Category: Business Insights

The Right Business Finance Package For the Right Business

Posted on by KWD

Running a business can make you money, but to run your business, you will need money first. If you don’t have the initial funds you need, a great commercial loan and the help of a professional business loan broker can truly get you the financial help you need.

Some people might think it’s best to start small and save money rather than go for a loan. However, doing so can take much time, and profits may not come in as quickly as you’d like.

With a loan, you can boost your business and see more profits much faster. This will expand your business, earning you more money and recognition, and you can pay off your loan in no time.

However, not every business is the same, and it’s very important that you get the right business finance package for your situation.

What Are Loans And What Kinds Of People They Can Help

Any business loan broker will tell you that the right loan can do wonders. It all depends on the type of loan you get and how you utilise it.

A business loan is where a lender lends you the money you can use for your company. You will be expected to pay the money back with interest. The amount you get and your interest rate will depend on the deal you strike.

As their name implies, business loans are primarily for business people. They can be used in many ways depending on how the person wants to improve their business.

Business loans are often utilised by:

  • People Who Are Starting New Businesses. Starting a company is never easy or simple. A good loan and help from a business loan broker can give you the finances you need to start your company.
  • People Who Are Growing Businesses. Once your business is started, you still need to do your best to grow it. More equipment, employees, space and more can help you expand your company.
  • People Who Need To Keep Their Businesses Running. Even if your company is already of a good size, you still need many things to keep it running smoothly. A loan can help you acquire inventory and other goods that’ll keep you in business.

Some people are put off by the thought that they’ll need to repay the loan with interest. While this may seem like a downside, the benefits that loans and a good business loan broker bring will strongly outweigh this.

You can seriously benefit from getting a loan because:

  • You’ll Save Time. If you try to save the money on your own, it will undoubtedly take much longer than if you decide to get a loan. Proper time utilisation is important. Instead of slowing down, speed up with a loan.
  • You’ll Have Better Assets. With the extra money, you can get better equipment, a better space, more employees and more. These higher-quality things and circumstances will definitely be appreciated.
  • You’ll Boost Your Profits. With all of this help, you will surely see your profits rise. Then, if you use your money smartly, you can grow your business further and pay off your loan in no time.

How Do I Know What Kind Of Loan To Get?

Working with a talented business loan broker is the best way to know what specific loan you should get. Their expertise and knowledge will allow them to look at your business, your goals and your available funding to get a loan that’s perfect for you.

Of course, you can do your part to make the process easier. Consider the following before you speak to a loan broker:

Know What You’ll Use Your Loan For. First and foremost, always know what you’ll use your loan for. Examine what you have and what you need to make a list of what you can use your loan for. There are plenty of helpful things you can do.

For example, a few things you can think about are:

  • Buying New Equipment.
  • Getting More Inventory.
  • Hiring New Staff.
  • Getting A New Commercial Space.

Create A Realistic Estimate. Compile everything you need and create a reasonable estimate of what it will all cost you.

Make A Plan. Always have a plan before you officially apply for a loan. Lenders appreciate it when the people they are lending to show that they’ll be smart with their loan.

Where To Learn More About How You Can Get A Great Loan For Your Business

Does it sound like you could benefit from a well-structured loan? At Spinach, we help business owners succeed by helping them get the best loans possible. We invite you to see our site to learn how you can start your journey today.

When you work with one of our business loan brokers, you’ll get a personalised experience. Rather than offering generic advice, we do our best to look at your circumstances to get a feel of what you need. This way, you’ll get results that are tailored to your needs.

Please call us at 0800 774 622 or visit our contact page if you’d like to speak to our team.

Enhance your business like never before with help from Spinach.

Little Known Commercial Loan Puts Cash in Your Hand For Any Reason Fast and Easy

Posted on by KWD

Starting and growing your own business is incredibly rewarding, but it can also be very challenging. Finding the help and funds to get your company off the ground isn’t always as easy as most would hope. While you should start slowly and build up your money over the years, you could also give yourself a well-deserved boost with an excellent commercial loan.

Business loans are a wonderful way for companies to get the help they need to grow their businesses. Starting from the bottom and diligently working your way up all on your own can be very stressful and incredibly time-consuming; why not help yourself by applying for a reasonable loan?

Why Should I Consider Getting A Loan For My Business?

As you can imagine, having more funds to work with is an excellent thing when you’re trying to run your own company successfully. But, a commercial loan isn’t simply someone handing you money and letting you off the hook – you will need to pay your lender back with a bit of interest.

This fact can easily make some people turn away from getting a loan. Some people may think that because they have to pay their loan back with interest, then they’ll save money by not getting a loan in the first place.

But, in actuality, getting a reasonable loan can help you make more money in the long run. A well-negotiated loan can offer you quite a few benefits, including:

You Can Grow Your Business Faster. Naturally, the most significant benefit of getting a commercial loan is using that money to grow your business. A big part of properly managing a company is working with your budget, profits and anything else that has to do with intelligently spending and saving your money. So, having a lot more money on your hands can be outstandingly helpful.

If you decide not to get a loan and instead try to save up your money, you may be waiting for profits to grow for months or even years. Managing your time well is just as important as managing your money well, so having an early boost is fantastic.

You Have Full Control Over Your New Funds. If you borrow money from friends, family, or investors, they might have set rules on spending the money they give you. But, with a commercial loan, you will have complete control over the money. You could use it on hiring new helpers, buying more inventory, replacing old equipment or anything else that you think would help you thrive.

You Don’t Need To Share Your Business’s Profits. Another downside of borrowing money from acquaintances or business investors is that they will usually expect you to pay off your loan and continue giving them money based on how successful you are. However, commercial lenders will not expect this from you. Once you have paid off your loan plus the interest you owe, all of your profits are yours.

How Do I Prepare To Ask For A Commercial Loan?

Getting a loan sounds fantastic, but it’s not as simple as filling out a form and getting all the money you want. It would be best to always prepare well before you apply for a loan because showing that you’re a serious and responsible business owner can help convince your prospective lender that you’re a reliable person.

So, some things you should do before you apply for any loan are:

Make A Business Plan. Before you ask anyone for money, you must have a plan for what you will use the money for. It would be best if you take some time to look at your company’s needs and determine how you could smartly use the money.

Check Your Credit Score. Potential commercial loan lenders will always look at your credit history to try and determine if you are a responsible person. So, knowing your credit score beforehand can help you better understand how to handle this subject.

Speak To A Professional Lending Broker. Working with an experienced broker can help you get the best deal possible. They can help you look through your options and find a loan that works best for you and your business. A good broker will also help you avoid common mistakes that can harm your business.

I’m Interested In Getting A Helpful Loan For My New Zealand Business, Who Can I Go To For Help?

If you want to get a commercial loan to help enhance your company, we encourage you to come talk to us at Spinach. We are New Zealand’s friendliest business loan broker, and we are thrilled to help business owners succeed and thrive. We have lots of experience with many different kinds of businesses, and we are confident that we can help you secure a good loan.

We make applying for a business loan simple and easy by helping you through the steps you need to take. Once you fill out our online application, we can start to assist you. For more information, you can also call us at 0800 774 622.

Give your business a well-deserved boost with help from us at Spinach!

Commercialising your Intellectual Property

Posted on by KWD

Commercializing IP

Commercialization is the process of introducing a new product/service into the market. It means making an idea or concept into a real business opportunity. For example, you have a new business idea for a new tool to help with trades. In order to go through the commercialization process, you will need to undergo a process of market research, development, consultation, drawing up business, distributing, and marketing plans, prototyping, and protecting your intellectual property before you make it commercially available in the mass market.

Following are some general steps involved in the commercialization process:

1. Describing the Product or Service

A clear and concise description of the product/service is written in the first step. The description should be easily understood by a person who is unfamiliar with the concept and should demonstrate the benefits and features of the product/service.

2. Protecting Intellectual Property (IP)

Before you talk to others about your business idea, it is crucial that you protect it. You will need to find the method of IP protection that is the most suitable for your business and apply for it. It is important that you make sure that any third-party that is discussing your idea or product with you will not disclose confidential information.

3. Market Research

The next step is to research the market so that the market, competitors, and customers that the new product/service will face are identified. You will need to use a marketing plan to draw up your strategy so you can identify and reach your customers. It is also very important that you confirm that your product fills a need and has a competitive advantage. Furthermore, the product’s viability needs to be financially evaluated. You will need to include detailed financial projections and cost estimates in this plan. These estimates will be crucial as you look for money from banks or other sources to support the product/service production.

4. Identifying Commercialization Pathway

A plan for product development is also needed that includes how the product will be released to the public. Should the product technology be developed and produced by the technology owner, licensed to someone else, or sold to someone else to develop? You will have to make preliminary estimates of the market size as well as its willingness to accept the product. You will also need to determine the costs of the full development of the product. Your choice of licensing, assignment, manufacturing, or joint venture may have an impact on your future strategy. For instance, if you are thinking of using overseas manufacturers for your product’s production, you will need to identify the key issues such as freight and distribution, quality control, etc.

5. Refining the Product

Once your product is introduced for the first time, you may need to refine it. You will also want to protect the intellectual property involved in the development of the product, finalize its design, test the product, and add/improve any features to make the product more marketable.

6. Developing a Business Plan with a Commercialization Strategy

Additional resources may come in handy at this point in the commercialization process. You may need to consult a professional to acquire financing, develop company structure or business plan, or create a marketing plan for your product. You may determine that you need to finalize legal agreements and partnerships. Market and product testing are ongoing during this stage of the commercialization process.

7. Exploring Funding Options

Depending on the nature of your concept or product, key funding options that you may consider include:

  • Crowdfunding
  • Grants
  • Business loans
  • Other sources of financing such as investor groups.

8. Business Growth Opportunities

Assuming the product is well-accepted in the targeted market, you may want to develop your business to include the expansion or acquisition of manufacturing facilities, financial analysis, marketing and promotion, strategic partnerships and planning. You will need to reevaluate your resource needs and organizational structure. Assuming that your business is prospering and growing, it may be appropriate to pursue improved technology or new products. You may also need to add staff. As your business grows, you will need to continually evaluate what you need to take advantage of the opportunities you might encounter in the future.

Most of the things we take for granted nowadays begin at an inventor’s bench. Achieving such success is not easy but once an innovation yields desirable results on the market, it is well worth the effort required to get it there.

Top Reasons – Why use a Business Loan Broker for an Unsecured Business Loan

Posted on by KWD

Loans can help your business improve by leaps and bounds. With a loan, you can grow your business and then pay back your debt in no time. However, striking the best deal can be difficult without an unsecured business loan broker to help you out.

Finances are necessary, especially when it comes to business. Without the proper funding, your company will have a hard time thriving. So, applying for an unsecured business loan can really help you out.

In this article, we will explain what unsecured business loans are and why you should work with a capable business loan broker when you apply for one.

What Is An Unsecured Business Loan?

There are two kinds of business loans – secured and unsecured. Secured business loans are loans that have collateral. This means that when the loan is made, the borrower puts up an asset as collateral. The asset could be equipment, vehicles, stock or more. If the borrower fails to pay off their debt, the lender can then seize the asset.

Conversely, unsecured loans are business loans that have no collateral. However, the lender may still have a claim on the borrower’s assets if their debt is not paid. Professionals like unsecured business loan brokers can help you negotiate a loan and get a good deal.

How Can A Business Loan Broker Help Me With My Business Loans?

A business loan broker is a professional who helps clients find the best lenders for their business. Some loan deals could fit better for different situations, and a skilled business loan broker will be able to help you find the absolute best value for your specific circumstances.

There are many reasons why you should choose to consult a financial expert before striking a deal with a lender; a few of these excellent reasons include:

An Unsecured Business Loan Broker Can Save You Time. If you are inexperienced with finances, searching around and weighing your options against one another can take a lot of time if you do not know what to look for and what to avoid.

But, a professional with heaps of experience and knowledge will know who to avoid and who to seek out. As a result, they will be able to find the best deal in a much shorter amount of time than most people.

You Will Be Less Stressed. Whether you’re paying for something personal or growing your business, dealing with finances can be very stressful. If you make the wrong deal, you could end up wasting money or putting yourself in a situation; and, if you choose a bad lender, you might end up in hot water.

By trusting a skilful unsecured business loan broker, you can put your financial situation into their capable hands. With their reliable advice, you can rest easy knowing that your finances will be well taken care of.

A Business Loan Broker With A Good Reputation Could Get You Special Rates. A broker with good contacts and positive relationships with multiple lenders might be able to get special rates and deals for you that you probably would not have gotten on your own. Naturally, this can save you money.

With An Experienced Broker, You Will Receive Expert Advice. Accomplished business loan brokers can answer any questions you have and give you top tier advice. This information will be well suited to you because your unsecured business loan broker will know all of the details of your circumstances. So, your friendly business loan broker can tailor their advice to help your situation specifically.

If You Are In A Bad Financial Situation, Your Business Loan Broker Can Help You Find The Best Solution. For example, if you have debt or have bad credit, they can work with you to find a solution that will help you despite your unfortunate position.

If you make mistakes with your finances, it could lead to more significant and troublesome problems that worsen in the future. So, working with a financial expert is your best option.

Where Can I Find Experienced And Qualified Business Loan Brokers To Help Me?

Unsecured business loans can help you kickstart your business, and with the help of a reliable business loan broker, you can get the best deal possible! If you want to apply for an unsecured loan but would like some extra assistance, our team at Spinach is here to help.

Our team happily provides New Zealanders with outstanding business loans to help them grow their companies and become successful. If you would like to speak to us about your business, or if you would like to apply for a loan now, please visit our contact page or give us a call at 0800 774 622.

We have helped heaps of happy clients in the past, and we are eager to help you as well, so receive great advice and apply for a loan with us at Spinach!

6 Things You Need To Do When Starting A Business

Posted on by KWD

Starting a business

Starting a business can be so exciting. You have a product or service that you want to get to work on and if done well, it could change your fortunes.

Working with start ups all the time, we have some insights into things you can do early to prepare for success. Read on for the things we think you need to do to get started.

Identify the need

First you need to do some research to find out if there is a need for what you want to offer. Get behind your computer and find out what comparable product or services there are. You will soon find out if it is a saturated market or if there is a niche there waiting for you.

Scope the competition

Now you need to understand what your competition are doing and how you plan on doing it differently. You need to have a clear point of difference and sing it from the rooftops. It is important that you are very clear about what you do and who you do it for, that way your ideal client or customer will find you easily.

Review the finances

Lastly, you want to know if you can make money with this idea. There will be a maximum amount your customer is willing to pay for what you offer, reverse engineer this to see what it will cost you to provide your offer and you will see if there is any money to be made.

Once you undertake those three things, you will then know if you have a business and then it’s the right time to talk about funding.

Three things you need to be successful for funding your start up

  1. You need to showcase the skills and experience that you will bring for the benefit of your new business. This may be qualifications, past employment, work experience etc. There will be a strong focus on you when the lender assesses you for a loan. The likelihood that you will make the business a success is gauged by your related experience, so don’t be shy. Dig through your CV and let us know all the strengths you have that will propel your business.
  2. You need to be able to cover your personal expenses as well as loan repayments while the business gets up and running. This is usually acceptable in the form of a spouse earning an income outside of the business. If your business has a contract for upcoming work, or sometimes franchises offer guaranteed minimum income, then that will help too.
  3. You need to have some skin in the game. Lenders are reluctant to give 100% funding to start a new project. It puts all the financial risk on them. Take the time to accumulate some money of your own that you can use toward your business goals. This shows strong character and lines you up as a desirable candidate for a loan.

 

If you want to discuss your personal situation in more detail, call one of our lending specialists on 0800 774 622 or apply today.

Changes to New Zealand’s Payroll Reporting System

Posted on by KWD

With the growing integration between Reckon, MYOB, and XERO comes changes to the way Inland Revenue Department (IRD) will be processing data in the future. Payday Filing is one significant change which impacts on employers and the way they file their employer reports.

 

What is Payday Filing?

It is an electronic payroll reporting system. Currently, employers file PAYE information and employee earnings to Inland Revenue on monthly basis, regardless of how frequently they pay their employees. Payday Filing is optional at the moment but it will become mandatory from 1 April 2019. You will still be making your PAYE payments the same way you do now to the IRD, but there will be a change of when you file the paperwork with them.

 

What Are the Changes?

The New Zealand Government has passed a bill to make Payday Filing mandatory from 1 April 2019. As mentioned above, employers currently report PAYE information about their employees each month no matter how frequently they pay their staff. With the new changes, Inland Revenue requires employers to send payroll information at each payday, rather than on monthly basis. Complying to this change is mandatory under the Employer Monthly Schedule (IR348). For example, if you pay your employees on weekly basis, then you will need to report PAYE information four times a month.

 

The change will be applied and become mandatory on 1 April 2019. However, you can choose this method of Payday Filing before that. You will need to contact Inland Revenue directly if you want to start Payday Filing earlier.

 

Why Are They Making the Change?

Inland Revenue’s processes and systems are being redeveloped to take advantage of modern digital technology. With these changes, the information will be received timely allowing IRD to work out entitlements and tax fast and accurately. As a result, it will provide more confidence to employers that they are paying the correct amounts throughout the year. Filing will become fully automated and a part of your normal payroll process, so you won’t need to remember to send returns in at the end of each month.

 

How Might This Affect You?

Employers with $50,000 or more of PAYE deductions a year are required to conform to these changes sometime between 1 April 2018 (voluntary opt-in date) and 1 April 2019 (mandatory compliance date). This means as an employer, you will need to upgrade to a Payday Reporting compliant payroll system. Furthermore, you will also need to review some of your payroll procedures.

 

The extent to which the Payday Filing changes might affect you depends on the size of your company and whether or not you use a payroll software. If you are not running a computerized payroll system, then it is recommended that you look to do so preferably earlier than 1 April 2019 so you get used to electronic filing. On the other hand, if you already have a computerized payroll system, then it is recommended that you make sure it is compliant.

New Year’s Resolutions for Your Business

Posted on by KWD

As a business owner, the beginning of a new year is the best time to assess the state of your operations and determine what you can do to make your business even stronger moving forward.

Following are some new year’s resolutions to consider for your business:

1. Growth

Growth is probably the number one goal of every business. You need to be able to consistently increase sales if you want your business to grow. Take some time to review and understand how your business has changed since the end of the last year. Get professional advice from an accountant. They can help with financial planning to keep you on the right track.

  • Marketing

Expanding your customer base is the key to your business growth. Implement various marketing strategies to create consistent promotion throughout 2019. Start the new year by updating your website and making it SEO friendly. If you don’t have a marketing expert on staff, 2019 may be the year to start looking for one.

  • Cashflow Management

Many businesses fail each year and running out of cash is usually one of the primary reasons. If your financial records are not up to date or if you don’t work with cashflow forecasts, then it will be really difficult for you to address cashflow problems. It is recommended that you create reliable cashflow forecasts so you can identify periods when your business risks running out of cash. Proper cashflow management will also allow you to avert a cashflow crisis before it’s too late.

  • Upgrade Your Technology and Workflows

You can’t expect your employees to reach their full potential if your firm is relying on legacy technology. Embracing new technologies such as collaboration platforms, cloud computing, etc. will allow you to streamline most of your business processes. It will also result in increased productivity as your employees will be able to access their critical documents and get their work done from any connected device.

2. Succession Plan

Now might be a good time to review, evaluate, and update your business plan to make sure it remains consistent with your business goals for both short-term and long-term future. It is highly recommended that you have a succession plan in place and operate the business to create value for the new leaders in your staff.

  • Training Staff

Make sure your staff is well-trained as it will lead to increased employee satisfaction and productivity. Take on apprentices and support employees to gain qualifications while working. When your employees have confidence in their ability, it’s a massive benefit to your company as a whole. Obviously, if your employees struggle to perform important tasks, they will be less productive. Therefore, employee training is very important.

3. Reviewing Health & Safety Policies

Health and safety in the workplace should always come first. If you act on improving the health and safety in the workplace, it will make the environment safe and ideal for your employees and will also ensure personal safety. It is recommended that you review your company’s health and safety policies, rules, and regulations. Know the rights of your employees and find out if your company is providing sufficient information on keeping employees safe in the workplace.

As an employer, it is your legal obligation to provide a safe working environment to your employees. Implementing the proper health and safety policies is a good start. Visit our health and safety blog to learn about New Zealand health and safety legislation and how you can implement the policies in your business.

4. Modernize Working Arrangements for Staff

Last but not least, annual reviews of employees should be a part of your business policy. Have open discussions with your staff. It will lead to clarification of expectations as well as better working relationships. Reviewing your role in employee relationships is also a good idea. Consider flexible working arrangements e.g. flexible hours, job sharing, working from home, etc. as a way to modernize working arrangements for your staff.

Final Word

Simply making new year’s resolutions and hoping they come true is not enough. In fact, only a small percentage of people actually keep their new year’s resolutions. The good news is, you are in control of your actions, so you have the ability to follow through on the new year’s resolutions for your business. Stick to the above-mentioned resolutions and your company will be in an even stronger position when next year rolls around.

 

Spinach are your specialist business brokerage. Give our friendly staff a call on 0800 774 622 today for advice on how we can help your business grow.