12 January, 2026
Business confidence is shifting. With the OCR stabilising and signs of economic recovery emerging, more businesses are starting to think seriously about investment again. But from our conversations with business owners across sectors, one thing is clear: it's not just about what you invest in, it's about how you structure the finance around it.
The finance structure question
Something we've noticed over 60 years of working with New Zealand businesses: good investment decisions can still be undermined by poor finance structuring.
We see this quite often. A business puts a deposit down on essential equipment, then finances the balance. That equipment's going to last 8-10 years, but the loan's structured over 3 years to minimise interest costs.
As the loan term progresses, that short term loan structure can create pressure. There is a choice - restructure the lending to match the asset life and ease the pressure or keep the same approach and watch working capital continue to get squeezed.
It's not always obvious which path makes sense when you're in the middle of running the business. That's where having a finance partner who understands your operations makes the difference.
Other situations we see:
Seasonality mismatches. Some businesses have strong seasonal patterns - construction slows in winter, tourism has its peaks, agricultural contracting income concentrates around summer months. But finance structures don't always reflect that. Seasonal payment structures can align repayments with income patterns, but rigid monthly schedules create unnecessary pressure during quiet months.
Over-committing capital. Using every dollar of available capital might feel efficient, but it leaves no buffer. Flexibility has real value, especially when market conditions can change quickly.
Asset life vs. loan term. A practice fit-out, a vehicle fleet, and new IT infrastructure shouldn't be financed the same way. Whether it's an operating lease, a term loan, or rent try buy, the asset's productive life or purpose needs to match what type of finance product you need.
Three things that can make a difference
If you're working through investment decisions, here's what we've seen work well:
Model the cash flow impact. The businesses that get this right run the numbers before committing. How does this investment affect your working capital? What happens in a slower year? Can you still service debt if revenue drops or costs spike unexpectedly? This step catches problems before they become constraints.
Talk to your advisors early. The most successful businesses have these conversations well before they need the money - with their accountant, business advisor, and finance partners who genuinely understand their operation. Good advisors will help you structure deals that match your cash flow patterns and asset lifecycles - loan terms that reflect how long you'll use the asset, payment schedules that work with your revenue patterns, structures that give you room to move when conditions change.
Keep buffers. The businesses that navigate uncertainty best avoid committing every dollar. Having cash in reserve means you can take advantage of opportunities or handle challenges without scrambling. That flexibility is worth more than squeezing out the last bit of short-term return.
What sets businesses apart
We've been through multiple economic cycles with New Zealand businesses - booms that didn't last, sudden cost increases, interest rate movements no one predicted. The businesses that come out stronger aren't necessarily the ones who made the biggest investments. They're the ones who thought carefully about their investment and finance structure. They matched asset life to loan terms. They kept buffers. They structured payments around their cash flow realities. They made decisions that gave them flexibility, not constraints.
Getting it right
At the end of the day, this is about using capital to build a stronger business. Whether that's paying down debt, investing in productivity gains, or building more flexibility into your operation, the key is thinking it through properly before you commit.
It's worth taking the time to model it properly and talk to people who understand your sector's cash flow patterns and operational realities. Make decisions that strengthen your business for the long haul.
We're here to help work through those options with you.
Frequently Asked Questions:
How do I match loan terms with asset life?
As a general principle, you don't want to be paying off an asset long after it stops being productive, and you don't want a loan term so short that repayments strain your cash flow. For example: heavy equipment and machinery are often financed over 5-7 years, vehicle fleets typically 3-5 years matching their productive lifespan.
What's a seasonal payment structure?
Rather than fixed monthly payments year-round, seasonal structures align your repayments with your income patterns. This means lower or interest only payments during quiet periods and higher payments when cash flow is strong, reducing pressure during slow months.
How much should I keep in cash reserves?
A reasonable approach is having enough cash to cover 3-6 months of operating expenses, though this varies depending on your business type and sector volatility. The key is having enough flexibility to handle unexpected challenges without having to make rushed decisions.
What financing options are available for business equipment?
Asset finance for business equipment includes operating leases, term loans, fixed loan facilities, and rent try buy. The right structure depends on your cash flow patterns, how long you'll use the asset, tax considerations, and your overall financial position. Compare your options here.
Does finance structure differ by sector?
Yes - healthcare equipment financing has different considerations than transport finance or construction equipment. We structure finance around sector-specific realities like utilisation patterns, regulatory requirements, and typical asset lifecycles. Explore sector solutions.
How does Speirs Finance work with businesses?
We've been providing asset finance to New Zealand businesses for over 60 years, across transport, healthcare, construction, agriculture, and technology sectors. We work with you to structure finance that matches your business operation - your cash flow patterns, sector-specific dynamics, and asset needs. If you're thinking about investment decisions and want to talk through financing options, get in touch with our team.
Want to talk through your options?
We understand business cash flows, sector-specific dynamics, and how to structure finance that works with your operation. If you're thinking about investment decisions and how to finance them, we're here to help.