You know that sinking feeling when you think things are going fine, then a surprise bill lands and suddenly there’s not enough in the account?
That’s a cashflow leak, and left unchecked, it can quietly strangle your business.
Cashflow issues are the number one reason small businesses fail in NZ. The good news? They’re usually fixable once you know where to look.
What’s a “cashflow leak” anyway?
A cashflow leak is any point where money leaves your business faster than it should, or doesn’t arrive when it should.
It’s the hidden gap between your hard work and your actual bank balance.
Common leaks we see in NZ businesses
- Slow payers: clients who drag their heels on invoices.
- Loose credit terms: being “too nice” when it comes to payment deadlines.
- Over-stocking: too much money tied up in shelves instead of cashflow.
- Forgotten subscriptions: software, apps, and memberships you barely use.
- Seasonal dips: no plan for the quiet months.
- Hidden costs: compliance fines, bank fees, FX losses, small leaks that add up.
How to spot the leaks
Start with a simple monthly cashflow review. Look at:
- When money comes in versus goes out.
- What expenses are truly essential.
- Where you’re consistently short.
A rolling 90-day forecast is gold. It helps you see issues before they bite.
Plugging the gaps
- Tighten payment terms and use automatic invoice reminders.
- Offer small discounts for early payments.
- Cancel unused subscriptions.
- Keep stock lean and review purchasing cycles.
- Build a small cash buffer for unexpected expenses.
If it feels messy, you’re not alone, most Kiwi SMEs don’t have a clear view of their cashflow.
At TBA, we help small business owners find and fix cashflow leaks fast. A quick review can reveal where your money’s disappearing and how to keep more of it in your pocket.
👉 Book a free cashflow chat today, we’ll walk you through your numbers and spot the leaks together.
