It’s no secret that New Zealand is still navigating a challenging economic cycle. Although there has been some relief with interest rate cuts this year, the broader economy has yet to feel the full benefit. The lingering effects of previously high borrowing costs, combined with reduced consumer confidence, continue to ripple through both households and businesses.

Consumers remain concerned about their incomes and employment security, which continues to impact overall spending confidence. While some key export sectors—such as forestry are still experiencing weak returns due to subdued demand from the Chinese market. The broader agri sector is showing strength, with strong returns from kiwifruit, dairy, and horticulture. However, despite these bright spots, the economic downturn is still having wide-reaching effects on individuals and businesses across the country.

For business owners and managers, now is an ideal time to proactively review how your business is performing — and whether cost-saving opportunities exist that won’t compromise your value proposition or customer experience.

In this economic environment, optimising cash flow is essential to sustaining operations and seizing future opportunities. One of the most effective ways to do this? Reassess how you’re financing your business and its assets.

It's not just about interest rates

While interest rates are easing, historical fixed rates from prior years don’t necessarily deliver the best outcomes today. The structure of your finance — and how it aligns with your business cycle, assets, and cash flow — is often more important than the rate alone.

Poorly structured debt can restrict your cash flow and growth. That’s why Finance New Zealand works with businesses to realign funding structures to better suit their needs and current market conditions.

Are you making the most of your current finance structure?

Here are the key finance questions we help clients answer:

• Cash or trade cycle
  Is your funding term matched to your business’s operating cycle?
• Asset loan structure
  Are loans aligned with the productive life of your assets?
• Used or older assets
  Are funder restrictions limiting your borrowing ability or requiring large upfront deposits?
• Cash flow constraints
  Are short loan terms draining cash unnecessarily? Restructuring over longer periods can provide immediate relief.
• Asset rich, cash poor?
  Can you unlock equity to boost cash flow, pay down expensive debt (including IRD debt), or reinvest in growth?
• Loan terms, conditions & security
  Is your funder holding more security than necessary? Are covenants too restrictive? With growing lender appetite, businesses with strong financials may benefit from a market review.

How Finance New Zealand can help

We specialise in helping business owners:

• Assess and restructure existing debt for better cash flow
• Align loan terms with asset life and business cycles
• Unlock equity in business assets to increase liquidity
• Negotiate improved terms with funders or explore better options in the market
• A proactive finance review today can prevent future cash flow issues — and set your business up for greater stability and success.

Case study

Turning debt into opportunity — how we helped a client restructure and move forward

✔ $16,000 reduction in monthly commitments
✔ IRD arrears cleared
✔ $200,000 released in working capital equity
👉 The result: breathing room to move forward with confidence and reinvest in growth.

Next steps

Contact your local Finance New Zealand adviser for a free, no-obligation chat about how we can support your business finance needs.