Nexia NZ: Supporting our clients through COVID-19

May 5, 2020

The team at Nexia NZ are working hard to support our clients through COVID-19. The nature and depth of the COVID-19 crisis is unprecedented in our lifetime, and the Government response to support business has equally been wide ranging.

We have outlined below some of the ways we are working with our clients to ensure the viability of their businesses.

Cashflow management

Cashflow management is an important task for every business and is critical in a time of crisis. To ensure a successful business, owners need to know not only what tomorrow looks like but also plan their future direction and assess how cash impacts on business viability.

Nexia can assist with:

  • Understanding the immediate and short-term cash needs of the business and how to address them
  • Adequately plan and scenario test forecasted cash position
  • Pragmatic advice on how reasonable forecasts and budgets are
  • Advice on improving the working capital position and identify practical steps to improve the cash conversion cycle
  • Prepare cashflow projections for the next three, six and twelve months
  • Assist business owners seeking to raise additional cash
  • Provide support to business through the Regional Business Partner grant scheme
  • Advice on the government tax concessions and other relief available to improve cashflow

Business continuity planning

A business continuity plan is a proactive plan which outlines procedures and instructions a company will follow should it be faced with a disruption of operations. The plan aims to achieve a process of prevention and recovery from potential threats. In these challenging and uncertain times, it is especially important to review your business continuity plan.

Why have a business continuity plan?

  • Determine real risks to business viability including critical business and operational activities
  • Evaluate key risks in your business supply chain and determine how these risks affect operations
  • Evaluate key personnel and their roles during a crisis, including staff wellbeing
  • Implement safeguards and procedures to mitigate risks

We are working with clients to evaluate their plan and mitigate the risks they are facing. At this point in the response to COVID-19, it is important to ensure you are still taking the correct actions to ensure your future viability and minimise long term damage to your business.

Regional Business Partners Network – COVID-19 Business Advisory Funding

The New Zealand Government has allocated additional funding to the Regional Business Partner Network (RBPN). This additional funding will support New Zealand businesses and service providers to access professional advice during the COVID-19 pandemic.

As a registered provider of business support services through the RBPN programme, Nexia New Zealand have the capability, and are currently supporting businesses, in the following areas:

  • Finance and cashflow management
  • Business continuity planning
  • Human resource advice

Access to the grant requires businesses to meet the following criteria:

  • An employer of fewer than 50 full time employees
  • GST registered in New Zealand
  • Operating in a commercial environment
  • Privately owned, a Maori Trust or incorporation under the Te Ture Whenua Maori Act 1993
  • Being impacted by COVID-19

We are helping our clients through the application process for these grants and have commenced work on some that have already been approved. Let your Nexia NZ advisor know if you need help to apply or want to discuss how this grant could help your business.

Business Finance Guarantee Scheme

This scheme has been set up to support businesses who have been negatively affected by COVID-19. It offers a total of $6.25 billion in loans to New Zealand businesses, the Government is guaranteeing 80% of the risk, with banks covering the remaining 20%. The scheme was established to encourage lending to businesses that may fit a higher risk profile and that may otherwise struggle to find finance.

Businesses will still be required to meet normal lending requirements, along with standard eligibility criteria, outlined below. Banks have their own application process and requirements and we are helping our clients to work through these.

Eligibility criteria:

  • New Zealand registered business
  • Must be impacted by COVID-19
  • Annual turnover of $250,000 - $80,000,000
  • Can only apply for the scheme once
  • $500,000 maximum loan amount
  • 90 day minimum term and 3 year maximum

Small Business Cashflow (loan) Scheme

The Government announced last week a further initiative to support small to medium business owners, which will allow for interest free lending. Click here for more information.

At Nexia NZ, we have a large team working directly with clients on their response to COVID-19. We are also providing information to clients via our dedicated COVID-19 website, which is being updated with all the latest information. If you have any questions, please speak to your Nexia NZ advisor, or click here to get in touch with us.

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