Flexible credit: the new SME lifeline?

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As cash flow pressures rise, New Zealand SMEs are turning to non-bank lenders for flexibility and speed. Here’s how advisers can help clients seize opportunities without compromising financial stability

CASH FLOW chaos is putting Kiwi SMEs to the test. Seasonal revenue dips, rising operational costs and delayed customer payments have created a perfect storm, forcing many businesses to look beyond traditional financing to stay afloat. As these challenges mount, advisers are uniquely positioned to step in with solutions that don’t just solve cash flow problems but also position SMEs for future growth. One of the most effective tools in an adviser’s arsenal is a line of credit, particularly through non-bank lenders like Bizcap, which has recently launched its Business Line of Credit in New Zealand. By offering speed, flexibility and access to funds on demand, advisers can diversify their product offering and solidify their role as trusted partners to their SME clients.

Bizcap is New Zealand’s most open-minded lender, empowering small to medium enterprises with fast access to flexible loans. We can approve loans of $5k to $2 million in as little as three hours without upfront credit checks and fund them in as little as 24 hours. Since the company’s inception in 2019, Bizcap has empowered SMEs with more than 27,000 business loans totalling more than $1 billion, while retaining a 4.9/5 Trustpilot rating. With our award-winning products and customer service, we are one of the foremost fintechs in our field. For more information, visit bizcap.nz.

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“SMEs are finding that traditional funding options aren’t equipped to handle the rapidly shifting needs of their businesses. We’re able to provide advisers with a range of funding solutions that are fast, flexible and tailored to the unique challenges their clients face”

Rebecca Del Rio, Bizcap New Zealand

rising faster than revenue, SMEs need agile funding options to manage cash flow gaps and maintain stability.

As cash flow volatility continues to rise, so too does the demand for fast, flexible lending solutions. Non-bank lenders have become an attractive option for SMEs due to their ability to provide funding quickly, often with fewer hurdles than traditional banks. Rebecca Del Rio, chief revenue officer at Bizcap, says, “Many SMEs are finding that traditional funding options aren’t equipped to handle the rapidly shifting needs of their businesses. That’s where Bizcap comes in. We’re able to provide advisers with a range of funding solutions that are fast, flexible and tailored to the unique challenges their clients face.” The Stats NZ Annual Enterprise Survey (2023) further highlights the urgency of these solutions, showing that while total business income rose by 9.6% from 2022, expenditure outpaced it, increasing by 13%. With costs

The growing demand for flexible lending

Published 17 Feb 2025

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“When advisers bring Bizcap’s Line of Credit into their toolkit, they’re not just helping clients solve immediate problems. They’re showing that they understand the value of speed, flexibility and proactive financial planning”

Camilla Tumai, Bizcap New Zealand

As non-bank lenders continue to grow in popularity, they offer SMEs a compelling alternative to traditional financing. Unlike traditional lenders, non-bank lenders like Bizcap provide funding solutions that are accessible to businesses that might not meet the rigid criteria of banks. This flexibility ensures that SMEs with unique challenges can still access the resources they need to address cash flow gaps and pursue growth opportunities. “With Bizcap’s Business Line of Credit, advisers can offer their clients a reliable, scalable solution that doesn’t require repeated applications for every drawdown,” says Camilla Tumai, Bizcap New Zealand’s general manager. “It’s a powerful tool for SMEs managing seasonal fluctuations or sudden expenses, and it’s helping advisers position themselves as true one-stop shops for their clients’ financial needs.” Non-bank lenders like Bizcap focus on understanding SME realities – from seasonal peaks to unexpected dips. By offering funding that’s accessible when needed, advisers can help their clients avoid the rigidity of traditional bank loans, which often require lengthy applications or lack flexibility. This adaptability enables SMEs to maintain day-to-day operations, fund critical expenses and act quickly on time-sensitive opportunities, from hiring extra staff for a one-off event to handling an unexpected price increase from an essential supplier.

Why non-bank lending?

For advisers, incorporating a product like a line of credit into their offering isn’t just about solving cash flow challenges for SMEs – it’s a way to differentiate themselves in an increasingly competitive market. Diversifying their product suite enables advisers to:

Benefit to advisers: becoming indispensable

build deeper client trust – by offering a range of potential solutions, advisers position themselves as problem-solvers who understand their clients’ unique circumstances boost client retention – SMEs facing cash flow challenges often seek advisers who can provide answers in hours, not weeks; advisers who can deliver these solutions become indispensable enhance their reputation – partnering with trusted, reliable lenders reflects positively on advisers, helping them stand out as dependable and solution-focused

Tumai adds, “When advisers bring Bizcap’s Line of Credit into their toolkit, they’re not just helping clients solve immediate problems. They’re showing that they understand the value of speed, flexibility and proactive financial planning – qualities that business owners truly value in times of information overwhelm and economic uncertainty.”

Bizcap’s data shows that since its Business Line of Credit was introduced to the New Zealand market, it has surged in popularity, quickly becoming the favoured financial tool of SMEs looking to stay in control of their cash flow and take advantage of opportunities as they arise. It enables businesses to:

Line of credit: a tool for stability and growth

draw down funds as needed – providing immediate access to capital for planned expenses or unexpected challenges, without the hassle of repeated loan applications manage cash flow effectively – covering operational costs during quieter periods or easing the impact of late payments capitalise on opportunities – supporting cyclical stock purchases and marketing campaigns or scaling up quickly during periods of high demand

Unlike traditional loans, a line of credit allows SMEs to pay interest only on the funds they use, making it both efficient and cost-effective for managing an unpredictable financial landscape. In addition to providing quick access to funds, it enables businesses to maintain liquidity, ensuring they can handle everyday operations while staying ready for supply chain delays, fluctuating operational costs, or new opportunities. This makes it an ideal solution for SMEs looking to balance stability with growth potential. For advisers, offering this solution adds immense value – it’s a powerful tool to help uncover hidden needs during client consultations. By understanding their clients’ cash flow cycles, advisers can recommend lines of credit to manage cash flow gaps, cover unexpected expenses or prepare for higher-demand periods. This not only strengthens adviser-client relationships but also enhances the adviser’s reputation as a strategic partner who delivers tailored, impactful solutions. Tumai explains, “When advisers incorporate tools like lines of credit into their product offering, they’re equipping SMEs with the ability to act decisively on a timeline that suits them. Whether it’s managing cash flow during uncertain periods or funding new opportunities, these solutions empower businesses to thrive even in fast-changing markets.”

As economic uncertainty continues to challenge SMEs, advisers have a critical role to play. By incorporating innovative, flexible solutions like Bizcap’s Business Line of Credit into their offerings, advisers can address cash flow concerns while building stronger, more trusted relationships with their clients. For New Zealand’s SMEs, having an adviser who can offer speed, flexibility and strategic guidance isn’t just valuable – it’s a lifeline.

A trusted partner in uncertain times

Business expenditure outpacing income

In 2023, total business income in New Zealand rose by 9.6% from 2022, but expenditure outpaced it, increasing by 13%

Source: Stats NZ Annual Enterprise Survey 2023

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