Weekly Digest – 24 February 2021
Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
Experts say Auckland Still Has ‘Low Risk’ of Outbreak
Experts are confident Auckland still faces a low risk of community outbreak, despite the latest COVID-19 case being a “casual plus” contact of the community cases linked to the February outbreak.
However, one epidemiologist warns it’s possible the current cluster could keep bubbling away for days, or even weeks, given the virus’ long incubation period.
Kiwi Businesses Taking Longer To Pay Overdue Bills
Although NZ has been less affected by COVID-19 and had shorter lockdowns, Kiwi businesses are not immune to the effects of the pandemic.
Research from illion shows business bills were paid an average of six days after they were due in the December quarter – a 10% increase on the December 2019 quarter. Big businesses are the biggest losers with all businesses prioritising payments to smaller businesses when settling late payments.
Do you need help with your cashflow? Get in touch with us and we’ll help you set up a plan to get you back on track.
Applications Open for Resurgence Support Payment
Businesses can now apply for Resurgence Support Payment (RSP) if they suffered a decline in revenue due to last week’s COVID alert level change to level 2 or higher.
Eligible businesses and organisations can apply to receive the lesser of:
- $1,500 plus $400 per full time-equivalent (FTE) employee, up to a maximum of 50 FTEs, or
- Four times (4x) the actual revenue drop experienced by the applicant.
The RSP will remain open for applications for one month after the return to alert level 1. To be eligible, the business should have at least a 30% drop in revenue over a 7-day period after the increased alert level.
You have until 23 March 2021 to apply through myIR. More details on how to apply can be found here.
Business Finance Guarantee Scheme Open Until June
Business Finance Guarantee loans can help small and medium businesses access credit for cashflow, capital assets and projects related to, responding to or recovering from the impacts of COVID-19.
All New Zealand registered banks and non-bank deposit takers (non-banks) are eligible to apply to join the scheme.
Depending on your circumstances, you may be able to access credit from either a participating bank or a non-bank, but not both.
If you borrow from a bank, it will determine the amount you can borrow and the length of the term up to a maximum of $5 million payable in five years. Meanwhile, if you borrow from a non-bank, the maximum amount is $3 million payable in five years. More information on eligibility criteria and how it works can be found here.
Applications for Business Finance Guarantee loans are open until 30 June 2021. If you need assistance or have any questions, don’t hesitate to drop us a message.
Small Business Cashflow Scheme Extended Until 2023
The Small Business Cashflow (loan) Scheme has been extended until 31 December 2023.
Organisations and small to medium businesses, including sole traders and the self-employed, may be eligible for a one-off loan with a term of 5 years if they have been adversely affected by COVID-19.
The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee. The annual interest rate will be 3% beginning from the date of the loan being provided. Interest will not be charged if the loan is fully paid back within 2 years.
You can find out more here, or simply get in touch with us so we can provide our professional assistance.
Kiwi Business Boost Tool
The Government has funded specialist consultancy support services to provide advice to businesses who need it. You can use the Kiwi Business Boost Tool to find out what services are available in your region.
The Treasury website’s COVID-19 Economic Response Measures can also provide more information on the range of supports available to businesses.
5 Simple Ways to Keep Your Business Finances On Track
Small steps can lead to a tremendous ripple effect on your business. Here are some simple things you can do to better manage your finances.
- Record all transactions, whether big or small. Expense tracking technologies can help you avoid errant spending.
- Make it a habit to keep your business and personal expenses separate.
- Reconcile what you know from your books with what your business bank accounts reflect. Do this financial reality check on a regular basis.
- Create a budget for new projects you’re planning to define its relative value from other projects and the ongoing expenses within your business.
- Work closely with your bookkeeper/accountant. Communicate regularly and ensure that important messages don’t get lost in the cracks.
Accounting and bookkeeping are integral aspects of business growth. However, many business owners loathe these tasks. If you need expert assistance for the finance-side of your business, get in touch with us today.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.