There are options available for self-employed small business owners looking to grow.
06 Jan 2016
New Zealand’s culture is built on a give-it-a-go, can-do attitude. So, it’s no wonder the nation is full of self-employed small business owners.
Hard-working kiwis that have gone out on their own, are working long hours and to grow into more substantial operations.
However, the issue many find is they need more funds to help them grow further around the same time their business starts to take off. This can create a disconnect, as typically banks will only consider the past trading history of a small business when determining its ability to repay a new loan, so any future growth isn’t a aprtof the equation.
Borrowing money then becomes difficult, not to mention frustrating, as even though cash flow may be strong, lenders may not be interested if there is insufficient proof to back up their claims.
As a result many business owners have to delay their expansion plans – often at a critical time. Businesses that have been trading for less than two years are often in a similar boat.
So what are the options available for business owners who need cash flow assistance?
One option is to work with your accountant or financial planner to put your business in the best possible position. Investing time early to get the books in order can offer rewards when applying for a loan in the future.
Having accurate proof of income documentation and understanding the process can help get you where you want to be faster, easier, and sooner than you thought possible.
Having the books in order can also allow businesses to apply for money earlier, so they that when growth does come in, the loan is already approved and ready to go. As the old saying goes, the best time to apply for a loan is when you don’t need it.