Many industries suffered significantly during 2020 as a result of the COVID-19 pandemic and for many, the effects are still being endured. The film, TV and theatre production and major events sectors were especially impacted. While it will take time for significant recovery, it is encouraging to see major productions, live theatre and large-scale events return.
Australia’s impressive ‘COVID-comeback’ and our current controls on the spread of coronavirus are being attributed to enhancing us as the location for major productions. State and Federal Governments are also offering incentives for producers to choose Australia as their filming locations to provide jobs and flow-on benefits through our economies. Find out more here.
We noted (with excitement) the recent announcement that highly acclaimed director, George Miller, will be filming the next Mad Max instalment in NSW starring local actor Chris Hemsworth. The announcement was made at a press conference attended by NSW Premier Gladys Berejiklian who said it would be the largest movie filmed in the state and would contribute up to $350m into the economy, creating 850 jobs.
George Miller has also recently filmed another major film in the state, which attracted several high profile, international actors, to the country. We have also seen major musical productions including Hamilton staged and the extremely popular VIVID Festival is back on the calendar for 2021.
This reopening of the production industry creates jobs and business opportunities for many operators and with that may come the need to invest in new equipment. Jade Equipment Finance provides finance for all industry sectors including production and events.
Production Equipment Finance Options
Finance is available for a wide range of equipment used in TV, film and theatre productions and the staging of large events. This may include camera equipment, editing systems, lighting equipment, scaffolding and gantry equipment, props and specialised, custom-built equipment, location catering equipment, talent caravans and location office, trucks and other vehicles and ancillary items.
The full range of finance products is available for the acquisition of production equipment:-
- Equipment Chattel Mortgage or Equipment Loan
- Commercial Hire Purchase
- Equipment Leasing
- Equipment Rental or Rent to Own
These loan products vary in a number of elements and also have some similarities:
- Varying treatments of GST – on which loan elements it is applied and claimable.
- How a tax deduction is realised – at what time in the financial year and which elements of the loan are deductible at what point.
- Suitability to either the cash accounting method or the accruals method of accounting.
- For all loans, the interest included is tax-deductible and GST does not apply.
- The ownership of the equipment is different for different loans. For example, with Chattel Mortgage the borrower takes immediate ownership of the gear while with Leasing, the lender holds the ownership until the loan is finalised.
- Interest rates are different for the different finance products available. Refer to our equipment loan interest rate comparisons to see the low rates that we are currently achieving.
- Finance secured through Jade Equipment Finance features a cheap fixed interest rate, fixed finance term and fixed repayments.
- Balloon/residual options included.
Due to the variations across the finance product range, it is highly recommended that businesses refer to their accountant, financial advisor or tax agent to discuss which is the most suitable facility for their business.
If you are considering taking advantage of IAWO or temporary full expensing, Chattel Mortgage would be the most suitable finance product for your purchase.
Finance for Freelance and Contractor SMEs
A defining feature of the production industry is the large number of freelancers, sole traders and small contractor businesses involved in the sector. Due to the nature of the work, this tends to be a very common and popular business structure for techs, gaffers, assistants, lighting specialists, wardrobe and stylists, props designers and many others in the overall production crew.
While this type of business structure is favoured by the industry it is not always that popular when a sole trader or freelancer approaches a bank for a loan to purchase new gear. Not all banks and finance companies will extend finance to sole traders and micro-businesses.
Jade embraces the small operators and provides specialist services for securing finance for the smallest businesses and those that have not been operating for the timeframe required to be eligible for bank finance.
Our specialist services include:
- Low Docs Production Equipment Loans
- No Docs Production Equipment Loans
- Bad Credit Options
By engaging our services as your broker-style lender, you can leave the quote sourcing, fiddly negotiations and loan securing process to our consultants while you attend to vital pre-production activities.
You can use our equipment finance loan calculator for quick repayment estimates and request a quote or commence an application for finance over the phone or via our online resources. So if you’ve scored a role in the crew for an upcoming blockbuster or a major event and need new gear, contact us to discuss how we can assist.
Contact 1300 000 003 to discuss lending packages on production equipment.
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.
