fbpx

LETS GET DOWN TO BUSINESS.

Question :
I was in the process of buying a cafe when the Covid 19 struck. I wanted to turn it into a day cafe cum evening wine & dessert bar, something that my town does not currently have. However, it is becoming hard for me to secure a bank loan because I do not know if a bank would give me an unsecured business loan at this time. is the government providing any support for a new business to be set up that would be able to contribute to employing people and help stimulate the town’s economy in its own small way? 

Question submitted 17/05/20 @ 04:08pm
Industry: COVID-19 Funding & Support
141
VIEW
0
VOTE
  • Kia ora… guess positive is purchasing timing was on your side. Harry Ferreira is worth connecting with as he covers this space. Will share the link with him. All the best. CC

    HI there – I am not aware of ‘national’ grants for starting businesses or even regional grants. There is the new small business cashflow loan via the IRD, which you could investigate however it requires that the business must have been set up pre 1 April 2020 from what I recall – you can see the criteria on the IRD webstie and also have a look here – https://covid19.govt.nz/businesses-and-employees/businesses-and-services/

    HI there – I am not aware of ‘national’ grants for starting businesses or even regional grants. There is the new small business cashflow loan via the IRD, which you could investigate however it requires that the business must have been set up pre 1 April 2020 from what I recall – you can see the criteria on the IRD webstie and also have a look here – https://covid19.govt.nz/businesses-and-employees/businesses-and-services/

    My immediate advice is what do you have to lose by asking? I’m not sure what the banks’ position would be but in these times, I’m sure they would be happy to give you advice and perhaps useful referrals. Cheers

    Only additional comment is that there are non bank lenders who have a higher risk appetite (and of course interest rate) on business lending if this is something you want to explore. If you google small business lending there are a few good options that come up.

    I know you talk about an unsecured loan above but if you have personal assets you could choose to secure the loan over these personal assets initially and once the business is up and running you could refinance the loan over the assets of the business or it’s performance.

    You don’t mention how much you are looking for- do you have friends/family that believe in your dream to that could share the load with you?

    And I agree with Peter- if you don’t ask you won’t know!

    Best of luck- it’s a great idea and one I just gave as an option for another cafe owner!

  • You must be logged in to reply to this topic.