Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Businesses that Ask, Receive Finance

Businesses that Ask, Receive Finance

Over one-third of New Zealand businesses with between 1 and 500 employees sought additional finance during the 12 months to August 2004, according to Statistics New Zealand. Ninety percent of finance requests made by businesses resulted in either some or all of the amount sought being received.

The characteristics of businesses' most recent financing request within the 12 months to August 2004 were examined. Finance can be provided as either debt or equity. Survey participants were asked to include details of all requests for finance, whether fully approved, partly approved, declined or withdrawn. Results from the Business Finance Survey show that 36 percent of businesses had sought some form of finance, most of which was in the form of debt finance. The debt finance option was sought by 34 percent of businesses, compared with 6 percent for equity finance.

There is a range of available sources for businesses to approach for additional finance, and the finance may be sought and received from one or more of these sources.

For debt finance, the predominant sources were banks and finance companies, which were a source of additional debt finance for 72 percent and 26 percent of businesses, respectively. Debt finance includes any finance that the business must repay (for example overdrafts, credit cards, and convertible debt).

For equity finance, the predominant sources were individuals in control of the business or their friends/family, which were a source of additional equity for 83 percent and 11 percent of businesses, respectively. Equity finance includes additional investment from existing owners of the business, and any finance received in exchange for a share in the ownership of the business.

The Business Finance Survey is the first survey of its type to be conducted in New Zealand, and was developed by Statistics New Zealand in collaboration with the Ministry of Economic Development (MED). Statistics New Zealand and MED will jointly publish a full report from this survey in June 2005.

Brian Pink
Government Statistician
END


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news