Right now, you are ‘in the majority’ if you’re an SME in New Zealand and your cash flow is negative.
Yep, it’s a reality and until the tide comes back in on business confidence and the borders change to being open we will need to survive hard economic times.

Keep an eye on the xero small business insights – they are currently out of date (lagging reports) but hopefully Xero will resolve this issue soon. These insights are a canary in the cave for how New Zealand SME’s are coping with the current business climate.

If you are cash flow negative you will need to get on to restructuring your business model and finding out how to get more cash coming into your business asap.

It is okay for this to take a bit of time, but please don’t bury your head in the sand. Instead start planning ways to create the right changes.

If you sense your business is going to need a larger overdraft or an extension to existing facilities, you will need to demonstrate to the banks that you are sound and not a risk.


Here’s some things to begin with:

Step 1. Pull up your aged receivables and identify every customer who’s more than 10 days overdue.

Step 2. Communicate with these customers and find out how they are coping with the business climate right now. Let them know that you need to get paid and find out what their time frames look like in the worst-case scenario.

Step 3. If things look or sound too vague or the time frames indicated by your debtor will impact your business too greatly, you should offer to break the invoice into a payment plan on Drip.

Step 4. Leverage your Drip account statement to demonstrate aged debtor reliability to your bank. Banks are not obligated to loan, they are convinced. The trick is to remove negative components from your business outlook.

Here is an example Drip account statement:

Drip Business Account Statement.

Can be used as a business tactic post covid.


Banks are risk averse, but they make money from finance and loans. We are hearing some good things coming out of BNZ and ASB at the moment with regards to looking after their business customers.

Please reach out to us to get our support if you want to try Drip and reduce your exposure to being cash flow negative.
The step before debt collection.