Funding Update (April 21, 2020)

The impact of COVID-19 on business in New Zealand is unprecedented and the challenge facing SME owners during these uncertain times is how to navigate their business through the various alert levels. This includes evaluating various trading  scenarios and the impact on cash flow and whether there are sufficient funds available to get through the crisis. The Government’s upfront payment of three months’ worth of the wage subsidy has helped businesses pay staff during the first month but in order to meet future commitments further support from shareholders, the Government, their bank and other financial institutions will be required.

Many SME businesses will be working with their bank to see if they qualify for the Business Finance Guarantee Scheme. If the business has current financial accounts and COVID-19 forecasts this process should be relatively quick but delays could occur if this information is not available. Please keep in mind that when a bank application for a B2B trading business is delayed or the bank is unable to help, Interface may be able to assist with our Invoice Discounting facility.

While our normal process involves always meeting personally with every client before funding to answer any questions and get to know each other, Interface is able to transact with clients in the COVID-19 environment, we have processes in place that do not require face to face contact for establishing new clients and completing funding transactions. An Interface Invoice Discounting facility provides a quick means for a business to convert outstanding invoices to immediate cash to assist trading. Some key highlights of our invoice discounting facility in the current environment are:

• Fast, we can undertake an initial funding within 48 hours of the first client contact  (assuming the client provides the required information).
• Flexible facility, transaction based with no volume commitments.
• No application, up-front or due diligence fees.
• No monthly administration fees.
• No termination fees in the event new bank funding or shareholder funding becomes available.

Cash flow will prove a challenge for many businesses as they re-commence trading under the new COVID-19 alert level conditions. Please do not hesitate to contact us if you know of a business that may require our assistance, we are available 24/7 for a chat.