The Hidden Handbrake on Your Next Big Opportunity

Picture this: your new business idea is flying. You’ve got interest from investors, banks are nodding along, and partners are excited. Then, out of nowhere, an old company or unpaid tax bill you barely think about anymore drags everything to a halt.

Most business owners underestimate how much their past structures impact their future opportunities. A messy legacy company, a shareholder loan that was never tidied up, or old GST arrears can be the difference between securing finance and hearing “sorry, we can’t help you.” It’s not just red tape. It can be a handbrake on your momentum.

Here’s what we see time and again:

• A company that is technically not trading but still has historic debts.

• Old shareholder or family loans that were never properly documented.

• Overdrawn shareholder accounts that quietly sit on the balance sheet.

• Companies with inaccurate financials because the returns were rushed or ignored.

The problem is, when banks, investors, or even potential buyers do due diligence, these things surface. And suddenly the conversation changes from “let’s grow” to “let’s untangle this mess.”

We recently met a client who had an exciting new venture in advanced manufacturing. The opportunity was real, and funders were circling. But he also had a couple of legacy companies. One had GST arrears, another with an outstanding shareholder loan. Individually, the issues weren’t huge. But together, they made lenders nervous, and created a lot more unnecessary complexity to the situation. We had to explain things several times that would have been simpler and cost effective if they had actioned everything correctly and were closed.

If you want to unlock future growth, review your business structures:

1. Close down dormant companies properly. Don’t just stop trading and hope they disappear.

2. Document shareholder and related party loans. Make sure it’s clear who owes who.

3. Clear old tax obligations or deal with them head on through us as your accountant (or IRD or if necessary a liquidator).

4. Get accurate financials. Xero is not enough if it’s not reconciled correctly, or there are historical retained earnings, or fixed assets, or unaccounted debtors and creditors still outstanding.

Yes, this type of work feels like a waste of time when you’re hustling to build something new. But the cost of ignoring legacy issues is far greater than the cost of fixing them. It is not about the old company or the past debt. If you want investors to back you, if you want banks to lend to you, and if you want partners to trust you, then you need to keep things clean, simple and easy to follow and understand.

Next Steps

If you are sitting on old companies, messy loans, or tax arrears, don’t ignore them. Reach out, and we’ll help you put it to bed once and for all so you can focus fully on the opportunities ahead.