Tempest

16/07/2026

In early 2026, the New Zealand High Court made a procedural decision that fundamentally shifted the commercial reality of class action litigation in this country.

In early 2026, the New Zealand High Court made a procedural decision that fundamentally shifted the commercial reality of class action litigation in this country. The case, Gielen v Johnson & Johnson (New Zealand) Ltd, involves a claim that certain Codral, Sudafed, and Benadryl products containing t...

13/07/2026

The Great Divergence: What the June 2026 Centrix Report Signals for Recovery and Litigation Funding

Recent data from the Centrix Credit Indicator paints a fascinating, split picture of the New Zealand economy. While consumer resilience is quietly building, the corporate sector is experiencing a fierce, necessary clearing out of unviable businesses.

For the team at Tempest and our partners in the debt buying and litigation funding space, these metrics signal a major shift in where capital, attention, and legal strategy need to be deployed over the next 12 to 18 months.

Here is a breakdown of the current market realities and the commercial opportunities they present:

1. A 16-Year High in Corporate Liquidations
While overall business credit defaults actually fell by roughly 13% to 14% year-on-year, company liquidations have surged by up to 17%—tracking toward the highest levels seen since 2010.

The Construction Crunch: The construction sector continues to lead the pack, with nearly 780 liquidations recorded over the past year.
Hospitality Under Pressure: Hospitality has taken a severe hit, experiencing a brutal 49% year-on-year increase in liquidations (over 400 businesses).
The B2B Recovery Opportunity: For Tempest, this environment highlights the critical need for alternative recovery solutions. Our focus is on purchasing distressed B2B trade ledgers and funding direct creditor actions against solvent guarantors or directors. This strategy allows surviving businesses to cleanly offload their bad debt, inject immediate cash flow back into their operations, and focus their energy on future growth rather than chasing dead ends.

2. The Bifurcation of Consumer Debt
On the consumer side, overall arrears have dropped to roughly 11% of the credit-active population, the lowest level seen in four years. Around 432,000 consumers are behind on payments, marking a steady, encouraging decline.

However, the data reveals severe pockets of distress beneath the surface. Personal loan hardship cases have spiked by a massive 34% year-on-year, now making up nearly a quarter of all financial hardship accounts.

The Debt Buying Strategy: For debt buyers, this dictates that portfolio pricing and risk segmentation must be highly precise. The overall pool of defaulting consumers is shrinking and stabilising, suggesting better quality at a macro level. Yet, a distinct subset of debtors is entering severe, entrenched hardship. Purchasing and recovering unsecured personal loan portfolios will require highly sophisticated analytics and ethical, highly targeted recovery strategies rather than a blanket approach.

The Road Ahead
As the lingering fog of pandemic-era stimulus continues to clear, commercial gravity is taking over. The market is aggressively cleansing itself of "zombie" companies, while the consumer credit landscape undergoes a distinct reset.

At Tempest, we are positioned and capitalised to partner with creditors to unlock value in these distressed situations. Whether it is providing the funding necessary to pursue complex recoveries or acquiring distressed debt ledgers, we are ready to navigate this tightening cycle.

26/06/2026

Navigating the Growth vs. Overhead Squeeze: What the Latest Stats NZ Data Means for Your Cash Flow

The latest Stats NZ Economic Snapshot reveals a challenging paradox for New Zealand businesses. While economic activity expanded with a 0.8% increase in GDP, severe cost pressures are quietly eroding bottom lines behind the scenes.

A sudden late-quarter spike pushed petrol up 18.6% and diesel up 42.6%, alongside a massive 12.5% annual jump in electricity costs. When operational overheads skyrocket this quickly, capital gets trapped. Businesses are forced to delay internal projects simply because their cash is tied up in uncollected invoices and aging accounts receivable.

Growth means very little if you lack the liquidity to fund it.

At Tempest, we help businesses unlock trapped working capital and clear non-performing ledgers through two core pathways:

Strategic Debt Buying: Clean up your balance sheet immediately. We purchase aging debt portfolios, injecting instant, predictable liquidity into your business so you can absorb rising operational overheads without taking on costly commercial credit.

Commercial Litigation Services: When critical revenue is locked behind complex disputes, our specialized litigation team steps in. We recover what you are owed efficiently, minimizing your legal exposure and maximizing recovery rates.

An expanding economy brings opportunities, but rising input costs demand flawless cash flow management. Don't let your hard-earned growth get bottlenecked by late payments. [1]

Let’s connect. Contact the Tempest team today to discuss debt ledger restructuring or targeted recovery strategies to keep your capital moving forward.

28/05/2026

"Your messages lose the friendly emojis and gain exclamation marks. You threaten legal action, draft blistering emails, and vent to anyone who will listen. The anger feels productive, but unfortunately, sending furious text messages has a terribly low recovery rate."

In 1969, psychiatrist Elisabeth Kübler-Ross introduced the five stages of grief: a framework designed to help humans process monumental loss. However, if you have ever lent money to an acquaintance, finished a contract, sold a vehicle on a handshake agreement, or waited on a client invoice settleme...

07/05/2026

Six Strategies to Avoid Bad Debt

Tempest is, in part, a debt acquisition firm. We purchase aged and complex debt, either outright or through a recovery split arrangement. However, the most effective debt collection strategy is avoiding the bad debt altogether. Implementing the following six steps will significantly reduce your credit risk and protect your cash flow.

The foundation of avoiding bad debt is avoiding unreliable customers. In a sales-driven environment, turning away a prospective sale is difficult. Nevertheless, conducting rigorous due diligence before extending credit is a vital protective measure.

Here are six ways to assess a customer’s creditworthiness before accepting a promise of future payment:

1. Conduct a Formal Credit Check Do not rely on instinct alone. Engage a specialised agency, such as Gravity Credit Management, to provide a comprehensive credit report before opening any new account.

2. Verify Trade References Mandate at least two or three trade references during your onboarding process to verify payment history. Keep in mind that applicants typically provide their best references, so requesting additional contacts can often yield a more accurate picture.

3. Secure Personal Guarantees Incorporating a personal guarantee into your terms of trade provides an essential layer of security. It broadens your avenues for recovery and ensures the directors have a personal stake in settling the account.

4. Register on the PPSR Where applicable, lodge a security interest on the Personal Property Securities Register (PPSR) for any unpaid goods or services. If you are unfamiliar with the registry, a lawyer or credit agency can assist you with the process.

5. Review the Companies Office Investigate the prospective client's directors. A thorough review will reveal whether they have a history of involvement with insolvent or liquidated companies, which is a critical warning sign.

6. Assess Real Property Ownership Determine whether the directors own real estate. In the event of a default, property ownership provides tangible leverage and often increases the likelihood of a successful recovery.

While you know your market best, a disciplined approach to extending credit is your primary defence against bad debt.

However, if you are holding a debt that appears too difficult to collect, contact us before you decide to write it off entirely. The residual value or recovery split Tempest can offer may surprise you.

Get in touch with our team at [email protected] or call 0800 845 885.

13/04/2026

Traditional debt collectors act as agents for creditors, typically charging a commission—often around 20%—on the funds they successfully recover. Their methods generally rely on phone calls, written demands, and occasional site visits.

While this may sound similar to the role of an internal credit controller, businesses typically employ collection agencies for two primary reasons:

Specialised Efficiency: Debt collection requires a specific psychological approach. Collection agencies are highly adept at managing debtors efficiently, often recovering funds at a lower operational cost than an in-house team.

Resource Allocation: An internal credit controller’s primary task is maintaining steady cash flow, making it more efficient for them to focus on reliable clients. Chasing evasive debtors consumes valuable time and resources. Collection firms utilize strict, systematic processes to ensure delinquent accounts do not slip through the cracks.

Read the full article below.
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https://www.tempest.net.nz/blog/disputed-debts-and-how-to-avoid-them/