Business owners think,
“Can we afford to do this?”
When the more important question is often:
“What is it costing us not to?”
This is the hidden cost of inaction.
A recent report by Shamubeel Eaqub of the NZ Institute of Economic Research examined this, looking at the cost of delaying, redesigning and cancelling infrastructure projects across New Zealand.
The findings were striking: stop-start investment has cost New Zealand an estimated $11.8 billion over the past 25 years through inflation, lost productivity and delayed benefits to communities. This number does not consider projects that are cancelled indefinately, where no benefit is achieved down the line from the initial investment.
The Same Thought Can Be Applied to SMEs
Every day, business owners delay hiring staff, replacing equipment, investing in growth and pursuing opportunities because the timing doesn’t feel quite right.
The cost of those decisions rarely appears in the accounts, but can be more significant than not making any decision at all.
In uncertain times, caution is understandable. But there is a difference between being cautious and standing still. The businesses that continue to move forward with calculated decisions are often the ones best positioned when conditions improve.
Auckland Finance is equipped to focus on the opportunity a business has and provide support to make a real difference.
Difference Maker Moment
Cashflow Introduction To Avoid Distressed Business Sale
A company was looking for short term funds to smooth out cashflow as they looked to sell their business. The flat trading of the last 2 years led to their bank declining a short term overdraft, despite having $750k equity in their $1.1m owner occupied home.
The directors turned to an expensive unsecured lender, accessing $20k to keep up with immediate commitments.
Auckland Finance came in to the picture thanks to the clients accountant, took a second mortgage over the property and for the same monthly repayments as the expensive lender, lent $90k.
These funds refinanced unsecured debt, cleared outstanding IRD arrears and provided 9 months working capital to support the outcome of the business sale.
| Lets talk about the opportunity for clients to DO. |
Josh Veal
Business Development Manager
0274791090