The construction sector is a considerable contributor to the Australian economy in terms of workforce participation and economic activity. Over the past few months the industry has posted strong performance figures though still faces challenges around job vacancies and material supply shortage and the ongoing threat around the coronavirus. After shutdowns in major states in October, the industry is reportedly showing good signs of recovery. For businesses looking to upgrade equipment to better take advantage of the sector recovery, cheap construction equipment finance is available.
Cost-effective, affordable equipment finance which is tailored to specifically suit the needs of an individual business, can be critical when tendering for major contracts in a sector where margins can be tight.
Industry Performance Reports
We refer to the latest report of the Australian Performance of Construction Index, which is compiled and provided through the Housing Industry Australia (HIA) and the Australian Industry Group (Ai). The report reveals that on the back of the September rebound, the Index remained high during November but at a slightly decelerated rate.
The 57 point Index posted for November indicates a strong expansion pace overall. Individual sectors posted varying outcomes with the apartment sector falling, commercial up and engineering dropping. Reportedly, builders have noted the necessity for increased staffing and the need for greater investment in equipment and machinery in response to the positive uptick in the market.
With international borders now reopened to allow skilled workers to return and other targeted measures by government to address labour shortages in key sectors, contractors will no doubt be looking to fulfilling job vacancies to take advantage of these peak performance conditions.
While cases of Omicron continue to rise, uncertainty remains a risk as noted by the Governor of the RBA, Philip Lowe recently and is a prevailing sentiment across the wider community. The NSW Premier recently stated that in hindsight, shutting down the construction sector for 14 days during the NSW lockdown was a mistake. Can this be taken as some form of assurance that lockdowns won’t be reinstate in response to the new variant? Time will see.
Setting the risk of lockdowns aside, the possibility of workers being forced into isolation as Omicron cases rise is a very real threat. A situation which could leave contractors short-staffed and unable to operate at optimum levels.
Improving productivity through the acquisition of more efficient machinery may be consideration. Upgrading machinery and equipment to new, more fuel efficient and easier to operate models may provide productivity gains.
Acquiring that equipment with cheap interest rate finance can further enhance the benefits to the business.
Jade Equipment Finance provides cheap interest rate finance for a wide range of machinery and equipment used in the building and construction sector, purchased as one-off units or in a large-scale fleet upgrade.
These included yellow goods, wheeled good, excavators, dozers, cranes, earthmoving and civil equipment, drilling machinery, generators, site lighting, specialist trade tooling and equipment and others.
Tax-effective Finance Products
Selecting which is the most suitable type of finance for an individual business will depend on a number of factors. While many will immediately be drawn to the loan types that attract the lowest interest rates – Chattel Mortgage and Commercial Hire Purchase, the full scope of the benefits of each product should be assessed in the context of the individual business objectives.
It is highly advisable for business owners to consult with their accountant on this matter as many of the features relate to accounting methods, practices and preferences.
Jade Equipment Finance provides a comprehensive selection of construction equipment finance products, including:-
- Chattel Mortgage
- Equipment Lease
- Commercial Hire Purchase
Each type of loan includes tax deductible elements but the way both GST is treated and when and how a tax deduction is realised, varies across the range.
Interest rates also vary and this is a consistent across the lending market. What is not so consistent, realisable and accessible is the cheap interest rates achieved on construction equipment finance by Jade Equipment Finance.
Achieving a cheap interest rate on equipment finance is key to the overall cost-effectiveness of the loan and how it works with cash flow and facilitates a positive contribution to the business by the equipment acquisition.
Specialist Finance Services
As an integral part of our support for the construction sector, we provide specialist lender services to assist new contractors, those operating with ABN-only and those that find themselves in a position of needing a bad credit loan.
These services include sourcing No Docs and Low Docs Equipment Finance for those starting out in the sector. This type of finance is available across all loan types and can be secured at cheap and affordable interest rates. All loan enquiries and applications are handled by our consultants on an individual and very personal basis with solutions tailored specifically to needs.
Bad credit loan applications are also handled on an individual basis and our consultants strive to deliver a workable outcome for operators requiring this type of finance. Not readily available through major banks, bad credit equipment loans can be sourced through a selection of our non-bank lenders that specialise in this type of finance.
As a specialist in equipment finance, Jade continues to support the recovery of the sector and assist with facing the challenges through providing cost-effective, cheap interest rate loans for new equipment and machinery.
To discuss construction equipment finance to support your business to participate in the sector’s great performance, 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.