Many businesses will be looking to the start of the new financial year as a time to kick-off plans, refresh and revive operations and be well-placed to take advantages of opportunities as they present. But businesses impacted by supply, staff and pandemic issues, may require business finance to implement plans to improve productivity and profitability.
Finance may be required for investment in new plant, machinery and equipment to realise greater efficiencies and cost savings, to support ongoing operations on a monthly basis or to target specific financial pain points. Business finance is not a one-product-fits-all or suits-all sectors. In order to achieve specific business objectives and targets, finance should be individually sourced and structured to suit the purpose and the business.
Understanding the business finance products available may assist business owners better plan their approach to seeking, sourcing and securing the most appropriate loan at the cheapest interest rate.
Addressing Wide-ranging Needs of Business
While widely-known for securing cheap equipment finance, Jade Equipment Finance is a specialist in many areas of business finance and is well-placed to assist operators with solutions to address a range of requirements.
Our range of finance products include:
- Asset acquisition finance
- Business loans
- Specialist business finance products
- Assisting new businesses and those with credit issues
Equipment and Machinery Finance
Finance to purchase new plant, machinery and equipment is one of the most common requirements for business finance. To assist the varied types of business operations and to suit the many objectives, we offer the full range of solutions:-
- Chattel Mortgage
- Equipment Lease
- Rent to Buy
- Commercial Hire Purchase
All equipment finance offers are individually sourced with our consultants negotiating directly with our extensive selection of banks and specialist non-bank lenders to secure the cheapest rate and better finance offer.
Currently, businesses that meet the criteria may realise extensive tax deductions through Chattel Mortgage to acquire their machinery which is suited to opting in for temporary full expensing. For equipment purchased after 1 July 2022 and prior to 30 June 2023 the tax benefit can be realised in the 2022/23 financial year.
Accessing Workable Overdrafts
Staff shortages and supply chain blockages are causing headaches across multiple industries. Situations which can flow through to financial issues for individual businesses. A Business Overdraft may offer a workable solution to see the business through these issues.
While banks are the traditional source for overdrafts, they are not the only provider of this type of business finance. We are accredited with non-bank lenders that also offer attractive interest rates and terms on overdrafts.
A non-bank lender overdraft follows the same format as a bank overdraft. So for businesses that may have been rejected for this facility by their bank or for whatever reason are not keen to approach their bank, a non-bank lender business overdraft may offer the solution.
Business Overdrafts can be arranged over varying terms to suit short-term cash flow shortages or over longer terms for recurring issues. This may especially suit businesses in agricultural sectors which are subject to income fluctuations due to seasonal crops.
Targeting Specific Business Pain Points
While a Business Overdraft and Secured Business Loans are suited to many general purposes, more targeted solutions may better suit some purposes. Pain points which we identify for many businesses are facing large insurance premiums and slow paying customers causing cash flow issues.
Insurance Premium Funding is a specialist finance product which directly addressing large insurance premiums. We arrange this funding so the annual premium can be split over a number of payments to ease cash flow.
Debtor Invoice Finance is a godsend for businesses with clients that are either slow or have contractual arrangements where payments are made in lengthy periods. This funding enables the business to receive a portion of the outstanding invoices at the time the invoice is issued and the balance when the customer actually pays.
This type of finance is specially structured to meet individual business needs and interest is paid on the outstanding amounts only.
Business Finance Interest Rates
As with all lending markets, the interest rates on business finance products are influenced by decisions made by the RBA in regard to the cash rate. After an extensive period of historic low rates, the RBA has commenced the progress of normalising the cash rate. In simple terms – interest rates are on the rise.
Businesses seeking to set themselves up well for the new financial year may benefit by securing business finance ASAP prior to future rate rises by the RBA. Our consultants are available to arrange finance quotes and offers quickly and with a streamlined process. Ensuring both the cheapest interest rate is acquired and the least amount of time and hassle is required by the business operator.
If you would like to start the new financial year with stronger and cheaper business finance support, have a no obligation discussion with one of our consultants as to the options available to suit your operation.
To discuss business finance options and solutions 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.