Big cash flow issues for Canterbury businesses - survey

A survey has found more than 63 per cent of businesses are still experiencing significant...
A survey has found more than 63 per cent of businesses are still experiencing significant financial impacts from alert level 3 restrictions. Photo: Supplied
A new survey has shown businesses across Canterbury continued to struggle significantly under alert level 3.

The business survey from the Canterbury Employers’ Chamber of Commerce and ChristchurchNZ received about 470 responses, and found more than 63 per cent of respondents were still reporting significant financial impacts from the pandemic under alert level three.

More than 21 per cent cited a moderate impact and just over seven per cent said they were experiencing a minor impact.

The biggest challenges operating under level 3 were cash flow, lack of customers and social distancing rules, the survey found.

Even three months down the line, 60 per cent of businesses believe their cash flow will continue to be a problem.

Staff numbers will also be affected, with about 30 per cent of businesses saying their staffing numbers would have a significant negative impact of more than 25 per cent.

Exporters remain more optimistic, with 46 per cent saying there will be no effect on their sales, while 30 per cent think the negative effect will be over 25 per cent.

The survey also shows that smaller businesses have been more impacted by loss of customers and increased costs, while larger ones have been impacted by supply chains.

An earlier survey sent out during alert level 4 showed more than 81 per cent of respondents reported significant financial impacts from Covid-19.

Canterbury Employers’ Chamber of Commerce chief executive Leeann Watson said the results of the survey demonstrated the changing impact of the Covid-19 pandemic.

"All business segments have been affected by cash flow issues.

"Manufacturers in particular have had challenges around social distancing under level 3, although they expect this to reduce under level 2.

"Accommodation and hospitality also expect to face challenges under level 2 around increased costs of operating, social distancing and lack of customers, expecting to take many months to be back anywhere near full trading capacity."