New Zealand small businesses are changing the way they do things. The ongoing impacts of COVID-19 have left people in need of greater flexibility at work.
This may mean adjusting working hours, working from both home and the office, or hiring more casual staff to cope with peaks in demand.
More importantly, greater flexibility means small business owners are in control of how they operate. That’s why more and more New Zealand small businesses are turning to small business loan specialists such as Prospa.
“Small businesses have worked hard to adapt, change or pivot to build resilience to the impacts of COVID-19 over the past two years and external funding can make or break them,” says Prospa Adrienne Begbie, New Zealand Managing Director.
“We recognized that business owners seek the flexibility to deal with unpredictable market conditions. This sentiment was reinforced by a survey conducted earlier this year which found that two out of three small businesses value flexibility the most. , because it gives them the ability to control their cash flow with peace of mind for those unexpected cash flow variances.”
Prospa helps New Zealand small businesses stay flexible and in control of their money by giving them access to working capital through two key products: their small business loan and a line of credit.
The Small Business Loan provides financing of up to $500,000, delivered as a lump sum accessible in as little as 24 hours to pay for these one-time expenses. Prospa offers flexible repayment options over a fixed term of three to 36 months to work with your business cash flow.
But it’s Prospa’s new line of credit product that’s particularly well suited to the new COVID-19-adjusted business landscape. Prospa’s line of credit provides ongoing access to funds of up to $150,000. Unlike a small business loan, which is a lump sum paid up front, a line of credit like the one offered by Prospa allows business owners to have access to funds when they need it. Flexible financing options give businesses the ability to use and reuse as much or as little as needed, with interest only paid on funds used.
For many hard-working small businesses, accessing funds is one of their biggest challenges, Begbie says, adding that Prospa fills the void left when SMEs turned to traditional lenders to face criteria. strict loan policies and an extensive application process.
“After overcoming the application process, our research revealed that approximately 24% of businesses were denied loan products in May last year. If you consider how long it takes to apply for a credit and the possibility of being denied, this may not be ideal for a business to turn to traditional lenders when capital is needed quickly.”
On the other hand, Prospa has an application process that only takes 10 minutes, Begbie explains. Decisions are made quickly to help make financing possible within 24 hours, allowing small businesses to cover cash flow gaps that may arise unexpectedly, such as paying salaries, covering bills or buying urgent inventory .
Other common uses of line of credit funds may include closings over the Christmas period, hiring staff or labor, marketing and tax expenses and payments, Begbie says.
Such quick and flexible access to cash flow has helped Kiwi small business owner Bonita Morony, owner of Zingela Property Management, based in Mission Bay, Auckland. When Morony wanted to do more marketing for her business, she needed quick access to cash flow, and Prospa’s line of credit was able to provide her with the external financing she needed to grow.
“It gave me and the business more agility and flexibility with things like marketing initiatives and helped fund some of the growth of the business,” Morony says.
“It really allowed us to be more responsive to opportunities.”
And due to Covid-19, incoming payments have started to become more unpredictable, Begbie says. For Deborah Delport, who runs an engineering company based in Palmerston North, Prospa’s line of credit was able to help.
“The line of credit product now provides Deborah with flexibility during the expected cash flow downturn, knowing that interest will only be paid on the funds used,” Begbie explains.
“Fast access to funds ensures that Deborah’s business continues to operate with flexibility, eliminating the stress typically associated with periods of limited cash flow.”
Expect to realize your business dreams this time tomorrow with Prospa. Visit prospa.co.nz to see if a Prospa line of credit or small business loan is the right fit for your business or call the team on 0800 005 797 to discuss how Prospa can help.