We profile Newflor to find out how TMNZ is helping it defer its upcoming provisional tax payments so it can purchase additional stock.
Vincent Papesch knows the importance of having working capital available to fuel business growth as it’s something he’s experienced first-hand in the last four years.
It’s why the owner of interior floorcovering specialists Newflor uses TMNZ at every opportunity to defer the business’ upcoming provisional tax payments to a date in the future to free up money to invest in additional carpet, vinyl tiles, planks, and other flooring accessories.
Anything that enables Newflor to satisfy customers’ flooring requirements while ensuring the cash register keeps ticking over is a good thing as far as Vincent is concerned.
“It’s all about expanding our range of suppliers and having more product. That’s put a lot of pressure on us cash-wise over the last four years,” he says.
“With your facility, it’s so cost-effective – the interest cost to us is negligible compared to our margins. We can add more stock to our business without the horrendous costs coming with it. It’s a no-brainer.
“If your service did not exist and we had to pay tax when it was due, we would’ve paid it, but that would’ve slowed our growth.”
Growth is something the Takapuna-based Newflor has undergone since Vincent purchased the nationwide flooring importer and wholesale distributors in 2012.
What attracted him to the business was the fact it had been operating for nearly 40 years and enjoyed very good relationships with “anybody who was anybody” in the New Zealand retail flooring scene.
The problem, though, was it had failed to keep up with the times.
“It had good brands and bones – it just had old systems and old ways of doing business which don’t work today,” remembers Vincent.
“I was more or less starting from scratch when I took over.”
Newflor has certainly undergone makeover. Systems were upgraded, the website modernised, marketing refreshed, and new staff employed. Relationships with overseas suppliers were improved to allow it to expand its product offering from renovations to new-build.
Now Vincent’s business is surfing a wave of growth.
“It’s been gradual and a result of the improvements we have made to our business.
“As a result of that, our turnover would’ve doubled compared to what it was four years ago and we expect that to double again based on the initiatives we have been doing.”
Newflor was established in 1977 and is one of New Zealand’s leading suppliers of residential and commercial floor coverings.
It is the exclusive distributor for major international manufactures such as Beaulieu America, Euroflor and Anssom along with many other agencies.