Waikato Business Development Scheme Goes National

MEDIA RELEASE
25 September 2007

Waikato Business Development Scheme Goes National

A small business development scheme that has returned $1.65 million to the Waikato economy through the start-up of 33 businesses is set for national rollout to the country’s economic development agencies at this week’s Small Enterprise Association of Australia and New Zealand (SEAANZ) conference in Auckland.

Sandy Turner is project manager for the Bank-Able NZ Scheme, which was developed by Hamilton’s Business Development Centre. She says it is a unique concept unlike anything else in New Zealand.

“Bank-able NZ is the only programme of its kind in the country. It is not a hand out scheme, but one where the Business Development Centre offers the collateral for an overdraft of up to $10,000 for twelve months with commercial lending partner, ANZ. The aim is for businesses to then move on to an unsecured commercial banking relationship once the year is up.

“The programme has been extremely successful in the Waikato. Since its inception four years ago, Bank-Able NZ is responsible for 33 new business start-ups and has helped to get 21 people off the benefit and operating successful companies

“It is a small business development programme designed to promote business start-ups, expand economic activity, increase employment opportunities and reduce welfare dependency. Already two economic development agencies have shown strong interest in adopting the scheme,” explains Sandy.

Yet overdraft security is not all the Business Development Centre provides to businesses: “After researching other financial schemes it was found that often businesses would be given the cash and left on their own. We wanted to provide on-going support to those people who came to us,” says Sandy.

Acting as the main contact between the Business Development Centre and the business, Turner herself provides business coaching and advice to participants. She meets with clients on a fortnightly/monthly basis, focusing on business planning, goals and growth drawing on her own experience in business.

If a client requires more in-depth advice than Sandy can give, the Business Development Centre has access to a huge pool of mentors and experienced business people who make themselves available to help Bank-Able NZ clients.

Partners in the Business Development Centre’s programme include the Mayors Taskforce for Jobs (investing $150,000), Ministry of Social Development (investing $200,000), WEL Energy Trust (investing $50,000) and the ANZ Bank.

Sandy says the strong partnership with ANZ Bank has helped ensure Bank-Able NZ’s success.

“ANZ has been a brilliant partner who has really got involved in helping our clients in their businesses. ANZ business managers assist with the preparation of client business plans and review the business when its twelve month financials are prepared. This ensures a consistent approach.

“In addition, ANZ has also stepped up to share part of the risk. They’ve allowed only 80% of the overdraft to be secured by the term deposit and share the loan application fee with the Business Development Centre, fifty-fifty,” says Sandy.

Sandy says the best part about Bank-Able NZ is how it transforms people’s lives.

“Crest Cleaning, is a great example of how the Bank-Able NZ programme makes a huge difference to people. The couple who owns it were two highly qualified migrants from Bangladesh who were unemployed for four years after moving here. Bank-Able NZ helped them start their own cleaning business. They were immediately successful and paid back their overdraft within four months,” explains Sandy.

Sandy says Bank-Able NZ has also helped many businesses expand to employ more staff.

“Through Bank-Able NZ, Millennium Painting and Decorating was able to grow to employ eight staff. The scheme also provided them with the ability to set up a separate bricklaying business that also employed six people,” outlines Sandy.

Up to 70 economic development agencies from around the country are attending this week’s SEAANZ conference. They will get the opportunity to choose the Bank-Able NZ Scheme as a small business development programme to roll out in their own regions.

ENDS

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