COVID-19 is compromising New Zealand businesses. See how Core Finance can help.
2020 has not come with the greatest of starts for many parts of the world. The Coronavirus has everyone in a panic, and while only a few cases are present in New Zealand to date, financial experts are already anticipating potential problems for SMEs (small to medium sized enterprises).
With a number of recently confirmed cases in New Zealand, Kiwi’s are on high alert – they’re stocking up, hiding in their homes, and evidently, only spending on necessities.
Coronavirus is causing trade-offs – in many industries business has declined and trade has halted. Discussions in the market are arising and financial advisers are recommending SME owners to consider the need for financial support during this time.
The shelves are gathering dust, so it’s time to take action for your business.
A drop in spending is occuring, and imports and exports are on hold. SMEs are limited to sell certain products, and unable to sell others. So while the shelves are looking empty, and business owners are looking stressed, New Zealand banks and advisers are recommending that Working Capital support might be the required response.
Bank said no? How can non-bank lenders like Core Finance assist during this time?
While your client faces problems with minimised spending, and stock and shipping barriers, they also have regular costs to uphold – they still have staff to pay, and bills to settle. We can offer a short-term secured cash flow solution to help your client through this period of uncertainty and keep their business afloat. How? Working Capital.
Working Capital: the answer to your cash flow problems
Your client may have a variety of finances to maintain to upkeep their business. And during uncertain times, such as the epidemic we’re currently experiencing, your client may be facing temporary credit constraints and liquidity risks. So in order to keep a balance between your clients current assets and liabilities, they’re going to need a positive cash flow – this is what we call Working Capital.
How does a Working Capital Loan help?
Essentially, Working Capital is all of the finances in relation to a business – everything from rent to inventory to debts. It is the difference between a businesses assets and liabilities.
- Current assets: cash, accounts receivable and inventories.
- Current liabilities: accounts payable, financial debts and obligations.
Now, say your client is already in debt; with the added impacts of the Coronavirus slowly settling in, usual assets (such as inventories) are going to decrease, and liabilities (such as debts) are going to increase. So the purpose of a Working Capital Loan is to bridge this uneasy gap, and provide a more positive cashflow to help synergise your clients assets and liabilities.
When it comes to business, when liabilities outweigh assets, this is a red flag – and it’s important to get onto this as soon as possible.
There are a few options available through a non-bank lender like Core Finance:
Whether you opt to take on a Bridging Loan or general Working Capital loan, here at Core Finance, we have the short-term solution for you.
- Bridging Loans: we can provide short-term secured funding options with the aim of ‘bridging’ losses while the market is in diserrary.
- Working Capital Loans: we can help your client uphold general costs associated with day-to-day business; providing them with financial security and less stress.
Whatever your client chooses to do, we can help them find the best lending option for their business. The Coronavirus has only just hit New Zealand, and who knows how long it will be until we’re clear of the panic. Your client may be under added pressure to stay afloat, so you can put your faith in us to help your client keep their business – their livelihood – not only safe, but thriving.
Safeguard your clients SME today with secured cash flow funding
Working Capital funding is a positive and active management of your business. So in times of worry, it might just be the solution your client needs to minimise financial stress and protect their livelihood.
And here at Core Finance, as experts in our field for over a decade, we have the tools and funding to help your client come out of this uncertain period.