Equipment Lending: COVID-19 Update

The economic aspects of the COVID-19 crisis have been unfolding at a rapid rate with all sectors of the economy taking a hit. But as the now infamous curve is flattening well ahead of Government expectations, the focus is changed to the recovery stage and getting people back to work. For most businesses that time can’t come fast enough.

The finance sector is a crucial part of the economy and your business as it is the source of funding to enable your equipment investments.

To give you a broader understanding of what’s happening, we’re providing this update on the equipment finance scene.

Just about everyone, individuals and businesses, has taken a hit as a result of the coronavirus pandemic and that has included the finance sector. The stock market has seen massive fluctuations as it follows the unpredictable Wall Street markets. The superannuation funds are experiencing a run on funds as people access their super as part of the Government’s stimulus measures.

The banking sector has been called on to assist especially the worst-affected businesses to find a way through. In response to the multitude of calls for assistance, like so many of us, the banks were not prepared for the speed and the extent of the economic effects of this health crisis.

Initially, their approach was over-cautious and many applications for loans and other assistance from business were rejected. Many tightened their lending guidelines and several lenders even paused all lending activity especially in some categories such as low doc and no doc loans.

Initially some banks were reticent to offer funding for businesses who had applied for JobKeeper and needed to pay staff for several weeks prior to receiving the payments. This presented massive challenges for many businesses.

But as governments started easing restrictions on populations, so the banks and lenders have started easing their restrictions.

Some banks are actually contacting business customers directly to offer bridging finance in regard to JobKeeper. Most have released their pause on business loans and are back in business. Several have eased their low docs and no doc guidelines allowing both businesses and individuals to finance low doc equipment.

All in all, the situation is looking much better for businesses looking to invest in new equipment. And it’s all playing out against a backdrop of historically low interest rates and the Instant Asset Write Off measure.

So if you want to purchase new equipment, especially to boost your business through the COVID-19 recovery, the time to speak with us is probably NOW. Even if you have no docs or low docs, we may be in a position to assist you with equipment finance.

Equipment Finance Options

Whether you’re a large corporation, sole trader, SME or owner-operator, Jade Equipment Finance offers the full range of commercial finance products including:
• Equipment Chattel Mortgage
Equipment Leasing
• Commercial Hire Purchase for Equipment
Equipment Rental Loans
These products suit a wide range of business structures with a facility to suit cash accounting and accruals accounting systems. Speak with your accountant as to which is best for your business.

Financial Solutions

While we focus primarily on finance for equipment asset acquisitions, we also work with businesses on providing a wide range of other business finance options.

Debtor Invoicing Funding: cash flow is more important than ever and most businesses can’t wait a long time for clients to pay invoices. If you’re in a situation where your clients’ payment terms are impacting your cash flow, speak with us about Debtor Invoice Funding.
Insurance Premium Funding: if you’re equipment or any other part of your business has an insurance policy with a large premium, having the funds available to pay the premium in one annual payment can be a challenge in good times, let alone in challenging circumstances. We can provide a solutions by way of insurance premium funding for many policies.

Jade Finance Benefits are Ongoing

The benefits of the services offered by Jade Equipment Finance as a business equipment finance broker have been even more obvious throughout the coronavirus crisis and will continue through the recovery period as businesses work through the challenges presented by the lending sector.

Approaching the banks and finance companies yourself can be even more difficult at a time when banks are taking a more cautious approach and in some cases tightening guidelines. Having your Jade consultant handle the process for you in a highly professional manner not only eases the pressure on yourself, it allows you access to many industry-only lenders.

Our accreditation includes the major banks and many well-known finance companies but also a lot of lenders which are accessible only to finance brokers and in some cases, a selected group of brokers.
This provides you with the opportunity to have a wider choice for your equipment loan and therefore, improved opportunities to source a better loan.

This is just one of the many benefits we offer our clients. You can realise many of the others by contacting us to discuss your equipment finance requirements.

For all your equipment finance requirements our Jade Equipment Finance consultants are ready to support you so please give us a call 1300 000 003