It is official, New Zealand is in a technical recession. But what does that even mean and why should you care?
Well technically, a recession means that the New Zealand economy is contracting (based on GDP data). That is, the total value of goods and services purchased by consumers and produced by businesses has reduced in successive financial quarters.
What that means in real terms is that less money is moving around the New Zealand economy and that will mean more prioritisation is made for whether money is spent on essentials or is paid back on debts owed.
Money spent by consumers flows through businesses and reduced spending is felt right through the economy as suppliers upstream feel the ripple effects.
Some indicators suggest things are very tight right now for consumers. One such indicator highlighted by Equifax is that arrears are growing in the telco and utilities sector. This sector is considered essential (think lights and internet) so growing arrears in this sector suggests the money go round is running dry.
What does this mean for you?
Well, rather than wait to see if your business is eventually affected by the incoming cash crunch, there are a few things you can do to protect your businesses cashflow right now:
Our friendly Customer Service team are available to talk through the Debt Recovery process with you.
Call us today at 0800 324 768 or fill in the form and we will get in touch as soon as possible.
Colin Parkinson12. April, 2024.Quick action from request - sortedHeather Finlayson-Drower21. March, 2024.EC Credit Control were amazing to deal with Quick and Efficient, I sent a email, I was emailed back saying they had forwarded within 30 minutes of sending it and within minutes of that email I had a call. From there it was easy, I explained what I needed what industry I required it for and they sorted everything.AutostopAutomotive Limited19. March, 2024.Awesome and easy to deal with thanks..jan Tasker11. March, 2024.EC Credit are always able to answer questions and give advice on Debt collection and PPS Registration matters. They respond quickly and professionally.Queenstown Engineering26. February, 2024.Great working with EC Credit Control and having that support to keep our Terms of trade up to date, advice and registering applications with PPS. Makes running the business easier as one less thing to worry about.Faye Thomas20. February, 2024.Super helpful, easy to deal with. Platform is easy to navigate. 10/10Andrea Bracey15. February, 2024.Very helpful and explained the process very wellGoogle rating score: 4.5 of 5, based on 133 reviews
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