,” he says.
The type of costs that can be written off under feasibility expenditure include seeking relevant professional or expert advice about a new initiative, market research on a new product or market segment, or engineering surveys and environmental studies for a new building.
For instance, a café that is hoping to open a new location might hire a contractor to survey foot traffic flows in different areas to help it determine which area is the most suitable. Under the new rules that expenditure would be deductible.
Got your own bright idea for innovation? Talk to Prospa about how a small business loan could help turn the idea into reality.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information
DNA 1st Solution owner Anita Vaafusuaga didn’t want cash flow issues to cause her to miss a fantastic opportunity to grow. So, she used a Prospa Small Business Loan to overcome the problems caused by late-paying customers and buy space to nurture a program that helps South Auckland youth.
Hear more about DNA 1st Solution’s story:
Anita and DNA 1st Solution’s second calling
After spending 25 years of her life working for a manufacturing company – 13 on the factory floor and 12 as a warehouse supervisor – Anita leapt on an opportunity that presented itself.
In February 2012, by chance, she overheard her bosses saying they needed a product packing contractor. The idea sparked Anita into action, and she soon launched DNA 1st Solution, a packing and labelling business that prepares cosmetics and other products for shipping and sale.
Shipping and staffing
While packing is Anita’s main business, she uses her company to benefit the local community too. As part of their Kingfisher Program community outreach initiative, Anita employs young New Zealanders with little-to-no experience.
It’s a program that’s designed to give young people a start in life, and was something Anita launched in memory of her late husband, who loved to help his close friends and family. Twelve days after his death, a kingfisher bird came to her home, which is where the program’s name comes from.
“The most rewarding thing is the stories of the young people I hire, whether they’ve moved on to other things or they’re still with me,” says Niue-born Anita.
“We train them in the warehouse. From there, we see if they go into the packing part of the business. If not, we send them out skilled to work for other companies.”
Stop-and-go cash flow
Of course, for the Kingfisher Program to be successful, the business must be too.
“I tried a few times,” she says. “It takes too long. It’s too stressful. The questions they ask, the forms they want me to fill in.”
Then when an opportunity to grow the business by moving into a new warehousing facility presented itself in May 2019, Anita knew she couldn’t miss out.
She had a window of a week to complete the deal, so she called Prospa to take out a small business loan – and within seven days the company was in new premises.
“When the opportunity came about, we had to decide quickly, what do we do from here,” she says.
Fortunately, she had learned about Prospa’s 24-hour approval on Facebook.
“What I liked about Prospa when I applied for the loan was the speed,” Anita says. “Questions, done. On the spot decision. Finished.”
She also appreciates Prospa’s convenient small business loan repayment plan.
“My repayments are weekly and it’s for a year. I love that. I’m not going to be bound by that for 10 years or something.”
Cash flow is still an issue, but now it’s one that doesn’t impact the business.
“Right now, I’m waiting on $60,000 to be paid,” Anita says. “But because I’ve got the loan from Prospa as a buffer, I’m not worried.”
What’s next for DNA 1st Solution?
With the Prospa Small Business Loan, Anita has tripled DNA 1st Solution’s warehouse space, setting themselves up to expand their packing capability and the Kingfisher Program.
Anita plans to expand the Kingfisher Program to provide avenues for young Aucklanders to learn more about themselves and their interests.
She also has big plans for the business, including bringing the company’s services to Pacific Islands.
“I can’t wait to do what we have planned. I can’t wait to put it into action,” she says.
A Prospa Small Business Loan has helped DNA 1st Solution:
Triple available warehouse space.
Grow the Kingfisher Program and help more inexperienced Auckland youth.
Smooth out cash flow issues.
If you’re like Anita and want to seize an opportunity but don’t have the cash flow to do so, talk to Prospa about how a small business loan could help on 0800 005 797 or apply online.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
Gorgeous You skin wound and scar management clinic owner and operator Francis Swart had been running her small business out of her home since 2013. But she was starting to experience growing pains. Thanks to a Prospa Small Business Loan, Francis was able to realise her dream of owning her own salon.
Francis’s Gorgeous You salon in Burswood, Auckland, offers a wide range of skin and beauty treatments, including facials and massages. But much of her passion lies in wound and scar management, and helping people of all ages feel comfortable in their own skin.
“You might not be able to ever get rid of a scar or wound completely, but we can manage it in such a way that, when you apply make-up over it, you won’t even see it,” she says. “Or if it’s a body scar, we can manage it to a point where you can look at it and not feel like, ‘Oh, I don’t want to look at that part of my body.'”
Experiencing growing pains
For a few years, Francis operated Gorgeous You out of her own home. That worked for a while, but it soon became time to expand.
“I used to work from home, and we got to a stage where my family really needed their home back,” she says.
“The only way to do that was to move the business out of the house and into premises where I can actually grow my business.”
Having her own premises was also a long-held dream for Francis.
“I’ve always had a home-based salon – while raising children it was just easier. And I would say to my husband, ‘When I’m big, I’m going to own my own salon.'”
The scars of bank rejection
But finding funding from traditional lenders to realise that dream was tough, partly because Francis and her husband didn’t own property.
“They would ask, ‘Are you a property owner?’ When we said, ‘No,’ they would say, ‘Sorry, we can’t help you.'”
One day, Francis and her husband stumbled across Prospa on social media. After enquiring about a Prospa Small Business Loan, the couple heard back within 24 hours.
Francis appreciated that Prospa was easy to deal with, quick, and willing to work with her on a suitable repayment plan.
“Prospa gave us the option to make a weekly repayment,” Francis says. “As a small business owner, I can manage a smaller weekly repayment much better than a huge monthly repayment.”
Dreams do come true
Thanks to a small business loan, Francis has been able to achieve her dream of opening her own salon in Auckland, and fitting out the space.
“The premises were quite old and dilapidated,” she says. “I needed to freshen them up and make it a beautiful space where people wanted to come, where it’s nice, cosy and inviting. That’s what Prospa helped me do.”
Hear more about Gorgeous You’s story:
What’s next for Gorgeous You?
Now that she’s in her own space, Francis is determined to keep her small business moving forward.
While Francis hopes to handle the marketing for Gorgeous You, she would like to employ another therapist to help with treatments.
“I just feel so blessed,” she says. “I said to my husband, ‘After all these years, I got to where I’m supposed to be.'”
It seems that with a bit of backing and hard work, dreams can come true.
A Prospa Small Business Loan has helped Gorgeous You:
Purchase a new salon.
Renovate her new premises.
Hire a business coach.
If you have a small business dream that you’d like to turn into reality, talk to Prospa about how a small business loan could help on 0800 005 797 or apply online.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
Having a great idea is just the start for any successful small business. That great idea must be backed by a strategy for long-term success. Here’s our step-by-step guide to help you build a solid foundation from which your great idea can grow.
1. Start with the end in mind
First things first – you need to know, and be able to articulate, what you want your business to be. What’s the vision?
You may want to be the café of choice on Lambton Quay, or maybe you want to expand your design company into the South Island. Whatever it happens to be, your big idea will allow you to see what the finish line looks like – and then you can work out what you need to do to get there.
2. Know what makes you special
What truly sets your business apart from your competitors? What is your point of difference that makes what you do so much better – or be so different – than anyone else? If you’re unsure, your customers won’t know either.
It’s natural to find this difficult – often, small business owners are too close to their day-to-day operation to truly see what makes them unique. In that case, talk with your customers and your staff to get a sense of what they value about what you do. It could be your customer service or the quality of your products, or it could be something completely different.
3. Identify what your audience needs
While talking to your customers about what they value about you, take the opportunity to ask about their lives, and their needs too. Understanding how often they go on Facebook or Instagram, for example, may not seem immediately relevant, but it will help you define your marketing strategy. Talking about other products and services they use regularly will help identify product areas worth exploring, or new directions to take your business in.
The best way to conduct this research is by having one-to-one conversations, while you could also complement this with an online survey. Offering an incentive is a smart way to increase the number of people giving you feedback. Provide the option of anonymity too. While the feedback may be painful to read, it will enable people to be brutally honest. Ask the tough questions and be prepared to act on the results.
4. Be aware of your competition
While it would be lovely to have a monopoly on the market, very few companies do. So, you need to know who your competitors are and what they are doing. What products do they stock? What services do they offer? What’s their customer service like? Use this information to improve what you’re doing, and more deeply define your point of difference.
Just because someone else is doing something doesn’t mean you should copy. However, if someone is doing a smart promotion or adding a new service, take note of what works and then think about how you could improve on it.
5. Set SMART goals
Now you’ve gathered information about your business, your customers and your competition, it’s time to define some goals around what you want the business to achieve.
For example, one of your goals might be to increase sales. However, just saying ‘I want to increase sales,’ doesn’t give you much to go on.
A common approach to goal setting is to follow the SMART method. That means setting goals that are specific, measurable, achievable, relevant and timely.
Specific: Rather than ‘increase sales’, pick specific stock categories of which you want to increase sales in.
Measurable: How much more do you want to sell? Put a number on it.
Achievable: Be realistic. It must be achievable, otherwise it’s meaningless.
Relevant: Is this goal going to help you achieve your business vision?
Timely: The timeframe needs to work for you, your customers and your type of industry.
An example of a SMART goal would be: Increase sales of summer skirts by 20% between October and January.
From there, you need to work out what’s required to do it – do you need more staff, a wider range of stock or a different marketing campaign?
Having your goal is one thing – achieving it is another.
6. Investing in the future
With a clear business vision, understanding of your audience and clarity around how you’re going to achieve your goals, you can now make informed and educated decisions on business finance.
If you’re not sure you’re ready to invest, think about where you want to be in five years’ time or even in 12 months’ time, and work backwards to see precisely what needs to happen to get there.
7. Don’t set and forget
Business plans are great, but they should grow and change with you. It should be a living document that you review and evolve regularly.
Opportunities emerge and changes happen in industries, so your business plan should keep on top of that.
Schedule a recurring time to revise your business strategy. If you’re not on track or a new opportunity has come up, be flexible. An ever-evolving plan is the only one that will be able to keep up with your changing business.
And if you need a little help or advice, there are plenty of business coaches, planners, financial advisors and fellow business owners who can help you pull your plan together – and keep it on track.
8. Embrace the challenge!
Being a business owner is tough – that’s why not everyone does it. However, running your own business is also extremely rewarding. Hopefully, you’re excited at the prospect of having a road map for your business’s success. If you have the strategy – and the motivation – to succeed, then you’re giving your business the best possible chance.
Is investment part of your plan to succeed and grow? At Prospa, we provide small businesses across New Zealand with small business loans to suit a variety of growth needs. Call our team on 0800 005 797 or apply online.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
No small business has money to burn, so when it comes to funneling capital back into the operation it can be a daunting prospect. But you shouldn’t be afraid of investing in your venture (beyond just sweat and tears).
Sometimes you need to spend a little to gain a lot. Just make sure you’re spending money where it counts. Here are some suggestions of things you may want to invest in to help your small business grow.
1. An online booking platform
By investing in an online booking and payment solution for your small business, you can spend less time taking bookings and chasing payments, and instead use those spare hours to ensure your customers get the best service possible. It’s more convenient for them, saves you time and cuts down on cancellations and bad debts. That’s a triple win.
2. Improve your website
If you’ve built up your business mostly based on word of mouth, you may not think a polished, ultra-professional website is all that necessary. But in our technology-obsessed world, it’s important to keep your website modern and fresh.
If you don’t have the time, inclination or technical knowledge to do it yourself, a small investment in a professional team can take care of everything for you. Engage a web developer and designer with experience of what works for your type of business, and a content writer who can craft words that will not only entice people to connect with you, but help you be found organically online, too.
3. Outsource the things you don’t enjoy
In the early days, you do almost everything as a small business owner. But surely one of the perks of being your own boss is you get to decide what you do and what you delegate. So whether you outsource your social media management to a specialist or your admin to a virtual assistant, consider freeing up your time to grow the business by investing in some additional help.
4. Partner with a financial expert
Investing in a good accountant who understands your small business and your industry is worth its weight in gold. Smart accountants who know how to maximise deductions and manage cash flow are often a big part of a thriving business, and they can advise you on the best structure for your business too. Many accountants will also give you access to their accounting software, which will enable you to manage your business’s finances a lot easier.
5. Buy more efficient equipment
It doesn’t matter whether you run a pub, dry cleaning service or burger shop, getting popular means more customers – and inevitably longer wait times. But there are ways to stop customers from turning away disgruntled. Can you invest in better, faster equipment? Do you need to hire more casual staff at popular times? In most cases, a minor investment today can lead to bigger rewards tomorrow.
6. Market your small business
You’ve done everything possible to get your small business up and running – now you just need more customers. It might be time to invest in a more sophisticated marketing strategy, incorporating a mix of modern tactics such as Google Ads, SEO improvements, content marketing, social media targeting and email campaigns. If you operate locally, a good old letterbox drop can also keep your business front of mind.
7. Order more stock of what’s popular
Sounds simple enough – but investing in what’s popular can be a smart strategy. If you consistently run out of a product that customers adore, increase your order. An improved wholesale rate can boost your margin too. You may want to consider investing in a three-month trial of the larger wholesale order and see if it’s worth it.
8. Your own professional development
Running a busy small business with lots of customers to impress and staff to manage means people management should be one of your best skills. But investing in some HR training and business management seminars may be the next step to help you grow.
9. Protect yourself with business insurance
As your small business grows, you will likely take on new jobs, expand to new locations and deal with suppliers you never anticipated at the startup phase. Now’s the time to check your business insurance covers you if anything goes wrong. For example, if you’re expanding to a new premise be sure to check if your policy also covers earthquake damage.
So, you’ve done your due diligence and want to invest in your small business, but you don’t have the capital to do so? Prospa might be able to help. Get in touch to find out how.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
But first, here are six questions to ask yourself before taking on finance.
What’s the small business loan for?
While your business is something you’re likely emotionally invested in, it’s vital to remain objective about any opportunity that emerges. It is business after all. So before deciding whether a small business loan is a good option, be crystal clear on what you’re intending on using the money for and what positive impact it will have on your business.
How much finance do you need?
If your financial projections suggest your business will benefit from a cash injection, then the next step is to work out how much you’ll need. Remember to factor in any costs associated with what you’re using the loan for. For example, if you intend to buy a new vehicle or a new piece of equipment, it’s going to need insurance.
What’s your current position?
It’s one thing to know how much is in the bank today – it’s another to have an accurate picture of what’s coming up. Make sure your cash flow forecast is on point, all knowns are accounted for, and you are confident you can make the regular repayments, even in quiet periods.
How’s your credit history?
If you’re thinking about applying for a small business loan, it’s a good idea to check your credit report, so you can correct any mistakes, as this will impact your loan application. There are three credit reporting companies in New Zealand: Centrix, illion and Equifax. The New Zealand Government provides a handy guide on the best way to check your credit report.
Is there other funding that could help?
Is a small business loan definitely the right option? For example, if you’re a Kiwi business looking at a loan for R&D, you could be eligible for business growth funding through Callaghan Innovation – New Zealand’s innovation agency. Worth a look!
Make it easy to get a ‘yes’
At Prospa, it’s our mission to keep small business moving, providing small business loans of $5,000 to $150,000. To apply, all you need is identification (i.e. a valid Driver’s Licence) and some information about your business (including your trading time, ownership details and an active New Zealand Business Number). Note: to qualify for a Prospa Small Business Loan, you need to have been trading for at least six months, with a minimum monthly turnover of $6,000.
It takes 10 minutes to fill in the online form and we can often provide a response within one hour, as long as you’ve applied during standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online.
So, the clearer the information you provide to us about your business, the easier it is for us to say ‘yes’.
Discover how a small business loan could help your business grow. Find out more or contact us on 0800 005 797.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.
