“It’s not helpful dangling financial carrots in the form of low or no-interest loans to Covid wounded small and medium enterprises if that will worsen their situation in a climate of prolonged uncertainty with no cashflow, revenue, or resources to repay any further debt”, says Auckland Business Chamber CEO, Michael Barnett.
“Take the government support packages if you are eligible, but businesses need to look hard and cold at their future options from restructures to shutting shop if there is no possibility of trading out of the losses of lockdown,” he said. “Whatever the right move is for a sustainable tomorrow, business owners need to seek good advice and talk to their bankers, accountants, shareholders, and prospective partners.”
Debt is a trap that no one wants to fall into with Delta.
For more information, please contact Michael Barnett on 027 563 1150
Michael Barnett, Chief Executive, Auckland Business Chamber