Cash flow is important to the success of any small business – this you know. So it pays to keep it front of mind in the good times, and the bad, especially when you have loan repayments to consider. Keep a close eye on it by:
Issuing invoices on time – the earlier you invoice, the earlier you’ll get paid.
Regularly updating all other accounting and reporting – this will ensure you’ll notice any issues sooner and have them fixed faster.
Building a cash reserve, if possible – it’s always good to have something to fall back on should the unexpected happen. It will also stand you in good stead during seasonal slumps.
Projecting your cash flow well in advance – a cash flow calculator tool will be your best friend in this.
Get ahead of the game at peak times
So, business is booming? Great news. And while it may be tempting to celebrate, now’s the ideal time to consider paying more towards your loan. After all, it’s a move that will save you a significant sum of money down the track.
Let’s take Alison, for example. She’s a restaurant owner, has a $50,000 small business loan that she’s paying off at a rate of $600/week over 1 year and 9 months. Her business is doing well and she could pay more, but she’s just cruising at the agreed rate.
Alex, a mobile handyman, has a $50,000 business loan that he’s paying off at a rate of $600/week over 1 year and 9 months. His business is booming and he decides to add $200 to his repayments. This saves him $1,000 and he pays the loan off 5 months early.
Note: These are examples only and general in nature.
Keep a strong credit score
Good credit makes life much easier for a small business owner. Having a great credit report will open up more options when it comes to accessing finance, and has the potential to save you money in repayments.
Build and maintain a good credit score by:
Scheduling reminders to ensure bills are paid on time.
Limiting repayments by consolidating your credit cards.
Keeping a close eye on your credit cards by not hitting the limit.
Going over credit card bills with a fine-tooth comb so you can address any errors.
If your business is ready to take the next step, talk to Prospa today on 0800 005 797 or apply online for a small business loan.
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 advisers. 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.
Alex Grant and his mother Iris Posa, co-owners of Baker & Son Catering – and the power behind motorbike cafe Grind On – developed a devoted following that presented an exciting opportunity for growth. But with that opportunity comes additional cost, and the team needed extra capital to keep up with the rapid pace of success.
After navigating tangled red tape from traditional lenders, Alex and Iris found a Prospa Small Business Loan to deliver what they needed to keep them firing on all cylinders.
Revved up for success
Alex is a coffee maestro and a veteran of the Auckland cafe scene. His mum, Iris, is a kitchen wizard, whipping up dishes that have become local favourites around Takapuna, a coastal suburb on Auckland’s North Shore.
“My mum is known on the street for her cooking, and I’m known for my coffee,” Alex says. “It’s old-school cooking done well.”
Alex already owned the Grind On café, and in 2016, the pair decided to combine their powers and start their own catering company, too. Baker & Son was born.
The company supplies Alex’s Grind On cafe with amazing food, but they also serve up treats for government groups, schools and other organisations. The cafe is run out of The Garage, a motorbike shop that attracts riders and fans from around the area.
A rapid rise
With Grind On as a sturdy foundation, it didn’t take Alex and Iris long to get up to speed running their catering business. The two are well-known within the community.
So it might come as little surprise that, within its first three years, Baker & Son Catering experienced substantial growth.
But with growth and opportunity come costs that can sneak up on a small business owner. To keep up with demand, Alex and Iris needed to make key upgrades to their infrastructure that would allow them to keep doing what they do best.
“My mother wanted to invest in more equipment for the commercial kitchen,” Alex says.
They looked for crucial funding in the form of a small business loan that could help them improve the business. But finding help proved more difficult than expected.
Shifting into gear
Baker & Son had succeeded in building a loyal base of customers. But finding a small business loan that would help them grow was not. At least not at first.
“We were having a few issues finding a bank that would look after us,” Alex says. “When we were initially looking at finance we approached a number of personal banks. We just found the red tape was incredibly difficult, and we were unable to get the finance that we required.”
Alex and Iris were forced to carve out valuable time to deal with the monotonous, frustrating task of securing financial assistance.
One day, Iris heard an ad on the radio for Prospa. It sounded exactly like what they needed.
Filling up the tank with a small business loan
After hearing the ad, Iris was able to get in touch with a member of the Prospa team the same day.
“She sent an email through and literally within three hours somebody from Prospa had phoned back,” Alex says.
Things only took off from there, as the team at Prospa helped Alex and Iris determine which funding options suited Baker & Son. They settled on a small business loan that would help nurture the catering company as it continued to progress.
“We found the whole process was very straightforward and the staff were amazing to deal with,” Alex says.
Hear more about Baker & Son’s story:
What’s next for Baker & Son?
A Prospa Small Business Loan has turned out to be a vital cog in the Baker & Son catering machine, allowing Alex and Iris to supercharge their business quickly and efficiently.
“We found dealing with Prospa, the whole process was incredibly easy,” Alex says. “I have recommended Prospa to other colleagues of mine that have small businesses to let them know there is someone that makes things easy.”
Whether it’s growing your business, funding an opportunity or just covering cash flow, find out how Prospa can help with your next step. Talk to one of our business lending 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.
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.
When a sudden increase in enquiries led to rapid growth, Susy Egneus of Bodyworkz sought out a Prospa Small Business Loan to hire more staff and service the growing needs of customers across New Zealand.
Helping create stress-free workplaces
Wellness in the workplace has become a key focus of businesses across the world. For most, the focus has been on increasing the wellness of their employees in order to keep them physically and mentally fit and healthy – and therefore more productive.
Bodyworkz, however, was formed in 2010 to offer workplaces a simple and easy way of improving their employees’ wellbeing – through on-site chair massage.
Initially offering the service to corporates in Auckland, Susy Egneus’s two-person business soon took off. Word of mouth referrals kept coming in, and the business grew into a network of fully trained massage therapists all over New Zealand.
Managing unexpected growth
In 2018, Bodyworkz saw interest in its services spike like never before, and the business needed to grow.
“Last year, we had a growth spurt in the business, and we had to change a lot of the things that we did, and we needed some help with cash flow,” Susy says. “We went to a lot of traditional lenders, but no one was particularly interested in giving us finance.”
Despite a solid business history and a long-term growth strategy backed up by the large number of enquiries, Susy wasn’t sure who to turn to in order to get the financial backing she needed. That was until she was referred to Prospa.
“One lender actually suggested that we contact Prospa.”
The application process: Quick and easy
After back and forth with traditional lenders who weren’t able to help, Susy was amazed at how simple and rewarding it was to deal with an alternative lender like Prospa.
“I was surprised how easy it was; how quick it was,” she says. “I didn’t have to wait. They were able to check me out and my funding was approved within hours.”
Because of the speed with which Susy received her small business loan, Bodyworkz was able to get started on hiring more massage therapists and reach out into the wider community.
“The finance that Prospa provided helped us take on more staff so we could manage the growth, take on more therapists and spread our brand a bit wider around New Zealand.”
Today, Bodyworkz has onsite massage teams in Auckland, Hamilton, Taurange, Wellington and Christchurch, while they have also done work in Dunedin, Timaru and Palmerston North.
Hear more about the Bodyworkz story:
Bodyworkz’s advice for other small business owners
When asked whether she would recommend other business owners turn to Prospa when they need quick funding to take advantage of unexpected growth, Susy answered with a resounding yes.
“They adapted to my business and listened to my business – what our needs were. I wouldn’t hesitate to recommend Prospa to any business owner out there that needs help with business growth.”
A Prospa Small Business Loan has helped Bodyworkz:
Grow its large roster of experienced massage therapists.
Manage cash flow during a period of rapid growth.
Spread its brand across the wider corporate network in New Zealand.
Whether it’s growing your business, funding an opportunity or covering cash flow, find out how a Prospa Small Business Loan can help with your next move.
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 advisers. 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.
Looking for a small business loan to grow your business? Have you considered an alternative lender?
There are various stages in the life of a business when additional funds may be needed to help the business grow – whether it’s to invest in new equipment or machinery, rent new and larger premises or simply to assist with cash flow during a quiet period.
But the prospect of obtaining finance through traditional means can be daunting – countless hours on the phone and in meetings with the bank and reams of paperwork to complete. The time commitment alone can put you off.
That’s where alternative lenders step in – often providing an intuitive online application process, with minimal paperwork and a fast approval process. As an alternative lender, Prospa’s application process indeed involves no paperwork and there’s the potential to have funds – anything from $5000 to $150,000 – in your account within 24 hours.
Alternative lenders are agile
By primarily operating online, alternative lenders have flipped the traditional borrowing process on its head. This enables us to focus on speed, flexibility and personal service – it keeps us agile, making us an ideal match for the agile environment of small business.
What’s more, rather than focusing on the business owner’s personal assets, we kick-start the lending process by assessing a business’s overall health and growth potential.
Alternative lenders are fast
Alternative lenders typically offer a quick online application process. When working with Prospa, for example, you’ll typically receive a same day response and, if successful, the funds could be in your account in as little as 24 hours.
For loans up to $100,000, no asset security is required to access the money, however Prospa does require a personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document), asset security will never be required. For loans of over $100,000, Prospa generally takes a personal guarantee and security in the form of a charge over assets.
Alternative lenders understand you
Alternative lenders inherently understand the dynamics and pressures that come with running a small business – because they are one. That common ground means we have a deep understanding of your challenges and your goals.
The result? Better, faster outcomes, and more personal service.
If you’re looking to expand your business, buy new equipment or simply manage your cash flow during a quiet period, find out how Prospa can help. Get in touch with one of our small business lending 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.
Running a small business comes with many ups and downs, as well as many occasions that may require a bit more cash than you have at your fingertips.
Here are six scenarios where a small business loan may be just what you need to keep your small business moving.
1. You need more space
If your employees are using the table in the kitchen as a workstation, or your office is now doubling up as a stock room, you could probably do with a little more space. But just because you’re ready for expansion doesn’t mean you necessarily have the cash on hand to make it happen. Whether the answer is a refit, full-on renovation or even a move to new business premises, a small business loan could provide quick funds to expand the operation.
Remember to calculate the financial benefit when deciding whether to go ahead or not. For example, will the renovation or refit enable you to sell more stock or take on more clients? Or will it just make room for Molly the office dog’s bed? Speak to your financial advisor who can help you crunch the numbers.
2. You need more stock
Buying products that will enable you to provide a service and improve your offering is a crucial part of doing business. Every business needs an up-to-date inventory, and if you’re a seasonal business, you’ll want all your stock in place before peak sales periods. If your turnover is dependent on the stock you’re carrying, but you don’t have the capital to invest, then a small business loan could be worth considering to bridge the gap.
3. Opportunity knocks
Many opportunities emerge for small businesses, and knowing which ones to chase, and which ones to pass by, is a skill in itself. If you have completed your due diligence and believe an opportunity is worth grabbing, but you don’t have the cash flow on-hand to do so, a small business loan could be the answer. It provides a simple cash lump sum that puts business owners in control of how they respond to opportunities.
4. You need to recruit to grow
Small business owners often wear many hats, but sooner or later juggling your supply channel, bookkeeping, marketing, customer service and tea-making all by yourself can take its toll. Ultimately, if you’re going to grow your business, you will need time to give the operation the attention it deserves. Employing staff can free you up to do just that. If there’s a clear connection between the hiring decision and an increase in revenue, then a small business loan could make good business sense.
5. Your premises need a makeover
First impressions count a lot in business, and if you’re a cafe with shabby furniture, you may be losing customers based purely on your interiors. Alternatively, if you’re an office-based operation, your poor ergonomic set up may be negatively affecting your employees’ productivity and/or your ability to attract star candidates. A small business loan could help give your small business the face-lift it needs.
6. You need more customers
Build it and they will come? Not quite. You could have the best product and service in the world, but if no one knows about it, you’ll not sell a bean. An investment in marketing is critical to attract customers. A small business loan could help you fund a promotion or marketing campaign to acquire new customers.
If your business needs funds for opportunity, growth or cash flow support, get in touch with one of our small business lending 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.
The Rib House owner Kurt Jacks quickly learned that operating a family-run restaurant costs more money and time than he expected. After having trouble securing assistance through traditional lenders, Kurt found a Prospa Small Business Loan to dish up the vital support he and his family needed to grow the business.
Southern style ribs in Auckland
Kurt Jacks wanted to bring authentic Southern style ribs to the people of New Zealand. So, he and his family opened The Rib House, a family-friendly eatery in the southeast Auckland suburb of Pakuranga.
And while Kurt might be the owner of The Rib House, he says his wife Althea is the boss. They work alongside their two sons and daughter to cook up barbecue food for customers six days a week.
The challenges of running a restaurant
No matter how carefully crafted the budget, finding the resources to fund the equipment, ingredients, and other overheads and improvements associated with opening a new restaurant can be tough.
“We found that when you start a small business, it sucks a lot of money, more than we anticipated,” he says. “So, we needed a bit of help.”
In addition to a lack of capital, another thing the Jacks family didn’t have was time to waste. Restauranteurs put in plenty of hard yards outside of opening hours, cleaning and prepping for the next day’s rush. That leaves precious few hours for administration.
“Time is the most challenging thing,” he says about running a new restaurant. “We seem to run out of time.”
Kurt needed a small business loan, but the challenges involved with applying for a loan with traditional lenders meant his menu of options was dwindling.
But that all changed when Kurt saw an online ad for Prospa.
Easing the stress with a small business loan
Kurt decided to give Prospa a try. He quickly found it was the missing ingredient in his recipe for success.
“We went online and put our application through, and we got a call the same day,” Kurt says. “Tristan was his name, and he was awesome.”
Tristan, a Prospa Senior Loan Consultant, explained the options available to Kurt and his family. The Rib House owner realised a Prospa Small Business Loan was precisely what he needed to take his restaurant to the next level, with a simplified and streamlined application process.
“The feature I like the most was the ease with which the whole transaction went through. It was just smooth; it was just easy.”
What’s next for The Rib House?
The funds from Prospa were immediately put to good use, doing necessary upgrades and renovations in the kitchen.
“I would definitely recommend Prospa to my friends and family, and I already have.”
Whether it’s growing your business, funding an opportunity or just covering cash flow, find out how Prospa can help. Talk to one of our business lending 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.
