Weekly Digest – 12 February 2021
Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
Short-Term Absence Payment Launched
Starting 9 February 2021, the Short-Term Absence Payment has become available for businesses and self-employed individuals to help them pay their employees who can’t work from home while they wait for their COVID-19 test result.
This involves a one-off payment of $350 for each eligible worker. More details on how to apply can be found here.
Survey: Investor Confidence Improves
New Zealand investor confidence continues to improve as low interest rates and strong housing and share market recovery boost sentiment, according to the latest ASB Investor Confidence Survey.
The results of the survey shows net investor confidence has climbed from -11% in Q3 2020 to +2% for the three months to December 2020. However, Aucklanders were less optimistic with net -7% compared with +7% for the rest of New Zealand.
NZ Finance Minister: Debt Level $60 Billion Lower Than Expected
The country’s debt level by 2034 is forecast to be about $60 billion less than previously expected on the back of a strong recovery from the pandemic, according to finance minister Grant Robertson.
Projections using the treasury’s fiscal strategy model show net debt now at 36.5% of GDP in 2034/35. Back in September 2020, projections showed net debt at 48% of GDP in 2034.
The finance minister said the government’s objectives would be to keep Kiwis safe from COVID-19, rebuild from the impacts of the pandemic, and address issues such as housing affordability, child poverty, and climate change.
When Should I Apply for a Business Loan?
Borrowing money is part of running a company, but it does come with a cost. This means you shouldn’t impulsively take on debt unless there’s a clear benefit for doing so.
Below are the top valid reasons for getting a business loan:
- Opportunity to expand your business – Whether it’s for hiring new staff, developing a new product, or launching a new marketing initiative, if it will help you grow your future revenues, it is a smart time to get a loan.
- Replace, repair, or upgrade equipment or systems – It is sometimes difficult to finance new business assets such as equipment, service vehicles, and systems out of your existing cash. A business loan can be used to cover these investments and help you improve your products or services.
- Refinance existing debt – If you already have a business loan, you may qualify for better terms now compared to when you first borrowed. Refinancing to a better rate will let you enjoy lower monthly payments while covering your debt.
If you require some guidance on deciding what type of business loan to apply for, or need some help with the completion of your requirements, don’t hesitate to get in touch with us.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.