Thursday, March 27, 2008

Cash-flow crisis bites in New Zealand

The cash-flow crisis will force many small businesses in New Zealand to close during the next 12 months, a Christchurch credit manager warned today.

Speaking in the Dominion Post, Dean Thomson of Link Receivables, a Christchurch credit management company, said fewer companies were paying their bills on time, leaving businesses along the supply chain struggling to pay their bills.

"The cash-flow crisis is the No 1 problem facing small and medium enterprises."

Mr Thomson said he had 385 clients, compared with 64 last year and 38 the year before that, when he started the business after working as a credit manager at Telecom and Meridian Energy.

He expected his clients to total 500 by the end of the year, and said he would have to increase his staff from nine to 15 by Christmas.

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