FINANCE FOR BUSINESS

Press, Volume XCVI, Issue 28343, 31 July 1957, Page 15

FINANCE FOR BUSINESS

“Limited Capital Market” “If your business is in an expanding industry and not short of finance, then your sales and production people are not sufficiently dynamic.” said Mr H. S. J. Tilly, a Dunedin accountant, in an address to the Canterbury division of the New Zealand Institute of Management last evening. Mr Tilly was .speaking on “Where’s the Money to Come From,” the final lecture m a series of talks on management and business. In the expanding business, finance<pwas inevitably a restriction on sales and production plans. When finance was limited the “first come, first served;” outlook was not a sound procedure, said Mr Tilly. The solution lay in proper budgeting with top management determining where the finance would be used. “There is no room in New Zealand’s expanding economy for the ‘solid sout hthat stands still,’ ” said Mr Tilly. “The firm which is in front today and stops to consolidate, will tomorrows be trailing behind the rest. Continuing Supply “Without finance a business could not start, and once started it could not grow without a continuing supply of finance. There were three sources of finance available, funds introduced from outside the business, profits retained in the business, and a better use of existing finance. “There is a very limited capital market in New Zealand available to the average businessman,” said Mr Tiny. “Often the only resources available today are profits retained in business or more efficient use of finance on hand.” Businesses generally in New Zealand were under-capitalised and not sufficiently liquid, said Mr Tilly. Many did not efficiently use the resources of their own finance.