A tax-smart approach to cash flow
New Zealand corporates are leveraging smart tax tools to maximise cash flow. Steven Song, CFO of Ernslaw One, explains how this has helped during the pandemic. Brought to you by Tax Traders.
Ernslaw One is one of New Zealand’s largest forest owners and is known for exporting premium quality wood throughout the Pacific Rim. With global supply chain issues affecting the industry, it’s important that Ernslaw One takes a proactive approach to its treasury function and makes the most of available funding options.
It was during the pandemic that Steven Song, the CFO of the business and its parent company Oregon Group, came across Tax Traders and their innovative funding solution involving provisional tax.
“They give you more choice and flexibility with the timing of your tax payments, rather than being forced to pay provisional taxes at a fixed time,” says Song.
Tax Traders offers easy-to-use online smart tools so tax payments can be tailored to suit business cash flow, regardless of whether a business is flush with cash or experiencing leaner times.
“I would say that would be the greatest benefit of working with Tax Traders,” says Song. “It offers us extreme flexibility in terms of how we deal with taxes each year.”
Better than my bank facility?
Tax Traders offers large corporates a range of options at giving them full control over their provisional tax payments, including earning interest on overpaid tax and using deposited funds as a working capital option (without using their bank lending facility).
Ernslaw One used Tax Traders to deposit and earn interest on surplus tax at year end, finance tax for specific provisional tax dates, and get deposited funds back temporarily for a period of time and paying it at a later date.
Pictured: Steven Song, Ernslaw One and Oregon Group
Dedicated people who care
Song says that he has been impressed by the quality of Tax Traders’ service and the simplicity of their smart tax tools. There’s no learning curve or technological transformation required.
“It has been great from a customer service perspective,” he says. “I had a coffee with the Tax Traders relationship manager, and had everything explained. After that he came to our office and got us set up on the online platform.
“I logged in, signed a couple of forms to get the company registered and, after a quick demonstration, we were onboard. It was very simple and very quick.”
Song says the relationship with Tax Traders really does feel like a real partnership.
“Tax Traders go above and beyond to solve problems, making sure we feel heard and cared for.”
Pictured: Steven Song from Ernslaw One with Tim Kirkpatrick from Tax Traders
Find out more:
To find out how Tax Traders’ smart tools can help your business, call 0800 TAX TRADERS (829 872), email [email protected], or visit taxtraders.co.nz.