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.
EXCELLENT Based on 166 reviews Jarrod Hope28 March 2025Trustindex verifies that the original source of the review is Google. Colin at EC Credit Control provided us with clear and comprehensive terms of trade for our business. Their professionalism and attention to detail made the process smooth and stress-free. Highly recommend their services!" Nick Watts26 March 2025Trustindex verifies that the original source of the review is Google. Super stoked with EC Credit Control - They fulfilled all our requirements for our customers TOT's. They also offer a great PDF fillable account for which makes filling them out a whole lot easier. Shaun at EC was extremely good to deal with. Prompt quick turnaround service, highly recommend. Rowan Meade10 March 2025Trustindex verifies that the original source of the review is Google. Shona at EC Credit Control was excellent. She gave me fantastic advice, and was great at communicating with me quickly. Highly recommend their services if you need someone to collect a debt for your business. Mr Lift Accounts10 March 2025Trustindex verifies that the original source of the review is Google. Fantastic professional service I highly recommend G J7 March 2025Trustindex verifies that the original source of the review is Google. Great company to deal with Keith Tarsau19 February 2025Trustindex verifies that the original source of the review is Google. Great team, great communication and great results. Thank you so much for your help! Issy Lu13 February 2025Trustindex verifies that the original source of the review is Google. We are fortunate to have Toni as our credit consultant. He is exceptionally professional, patient, and consistently takes the time to explain complex concepts in a clear and understandable way. His support has been invaluable to our team. Carl Barakat16 January 2025Trustindex verifies that the original source of the review is Google. Great to work with, makes everything super clear and easy to implementVerified by TrustindexTrustindex verified badge is the Universal Symbol of Trust. Only the greatest companies can get the verified badge who has a review score above 4.5, based on customer reviews over the past 12 months. Read more
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