4 Apr 2020

Connecting you to capital

The reason why most would-be entrepreneurs give up on their dreams is their finance-related fear. Even when new entrepreneurs are feeling the most motivated, like when they are heading to the boss’ office a resignation letter in their hands, there is probably a pushy little voice inside their head taunting them with the same questions:

“Will I be able to access enough capital to fund my venture?”

“How will I even go about doing this?”

“What if my calculations are incorrect and this is going to cost me a lot more than I expected?”

It’s the job of an Accountant to answer most of these questions for you. We sat down with Peter Prema, a Director here at BetterCo and asked him to give us the run-down on connecting business owners to capital.

There is no denying that capital is a big consideration when starting a business. It should always be at the forefront of everything you do and it will always have a huge impact on every decision that you make. However, there are several different options available that may make the task of obtaining access to start-up capital a bit less daunting.

Government Grants and Funding

There are few opportunities available for self-employed and for businesses who are just starting out. If you are eligible, these may be a good option for you. For technology owners and tech-based start-ups, there is The Callaghan Innovation, which provides pre-incubation loans so that you can develop your ideas and commercialise your intellectual property. Work and Income is an option for people on benefits who are keen to start a business or become self-employment. Work and Income has The Flexi-wage programme that can provide advice and some financial support. They also have Business Advice and Grant that may help you to pay related training costs.


Seeking out a loan from a financial institution or private enterprise is always an option. Different banks offer different flexible repayment terms to suit your needs and preferences, but it’s not easy to obtain a business loan from them. First of all, you need to be able to present a convincing business plan, where you describe exactly how you are going to use the money and when and what returns you expect to achieve in the coming months and years. You also need to ensure that your credit rating is good as any past issues in this area will affect your application.


If seeking help from investors sounds appealing, keep in mind that you need an impressive business plan to win them over. Getting in touch with angel investors you know or someone in your network knows can work well, but there are also many angel investor networks in New Zealand that can help you to reach your goal. Some examples are Ice Angels and Angel Investment Network.


There are several ways to self-fund a business. For example, you can use your personal savings, use the family home as equity against a loan or re-mortgage a property. Using your personal savings to start a business can be an appealing idea because you won’t have to pay interest or worry about being indebted to your creditors. However, it is important to keep in mind that if you rely solely on your own money and something goes wrong, there is no egg nest to fall back on and support your day to day living.

Even if the potential entrepreneur manages to obtain what they feel is the sufficient amount of money, they’re probably still stressing about that one thing that entrepreneurs worry about when lying awake at night:

“Will I be able to do everything necessary to ensure that my business becomes successful and remains sustainable?”

“Chat to your Accountant, get a business coach and hold yourself accountable to your goals, money always follows”

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