Is it too soon or too optimistic to talk ‘post-pandemic’ era? If not now, then when? Smart business operators are already implementing plans for ‘now’ and to set themselves on a positive trajectory through the so-called ‘recovery phase’. While the RBA notes in its monthly monetary statement of November 2021, the economy is expected to bounce back quickly following the extended lockdowns. But despite this positive outlook, the recovery process could be uneven across the nation and the economy. Some business continue to face challenges, especially in sourcing cost-effective business finance for the changing landscape to support their recovery and resurgence.
As specialist business machinery and equipment lenders, Jade Equipment Finance recognises the changes to the business operating landscape and provides a range of financial solutions to support businesses facing challenges in sourcing loans.
The COVID pandemic has resulted in some significant changes in the business landscape. Changes to how businesses operate, how they engage with customers and in some sectors, how their people carry out their work and how some individuals actually derive their income.
Some pandemic pivots have become permanent and others have been adapted and absorbed into new ways of operating. Some of these shifts have flowed onto major operational and structural changes and adjustments for individual businesses and for individual workers.
The negative side sees some business struggling to meet their financial commitments with reduced cash flow and demand which has flowed on to bad credit problems.
On the positive side, changes in the workplace have led to many workers opting out of employment and into their own enterprises.
Whether looking for finance to sustain a business with bad credit or seeking loans for equipment for a new start-up businesses, the challenges can be similar. Primarily, finding the right lender that can provide a comprehensive service in sourcing cost-effective equipment loans. We explain how we assist businesses with issues sourcing business equipment finance.
Credit Issues: Bad Credit Equipment Finance
Operating a business, especially a SME, profitably and productively at any time can be rewarding but with its ongoing challenges. During and following a pandemic, the challenges are even greater. Many businesses are still facing restrictions and limitation to their operations even with lockdowns lifted.
The density quotients limiting the number of customers permitted in a premises can have a serious impact on turnover which flow on to the ability of the business to meet their own bills. Some industries including travel and tourism, are yet to reach anything like normal turnover and await full resumption of international visitations.
When turnover is on the downturn but costs and bills are on the upturn, a business can fall behind in payments and develop a poor credit rating or bad credit. When it comes time to source finance to upgrade or replace equipment, it can be extremely difficult to source loans at affordable interest rates and repayments.
Jade assists businesses with bad credit by providing access to specialist non-bank lenders that are open to considering bad credit loans. Our consultants work with customers to structure the application and we handle those sometimes tricky negotiations on interest rates and finance conditions. Our goal is to achieve a workable solution for our customers.
Bad credit equipment finance at workable rates can be a reality for many operators. All applications are considered on an individual basis. Bad credit does infer a higher risk assessment and a higher interest rate usually applies.
Other possible loan conditions may include the lender requested other security beside the equipment as a guarantee; the business owner providing personal guarantees; and a small lower loan amount approved.
New Start-ups: Low Docs and No Docs Equipment Loans
There is a newly coined phrase in this post-pandemic environment – the Great Resignation. Originating in the US but being felt in many countries, this refers to individuals that due to conditions around the pandemic, they have chosen to change their career or job or even leave full-time employment.
This can include the many individuals that have set up their own small operations. Great initiatives but this type of change can have issues. Specifically of interest in our sector is that start-ups face their own set of obstacles in sourcing much-needed loans.
Banks and most lenders require loan applicants to meet a set of criteria which newly started business struggle to fulfil. These often include having traded for a minimum of 12-18 months and have financial records and documentation to support the loan application.
For those businesses that do not have all these financials, we provide Low Docs and No Docs Equipment Finance. These loan categories can be sourced through our specialist non-bank lenders and can be secured at very attractive and cheap interest rates. Speak with one of our consultants regarding the prospects for cost-effective finance for your business.
Equipment Finance Available
To meet these changes in the business landscape, we offer a complete portfolio of finance products:-
- Bad Credit Equipment Finance
- Low Docs and No Docs Equipment
When an application is approved, both of these can be used for:-
- Chattel Mortgage
- Commercial Hire Purchase
- Rent to Own
To put your business on an upward trajectory in the post-pandemic landscape, speak with us about an equipment finance solution.
For all equipment finance requirements speak with a Jade Equipment Finance consultant on 1300 000 003
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.