The first half of 2020 has been a lemon! COVID-19 has given the entire global economy a massive sour serve that will leave many businesses grimacing for some time.
But business can’t stay in a holding pattern forever. Hibernation can’t be permanent, you need to emerge at some time. Complacency can easily set in when Governments are footing the bill to provide large-scale support to prop-up both individuals and businesses.
It’s a new financial year so what better time to give your business a boost. It’s a well-worn and probably over-used cliché but we think totally suited to this point in time – if you’re served lemons, make lemonade!
Jade Equipment Finance is committed to supporting businesses to invest in equipment which will grow their operation and work towards their goals to achieve efficiencies, productivity and profitability.
So we’ve put together a few recipes for making ‘lemonade’ which may be just the refresher that your business needs to awake from a covid-coma and set you up for a highly successful FY21.
Recipe 1: Invest in new Equipment at Low Interest Rates
As we’ve been highlighting and reminding customers for months, interest rates are currently at historic low levels which makes business finance as cheap as it’s been for a very long time. While not the only element of an equipment finance deal which needs to be considered, interest rates are definitely the major determining factor of the repayments and the overall cost of your finance.
With equipment in some industries, for example heavy duty earth-moving equipment, engineering and manufacturing machinery, plant and fit outs for starters, coming with hefty price tags, the overall cost of the finance you achieve can have a significant impact on the ROI that you will realise.
Finance on larger priced items can structured over longer loan terms. So securing a long-term finance deal from Jade at the current low interest rates now, may be a very astute investment decision.
Invest now and realise the ROI for the coming years.
Recipe 2: Realise the Tax Benefits of the Instant Asset Write-Off Scheme
We’ve posted several articles detailing the Federal Government’s IAWO initiative and with the recent extension announced, businesses now have until 31 December to take advantage of the scheme. Eligible businesses will need to have eligible items of equipment purchased and in operation by that date to realise the tax benefits.
Jade can provide a suitable commercial finance product that meets the IAWO guidelines and works with your cash flow for the equipment purchase.
Refer to our article that details the scheme and for more information, consult with your accountant or head to the ATO website.
Recipe 3: Capture an EOFY Equipment Sale Deal
End of financial year is a great time for sales, discounts and massive offers on all types of business equipment. After the slow start to 2020 thanks to COVID-19, many suppliers are even more eager to move stock and despite slower business, are offering great discounts.
While EOFY is officially 30 June, the EOFY sales and mid-year clearances seem to continue until the stock runs out at many outlets.
Business equipment which crosses-over into the consumer market are especially well-discounted. Think computer equipment, electronics and electrical equipment in particular. In the heavy equipment sector, check in on your preferred manufacturer’s website to see what they’ve marked down.
To prepare ahead, contact Jade Equipment Finance for a pre-approved loan before you start discussions with the equipment dealer or supplier.
An EOFY discount paired with a cheap interest rate on equipment loan and you’ve got a great business booster!
Recipe 4: Refinance Existing Equipment Finance
Giving your business a boost might involve freeing up funds to ease cash flow or for new investments. If you have a number of existing equipment finance contracts, possibly at higher than the current rates, now could be a great time to review and refresh.
In addition to providing cheap finance for new and used equipment acquisitions, we can also assist with refinance for a range of purposes. Such a move may involve combining several loans into one to streamline your outgoings, changing from one type of finance to another due to a change in business structure, eg leasing to CHP, or just getting a better deal on a loan contract which still has a few years to run.
Speak with a Jade consultant as to how we may be able to assist with securing your business a better outcome on equipment finance.
Recipe 5: Pivot to New Markets
During the peak of the COVID-19 crisis, there were great examples of companies that pivoted from their usual business operations into new areas. Either to meet a pressing demand such as for PPE and hand sanitiser or because demand for their existing products and services was restricted due to lockdowns and closures.
Many of these pivots were so successful that companies have made them permanent business moves. Changing times can signify time to change. What new markets could you venture into?
With a Jade Equipment Finance deal facilitating the purchase of the required equipment, having a change of business direction at this time could be a very savvy move.
So there’s 5 ways that you may choose to boost your business and set yourself up for a successful FY21.
To discuss how Jade Equipment Finance can assist in giving your business a boost, call for an obligation free discussion 1300 000 003