Hui a Tau 29 & 30 September, Queenstown FUNDING Phil Broughton and Stephen Craig-Pearson

Business Funding Main types Funding Stages Equity Funding Debt Funding Q&A

Types Grants Suppliers Debt Friends/family - equity External investors - equity

Funding Stages Stage 1 Start Up Stage 2 Early Stage Stage 3 Growth Stage 4 Maturity

Grants – total or subsidised e.g. –Enterprise Allowance –Poutama –Local Economic Development –Central Government –MWWL

Trade Cycle Cash Purchase materials Manufacturing Inventory Sales Debtors Time line between stages (Days)

External Finance AskedReceived Debt34%96% Equity6%76% Did not seek finance 64%-

Debt Finance Low cost Flexible No dilution and minimal control Repayment ability Security

Applying for (Debt) Finance How much and why Owner’s contribution Business Plan Profitability Security available

Key issues - Understand & Have a Plan Communicate well - proactive, reporting, no surprises, initiate meetings Give the Bank every chance to advocate for you as their client Understand the credit process

Types of Debt Finance Banks Finance Company Leasing

Equity Investors Enables growth Skills and experience Transaction costs: legal and due-diligence Return expectations vary Dilution of voting rights

Becoming an Attractive Business Personal Qualities Business Qualities Product/Service Quality

Business Funding Grants Internal – creditors and profitability Debt – security / cash flow Investors – self/friends/family & external

Questions Thank you