Guides
SME finance guides for New Zealand owners
These guides answer the questions established SME owners ask before they borrow: how to value a business, what due diligence involves, how to forecast cash, what lenders look for and how to deal with IRD debt. Each is written for New Zealand and cites current sources.
Market conditions
Buying & selling
- How to value a small business before you buy it Start with maintainable earnings, not the vendor's headline profit.
- Vendor finance vs lender finance: funding a business purchase Vendor finance signals the seller's confidence and keeps them motivated to support the handover.
- Due diligence checklist when buying an established SME Make your agreement conditional on due diligence and finance, with enough time to do both properly.
- Earn-outs and deferred consideration explained Deferred consideration is fixed; an earn-out varies with performance.
Cash flow
- The working capital ratio explained for SME owners Working capital = current assets minus current liabilities; the ratio divides one by the other.
- Debtor management for SMEs: how to get paid faster New Zealand small businesses waited an average of 24.1 days to be paid in the June 2026 quarter, with payments 4.7 days late.
- Behind with IRD: options for established businesses IRD has become far more active in pursuing overdue tax; it brought about two-thirds of company winding-up applications in 2026.
- How to build a 13-week cash flow forecast Forecast cash, not profit: record receipts and payments in the week they actually happen.
- Won a big contract? Plan the cash before you sign Big contracts usually pay in arrears, so cash goes out long before it comes in.
Lender readiness
- Preparing management accounts that lenders like Timeliness matters more than perfection: accounts within 20 days of month end are far more useful.
- Loan covenants and reporting requirements explained Covenants are either financial (ratios and limits) or general (actions you must or must not take).
- Using property as security for a business loan Security can be a first or second mortgage, even when the property already has a home loan.
- How lenders assess an established SME Purpose and repayment plan come first; a clear story makes every other step easier.
Strategy & growth
- Succession planning: how to fund an SME ownership handover Start planning three to five years before the intended exit where you can.
- When to refinance business debt Refinancing is about fit, not just cost: frequency, term, security and flexibility all matter.
- Investment Boost explained: timing equipment and expansion spending Investment Boost is an extra upfront deduction of 20% of the cost of qualifying new assets.
- Opening a second site: a checklist for established SMEs Your first site must run well without you before you open a second.
Next step
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