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

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

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

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

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

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

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

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

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

10. 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

11. Types of Debt Finance Banks Finance Company Leasing

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

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

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

15. Questions Thank you