Cashflow challenges don’t wait for convenient timing – and neither do business opportunities.
Since 2003, TMNZ has helped over 25,000 Kiwi businesses improve cashflow through our provisional tax solutions, including tax finance – a better way to delay income tax payments.
Three different businesses. Three different challenges. Three smart ways tax finance made the difference.
Who tax finance can help
Tax finance through TMNZ can help if you’re:
- facing a cashflow squeeze during seasonal low periods
- spotting time-sensitive opportunities that need immediate capital
- growing your business and need working capital for expansion
- managing the timing mismatch between seasonal revenue and tax obligations
Smarter savings in the hospitality industry
The situation
A local hospitality equipment supplier spotted an opportunity too good to miss. As an importer of specialised restaurant equipment, they noticed currency exchange rates had shifted significantly – making their European supplier’s products much more affordable than usual.
The challenge
The timing was perfect for acquiring high-quality equipment at reduced prices. But there was a catch. Their provisional tax payment was due soon, and the funds set aside for it were exactly what they needed to secure the deal. It’s a dilemma many business owners know well – choose between meeting tax obligations or capitalising on growth opportunities.
The solution
Rather than missing out, they found a practical solution through TMNZ. The approach was straightforward. Partner with TMNZ to defer their provisional tax payment for interest rates similar to your mortgage. Use those funds to purchase the discounted equipment. Maintain compliance with Inland Revenue while pursuing growth.
The results
The results? Success on multiple fronts:
- acquired high-quality equipment at below-market prices
- maintained healthy cashflow despite the significant purchase
- increased profit margins on future equipment sales
- kept tax obligations in order without penalties
- enhanced their competitive position in the market
The takeaway
Tax payments don’t have to be inflexible deadlines. This shows how working with TMNZ helps you manage tax obligations while seizing time-sensitive opportunities that enhance profitability.
And here’s the important bit – all TMNZ tax finance arrangements are 100% Inland Revenue approved. You can defer payments with complete compliance and peace of mind.
Scaling up in the transport industry
The situation
A transport business landed a fantastic opportunity – a contract supporting a major infrastructure project that could take their company to the next level.
The challenge
The timing created a cashflow squeeze. Winning the infrastructure contract was a milestone achievement, but they needed to expand their trucking fleet immediately to meet requirements. Like many growing businesses, they had funds set aside for provisional tax but needed that same cash to fund expansion.
The solution
The business owner took a smart approach. Partner with TMNZ to defer their tax payment for 12 months. Use their provisional tax funds to purchase an additional truck. Start servicing the new contract immediately with an expanded fleet.
The results
The results delivered multiple benefits:
- secured and started the valuable infrastructure contract
- increased fleet capacity and revenue potential
- generated immediate positive cashflow from the new truck
- maintained good standing with Inland Revenue
- spread tax payment over a more manageable timeframe
The takeaway
Small business growth often requires making quick decisions when opportunities arise. This shows how flexible tax payment arrangements help you invest in growth while managing tax obligations responsibly.
Supporting cashflow over summer in the electronics industry
The situation
A small electronics distribution company faced a common seasonal challenge. Like many in their industry, they closed during the Christmas period through mid-January, aligning with their major clients’ shutdown periods.
The challenge
The holiday season created multiple financial pressures. Zero revenue during the extended Christmas closure. Staff holiday pay obligations coming due. Income tax and GST payments due on 15 January. The business owner worried they wouldn’t fully enjoy their family holiday because of financial stress.
The solution
The business owner took proactive steps to manage seasonal cashflow and connected with TMNZ in December. They recognised the recurring nature of the holiday squeeze and decided to arrange deferring their 15 January income tax payment until April from now on. This maintained GST compliance while managing cashflow more smartly.
The results
The results? Both financial and personal benefits:
- balanced holiday season expenses without depleting cash reserves
- maintained staff satisfaction with timely holiday pay
- shifted tax payments to align with stronger cashflow periods
- enjoyed stress-free family time at the beach
- started the new year in a stronger financial position
The takeaway
Many seasonal businesses face predictable cashflow challenges during holidays. This shows how planning ahead and using flexible tax payment arrangements helps you manage obligations while protecting crucial family time.
Payment flexibility that works for your business
Up to 75 days of payment flexibility after your terminal tax date. Breathing room to manage cashflow on your terms while maintaining full Inland Revenue compliance.
Ready to explore how tax finance could work for you? Managing seasonal cashflow challenges? Funding growth opportunities? Or simply want more flexibility with provisional tax payments? Learn more about our tax finance solutions here.