A well-structured business loan can mean the difference between standing still and moving your business forward. While every business has its own growth plan, nearly all need extra capital at some point. Whether you’re starting out or expanding, a loan can help you seize opportunities without losing control of your business.
1. Smoothing Out Economic Ups and Downs
Economic cycles are inevitable. When growth slows, small businesses often feel the pinch first. A working capital loan can keep you operating smoothly through lean periods, helping cover wages, stock, or unexpected costs. Smart borrowing at the right time can also lock in more favourable rates before conditions tighten.
2. Funding New Ventures
Every great business starts as an idea — but it takes funding to turn that idea into reality. Many businesses use loans to cover start-up costs, buy equipment, or lease premises. A loan can also help manage cash flow and tax: interest on business borrowing is usually tax deductible, which can ease the pressure in the early years. Even interest on a personal loan used for genuine business purposes can often be claimed, reducing your overall tax bill in those crucial early years.
3. Capitalising on Opportunities
Sometimes, growth means acting fast. You might have the chance to buy discounted stock in bulk, snap up a competitor’s client list, or invest in new technology. Waiting until you have enough cash on hand can mean missing out altogether. The right loan structure can let you act quickly while keeping repayments manageable. Success comes at a price and every situation is different. The potential gains could easily justify the costs of added debt.
4. Supporting a Thriving Business Community
Access to funding doesn’t just help your business — it strengthens the wider economy too. When small and medium businesses can borrow to grow, it means more jobs, more spending, and more resilience in tough times. Even a small, well-managed loan can help maintain momentum and keep good businesses in business.
Business loans can make a big difference in keeping your finances healthy, as well helping maintain a prosperous business community. Not every business needs loans all the time, but some do at some point.
Is It Time to Review Your Lending?
Whether you’re considering your first business loan or wondering if your existing debt structure is still fit for purpose, is it tax efficient, is it over the right term, we can help. Talk to us about tailoring a lending strategy that suits your goals, minimises risk, and keeps your business moving forward.
Disclaimer – While all care has been taken, Johnston Associates Chartered Accountants Ltd and its staff accept no liability for the content of this article; always see your professional advisor before taking any action that you are unsure about.
JOHNSTON ASSOCIATES, Level 1, One Jervois Road, Ponsonby, T: 09 361 6701, www.johnstonassociates.co.nz
#ponsonbynews #iloveponsonby #loveponsonby #auckland #aucklandshippestrip #onlyponsonby #ponsonbyroad #Greylynn #freemansbay #westmere #ponsonby #hernebay #stmarysbay #archhill #coxsbay @followers #followers @everyone #everyone #waitematalocalboard @highlight
