Here’s how Pavnish is using hummpro to pay for everyday business expenses, so he doesn’t get held back by cashflow.
Since COVID-19 took a toll on his café and commercial cleaning business in New Zealand, Pavnish has been working to regain a steady cashflow and reach new customers. One of the ways he is doing this is by using hummpro to buy inventory, pay vendors and even treat his employees to dinner. He really likes the app and says there isn’t anything like it in the New Zealand market. Here’s how he has incorporated it into his day-to-day business practice.
Biggest challenges
Like many New Zealand businesses, Source Café in Auckland was significantly impacted by the COVID-19 lockdown in 2020, and Pavnish still struggles to maintain steady enough cashflow to cover his major business expenses. Besides the cost of rent, wages and utilities, he also needs to continually buy fresh food. Having quality ingredients is crucial to being able to offer an innovative menu and attract customers, but he doesn’t always have the cash on hand to buy the eco-friendly and ethically sourced items he would like.
Similarly, he isn’t always able to cover the expenses in his commercial cleaning business out of his cashflow. But he has found it difficult to obtain finance from banks to bridge the gap due to stricter lending requirements post-COVID-19.
How hummpro has helped
Nowadays, Pavnish uses hummpro like a credit card to cover a wide range of business-related expenses at Source Café, such as buying inventory and paying vendors, but the difference is he doesn’t need to pay any interest on his transactions. Since he’s no longer reliant on having cash on hand or these purchases, he is able to source higher-quality ingredients that allow him to be more innovative with his dishes and invest in better service to attract customers. Together with the work he is doing to expand the café’s social media following and ramp up its marketing, hummpro is helping him grow the business.
When it comes to his commercial cleaning operation, hummpro enables him to meet all of his ongoing financial obligations and replenish his supplies without first needing to check if he has sufficient cashflow to do so. He even uses it to treat his employees to dinner, which is a great way to build morale and improve staff retention in a tight labour market.
Key takeaways
For Pavnish, the biggest benefit of hummpro is having access to long-term interest-free credit. Since his cashflow still isn’t completely steady, it’s important for him to be able to defer repayments if he needs to without racking up extra debt.
Like all hummpro users, Pavnish gets at least 30 days to repay all of his transactions from the previous month. But if sales are slow and he needs more time to repay, he can hit pause to get another 30 days. He just needs to pay 3.5% of the starting balance in an upfront fee.
He can also switch his repayment to a plan to get even more breathing room. The starting balance is split into equal payments of six, nine or 12 months plus a fee of 1.5% of the starting balance each month, so he never has to worry about compound interest making it harder for him to repay.
On the other hand, if sales are strong and he’s feeling flush, he can always make his entire repayment in one lump sum to avoid any fees.
If it feels like Cashflow is holding you back, tap into interest-free finance with hummpro.
*The 1.5% fee is fixed for the duration of the Plan and is based on the starting Plan balance. The fee is charged each month when the Plan instalment is due and is only payable if the Plan remains open. If the Plan is paid off early, the remaining Plan fees will not be charged. 6 mths – maximum total Plan fee is 9% of the Plan balance. 9 mths – maximum total Plan fee is 13.5% of the Plan balance. 12 mths – maximum total Plan fee is 18% of the Plan balance.
