The eastern seaboard has seen a deluge of rain over the past weeks which has led to devastating floods and damage in some areas. But outside of these identified flood areas, there will be businesses experiencing damage to key systems and equipment as a result of dampness and humidity and minor flash flooding. A problem which is widespread across the coastal areas and can create havoc with sensitive tech and computer-driven systems. To assist businesses get back online and back to their best, cost-effective, cheap equipment finance is available for tech and IT equipment including software and systems which drive many automated business operations from engineering, through logistics and warehousing, retail and hospitality and across the general business environment.
Damage can be sustained to vital systems through mildew and mould as a result of high humidity. Damage which can affect the performance of systems and disrupt business operations. Regularly upgrading systems to maintain a competitive edge is another common reason for replacing computerised equipment. The replacement of these types of computer systems, especially if they are operation-wide or key to the business operations, can be a significant cost to business. The cost is measured in both the acquisition and the downtime while the systems are being installed and commissioned.
To minimise the cost and streamline the overall process, business owners will be looking for cheap interest rate finance and a service to handle the finance side while they handle the equipment purchase and installation.
What equipment and inclusions can be financed?
Some lenders may separate hardware and software as different types of business equipment. But at Jade Equipment Finance, we provide finance for both components of computer systems.
We provide finance solutions for:-
- Hardware and software for wide range of business operations
- Computer-driven and automated engineering, manufacturing, logistics and operating systems
- Accounting and business management systems
- Ancillary expenses such as installation, commissioning, testing and training
- Cash flow support for the business to cover downtime during the installation
Finance Products Available
A range of finance products are available to suit differing objectives of businesses and the varying nature of the expenses associated with computer system acquisitions.
For the acquisition of physical assets such as hardware and software, businesses can select the loan type which best meets their objectives and suits the method of accounting used:-
- Chattel Mortgage
- Leasing
- Commercial Hire Purchase
- Rent to Buy
All business finance products include tax deductible elements but these do vary across the different types of loans.
Ancillary expenses associated with the acquisition may include delivery, installation, commissioning and training. Finance is available to cover these expenses.
There are a number of options to consider:-
- Where the ancillary expenses are included in a complete package and ordered and invoiced at the time of acquisition your Jade consultant can work towards included these costs in the overall finance total. That would result in all costs covered and just the one repayment to handle each month.
- Where the ancillary costs are purchased at different times and from different suppliers and depending on our lender guidelines, a Secured or Unsecured Business Loan may suit. These are general loans to the business to cover non-asset acquisitions which do not fall under the loan guidelines of the asset finance as listed above.
A major cost to business as part of upgrading and replacing automation and computer systems is the downtime. Potential loss of income while regular outgoings still need to be met. To cover the potential shortfall in cash flow during these periods, a Business Overdraft may best suit.
Another major cost of large systems may be the insurance premiums. To cover the cost of an annual premium at the same time as the costs of the system upgrade may place undue pressure on a business. To ease that pressure, consider Insurance Premium Funding.
Comparing Interest Rates
If a system upgrade is on your radar then now could be the ideal time to act. While Jade always focuses on achieving the cheapest interest rates on equipment finance, the general lending market is currently extremely accommodative.
The RBA has held the cash rate at that historic low for now. But the signs are strong that a rate rise will be made in coming months. Securing finance before a rate rise can save the business significantly in extra interest over the full term of the finance.
Finance Structure Service
Structuring finance of the nature and size of automation and computer systems can be complex. Your Jade consultant assists by handling the entire process. We source the cheapest quote from across our vast lender panel and negotiate the best rates and the terms and conditions that are most amenable to our customers.
For initial budgeting purposes, businesses can use our Loan Calculators to obtain repayment estimates and form a view as to how they would like the finance structured. Issues to consider include:-
- What ancillary items to include in the overall loan amount
- Any balloon or residual amount – ensuring that amount would not exceed the value of the equipment at the end of the finance term
- The finance term – being mindful of the projected working life of the assets and/or the timing for the next upgrade. Payout fees may apply if the finance is finalised prior to the agreed fixed finance term
Upgrading and replacing computer and automation systems as a result of damage or obsolescence can be a challenging process. Jade Equipment Finance eases the burden for business owners with cheap finance and a comprehensive lending service.
Contact Jade Equipment Finance on 1300 000 003 for cheap computer and automation equipment finance.
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.
