What’s on the horizon in 2022 for your business? If you’re feeling uncertain at the moment, one thing is certain – you’re not alone. The emerging Omicron situation has many business owners on edge right at the time when it the economy was showing great signs of recovering from a woeful two years. There are sure to be challenges to be met and opportunities to capture in the coming year. Many businesses will face the question of whether to proceed with equipment investment plans or postpone till conditions are more certain and stable? Having access to cheap equipment finance could be influential in making that decision.
We outline the cheap equipment finance and refinancing options are available to take on 2022 and allow business operators to realise their true potential and take advantage of the opportunities available.
One of the big problems which has already emerged for many businesses in multiple sectors as a result of the fast-spreading Omicron variant is staffing issues. We’re already seeing many businesses having to shut down, slow down or limit operating to full capacity because so many of their staff are isolating due to the virus.
Addressing productivity across a business operation at this time and looking for ways to improve those levels could be advisable. New machinery and equipment could be a possible solution to improve productivity and provide greater flexibility in dealing with what could be a time of challenging staff rosters.
Easier to operate equipment or machinery may provide for more flexible allocation of staff across a facility to fill absenteeism gaps due to COVID. Looking to upgrade to a machine model which can be operated by a number of staff with minimal instruction could be worth considering.
Manufacturers focus heavily on developing equipment and machinery that delivers greater efficiencies to improve profitability and productivity. But realising the full potential of those benefits can be compromised if the equipment is acquired with expensive finance.
If you’re paying over the odds in monthly repayments due to a high interest rate loan, then any gains in productivity may be lost with a drop in productivity. Ensuring new equipment is purchased with the cheapest interest rate finance as possible is critical.
Check out our current interest rates across our equipment finance portfolio to see how low repayments could be on a prospective equipment investment.
Construction Cost Increases
Global supply issues, materials shortages and shipping delays are some of the reasons being put forward for the increase in costs in areas of the construction sector. The sector is experiencing an uptick but sadly, also are some of the material costs. Hitting the margins of many businesses in the industry.
This is highlighting the need to keep other business costs, including the cost of finance, down in order to maintain a profitable margin especially on jobs already quoted. If purchasing new equipment, then sourcing cheap finance will be, as always, a high priority.
If cost increase situation is considered as potentially ongoing for the medium to long term or your business is particularly vulnerable, refinancing equipment loans could be an option to consider.
Jade Equipment Finance provides specialist expertise in sourcing and structuring refinancing. The process involves sourcing a new loan arrangement to replace the existing loan or to bundle several loans into the one to streamline commitments.
Businesses can select from the portfolio of finance products when refinancing. These include Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase. Costs associated with paying out an existing loan need to be factored into the overall cost of the process but if reducing regular outgoing is the main objective, this is a very workable and commonly-used strategy.
Reconfiguring Spaces and Places
2022 could see a new phase for office-based businesses. Staff who have been working from home for most of the past 2 years may be looking to return to the office this coming year. Offices and other workplaces may need to reconfigure their floor plans to better cater for working under COVID restrictions and to provide greater workplace safety. Issues which may also contribute to improving worker satisfaction and performance.
We provide cheap interest rate finance for office equipment, furniture and fit-outs so the cost of making these changes could be more workable and affordable than you imagine. Use our Equipment Finance Calculator to estimate repayments when preparing your budgets for the project or request finance quotes on specific items of equipment for a more exact estimation.
Don’t Miss out on the Tax Opportunities!
While the current focus is sadly once again on COVID, businesses are reminded not to overlook the lucrative tax measures which are still available for machinery and equipment acquisitions for eligible businesses. Temporary full expensing is available to eligible business through to June 2023. But if you are wanting to realise the depreciation of new equipment in this financial year, it will need to be purchased and in operation by June 2022.
Interest rates across our equipment finance portfolio remain at our trademark cheap levels which reflect both our own approach to achieving better rates and the current historic low official cash rate.
To set up your business with new equipment to capture opportunities and overcome challenges, speak with us about the cheap equipment finance we have available.
To discuss equipment finance to support your business in 2022, 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.