If you’re looking for ways to improve productivity in an office working environment this year, why not consider upgrading the space with the assistance of affordable equipment finance. There are some compelling reasons for why now, could be an extremely advantageous time to improve the facilities in the workspace.
Many businesses have had employees working from home or remotely for much of the time since the first lockdowns in early 2020. Some may have found productivity and profitability were not impacted negatively by this change while others may not be questioning that and requesting workers to return to the office. With many workers enjoying the remote work style, having an exciting new-look environment could be a great attraction.
A newly upgraded space can inspire and uplift and create a new level of energy to drive the business to achieve greater targets in 2023.
An upgrade or refurbishments may provide the opportunity to incorporate the latest technology into the operation. With the recent data breach incidents, business owners have an increased awareness of the need for the latest security systems and technology programs.
Another strategic reason to consider upgrading the office working environment is Australia’s near record unemployment rate. The labour market has been extremely tight for some time with business across many sectors facing challenges to fill positions. Upgrading workspaces and offices with the assistance of cost-effective equipment finance may be a drawcard to attract high-level talent to fill vacant job roles.
An office upgrade may involve numerous different components – equipment, services, trades etc, and different types of equipment finance is available through Jade Equipment Finance for these expenses. With the Reserve Bank (RBA) noting that further interest rate rise would be expected to be needed in the period ahead, now could be the time to move on those business expenses requiring finance.
Office Equipment and Fit Outs
Before embarking on the process of designing the office upgrade, business owners may be keen to know exactly what parts of the upgrade can be financed. We provide a comprehensive portfolio of business finance products and our consultants will discuss which loan type may best suit the various aspects of the upgrade.
Items which may be financed include:-
- Office furniture including partitioning and work stations.
- A wide range of equipment including IT systems – hardware and software components.
- Security systems.
- Consultant, design and trades services.
- Furnishings and interior design elements.
- Many others
Tax Measures to Consider
While all business finance products have a tax deductible aspect, subject to ATO rulings, currently there is a very attractive tax measure available for asset acquisitions. Some elements of the office upgrade may be considered as asset acquisitions and may be eligible for temporary full expensing. These may include items such as furniture and actual equipment as opposed to services.
Temporary full expensing allows businesses to fully deduct the full cost of the asset in the year it was acquired, which in turn requires the appropriate finance. That finance is considered as Chattel Mortgage.
Temporary full expensing is due to expire at the end of this financial year, which presents another reason to move on any asset acquisitions in the next few months.
Equipment Finance Details
The aspects of the upgrade considered as assets, items such as equipment and furniture, may be financed through the choice of equipment finance products:-
- Chattel Mortgage
- Leasing
- Equipment CHP
- Rent to Own
The features of each finance product should be considered in the context of the individual business objectives and accounting methods. All of these products will deliver a tax deductible element to the business. Assets which meet ATO criteria may be eligible for temporary full expensing and for that purpose, Chattel Mortgage Equipment Finance should be considered.
Other items required for the upgrade may not be classified as ‘assets’ and as such require a different form of finance. Installation, commissioning and training required for new systems installation may be financed through Unsecured or Secured Business Loans. For smaller items not suitable for asset finance, a Business Overdraft may be a suitable form of finance.
Our Finance Calculator is available to assist business owners start developing finance budgets for the office upgrade and pre-approved finance is available to further assist in making the process streamlined and hassle-free.
These are just some of the reasons that upgrading the working environment may be an astute investment for many businesses. To discuss how we can assist with affordable, cost-effective equipment finance.
For quotes on office 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.
