The recent large scale data breaches and the constant threat of cybercrime and hacking have many businesses on alert and on edge. These types of breaches and threats are predicted to increase as many of the organisations behind them treat this as a business. But in addition to the threat of cybercrime, businesses also need robust systems to achieve productivity, protect against fraud and in many cases maintain a competitive edge in their market. If your systems require upgrading and replacing, we may be able to assist with affordable IT equipment finance.
During the pandemic years as 2020 and 2021 are now referred to, many businesses had to put off non-essential expenditure and that may have included IT and security system upgrades. But with the increased threat level, it could be time to revisit those investment plans. The fall-out of a hacking event or data breach or even simple fraud, particularly for SMEs can be devastating. There is the loss of data and intellectual property which would need to be replaced, the downtime and cost to carry that out and the reputational and business damage through potential loss of customers to consider.
As a first port of call, businesses may access the resources available through the Australian Cyber Security Centre. They include a wide range of tools, advice, alerts and many other valuable resources.
For businesses needing to upgrade data, IT and security systems, affordable IT Equipment Finance is available through Jade Equipment Finance at cheap rates. In addition to potential threats, now could be a good time to move on this type of business equipment acquisition before more interest rate rises and to possibly take advantage of attractive tax measures.
Finance for Hardware and Software
While most will associate equipment finance with the hardware for IT systems, we can provide loans for the acquisition of both the hardware and the software. Additional expenses associated with the purchases may also be able to be included in the overall loan. These may include delivery costs, installation and commissioning and other items. Speak with us prior to purchase to confirm what may and may not be included in regard to your particular purchase.
While we’re mentioning data security due to the recent high profile breach incidents, IT Equipment Finance is also available for the purchase of computer-driven production systems and other technologies. That can extend across multiple industry sectors and cover a vast range of business equipment.
IT Equipment Finance Options
As with all types of business equipment, we provide the full portfolio of finance products.
The options include:-
- Chattel Mortgage for IT Equipment
- IT Equipment Leasing
- Commercial Hire Purchase
- Rent-to-Own
The features and structure of these finance products have variations which should be considered when making the selection. Differences include in regard to when GST is claimed, how a tax deduction on the asset and the finance is realised and the interest rate.
The choice of which is most suited to the business and to the purchase will depend on a number of factors and considerations, which include, but not limited to:-
- The accounting method which is used to prepare the business accounts. Chattel Mortgage is best-suited to the cash accounting method while Leasing is best-suited to those that utilise the accruals method.
- The overall financial objectives of the business. These may include cash flow considerations, the desire or not to hold assets for the long-term and how GST and other tax deductions are addressed.
- Whether the equipment acquisition is a long-term prospect or if the intention is to upgrade within a shorter period. Leasing may for example, be more attractive for businesses that are looking to upgrade systems and equipment quite regularly.
- The approach the business takes to their balance sheet. With Leasing for example, the ownership of the equipment is retained by the lender and as such not posted to the business balance sheet. This is often referred to as ‘improving the appearance of the business balance sheet’.
As many of the considerations around the choice of finance relate to accounting practices, business owners are strongly encouraged to discuss this matter with their business accountant.
Business Equipment Tax Measures
A compelling reason for many businesses to consider upgrading any type of equipment at the moment is the opportunity to realise the tax benefits of temporary full expensing. This temporary measures expires at the end of the current financial year. In order to be eligible under the measure, they must be operational in the business by end of June next year.
Consideration should be allowed for any delays in receiving the IT equipment as a result of the computer chip shortage and other global supply issues and for the time which may be required to install, set-up and commission the equipment.
If providing better protecting for your business with upgraded systems is a priority, speak with us about how we can assist with affordable IT finance.
For affordable IT equipment finance contact Jade Equipment Finance 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.
