The past few COVID-19 years have presented business owners and operators with challenges they would never have even imagined. But just as Australia seems to have found ways to live with the virus and open back up to the world, a number of emerging events and issues present new obstacles to be overcome. Some of the challenges faced by businesses can be eased and alleviated with cost-effective equipment finance and business loans facilitated through the support from expert, specialist finance professionals.
Rising fuel costs are a major concern both businesses and individuals. Owner operators can especially vulnerable as their personal income is intrinsically linked to their business turnover. Keeping costs down with cheaper equipment loans can be a key strategy to achieving overall improved profitability.
Supply chain issues continue to pose problems for many industries with the conflict in eastern Europe adding a new level of uncertainty around global supply chains.
After significant gains during the pandemic due in part to the HomeBuilder scheme, the construction sector faces a number of key concerns. Prices and supply of materials causing delays and overruns and the Omicron outbreak is being put down to the cause of a drop in construction activity in January. The recent collapse into administration of a major construction company will also have created worrying times and uncertainty for a great number of subbies and tradies.
For those considering an upcoming purchase of new equipment, the prospect of an interest rate rise by the RBA in the coming months and the flow-on effect of higher loan repayments could be causing concern and the need to bring forward acquisition plans to secure lower interest rate loans.
To add to all that, major flooding on the east coast will be leaving many operators in these areas in a dire situation. Insurance and government support may cover part of the losses, but getting back to business may require business loans.
In the face of such wide-ranging concerns and circumstances, at Jade Equipment we want to assure business owners that we can provide support through cost-effective financial solutions to address many of these challenges. We offer a range of financial products and expert assistance to source and negotiate loans to save business owners time, hassle and worry.
Equipment Acquisition
To replace equipment lost in the floods or to upgrade machinery a range of loan types are available to suit all types of businesses. These include Chattel Mortgage, Lease, Commercial Hire Purchase and Rent to Buy.
The benefits realised by individual businesses of the specific features and structure of each loan type will depend on the objectives, set-up and accounting method of that operation. Business owners are strongly encouraged to speak with their accountant around choice of loan type.
Our loan services ensure fast approvals and swift settlement so our consultants can assist business replacing lost machinery to be back in business as soon as possible.
To ease the cost pressures of acquiring new machinery and equipment, speak with us about Insurance Premium Funding for that equipment. This finance product enables large insurance premiums which are normally due for payment annually, to be paid in instalments throughout the year. Easing pressure on cash flow and enabling more effective budgeting.
Refinancing to Reduce Costs
The rising costs of fuel and materials can place undue pressure on cash flow and restrict the full potential of the operation to be realised. The control of many of these costs is not within the possibilities of most operators. So they need to look at what other expenses they can cut back in order to ease pressures and achieve a better bottom line.
If holding equipment under finance, refinancing the equipment loan may be a workable option. We provide this service which entails replacing the existing equipment loan with a new loan. The refinanced loan can be for a different loan type or the same finance product.
Costs will be incurred in relation to finalising the existing finance contract and establishing the new loan and these will be detailed to you by your Jade consultant. While taking those issues into consideration, refinancing may present a very realistic solution to reducing business expenses and offsetting the impact of rising costs.
Cash Flow Support
Loss of work due to collapse of a major client or other circumstances may leave a business with short-term cash flow issues while they rest and regroup. If the business has loans to repay, defaulting by failing to meet obligations may cause bad credit problems.
Finance products are available to fund a business during short or medium term cash flow crises. These include:-
- Business Overdraft, which we arrange through non-bank lenders at highly competitive interest rates.
- Business Loans on both a secured and unsecured basis to fund specific purposes where an asset acquisition is not involved.
Speak with our consultants about which would be the most effective solution to address your cash flow situation.
Interest Rate Prospects
There are strong indications that the RBA will move on interest rates in the near future. Though some analysts have presented a position that the bank will wait until wages growth improves before making a move. While we all wait for the decisions made at the monthly RBA Board meetings, astute business are moving to expedite acquisitions while rates are still at historic lows.
While both local and global events are creating concerns, Jade Equipment Finance is available to assist businesses where finance is required.
Contact Jade Equipment Finance on 1300 000 003 to discuss finance solutions to ease challenges faced by business
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.
