Generated by All in One SEO Pro v5.0.1.1, this is an llms-full.txt file, used by LLMs to index the site. # Equipment Finance & Machinery Loans | Jade Get great deals on all machinery loans from Jade Equipment Finance, use our online calculators, get up to date best interest rates or request a quote, for all plant, unsecured lending, business overdraft and invoice funding. ## Posts ### [Cheap Manufacturing Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/cheap-manufacturing-equipment-finance) **Published:** May 27, 2020 **Author:** Publisher **Content:** The coronavirus pandemic has placed the manufacturing sector into the spotlight. During the health phase of the crisis, businesses responded to need and call-outs to pivot from producing their usual products which weren’t in demand to products which were in high demand and in many cases, in great need. Alcohol manufacturers pivoted to producing sanitisers, there are examples of staging companies manufacturing desks for the work from home market, engineering companies [developing ventilators](https://www.nsmedicaldevices.com/analysis/companies-manufacturing-ventilators/ "How Formula 1 teams and Dyson are manufacturing ventilators to help Covid-19 battle"), clothing manufacturers producing hospital gowns and general manufacturers producing hospital beds. In the post-pandemic phase, the focus has shifted to building Australia’s sovereignty by developing local manufacturing. The [Minister for Industry](https://www.minister.industry.gov.au/ "Minister for Industry"), Hon Karen Andrews, Science and Technology delivered a speech to the National Press Club on 20 May 2020 where she discussed the Australian manufacturing sector and how the government would be supporting the industry. She discussed how industry had the capability but needed a change in the culture of how we think about that capability. In encouraging signs for the sector, Minister Andrews said that manufacturing was front and centre in the government’s economic agenda. In particular the government would be focussing on local suppliers in procurement. But for businesses, the key to growing their manufacturing business is having access to affordable equipment finance for asset acquisitions. As a professional plant and equipment finance broker Australia, Jade Equipment Finance brings that accessibility into the scope of all manufacturing businesses. ## **Equipment Finance Options** We specialise in financing equipment across all industry sectors and are particularly focussed on supporting manufacturers through the post-pandemic recovery with cheap equipment finance deals. While many areas of the financial sector have been impacted by the coronavirus crisis, we have continued to operate as business as usual to support our customers and have maintained in constant communications with our lenders. So we are fully across which banks and lenders are offering the best equipment finance deals at all times. The current low [equipment interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check out Jade Finance's interest rates") has enabled us to offer even cheaper deals for our customers and we see that continuing for some time. For the purchase of manufacturing equipment, we offer clients a choice from the full range of commercial finance products:- - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Consider leasing equipment through Jade Finance") - Equipment Commercial Hire Purchase (CHP) - [Chattel Mortgage for Equipment](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore chattel mortgage options with Jade Finance") - Rent to Own Equipment Each product features different benefits and advantages based on the accounting method that your business implements, the treatment of GST, tax deductibility and depreciation. It is advised that you speak with your accountant to decide which particular product is most suited to your needs. ### **Manufacturing the Cheapest Deals** As finance brokers, Jade Equipment Finance is professional and is working in your best interests. So your consultant is focussed on structuring your equipment finance to specifically meet your business objectives. Our cheap interest rate policy is at the centre of all our equipment loans and we build the finance deal around those cheap rates. The interest rate is fixed for the term of the finance so you can easily factor the expense into your operational budgets and forecasts whether you’re a [large or small business](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Dive into financing options for businesses of any size"). Your consultant will discuss the most suitable loan term repayment structure to suit your business. Longer loan term results in lower monthly repayments but takes longer to pay off the equipment. A shorter term translates into higher monthly repayments but the equipment is owned sooner. Varying the balloon or residual can also change the repayment amounts. Residuals with leasing are determined by authorities and some lenders will have guidelines around residual and balloon values. However, there is some flexibility and having your [Jade broker to negotiate your deal](https://www.jadeequipmentfinance.com.au/broker "Talk to one of our professional Jade Brokers about your equipment financing") enables this type of flexibility. When arranging equipment finance, we advise our clients to consider any and all additional expenses around the purchase that may be able to be included in the loan amount. These may be delivery charges, installation and commissioning costs or training expenses for your staff. Including these in the overall loan may ease pressure on your cash flow right at a time when you need the extra flexibility. Your Jade consultant will work with you to structure your equipment finance in a way that will work to deliver the best return on investment for your business and ensure your business can capture the opportunities that emerge for Australian manufacturing. **[Contact Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us through phone or get a free quote through the link") 1300 000 003 and discuss your manufacturing equipment requirements with one of our highly trained consultants.** **Categories:** Finance --- ### [Broker-Exclusive Deals Now Available with Morris Finance](https://www.jadeequipmentfinance.com.au/blog/broker-exclusive-deals-now-available-with-morris-finance) **Published:** July 22, 2020 **Author:** Publisher **Content:** Sourcing equipment finance through your bank can be a challenge at the best of times. During this coronavirus pandemic and uncertain economic environment, it can be near on impossible. Fortunately, Jade Equipment Finance does not rely solely on the major banks to source cost-effective equipment finance for our customers. We have exclusive access as a broker to many other sources. One of our non-bank lender sources, which only deals through finance brokers is Morris Finance. Jade Equipment Finance is highly regarded as a professional, licensed finance broker and has been granted accreditation with a large number of banks and lenders including [Morris Finance](https://www.morrisfinance.com.au/ "Morris Finance Official Website"). Non-bank lenders like Morris Finance, deal predominantly through their network of brokers, which includes Jade, and regularly offer their brokers special offers which we can then pass on to our customers. ## **Profile: Morris Finance** Non-bank lenders such as Morris Finance may not be known to the general public as they tend to work only through the finance industry contacts. But sports enthusiasts may have seen the Morris Finance name in motorsport and other sports competitions. The company is a sponsor of a team in the Supercars and other motorsport classes as well as other sports teams. This support is indicative of their community involvement and attitude to assisting businesses with workable financial solutions. Morris Finance has a head office in Geelong in Victoria but provides a full portfolio of commercial finance facilities through brokers at a national level. This lender is primarily involved in financing commercial and [heavy machinery equipment loans](https://www.jadeequipmentfinance.com.au/heavy-machinery-loans "Seek out heavy equipment financing solutions at Jade Equipment Finance"), business vehicles and all types of trucks but also operates in insurance and investment services. The company offers the full selection of commercial finance facilities including Leasing, Chattel Mortgage and Sale Leaseback to sole traders, registered companies, ABN holders and large corporates through their network of finance brokers. As a Morris Finance accredited broker, Jade Equipment Finance has direct broker access to their finance facilities so we can pass on the benefits of their great offers to our customers. ## **Current Finance Deals** Continually striving to improve their product offering to simplify the process of achieving great finance deals, Morris Finance enables Jade consultants to offer our customers these streamlined pathways to equipment finance. The current finance deals from Morris Finance focus on enabling a larger selection of businesses to achieve great equipment finance by reducing application approval times and simplifying the loan eligibility criteria. Jade Equipment Finance currently has access to three key Morris Finance packages for equipment purchases:- - For equipment assets under $49,999 – Primary Product Package - For equipment assets purchases in the range $50,000-$99,999 – Primary Plus Package - For equipment assets purchases in the range $100,000-$150,000 – Premium Package ### The documentation required for each package and the general application criteria varies for each package, however, all include: - 12-60 month finance terms - Available on several loan types include Sale and Leaseback, Commercial Lease and Chattel Mortgage - Good interest rates As one of our lender panel and with these highly attractive deals, Morris Finance will be included for a quote when your [Jade Equipment Finance consultant](https://www.jadeequipmentfinance.com.au/broker "Speak to one of our finance brokers about your equipment financing needs") sources your finance offer. Our relationship with Morris Finance allows us to tailor a finance solution to meet individual requirements. ## **Financing Wide Range of Equipment** ### Through Jade Equipment Finance, Morris Finance offers loans for many different types of equipment used across a broad spectrum of Australian industry: - [Agribusiness machinery](https://www.jadeequipmentfinance.com.au/farm-machinery-and-agricultural-equipment-loans "Uncover financing options for farm and agriculture equipment with us") - Heavy equipment for construction, mining, earthmoving, landscaping, civil works and other applications. - General business and office equipment including security systems, copying and printing equipment, IT requirements, media and AV installations. - [Medical, dental and surgical equipment](https://www.jadeequipmentfinance.com.au/medical-equipment-loans "Learn more about our medical equipment financing options") - Retail outlet equipment including point of sale systems ## **Sourcing Morris Finance for Your Equipment Acquisition** Jade Equipment Finance works closely with Morris Finance and as a non-bank lender, they provide greater flexibility in tailoring finance solutions to suit the individual business. This includes greater simplification around eligibility criteria and the application process. - Contact Jade Equipment Finance and discuss your requirements with one of our consultants. - Discuss your preference for Morris Finance to provide a quote for your equipment finance. - Your Jade consultant will obtain quotes from both Morris Finance and others to ensure the offer we make you is the best we can achieve, at the [best equipment finance interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check your interest rates for financing equipment with Jade Equipment Finance here"). - When you accept the quote, we will work with the Morris Finance to quickly process the application for you and work promptly through to settlement. Our strong working relationship with Morris Finance and their non-bank lender status create a more flexible and adaptable finance scenario that may suit many businesses. If the bank has rejected your equipment finance application, Jade Equipment Finance may be able to help you through Morris Finance or one of our other non-bank lenders. **To discuss flexible, workable equipment finance through Morris Finance** contact Jade Equipment Finance **on 1300 000 003** DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER’S WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE *PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.* **Categories:** Finance --- ### [Buying at Auction? Used Machinery Loan Options](https://www.jadeequipmentfinance.com.au/blog/buying-at-auction-used-machinery-loan-options) **Published:** January 10, 2024 **Author:** Publisher **Content:** With high costs of living and running a business dominating the headlines and minds, keeping expenses under control may be a major priority for 2024. For operators needing to replace equipment or purchase new units to expand the business, purchasing second-hand rather than new may be a cost-effective decision. Auctions are a popular way to purchase second-hand units but arranging the financing for auction buys can be different from buying through a dealer and can have some complexities. We assist operators through those complexities with our comprehensive used machinery loan services. ## Used Equipment Acquisition Considerations For many businesses, quality second hand equipment can present an extremely cost-effective acquisition compared with purchasing brand new units. But there are a number of factors to keep in mind when financing is required to make the purchase. Second-hand equipment credit may attract different interest rates and lender conditions than credit for new units. Lenders take into account the age and condition of second-hand assets when preparing lending offers. We can provide quotes on both new and second-hand options to allow comparisons to assist purchase decisions. Consideration should be given to the amount of the balloon, residual or buy back to reflect the value of the unit at the end of the credit term to avoid owing more on the unit than it is worth. A different approach to financing may be preferred when buying at auction compared with buying from a dealer or private seller. Auction purchases are made on the day with many houses requiring prompt settlement. Bidders need to have the funding confirmed or be confident of securing it within the settlement timeframe. When buying from a dealer or private seller, there can be an opportunity to inspect the goods then arrange funding before making that final commitment. Timing can be a major consideration, especially when buying at auction. There is likely only one of the units being offered. When sold, that’s it. Bidders can need to be prepared. Using our broker services can provide pre-approved credit and expedite the funding process to assist customers from missing out on quality buys. ## Used Machinery Loan Products The same commercial credit facilities can be selected to fund both new and second-hand equipment, purchased from dealers or at auction, subject to lenders accepting the goods as suitable funding security. These are Rent-to-Own, Lease, Commercial Hire Purchase and Chattel Mortgage. While there is the same selection process – suitability to accounting methods, tax and balance sheet, the rates, terms, approved amount and conditions may be different for second-hand compared with new. As mentioned above, lenders assess the assets when assessing the application. That assessment can influence the credit amount approved, interest rate offered, balloon/residual approved and the term. Where the goods are not considered suitable security, we provide affordable [unsecured credit equipment options](https://www.jadeequipmentfinance.com.au/unsecured-business-loans "Learn about our asset-free equipment financing solutions") which may be a cost-effective solution. Funding is available for second-hand units from leading brands used in many industries including construction, mining, agriculture, farming, forestry and others. Brands such as [CAT](https://www.cat.com/en_AU.html "CAT"), Komatsu, John Deere, [Kuboto](https://kubota.com.au/ "Kuboto"), Bobcat, Case and many others. ## Keeping Costs Down with Lower Used Machinery Loan Interest Rates With a key priority of keeping costs down by purchasing second-hand rather than new, operators can focus on achieving the lowest rates on the funding. **Jade Equipment Finance supports business owners to keep their operating costs under control with lower used machinery loan interest rates**. Our brokers handle the sourcing, negotiating and structuring credit to best suit individual specifications and objectives. Interest rates on second-hand units are subject to the lender assessment of the goods as well as the credit profile of the business operation and with some small entities, the owner’s financials. Rates can also vary across the lending market. With our access to a large number of lenders, including our specialist heavy equipment lenders, we have the resources and capabilities to deliver the best rates. Rates that can provide a payment plan that works with cash flow and delivers expected ROI over the life of the equipment. While all rates are individually quoted, operators may use our current [best commercial equipment rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Dive into our leading equipment financing interest rates") on new asset acquisition funding as a general guide. ## Securing Used Machinery Loan for Auction Purchases When planning to buy at auction, operators have a key decision to make – arrange funding before the auction or after successfully bidding? Arranging funding through to the approved stage can provide advantages. It can give buyers the confidence to bid to their approved limit and may avoid purchasing beyond the approved credit limit. With funding already approved, buyers may avoid missing out on quality goods. In order to get as exact quote and offer as possible with pre-approved credit, buyers will need to provide as with as much detail as available on the goods – the specifics of the equipment as per the auction house catalogue. If not known, a credit limit may be approved subject to offers being amending when details of the goods are known post-purchase. If planning post-auction funding, our 24 hour approval timing can assist buyers meet auction house settlement timings. Whatever your preferred way to approach funding equipment bought at auction, we can assist with the appropriate products, low rates and expert services. **Contact Jade Equipment Finance on 1300 000 003 to discuss pre-arranging a used equipment loan to buy at auction.** *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.* **Categories:** Finance --- ### [Get Lower Rate Financing on New LiuGong Excavators](https://www.jadeequipmentfinance.com.au/blog/get-lower-rate-financing-on-new-liugong-excavators) **Published:** January 15, 2024 **Author:** Publisher **Content:** Brands like [CASE](https://www.caseih.com/en-au/australia "CASE") and CAT are well-known not only across multiple industries but household names in many areas. The brand LiuGong may not be as familiar to many operators. With their new models about to hit the Australian market, it may be time to get better acquainted with the brand and the machinery in their range. In 2024 new LiuGong excavators and skid steers will be released to provide operators with an additional choice when purchasing new machinery. The company says these new machines – a selection in the 9057 and 9035 compact excavator ranges, will be of special interest to the landscaping sector. The brand has become synonymous with affordability, a factor which may attract operators to the new models in the current economic climate. Affordability in the purchase cost of machinery is a major buying consideration. But equally important is the affordability of the credit to make the purchase a reality. **[Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Learn about our Jade Equipment Financing services"), specialists in machinery lending, is ready to assist operators with affordable financing on the new models of LiuGong excavators.** Review the new machines in regard to suitability for your operation and discuss loan options with us that are sourced and structured to deliver an affordable, cost-effective investment. ## Spotlight: [LiuGong Machinery](https://liugongaustralia.com.au/ "LiuGong Machinery") Founded in 1958, this Chinese manufacturer has been supporting its Oceania market for in excess of 20 years and has a Melbourne head office. The company produces tough equipment for construction, which focuses on ease of operation and maintenance and competitive pricing. The company operates 20 manufacturing site, employs over 10,000 and has in excess of 300 dealers across 170 countries. The machinery range is manufacturer to deal with extreme conditions and covers a wide selection of units including dozers, motor graders, skid steers, backhoes, drilling rigs, wheel loads, diggers, and many others. Mr Jason Lyall, the company’s Australian representative, said that with the large volume of the company’s machines in the local market, the brand had made a large investment in support so operators could have confidence of strong backup for their purchases. ## 2024 LiuGong Releases The company is set to release the latest 9057 zero-swing mini excavators which they say will complete their collection of zero-swings models up to 5.5 tonne from 1.7 tonnes. The key features attracting buyers is the versatility and ease of manoeuvrability of the units in tight, small spaces as well as that affordability factor. They are seen to suit many tasks in the landscaping field. They are powered with Yanmar engines and have an advanced hydraulic system for power with smooth, efficient operation. Early this year, a new 9035 model will be available in the brand’s F Series. This new model is built to deliver additional power and torque and provide exceptional fuel efficiency. Four models of the skid steer will be available starting at 3t and going to 6t. Power is from Yanmar and Perkins engines and a range of attachments can be used with the machines as they are compatible with all types. Safety features include the incorporation of high-strength protection systems. ## LiuGong Equipment Finance Options Regardless of the size and type of machinery – compact, mini or extra large, the size of the buying business – large corporation of sole trader, or the industry, if the financing is not specific to operation and machine, ROI expectations may not be realised. Securing the right credit solution starts with not browsing interest rates on the internet but connecting with the right lender. We provide lending options for all types of skid steers and compact diggers used across the landscaping, construction and other industry sectors for all types of operations. These acquisitions can be specialised purchases and having our access to lenders that specialise in heavy machinery can be a distinct advantage. An advantage that can deliver [lower equipment commercial rates ](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Secure Lower Equipment Commercial Rates for Enhanced Profitability")and credit conditions will work for the business. Operators can select the lending facility best-suited to their accounting practices and set-up and our brokers select the lender best-suited to offering the best rates and most affordable solution. Our lending facilities encompass the complete selection of asset acquisition funding – Chattel Mortgage, Rent-to-Own, Leasing and Commercial Hire Purchase. Compare the options, compare the interest rates or request a quote for the best deal for your new compact digger or skid steer. ## Setting up as Self-Employed with LiuGong Excavators Skid steers and compact diggers can be an ideal entry point for operators setting up as sole trader contractors. They can be relatively easily transported to site, are required on a range of jobs and projects and the price point of these new models may make an affordable transition to self-employment. We support individuals with these ambitions with our [No Doc and Low Doc equipment funding](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Streamline Your Equipment Financing with No Doc and Low Doc Options")[ ](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Low Doc funding ")solutions for new, start-up and self-employed operators. **Contact Jade Equipment Finance on 1300 000 003 to affordable financing for the new LiuGong excavators.** *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.* **Categories:** Finance --- ### [Paying out Equipment Finance Balloon with Refinancing](https://www.jadeequipmentfinance.com.au/blog/paying-out-equipment-finance-balloon-with-refinancing) **Published:** January 22, 2024 **Author:** Publisher **Content:** Commercial credit facilities provide an option for a balloon or residual amount. While this is optional, the majority of operators will choose to include this option in their machinery funding arrangements. It can reduce monthly repayments, allowing a more flexible and workable acquisition. But the equipment finance balloon is due for payment as a lump sum, at a set time – when the funding term ends. Operators then need to address how they will meet that payment, which in the case of units, may be a significant amount. Operators may not wish to use their reserves to make the payment, preferring to keep such funds for other purposes. Some may choose that timing to upgrade machinery and use the resale proceeds or trade-in value to payout the credit commitment. Where neither of those options are suitable or acceptable, the amount payable may be financed with a new credit contract. **Jade Equipment Finance provides expert, specialist broker services to source the best rates and structure refinancing to pay out an equipment finance balloon**. This can present an extremely cost-effective way forward to retain the asset while realising any relevant tax deductions from the credit facility. ## Purpose of an Equipment Finance Balloon Selecting to incorporate a lump sum, end of term pay out into a commercial credit arrangement can be extremely effective. This is an option with Chattel Mortgage and Commercial Hire Purchase, while a residual is available with Lease. By setting aside a portion of the total required to fund the equipment, monthly commitments can be reduced to a more workable level. Providing a more accessible way for some operators to purchase the machinery they require. ## Options for Finalising Equipment Finance Balloon This final payment amount is due to be paid to the lender after the final monthly commitment is made. With a number of options available to operators, it can be advisable to start thinking about this 1-2 months prior to the due date. Allowing full consideration of the options – benefits and costs, to establish the best way forward. The exact amount due should be obtained from the lender. Interest would be charged over the term and the exact amount is required to allow full consideration of payment alternatives. Operators can decide to bring us in at this early stage and we can contact the credit provider to ascertain the information required for settlement. The three options for finalising the amount are to sell the machinery and use the proceeds; to use available cash; or to take out new funding, effectively refinancing the machinery. We can provide quick quotes on refinancing so operators have the information they need to decide which is the best way forward for their enterprise. ## How to Finance an Equipment Balloon Where funding the amount payable with new credit is selected, this is akin to [refinancing equipment](https://www.jadeequipmentfinance.com.au/equipment-refinancing "Equipment Refinancing Guide: Explore Your Equipment Refinancing Options"). However, as it is occurring at the end of the term, unlike refinancing during the term, no early payout fees would be applicable. Credit facilities for this purpose are Leasing, Rent-to-Buy, Chattel Mortgage and CHP, where the lender accepts the unit as suitable security. This is an important aspect to keep in mind as the machinery will be assessed as second-hand, even if the operator purchased it new. If the condition of the machinery is not considered suitable collateral for a secured credit facility, we have affordable Unsecured Business Loans to consider. The interest rates are higher in unsecured compared with secured credit. But with our access to more lenders, we can source affordable solutions on unsecured credit. When refinancing, a different credit product and a different lender, or the same, may represent the most suitable solution. If originally purchased with say Rent-to-Own, a Chattel Mortgage may be a better solution for the new credit. Across all credit facilities, the interest rates, conditions and the terms approved will be established based on second-hand machinery credit approval guidelines. ## Tax Deductions on Refinancing Equipment Finance Balloon As with the original funding arrangements, operators can realise the tax deductions relevant to their choice of credit product. These would be as per [Australian Taxation Office](http://www.ato.gov.au "Your Guide to Australian Taxation and Financial Matters") rulings when the credit is arranged. Currently that includes depreciation allowances for goods purchased with CHP and Chattel Mortgage and deductible payments with Lease and Rent-to-Own. Where the machinery was originally funded with CHP or Chattel Mortgage, the operator would have claimed the GST in full just after purchase. As such, no additional GST would be applicable if Chattel Mortgage or CHP is the choice for refinancing. Where Leasing or Rent to Own are selected, the GST is charged to monthly payments and claimed accordingly. ## Prepare by Calculating Estimates To assist in making the decision as to which way to go, operators can calculate estimates with the [Equipment Finance Calculator](https://www.jadeequipmentfinance.com.au/calculator "Calculate Your Equipment Financing Options"). An amount will be needed to work from so a call to the current lender will be required to ascertain what is payable. Alternatively, contact us and we will prepare quotes for your consideration. **Contact Jade Equipment Finance on 1300 000 003 to discuss options for finalising an equipment finance balloon.** *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. **Categories:** Finance --- ### [Struggling to work up budgets for new units? Simplify budgeting with Machinery Loan Calculator ](https://www.jadeequipmentfinance.com.au/blog/struggling-to-work-up-budgets-for-new-units-simplify-budgeting-with-machinery-loan-calculator) **Published:** January 23, 2024 **Author:** Publisher **Content:** A lot of planning can go into the decision to upgrade, replace or acquire new units. With funding required for most asset acquisitions, just getting unit pricing from dealers is not sufficient information to make purchase decisions. Operators also need figures on funding costs to work into turnover forecasts and projected cash flow to establish a realistic budget. **Jade Equipment Finance provides a reliable, easy-to-use machinery loan calculator to simplify budget preparation and assist decisions around acquisitions.** The resource is available 24/7 to generate funding estimates when you have the time to do so and from wherever you have an internet connected device. Whether it’s on site, in the warehouse, on the road or late at night in the home office. When you need funding estimates, this tool is ready to deliver them – on as many units as you want. There’s no specialist mathematical skill or training required. Anyone familiar with online forms and platforms should easily manage to quickly generate estimates. Before getting started, here’s an important tip – the device does not have a memory. It does not record your calculations. So have resources ready to note the combinations of amount, term, rate and balloon that deliver the different estimated repayments. ## Achieve Multiple Objectives with a Machinery Loan Calculator The basic purpose of the [Equipment finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Crunch the Numbers for Your Equipment Financing") tool is to compute the monthly repayment amount based purely on the values or amounts that are entered by the user. The results are estimates as lender charges and rates applicable to the specific users need to be ascertained with a quote. While this estimating tool appears a simple computation device, it can meet multiple purposes and achieve multiple objectives for users. It empowers users to compare repayment estimates on different credit facilities which have different interest rates. Such as comparing Leasing with [Chattel Mortgage for Equipment](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Chattel Mortgage for Equipment"). This can be extremely useful in making decisions around the most appropriate credit facility. The tool can also be used to compare options in regard to brands and models of individual units where there are price differentials. Compare [CAT](https://www.cat.com/en_AU.html "CAT") with the [CASE](https://www.casece.com/apac/en-anz/ "CASE") model. Get pricing from dealers and start estimating funding for each unit of interest. ## Structure Financing Options with Machinery Loan Calculator How asset funding is structured can impact the monthly commitment. That is, in regard to the term and the balloon. Being able to establish credit structure alternatives easily, can greatly assist in more accurate budget preparation. The term for the credit affects the repayment amount. A longer term resulting in a lower monthly repayment and a shorter term a higher monthly repayment. Operators should be aware that the length of the term can affect the total interest payable on the funding and hence, on the acquisition. A balloon or residual can be used strategically to structure funding to deliver the repayment level that works for the operation. A larger amount resulting in smaller repayments and a smaller balloon, larger repayments. But be mindful that this balloon must be paid in full at the end of the term. Planning ways to handle this payment may form part of the budgeting process. Our brokers can assist operators with structuring their funding to suit their cash flow and long term objectives. But using the estimating tool empowers operators to draft possibilities ahead of requesting quotes or our assistance. Having this intel can also form the briefing for our brokers when you are ready for quotes or to apply for funding. ## On-the-Go Calculations You’re in the middle of a job, on work site and the machinery breaks down. Our estimating tool allows operators to get quick estimates to make fast decisions on whether or not to order a replacement machine with credit or to affect repairs. Attending an online or in-person auction and a great value lot comes up – use the calculator to quickly get estimates to assess your bidding limit where credit is required. Being mindful that auctions are typically for used equipment which may attract different rates to the rates currently displayed. ## Clarifying Calculator Results Using an estimating tool can be an invaluable support for operators looking to acquire new units. But we stress that the results are estimates as each applicant needs to be assessed in regard to interest rate offers. For quick clarification and a specific quote, simply contact us via our online portal or by phone. We provide a range of buying tools and resources, all backed by the expertise and experience of our brokers to support operators to acquire the most affordable asset funding. **To simplify pre-purchase budgeting use our Machinery Loan Calculator and contact Jade Equipment Finance on 1300 000 003 for quotes.** *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.* **Categories:** Finance --- ### [Get New Products to Market Faster with Affordable Production Plant Finance](https://www.jadeequipmentfinance.com.au/blog/get-new-products-to-market-faster-with-affordable-production-plant-finance) **Published:** February 6, 2024 **Author:** Publisher **Content:** Australian businesses can be extremely innovative in developing new products. But getting those new products from concept through to full-on production can at times, and for some, require a lot more than ingenuity and innovation. It can require having the right plant and machinery to produce the goods. New production lines, systems and machines may be needed to move prototypes into production and onto consumer markets. New machines may also be required to affect a change in the way existing products are packaged to incorporate recyclable and sustainable practices. New machinery and systems that can require low interest rate, affordable production plant finance. **Jade Equipment Finance supports businesses to get new products, lines, variants and models into the manufacturing phase with [affordable equipment financing](https://www.jadeequipmentfinance.com.au "Find out more about economical equipment financing").** It may be a variation on a popular product or a completely new line being introduced into the range. It may be a food product, a new treatment or medicinal product, a new technology component or a new fashion line. We assist enterprises with funding to acquire machinery units to set-up the new facilities, digital and computerised systems and installations to update and modify existing facilities to cater for the new product, storage and packaging facilities to support the new processing methods and systems. Modifying packaging systems is a key area that many producers will be facing, or need to face in the future, to comply with packaging laws. Whatever the industry, if new manufacturing facilities or units are required, we have the expertise, funding options and lenders to provide workable machinery credit solutions. ## **Production Plant Finance Products** Machinery units and processing lines are assets and the full range of asset acquisition credit facilities are available to fund their purchase. These products are [Commercial Equipment Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Discover our Commercial Equipment Chattel Mortgage programs"), Rent-to-Own, Commercial Hire Purchase and Leasing. The decision as to which facility to select is based on factors associated with structure of the entity and the approach the entity takes to taxation and its balance sheet. Leasing, Rent-to-Own and CHP suit entities that use the accruals method of accounting. Chattel Mortgage and CHP suit entities that use the cash method of accounting. The interest rates are different for the different facilities with CHP and Chattel Mortgage attracting the lowest rates of the selection. Rates will differ for offers from different lenders. With our depth of commercial lending market coverage, we have the resources to select the lender that is best-suited to both the entity and the assets being funded. ## **Individually Structured Production Plant Finance** With our individual approach and focus, we source and structure funding outcomes specifically to meet individual customer objectives. Where a processing line includes numerous units, we can work to including these multiple items of machinery in the one funding package. Simplifying repayments and easing pressure on cash flow. [Refinancing Business Machinery](https://www.jadeequipmentfinance.com.au/equipment-refinancing "Discover how to refinance your business machinery") funding to better position the business to take on new lending for the required new machinery may also be an option for consideration. We can discuss a holistic approach to the funding requirements of the entire operation to make acquisition of the new machinery affordable and workable. Options may include Secured Business Loans and Overdrafts as well as refinancing. Options which may better set the operation up to move forward with producing their new lines. Operators are welcome to a confidential, no-obligation conversation with one of our brokers to work through the possibilities. ## **Optimising Tax Benefits from Production Plant Finance** Our Australian-based brokers stay across developments in the tax regulations and benefits associated with asset acquisitions. It is integral to our operations and enables our team to support customers to optimise their funding for the latest tax rulings. In the [Federal Budget 2023/24](https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/small-business-support-20000-dollar-instant-asset-write-off "Federal Budget 2023/24"), the Treasurer announced IAWO for smaller operators for new asset investments up to $20,000. This is to be enacted but we will discuss latest developments at the time of enquiry. All commercial funding products include tax deductions but these measures do vary. ## **Budgeting for Production Plant Finance** When considering the development of new products, operators will prepare many budgets and forecasts. This can include both the costs of the product development and the expenditure required to set up the manufacturing facilities. Using our finance calculator allows for obtaining quick estimates on new funding to include in those budgets. Speaking with our brokers ahead of acquisition can benefit business owners get a clearer picture of their funding options and possible quotes. ## Businesses and Industries We Assist To remain competitive, many enterprises across all industries may need to continually meet consumer expectations with the release of new products and lines. Satisfying demand while retaining productivity and profitability. Food processing, medical supplies and treatments, engineering, parts and components, technology and computers, fashion and clothing design and manufacture and many more – we assist all sizes and types of operations across all industry sectors. Whether a large scale manufacturer, SME or an artisan looking to move their ideas to the next level, speak with us about how we can secure affordable funding for the machinery you require. **Contact Jade Equipment Finance on 1300 000 003 for affordable Production Plant Finance.** *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.* **Categories:** Buying Tips --- ### [Requirements to apply for machinery loans](https://www.jadeequipmentfinance.com.au/blog/requirements-to-apply-for-machinery-loans) **Published:** August 5, 2024 **Author:** Publisher **Excerpt:** As specialists in asset financing, Jade Equipment Finance provides expert services for operators to apply for machinery loans with a streamlined, simple process. **Content:** Buying new machinery is a regular and recurring process for most operators. They know their requirements, know the brands, often know the dealers, and are familiar with the procedure of assessing the features to select the make and model best suited to their operational needs. But many operators are less familiar with the requirements and processes to apply for machinery loans. While there are variations in interest rates and other aspects of equipment finance across the commercial lending market, most lenders have similar loan application requirements. Meeting those requirements can affect the loan offer in regard to the finance term, rates and security. Having a good understanding of what will be required to apply for machinery loans, may benefit operators in faster approvals and potentially better loan offers. As specialists in asset financing, Jade Equipment Finance provides expert services for operators to apply for machinery loans with a streamlined, simple process. Our experts advise operators on what documentation is needed by the specific lender and assist with the paperwork to expedite processing and approval and to ensure the most workable solution is achieved. All types of business set-ups are required to provide the same financials, with additional documentation often requested of sole traders, start-ups and self-employed operators. Whether purchasing machines for an agricultural operation, construction business or other industry from leading brands such as [John Deere](https://www.deere.com.au/en/index.html), Caterpillar, [CASE](https://www.casece.com/en-au/oceania/) and others, the same application form applies. Prior to applying, update your knowledge on how to apply for machinery loans with this guide and contact one of our experts to assistance with your application. ## Machinery Loans Eligibility Asset acquisition finance is available to commercial enterprises only. Holding a current Australian Business Number, ABN, is an essential to be eligible to apply. The ABN may only recently have been received, but new businesses and start-ups may be subject to additional application requirements. Providing ID in line with many financial processes in Australia is essential. We will advise the necessary documentation and details required for the entity and possibly also for the business owner(s), partners or directors. Registration for GST is not an essential requirement to be eligible to apply for commercial credit. However, any business with a turnover in excess of $75,000 pa must register, under Australian law. Being registered may also be a positive for lenders. ## Documents Required to Apply for Machinery Loans Business operators are required to provide a range of documents on the financial position of the operator when applying for finance. These will include:- the annual accounts for the previous financial year at least; current year turnover; tax returns for at least the past year; BAS returns; bank statements; profit and loss statements; and asset and liability schedules. Where a business has their accounts prepared by a professional accountant, these documents should be readily available to them. Many lenders do have a requirement that the business be operating for a minimum time period, usually 12-24 months. Where a new or start-up operation cannot provide financials for at least the past 23 months, we can assist with sourcing [Low Doc and No Doc Machinery Finance](/no-docs-low-docs-equipment-finance) offers through our specialist lenders based on 6 months of figures. In addition to assessing financials, lenders will be reviewing the credit history and rating of the enterprise. Good scores attract the best rates and terms. ## Self-employed, Sole Trader, Small Operator Additional Requirements Small and new enterprises are typically requested to provide additional financials and information to apply for equipment loans. These may include the personal financials of the owner of the business such as personal assets and liabilities, tax returns and similar. Your Jade expert will advise the information needed for your specific application. ## Details of Finance Product and Loan Requirements To provide a quote and offer, operators will need to advise the specific type of loan that they are applying for. The choice includes [Lease](/asset-lease), Chattel Mortgage, Rent-to-Own and CHP. To make the decision as to which credit facility best suits their operation, we advise business owners to have that discussion with their accountant. Details of the machinery being purchased is required. Details on the make, model, age and price along with the amount required for the loan should be provided. Where the application is being submitted prior to purchase, such as when preparing to buy at auction or at a field day, an indication of the machine and loan required should be provided. ## Collateral Requirements Asset acquisition finance allows for the machine being financed to be the security for the loan. Lenders assess the asset for suitability as collateral and the financials of operation to decide if any additional security needs to be provided. Many operators with good financials and credit history acquiring new units are not required to provide additional collateral. ## Experts to Assist with Applying for Machinery Loans While extensive documentation may be needed for commercial finance applications, the process of submitting applications and getting approved is simple and straightforward with Jade. On the first point of contact, we assign one of our specialist brokers to each customer to handle the complete application process. We assist with the specifics and negotiate with our lenders to ensure a streamlined path to achieving the most competitive rates and affordable finance. Applications can be submitted via our online portal or by phone with one of our experts. **For assistance and a simplified process to apply for machinery loans, 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.* **Categories:** Buying Tips --- ### [Selected new machines at AgQuip? Considering new JD 6M? Time to talk best deals on new Tractor Loans](https://www.jadeequipmentfinance.com.au/blog/selected-new-machines-at-agquip-considering-new-jd-6m-time-to-talk-best-deals-on-new-tractor-loans) **Published:** August 19, 2024 **Author:** Publisher **Excerpt:** As specialists in agri equipment finance, Jade Equipment Finance assists operators secure the best deals with competitive rates and terms on new tractor loans. **Content:** While sales of new tractors have been sliding, many operators may be motivated to buy following the AgQuip field days and news of major updates to the John Deere 6M. Cost pressures and current economic conditions are sure to be a concern to many operators considering new machinery acquisitions. But our ability to source great deals on new tractor loans, can make the decision to upgrade, replace or expand a very affordable option. The recent annual AgQuip field days provided operators with a great opportunity to view new models of a wide range of farming and agricultural machinery. While many may have placed orders at the event, many will have wanted a little extra time to consider their options. For those that have now made their purchase decision, our experts are available to assist with the financing. Whether that purchase is the latest model from Massey Ferguson, Deutz-Fahr, other leading brands, or possibly placing an order for the new John Deere 6M, talk to us for the best, individually tailored tractor loan deals. ## New John Deere 6M Tractor Loans Buyer alert – orders for the MY2025 John Deere 6M model opened on 1 August! The company advises that the 6M has received a major update which includes greater speed and power, and the range now includes 4 models over 200HP and a 50kph transmission. Stephanie Gersekowski, the Production Systems Manager for JD said that the 6M update will provide operators with ‘never-before-seen customisation’. Allowing them to customise for the perfect mid-sized utility tractor. Key features from larger JD units have been included on this mid-sized model to address operator requests for more speed. Styling has been updated and name/numbering conventions aligned with other JD tractors – series shown separately to horsepower. Operators can discover more about the 6M and place orders by contacting their [local dealer](https://www.deere.com.au/). With the updated 6M sure to be popular, speak with us to first to secure financing to be confident to place your order. Tractor loans can be applied for, and approved, prior to ordering through Jade Equipment Finance. Same best rates, same best finance deals as applying after ordering. If considering a new John Deere tractor or other machinery from the range, check out the John Deere Demo Day locations for the upcoming 31 August event. Another great opportunity to speak with the representatives, see the machines in action, and consider new acquisitions for your operation. ## Getting Best Current Tractor Loan Interest Rates Viewing the latest tractors at field days and in dealerships is an important first step in the purchase process. But the pricing quoted does not always provide operators with a clear enough indication of their monthly commitments and total investment cost. Dealers and manufacturers may even offer buyers finance at these events. But can buyers be certain these offers are the best rates and terms they may be able to secure? As specialists in agri equipment finance, Jade Equipment Finance assists operators secure the best deals with competitive rates and terms on new tractor loans. Our access to over 80 lenders, including agricultural machinery specialist lenders, provides us with the ability to the secure the most [competitive rates](/equipment-finance-interest-rates) currently available in the commercial credit market. Rates vary across the selection of credit facilities – Lease, [Chattel Mortgage](/chattel-mortgage), Rent-to-Own and Commercial Hire Purchase. While tempting to simply select the lowest rate option, operators need to consider their accounting practices, balance sheet strategy, tax approach and individual business objectives. Ensuring the credit facility suits their business set-up. Rates, terms and loan conditions are individually negotiated to deliver tractor finance which is specifically tailored to meet the needs of the operator. Assisting operators with seasonal income, weather challenges, and variable yields with access to affordable financing to support their business. Terms and balloons are negotiated to best meet ownership cycles and lifecycles of new tractors. This supports the achievement of ROI targets while delivering more affordable repayment schedules. New tractor loans are available through our expert services for all agricultural operators including new and small producers, family enterprises and large corporate concerns. ## Quickly Compare Tractor Finance Deals – Makes, Models, Loan Types If AgQuip has left you with a short-list of makes and models to consider, our [Tractor Finance Calculator](/calculator) may assist you to narrow that down to the most affordable machine. Loan estimates can be quickly calculated on any tractor make or model for comparison purposes. Immediately converted prices quoted by dealers into estimated monthly repayments. Figures which do provide a workable guide as to what that unit will cost on an ongoing basis. See how our current tractor loans rates may make that acquisition a viable, workable option. **For assistance and a simplified process to apply for machinery loans, 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.* **Categories:** Buying Tips --- ### [Facing upcoming upsurge in demand? Scale-up your facilities with affordable warehouse equipment finance](https://www.jadeequipmentfinance.com.au/blog/facing-upcoming-upsurge-in-demand-scale-up-your-facilities-with-affordable-warehouse-equipment-finance) **Published:** September 16, 2024 **Author:** Publisher **Content:** If you’re operating in the consumer market, sales may have been a bit slow in recent months with costs-of-living pressures causing buyers to curb their spending. But an upsurge could be on the way. Two major banks were recently quoted as saying that based on credit card transactions, many consumers have still not spent their Stage 3 tax cuts. They could be saving for the upcoming Christmas and major sales seasons. Ensure you have the stock to meet demand by scaling-up your facility now with new handling and storage with warehouse equipment finance. A scale-up may involve an investment in the latest technology to increase efficiency in picking orders, especially if operating in the online order space. It may mean making better use of current space with more effective storage solutions. It may mean increasing productivity with an investment in the latest forklifts and materials handling and picking machinery. While an investment in upgrades in the current economic conditions may seem a stretch, affordable financing may make it economical, workable and a positive move to capitalise on an increase in demand for your products. ## Increase Capacity and Order Prep with New Systems The prospect of buying new inventory typically requires having the storage space. To allow for additional stock within existing space constraints, a reconfiguration of current systems may be required. Warehouse equipment finance is available for the purchase of shelving, racking and picking systems. Are your customer reviews raving about your fast delivery service or are they voicing displeasure with the slow arrival of their purchases? Affordable loans are also available to invest in new technology systems to increase efficiency in picking and preparing orders. Finance at the best rates and with customised repayments, may enable even small operators to better compete with the big names in online retailing. Financing is available to cover both the equipment and the computer systems to operate the equipment. Both hardware and software can be financed, and installation costs also covered in either the same package or as a separate [business loan](/unsecured-business-loans) or overdraft. Have a word with us on the ideas we have for financing your system and storage upgrade. ## Improve Efficiency with New Materials Handling Equipment Having the latest materials handling equipment can not only get orders prepared and out the door faster but can minimise downtime resulting from breakdowns and maximise operating time. An investment in new materials handling machines with affordable finance, may be the answer to improving efficiency. Finance is available for the latest forklifts from all the big names including [Toyota](https://www.toyotamaterialhandling.com.au/), [Komatsu](https://komatsuforklift.com.au/) and others. Loan solutions can be customised for single machines or multiple units in the one finance package. Providing a single monthly repayment, tailored to your cash flow, to immediately upgrade productivity across your operation. To assist with selecting the materials handling machinery based on pricing, use our [Finance Calculator](/calculator) to quickly convert advertised pricing to estimated monthly loan repayments. ## Scale-up Effectively with the Right Warehouse Equipment Finance Product Scaling up facilities with investments in new machinery and equipment shouldn’t have to involve cutting back on profit margins and performance. Selecting the right financing facility to specifically suit the business, can be key to achieving the most effective outcomes. Equipment for logistics, distribution and warehouse can be financed with a choice of Chattel Mortgage, Leasing, Rent-to-Own, or Commercial Hire Purchase. Business owners should consider the features of each product in relation to their structure and objectives – accounting method, balance sheet strategy, financial goals, to ensure the loan solution will work for their operation. [Lease](/asset-lease) and Rent-to-Own offer off-balance options to have full use of new equipment without the pressure of an asset of that value appearing on the balance. Chattel Mortgage offers the most competitive asset acquisition interest rates which can result in lower monthly repayments, compared with say Leasing. All can provide for no deposit financing, subject to lender approval, so cash does not need to be used for downpayments. Speak with your accountant for advice on choosing the facility that will best work for your business set-up. ## Secure Customised Warehouse Equipment Finance to Work with Individual Cash Flow Regardless of whether you’re a large-scale wholesale operation with a national distribution network, or a small-scale importer or online seller operating from an industrial unit, if finance doesn’t work with cash flow, it can pressure the business. We work with individual businesses to know what they are looking to achieve with their new equipment and what pressures and issues they may be facing that need to be dealt with. Information which allows our brokers to source the most suitable lender and negotiate the most workable financing solution. Focussing on the specific requirements of the operation, we individually source and structure commercial loans to ensure repayments do work with cash flow, and loan terms deliver on ROI expectations. Facilitating the cost-effective purchase of the equipment that businesses need to ensure their operation is well resourced to meet customer demands and expectations. Scale-up facilities to increase inventory, improve efficiency in picking orders with affordable warehouse equipment finance through Jade Equipment Finance. Finance which is individually picked and prepared to suit the order! **For affordable warehouse equipment finance to ensure you’re ready for an upsurge in demand, 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.* **Categories:** Buying Tips --- ### [Reduce energy costs, support climate change - make the move to renewables with affordable Commercial Solar Finance](https://www.jadeequipmentfinance.com.au/blog/reduce-energy-costs-support-climate-change-make-the-move-to-renewables-with-affordable-commercial-solar-finance) **Published:** October 14, 2024 **Author:** Publisher **Excerpt:** Businesses planning the move to renewables can source competitive commercial solar finance rates on asset acquisition loans through Jade Equipment Finance. **Content:** Businesses across Australia are feeling the pressure of ever-increasing operational costs, with power one of the major expenses for many enterprises. Affordable commercial solar finance may be a workable solution for many businesses to reduce energy costs and overheads and at the same time reduce emissions to contribute to achieving climate change targets. The cost of an investment in alternative energy system is a common obstacle to many operators making the move. Competitive interest rate loans for ground-based and roof-mounted systems may contribute to minimising the investment outlay and present a workable solution. ## Select Commercial Solar Finance Product to Suit the Business Asset acquisition credit facilities can be used for the purchase of the equipment involved in a solar installation. Depending on the specifics of the installation, labour costs may also be included. The choice of credit facility for any asset purchase can be critical to achieving ROI and individual objectives. Businesses can select the facility that best suits their structure and strategy to balance sheet and tax from Leasing, [Chattel Mortgage](/chattel-mortgage), Rent-to-Own and Commercial Hire Purchase. These products vary in their suitability for businesses using either the accruals or the cash accounting method to prepare their accounts. Variations in other aspects include with the ownership of the equipment being financed over the loan term which then affects balance sheet entries, the way tax deductions are realised and the way GST is treated. All asset acquisition credit facilities allow for the equipment being financed to be used as the collateral for the loan. End of finance term lump sum payment options are included in all commercial credit products – balloon, residuals, buybacks. Balloons can be effectively structured to deliver a repayment schedule that works with individual cash flow requirements. Fixed terms and fixed rates are available on all loan products. Providing a fixed repayment schedule and fixed repayment period to meet ROI objectives. ## Reduce Solar Equipment Investment with Competitive Rate Financing A positive return on an investment in a renewable energy installation may be projected to be realised over a long term. To achieve expected targets, businesses will be seeking financing with repayments that will work with projected cash flow over the full term, and terms to suit ROI. While the overall cost of the investment can depend on the cost of the financing and especially the interest rate. Businesses planning the move to renewables can source competitive commercial solar finance rates on asset acquisition loans through Jade Equipment Finance. Securing the most competitive rates reduces the overall cost of the finance, the monthly repayments, and the total cost of the investment in the new energy system. Providing opportunities to realise a better return. Asset acquisition credit facilities are secured with a fixed interest rate. Ensuring operators of certainty when planning future investments and expenditure. Certainty that their rate and their repayments won’t change over the repayment term if the [Reserve Bank](https://www.rba.gov.au) and/or their lender change lending rates. ## Systems and Inclusions Financed with Commercial Solar Loans Renewable energy systems are usually designed and tailored to suit the specific requirements of the business enterprise, their power usage, and their location. Systems can include a range of inclusions such as the roof panels, ground-based facilities, battery storage, monitoring controls, and other equipment. Costs also include design and consultation, installation labour costs, and possibly commissioning and conversion. What items of the total system can be included in each funding solution may also depend on the specifics of the installation. Where both equipment and labour are provided by the same supplier with costs appearing on the same invoice, the entire investment may be funded with asset acquisition credit products. Where labour, a non-asset expense, is provided separately, an overdraft or [business loan](/unsecured-business-loans) may be required to fund the cost. Our brokers work with individual businesses to tailor a package for both large and small installations, to best suit specific requirements. No deposit financing can be secured for approved applications to deliver a more affordable funding solution. To obtain pre-application loan estimates when quotes for the system are received, use our Equipment Finance Calculator. ## How to Secure Workable Commercial Solar Finance Solution Workable funding to invest in renewable energy systems to reduce emissions and reduce power costs can be secured through Jade Equipment Finance. We work with all sized businesses across all industries, across Australia. Using our expert broker services is accessible to all operators via our online and phone systems. Contact with us is direct, with no referral from a third party required. If it’s time for you to address high power bills with an investment in a renewable energy system, find out how affordable the move could be. **For quotes on affordable commercial solar finance to consider your options, 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.* **Categories:** Buying Tips --- ### [Want the best tractors working your fields? Case IH Steiger 715 Wins Tractor of the Year](https://www.jadeequipmentfinance.com.au/blog/case-ih-wins-tractor-of-year) **Published:** November 25, 2024 **Author:** Publisher **Excerpt:** Operators wanting the best tractors to deliver increased productivity and efficiency can source cost-effective tractors loans from Jade Equipment Finance. **Content:** Operators wanting the best tractors to deliver the best outcomes for their business may consider the recently crowned [Tractor of the Year for 2025](https://media.cnh.com/ASIA-PACIFIC-ENGLISH/case-ih/cih-latest-news/case-ih-quadtrac-715-takes-tractor-of-the-year-2025-prize/s/9366b023-c9a8-465d-a376-c6d1c45915a0) – the Case IH Steiger Quadtrac 715. This top model in Case’s range took out the award in the High Power Category at the International Agricultural and Gardening Machinery Exhibition (EIMA), held in Bologna Italy in November. The Quadtrac also won an EIMA Technical Innovation Award. The awards are judged by a panel of farm machinery journalists from across Europe. Their assessments are based on a range of features including fuel efficiency, engine performance, emissions standards, reliability and transmission smoothness. According to the judges, the decision to name the 715 as the winner, reflected its ergonomics, performance, environmental care and connectivity. The Quadtrac 715 is designed to assist large-scale agri operations to cover ground as effectively as efficiently as possible while minimising fuel consumption, soil compaction and labour. Is the Quadtrac 715 the right tractor for your operation? Review the features, speak with your Case IH dealer and contact us for a quote on financing. ## Best Tractors – Case IH Steiger Quadtrac 715 The [Steiger Quadtrac 715](https://www.caseih.com/en-au/australia/products/tractors/afs-connect-steiger-series) features a FPT Cursor 16 TST (twin stage turbo) engine to produce 778HP at 1900rpm, PowerDrive transmission to minimise torque loss, and a powershuttle switch mounted on the multi-controller to control driving direction. This top of the range model has a new heavy-duty undercarriage featuring a bigger drive wheel, designed to deliver maximum positive drive with increased lug engagement. Traction is increased with the larger footprint which also reduces compaction of the soil. A number of key features have been included to minimise servicing time – auto track tensioning, clear view oil caps, maintenance free pins and bushings and greasing points on the undercarriage. The 715 includes a range of innovations including configurable buttons which allow the operator to set-up their controls to suit their specific preferences. A new package for the lighting provides increased illumination and the auto pivoting steps provide convenience for operators. This new model includes auto steering which is compatible with Case’s monitoring app. Cabin comfort is addressed with an impressive infotainment system. The 715 is the most powerful model in the Steiger series and can suit many operators with large-scale operations. For operators requiring less power, check out the full tractor range from Case IH at your local dealership. ## Best Tractors of the Year – Other Categories EIMA also announced winners in other tractor categories. The Fendt 620 Vario DP won the mid-power segment with its iD engine concept heading the list of features which impressed judges. The Utility Award went to the Steyr 4120 Plus and a sustainable award to the Fendt e107, a full-electric tractor. A new category was also introduced for the robotic tractor of the year. This was awarded to the AgXeed 5.115T2. ## Cost-effective Financing Options for the Best Tractors Acquiring new machinery can be an effective means for increasing output and efficiency and business performance. But realistically, any investment in new machinery must be cost-effective and affordable, with the decision to invest often coming down to the financing. Operators wanting the best tractors to deliver increased productivity and efficiency can source cost-effective tractors loans from Jade Equipment Finance. The first step in securing the most effective tractor finance is to select the credit facility that is the best match with the business set-up, accounting practices and overall financial objectives. Businesses using the accruals method of accounting can select from Lease, Rent-to-Own and Commercial Hire Purchase. Businesses that use the cash method of accounting can finance machinery with either [Chattel Mortgage](/chattel-mortgage) or Commercial Hire Purchase. With all asset acquisition credit facilities, the tractor is accepted as security against the loan. Subject to lender approval, businesses can be approved to borrow 100% of the purchase price. This may include the machine and other attachments, systems and applications included with the purchase. This may provide an effective way to update assets without impacting current funds to make a significant deposit. With the credit facility selected, we focus on sourcing the most [competitive interest rates](/equipment-finance-interest-rates) and most flexible terms to deliver a repayment schedule that will work with cash flow and towards meeting ROI targets. Ensuring agricultural operators can cost-effectively acquire the latest machinery to boost their performance, efficiency and productivity. To see if a Steiger 715 may be an affordable purchase for your operation, use our [Finance Calculator](/calculator) to estimate repayments and establish preferred terms and balloons for your tractor loan. **To obtain cost-effective financing on the best tractors, 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.* **Categories:** Buying Tips --- ### [How to finance machinery attachments and equipment upgrades](https://www.jadeequipmentfinance.com.au/blog/financing-machinery-attachment-upgrades) **Published:** December 9, 2024 **Author:** Publisher **Excerpt:** Jade Equipment Finance assists operators to finance machinery attachments and upgrades to adapt to changed operating conditions and improve business performance. **Content:** An investment in new machines and equipment is a considered move for most operators in many industry sectors. If 2024 has been unpredictable with less than ideal results for your business, and you’re tentative about replacing machines, consider alternatives. If you’re markets or projects have changed and you need the right machines, there may be other affordable options to consider. A cost-effective alternative to completely replacing units and potentially achieving a workable solution may be to invest in upgrades, new tech and accessories. Jade Equipment Finance assists operators to finance machinery attachments and upgrades to adapt to changed operating conditions and improve business performance. Changed market demand for agricultural produce could require crop changes and new attachments for tractors. New contracts in the construction and infrastructure sectors may require different types of buckets on loaders or other accessories on other equipment. A change in the general direction of the business may require a rethink of the workability of the current fleet and adapting equipment may be a consideration. For production lines, it may be new product lines that necessitate machinery to be adapted. Many of the leading manufacturers – [CASE IH](https://www.caseih.com/en-au/australia), [Caterpillar](https://www.cat.com/en_AU.html), John Deere, Komatsu, offer extras and accessories to upgrade and adapt existing models. With a workable loan, making these tweaks to existing units may deliver the desired results without the major investment in new machines. Contact your manufacturer to discuss what is available to upgrade your particular model and consider your financing options. ## Finance Machinery Attachments – Loan Options A wide range of machine extras and equipment accessories may be financed for many units including buckets, blades, couplers, technology packages, and more. Loan options to fund these types of units include asset acquisition credit facilities as well as secured and unsecured business loans. Asset acquisition finance with Lease, Rent-to-Own, [Chattel Mortgage](/chattel-mortgage) and Commercial Hire Purchase may be used to fund items which can be used as collateral and considered suitable security by lenders. Utilising these forms of credit enables the business to structure repayments over the projected ownership cycle of the asset and benefit from the relevant tax deductions. Interest rates are competitive, and terms may be achieved for up to 7 years. Allowing the cost to be amortised over the life cycle of the attachment or the existing machine. Where an attachment or upgrade does not meet criteria for asset acquisition credit products, business loans may be considered. A Secured Business Loan may use the goods being funded or other assets as the loan security. Where no collateral is available, an [Unsecured Business Loan](/unsecured-business-loans) may be a workable option. Rates are higher for unsecured credit, so it is advisable, where possible, to use secured options. For smaller priced accessories such as tech system upgrades and kits, a Business Overdraft may provide a flexible funding arrangement. While the interest rates on overdrafts are higher than secured asset loans, the flexibility of the terms and repayment schedules can be appealing. They may provide businesses with the option of acquiring the items without putting pressure on existing cash funds. Overdrafts can be arranged over timeframes to suit individual requirements. While we recommend that business owners consult with their accountant on the most suitable credit facility for their business, our brokers can assist with quotes and proposals for different options for consideration. Where a number of items are being purchased, one funding solution covering the entire outlay may be available, where all are acquired concurrently from the same supplier. Simplifying the financing and presenting a cost-effective means to upgrade and achieve the targeted business improvements. ## Estimating Loans for Equipment Upgrades Operators looking to invest in upgrades to existing equipment can quickly estimate loan commitments with our [Equipment Finance Calculator](/calculator). Comparisons can be made for different types of loans with different interest rates and for different units at different prices. Interest rates vary with credit facilities. Refer to our current rate chart to obtain the rate for the loan product being considered to use with the calculator. Estimates can be generated to prepare budgets and projections and to assist with decisions as to which particular attachment or brand presents the most workable option. ## Compare Finance Machinery Attachments with New Machine Loans Is adapting existing machines the most cost-effective option for your business? Or would the purchase of a new machine be, long-term, a more cost-effective way forward? Depending on the cost of the upgrades or extras required to adapt the unit to suit the new purpose or objective, investing in the latest new, fully optioned model may be a more astute move. The calculator can be used to assist operators with these types of decisions. Repayments on financing a new machine can be generated using the appropriate rates. The trade-in or sale value of the existing machine can be deducted from the new purchase price to establish the loan amount required. Estimates generated along with other benefits of operating new equipment may be evaluated against the option of upgrading the existing units. **To discuss your options to finance machinery attachments and equipment upgrades, 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.* **Categories:** Buying Tips --- ### [How to get equipment finance without financials](https://www.jadeequipmentfinance.com.au/blog/how-to-get-equipment-finance-without-financials) **Published:** February 7, 2025 **Author:** Publisher **Excerpt:** Equipment finance without financials are loans for business assets to commercial entities without all the finance documents usually required for approval. **Content:** A range of documentation on the financial position, turnover and trading history of a business is required to complete a standard commercial credit application form. Criteria can also include having trading figures for at least 12 or even 24 months and having a minimum turnover. But if you are new in business, operate on a small scale, self-employed, and can’t meet the criteria, you may need to secure equipment finance without financials. Loans may be approved for a range of operators with no or less documentation for many business assets. These can include plant, machinery and equipment used in many industries, used and new, from all manufacturers including leaders such as [CAT](https://www.cat.com/en_AU.html), Komatsu, [JD](https://www.deere.com.au/en/), and others. Applications for loans with no financials are not approved by all banks and credit providers. Connecting with non-bank lenders that do offer these types of approvals can be made through specialist brokers, such as Jade Equipment Finance. We outline what is required, prospects and expectations and how operators may successfully secure workable machinery loans on a no financials basis. ## What is equipment finance without financials? Equipment finance without financials are loans for business assets to commercial entities without all the finance documents usually required for approval. These loans are described in the lending sector as low doc, no doc, lite and ABN loans. Essentially, the credit application is approved with none or minimal details and documentations on the financial and trading position of the business. Applications may also be approved for businesses with low turnover and short operational times. The types of businesses that may need this special consideration and approval can include new and start-up operations, owner-operators, contractors, sole traders, micro businesses and individuals operating with an ABN only. In fact, any commercial entity that does not meet the standard criteria for approval as set by a lender or the market, may seek machinery loan approval on a no doc basis. ## Asset Finance Facilities Without Financials While no doc loan applicants require special consideration from specialist lenders, they have the same selection of commercial credit facilities as other businesses. All types of business assets may be financed with Rent-to-Own, Commercial Hire Purchase, Chattel Mortgage and [Leasing](/asset-lease). There are significant differences with these facilities which include how a tax deduction is realised, how GST is treated, posting the asset to the business accounts and balance sheet, suitability to different account methods, and with the rate of interest. [Rates](/equipment-finance-interest-rates) vary with Chattel Mortgage and CHP offering the lowest rate across the market, Leasing slightly higher and Rent-to-Own offering the highest. To determine which facility will best meet their objectives, business owners should consider the compatibility with their method of accounting and how the features of each will work for their business. Discussing the options and opportunities with an accountant is advisable. All asset finance facilities can be sourced and structured by our brokers to best meet those individual objectives. Rates are fixed, fixed terms are negotiated to meet ROI targets, monthly repayment schedules are fixed, and balloons, residuals and buyback are available. On approval, no doc applicants are entitled to all the tax deductions and other benefits for their selected loan product. ## Security for Equipment Finance Without Financials The security or collateral requirements for no doc loans can depend on the lender assessment of the individual application and the condition of the machinery. Asset finance facilities are essentially secured loans, with the asset as the security. The general guideline is for new machines to be easily accepted as collateral while the condition and value of used machines is assessed against the loan required. Lenders assess applications to determine whether an applicant will be required to also provide additional collateral. Another aspect for serious consideration can be how much deposit is needed. Established businesses with strong financials can easily be approved for no deposit asset finance. Smaller businesses with shorter trading periods may be assessed as a higher risk for borrowing the full purchase price. Where this occurs, the business may need to reduce the total requested by making a deposit. ## Interest Rates on Equipment Finance Without Financials No doc and low doc loan applications are by their nature considered as a higher lending risk than businesses with full documentation and strong financials. Some may not have traded long enough to establish an extensive credit history or have extensive asset holdings to support their application. On this basis, no doc loan applicants may be offered higher interest rate loans compared with other businesses. But rates can vary considerably across the commercial lending market. Key to still achieving a highly competitive rate, can be accessing the right lenders. We provide that access through our accreditations with specialist non-bank machinery lenders. ## Eligibility and Requirements for No Financials Machinery Loans To be eligible to apply for commercial loans, all businesses will need a current ABN and ID documents. Being registered for GST is not mandatory for credit approval but is required under Government rulings for all commercial entities with turnover exceeding $75,000 pa. It may also be seen as a positive by lenders and contribute to a better outcome. While no doc loans assume that the applicant will not have any financial records to support their application, even start-up businesses are encouraged to prepare what information they can on their current or proposed activities. Where tax and BAS returns, annual and current accounts and turnover figures are not available, information on business plans and any confirmed contracts should be provided. With no or very little documentation on the business provided, no doc loan applicants may be required to submit details of their personal financial position, and their personal credit score will be checked. ## Benefits of Using Expert Brokers for Specialist Loans With so many variations with lender criteria, rate possibilities and other aspects of no doc loans, businesses may benefit significantly by using our broker services. We handle finding the right lender, negotiating the most affordable rates and workable terms, and processing the application. Connect with us to discuss how we can assist you to secure a workable machinery loan, with no docs. **To maximise your equipment finance without financials options, 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.* **Categories:** Finance --- ### [Quickly Replace Natural Disaster Damaged Equipment – Fast Machinery Loans](https://www.jadeequipmentfinance.com.au/blog/quickly-replace-natural-disaster-damaged-equipment-fast-machinery-loans) **Published:** February 21, 2025 **Author:** Publisher **Excerpt:** Fast machinery loans are available through Jade Equipment Finance to assist businesses quickly replace equipment and assets damaged in flood, fires and cyclones. **Content:** Fast machinery loans are available through Jade Equipment Finance to assist businesses quickly replace equipment and assets damaged in flood, fires and cyclones. Australia has been hit with multiple natural disasters this summer with cyclone Zelia impacting north-west WA, major rainfall and flooding events in FNQ and large bushfires in Victoria and Tasmania in particular. Events which have caused significant damage across multiple regions and impacted many individuals and business operations. While cleaning up and assessing damage will be the first priorities, replacing equipment to get business back up and running will also be a key concern. We support businesses by handling the finance to replace assets while they address the many other issues they are facing. Arranging quick loan approvals so operators can quickly order replacement machines to be operational as soon as possible. ## Disaster Damaged Equipment – Initial Steps As soon as is feasible, practical and safe after the weather event, there are steps to take to start the process of replacing unworkable equipment. Business owners should contact their insurer as soon as possible and lodge a claim. Claims may be lodged online, and some insurers may offer a phone claim service. The asset will need to be assessed as a write-off by the insurance company for the operator to receive the insurance payout. Business owners may be relying on these funds to go towards buying replacement units so the sooner this process is started, the quicker it may be finalised. When large-scale natural disasters occur, insurance companies typically send a team of assessors to the area asap. This may assist in expediting claims. Where the equipment is under finance, the bank or finance company should be contacted to advise of the situation. A request to pause payments may be made. Whether this is granted can be up to individual lenders. Where the equipment is a write-off, request a pay-out figure on the loan. This information can be useful when budgeting finance for a replacement and taking into account the insurance payout. Hopefully the insurance claim will be sufficient to finalise the loan. If not, the business owner will need to pay any outstanding monies owed to the lender. Until the loan is finalised the business is still required to meet the loan payments, unless an agreement has been made with the lender to pause payments. Check if you are eligible for any government financial support either at a state or federal level. Websites such as [Disaster Assist](https://www.disasterassist.gov.au/ "Disaster Assist") may provide guidance and hotlines should be in place to assist. Where equipment is unserviceable and requires replacement, owners do not have to wait for the insurance claim to be finalised before starting the process of replacing the asset with finance. Business operators can [contact us](/contact-us) as soon as possible to commence the process of sourcing finance. ## Types of Fast Machinery Loans Available Regardless of how quickly finance is required, operators should select the [credit facility](/overview-of-equipment-loan-products) which is the most suitable for the commercial set-up. Business assets of all types may be financed with Commercial Hire Purchase, Chattel Mortgage, Leasing or Rent-to-Own. When financing replacement machines, the loan may be with the same credit product that the original unit was financed with or with a different facility. The loan may be with the same or a different bank or finance company. With our accreditations with over 80 lenders, our brokers source the most suitable and cheapest loan option to meet each customer’s profile. Applications are assessed based on the current business financials and profile. If the business circumstances have changed – positively or negatively, since the loan for the written-off unit was secured, the rate and any loan conditions may be different from that original loan. Where the insurance claim has not yet been settled and the loan on the damaged machine not yet finalised, the debt will still appear in the business documents. We advise lenders of the individual circumstances, ensuring this does not negatively impact any new loan offer. Where multiple units need replacing with new, we can work with our lenders towards having all financed in the one loan agreement if that is a customer’s preference. ## Getting Approval for Fast Machinery Loans As brokers, we’re working in your best interests. Providing personalised service with prompt response to all enquiries, quotes and applications to quickly assist customers with their requirements. We’ll handle the entire loan sourcing, structuring and settlement process to ensure a smooth, streamlined and fast outcome. Most applications can be approved within 24 hours. We provide nation-wide services so even if you are located in the most remote areas of Australia, we can provide you with expert financing services. A range of financial and business documentation is required for commercial credit applications. Where a business has been impacted by a natural disaster, hard copies and computer files of business records may not be readily available. Where this is the case, our brokers will work with customers and lenders to quickly achieve a workable solution. Applications for finance can be made online or by phone. ## Fast Machinery Loans – All Types of Equipment While we refer to machinery and equipment, these terms are inclusive of all business assets used by a commercial enterprise. Finance is available for all types of plant, machinery and equipment across all industries including agriculture, construction, resources, retail, personal and business services, medical, health, wholesaling, processing and others. **For fast machinery loans to replace units written-off in natural disasters, contact Jade Equipment Finance on 1300 000 003 for personal service and assistance.** *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.* **Categories:** Buying Tips --- ### [Making payments to the ATO? Changes to ATO Debt Interest Coming Soon](https://www.jadeequipmentfinance.com.au/blog/making-payments-to-the-ato-changes-to-ato-debt-interest-coming-soon) **Published:** May 28, 2025 **Author:** Publisher **Excerpt:** Changes to ATO debt interest charges come into effect on 1 July 2025 with these interest charges no longer eligible as tax deductions for business. **Content:** Changes to ATO debt interest charges come into effect on 1 July 2025 with these interest charges no longer eligible as tax deductions for business. The interest charged on debts to the taxation department for general interest charges (GIC) and shortfall interest charges (SIC) now treated as a fine or a penalty, not a business cost. With paying these charges now coming straight off the bottom line, businesses may consider other loan options which offer tax deductible interest. The change was included in the Federal Government’s 2023/24 Mid-Year Economic and Fiscal Outlook (MYEFO) and starts on 1 July 2025. The law has been amended to deny deductions for interest charges by the ATO which are incurred on or after 1 July 2025. In short, any general or shortfall interest rates are no longer eligible tax deductions from the start of the next financial year. For operators making these payments and subject to interest charges, commercial financing options may offer an affordable and workable solution. We cover off on the detail of this change and the options we offer. ## Changes to ATO Debt Interest – Overview [The change](https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/deny-deductions-for-ato-interest-charges "The change") to the tax deductibility of interest on ATO debts starts on 1 July, but how it effects a business may depend on when the charge was incurred and the type of charge. For example, general interest charges, known as GIC, is charged on a daily basis. Shortfall interest charges, which is a charge on a shortfall of unpaid income tax known as SIC, is applied in the year that the notice of assessment is served. The year the charges are incurred will affect the tax deductibility of the interest. Where GIC or SIC has been incurred before the date the change comes into effect – 1 July this year, the deductibility status does not change. Interest charges on those payments will still be deductible for the 2024/25 financial year and for earlier financial years. Note that if the charges for these years are deducted in those years but the payment remitted later, the amount paid needs to be included in the income assessment for the financial year in which it was paid. Charges incurred on or after the date of the change to the law, 1 July 2025, are not tax deductible. This covers both SIC and GIC on outstanding payments and for late tax payments for the years after and before 1 July 2025. This is a major change to tax law and depending on the amounts involved, may be a major issue for business owners to consider. ## What Changes to ATO Debt Interest Mean for You The impact on different businesses will depend on the amounts involved and their capacity to absorb non-deductible expenses. But essentially, the interest you are paying on your outstanding debts to the tax department are no longer a cost to your business. They are a penalty. Those interest payments, rather than being deducted from taxable income to reduce tax payable, are now coming straight out of profit. So, income will need to be generated to cover the payments, and tax will paid on that income without the usual deduction to balance out the situation. The real cost of paying off a tax debt with interest could be a lot larger than realised. And it will increase with compound interest as is applied by the ATO. As a rough guide, the cost of repaying that debt could be more than 15%. Charges similar to credit card interest. Time for a rethink? Time to talk to us about how we may assist you. ## Loan Solutions for ATO Debt So what solutions are available to address these payments which are no longer treated as tax deductions? Commercial loans are available to cover a wide range of non-asset business expenses. These include [Unsecured Commercial Loans](/unsecured-business-loans) and Lender Overdrafts. Both may offer flexible terms and highly competitive interest rates. The rates we can achieve may be much lower than those applied by the tax department and interest on business loans is treated as a tax deduction. An Unsecured Business Loan is a credit facility where the purpose of the loan is not used as collateral for the loan, such as happens with equipment financing. With no collateral, the interest rate is higher than for secured loans. But where a wholly owned asset is provided as collateral for an unsecured loan, a lower rate may be achieved. Terms are negotiated to best deliver a workable fixed repayment schedule. Rates may be fixed or variable. An Overdraft is a highly flexible credit facility used by businesses for many purposes. While rates are higher than for some other credit facilities, this option provides flexibility to pay off the loan as income permits. The debt to the tax department and the interest, can be repaid as you can afford it – more some months, less some months. Whichever credit option is the most suitable for an individual business, our lower rates and tax- deductible income may make these extremely affordable solutions. To work up estimates to compare, use our [calculator](/calculator) and speak with one of our brokers to structure a solution to suit your specific objectives. **Speak with Jade Equipment Finance on 1300 000 003 to discuss loan options to address the upcoming changes to ATO debt interest deductibility.** *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.* **Categories:** Buying Tips --- ### [Tips to capitalise on EOFY equipment sales](https://www.jadeequipmentfinance.com.au/blog/tips-to-capitalise-on-eofy-equipment-sales) **Published:** June 9, 2025 **Author:** Publisher **Excerpt:** Business owners may capitalise on savings made when purchasing during EOFY equipment sales by securing their best interest rate finance prior to purchase. **Content:** Business owners may capitalise on savings made when purchasing during EOFY equipment sales by securing their best interest rate finance prior to purchase. Savings on plant, machinery and equipment at mid-year sale prices can be extremely attractive with generous discounts offered by suppliers. But if the financing for the assets is at a higher rate than could possibly be achieved, at least part of that discount is lost. The entire opportunity to acquire new assets at sale prices may be lost if business owners don’t have their loans secured in time where only limited stock and specific models are available. Buying on sale can deliver significant savings and opportunities for many businesses to acquire assets that may have been beyond their budget at full price. But there are factors and safeguards to consider, to ensure the acquisition and the financing both offer genuine good offers. As specialist in asset financing, we provide our guidelines when buying assets on sale and the financing opportunities we offer to capitalise on any savings available. ## Guidelines to Buy at EOFY Machinery Sales Mid-year clearances and end of financial year sales proliferate both the retail and business goods sector in June-July each year. The advertising and hype surrounding these events can be intense and create a sense of urgency that may lead to poor buying decisions. Keeping a cool head and following due diligence in buying is important in and out of sale time. Discounted prices may be offered by a manufacturer and available through their dealers or individual sale events may be conducted by dealers to clear floor stock, such as special offers currently available from [JCB](https://jcbcea.com.au/our-latest-offers/ "JCB"). Operators in construction, agriculture and construction can check with the local dealer and search online for mid-year deals on yellow goods, wheeled goods and other machines. SMEs looking to upgrade computer, tech and AV equipment can find mid-year sales from retailers and B2B tech suppliers. When purchasing entire systems or multiple smaller units, we can usually include the total cost in the one financing arrangement. It may be advisable to order all required hardware, software and other systems from the same supplier at the same time. Check with us first to ensure all the items can be financed in the one loan. Look for clearance and runout discount deals in equipment sectors which have had sluggish sales results recently. For example, the [Tractor and Machinery Association](https://tma.asn.au/ "Tractor and Machinery Association") has reported sluggish tractor sales in recent months. Demo models are often discounted at sale time by dealers. These units can often be highly specified with all extras and accessories. Buyers should consider if they need all those extras and if buying the base model which is not on sale, but at a lower price, is a more affordable and sensible purchase. Is it a real deal? Avoid scams, especially if buying online. If in doubt, check in with [Scamwatch](https://www.scamwatch.gov.au/ "Scamwatch") for any updates. Read closely any terms and conditions associated with a discounted price. That \*asterisk does mean something! Potential buyers should find out what it means before committing. The deal may be limited to certain models or certain buyers or have other conditions attached which do not suit the buyer. Watch the clock! If a special discount offer is due to expire on 30 June, making a verbal commitment and then going away to organise finance may not work. If you return finance-ready on say 3 July, the price may have gone back up to the RRP. ## Financing EOFY Machinery Sales Purchases Buyers can have a sense of urgency when buying on sale with the fear of missing out. When financing is involved, it is time to maintain a sensible and cool head. We act very quickly to source quotes and arrange loans, so we won’t hold you up. Don’t automatically agree to the dealer’s finance offer without considering your other options, including checking with us. A typical advertising strategy at sale time is to promote 0% finance. Buyers attracted to this type of offer are advised to check the specifics of the offer and get a quick quote from Jade to compare. Many 0% finance offers are only for a limited time of the loan term. After that promotional period expires, a much higher rate than may have been secured applies. These types of loans may also attract much higher lender fees to compensate for the low interest promotional offer. No deposit finance is another feature to look closely at. This is not a ‘special’ deal. Many business operators can be approved for financing the entire purchase price of an asset, when they meet lender criteria. We always offer the opportunity for operators to apply for no deposit finance and negotiate with our lenders to best achieve the most suitable outcome. Timing and availability can be important. Some mid-year sale events finish strictly on 30 June while others may extend into July. Getting your loan approved before heading to a dealership may put you in the best position for securing the model you want. Financing on all business assets, including goods on sale, is available through Jade with [Chattel Mortgage](/chattel-mortgage), Lease, Commercial Hire Purchase and Rent-to-Own. [Our rates](/equipment-finance-interest-rates) are highly competitive, and loans individually sourced to best meet the specific requirements of the business. Financing for sale items is available to all commercial enterprises including new and small operations. ## Loans for Used and Demos from EOFY Machinery Sales Demo models can offer great value and would be considered new and not second-hand when applying for finance. Dealers may be selling ex-rental machines in their mid-year sale. These units would be considered as used goods and the relevant loan rates and conditions would apply. When sourcing finance through Jade, our brokers also assist with checks on used goods to ensure the correct ownership, registration and that the goods are not under finance. To quickly capture your preferred equipment on sale, request a quote or apply for a loan online. **Speak with Jade Equipment Finance on 1300 000 003 for quick action to secure finance for EOFY equipment sales.** *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.* **Categories:** Buying Tips --- ### [Equipment Unserviceable and Out of Action? Cash Flow Insufficient to Cover the Repairs? Explore Machinery Repair Loan Options](https://www.jadeequipmentfinance.com.au/blog/equipment-unserviceable-and-out-of-action-cash-flow-insufficient-to-cover-the-repairs-explore-machinery-repair-loan-options) **Published:** August 31, 2026 **Author:** Publisher **Excerpt:** A machinery repair loan is typically provided with an unsecured commercial credit facility through Jade Equipment Finance to cover services, parts and labour. **Content:** A machinery repair loan is typically provided with an unsecured commercial credit facility through Jade Equipment Finance to cover services, parts and labour. When equipment is unserviceable and not working for your business, it can potentially place the entire operation in a precarious position. Where the machine is critical to the operation, it may mean reduced income and reduced funds to cover operating expenses. The priority must be to get that machinery working again and quickly. But when repairs are major and the cost is significant, that may not always be a simple process. We understand the pressures facing many operators, especially in the current economic climate. Where cash flow is already under pressure, we may have a solution with a machinery repair loan. Solutions are individually sourced by our expert brokers to suit the specific needs of the operation. Consider the options and discuss your specific situation with us. ## What is a Machinery Repair Loan? A machinery repair loan is financing to cover the costs of repairs, maintenance and servicing of equipment used in a business operation. The equipment may be used in any industry sector – agriculture, construction, medical, civil works, transport and production and processing. As the cost of repairs is essentially a service, this type of expense is not suited to secured commercial credit facilities. That is, the purpose of the loan cannot be offered as collateral for the finance. With no collateral available, we offer operators a choice of unsecured commercial credit facilities to meet this type of expenditure. [Unsecured Business Loans](/unsecured-business-loans) can be a workable loan solution for repair work. Rates may be fixed or variable and the interest and lender fees are usually tax-deductible. Workable fixed terms are negotiated by our brokers to best deliver a repayment schedule that meets cash flow and turnover. An Overdraft is another option. Most businesses will already be familiar with and operate with a Bank Overdraft. This type of credit provides a flexible line of credit for businesses to use when required, with interest only charged on the funds utilised over the time utilised. If you have an Overdraft but without sufficient credit to cover the current repair expenses, speak with us about the option we may source for you. Through our non-bank lenders especially we can source highly competitive rates. Unsecured Business Loans typically have similar if not the same interest rate as Business Overdrafts. But Overdrafts may offer a more flexible option with operators provided with the opportunity to paydown the debt when funds allow, reducing the interest accrued. A Business Loan will typically be arranged over a fixed term with fixed monthly payments and exit fees if the loan is finalised prior to the end of that term. For a deeper discussion on which credit facility may work best for your current requirements, connect with a Jade broker. ## What Can a Machinery Repair Loan Cover? Unsecured commercial credit facilities have the versatility to cover a wide range of business expenses. To fix, service or maintain equipment, those expenses may include replacement parts; engine reconditioning; complete motor replacement; complete overhaul; major scheduled servicing; and general repairs. Loans may cover labour, parts and materials and additional attachments or accessories to repurpose the machine for a different crop or project. ## Compare Repair with Replacement Finance Where repairs are extensive in scope and in cost, operators may like to consider the option of replacing rather than repairing the equipment. While the outlay will clearly be greater in total, the total replacement equipment finance package may present a more feasible option with the trade-in or resale of the current machine used as a down payment on a new unit. Secured equipment finance to purchase new equipment offers lower rates than the unsecured credit products used to fund repair work. New assets may also present a less costly option in regard to maintenance over coming years, while the current machine may require further and ongoing work to remain operational. New equipment may also present an opportunity to realise other benefits with fuel efficiency and improved productivity. Work up estimates on Lease, Chattel Mortgage, CHP and Rent-to-Own on new machinery prices and compare the overall package with the financing costs of repairing the machine with [our Finance Calculator](/calculator). ## Get Equipment Back in Action ASAP – Fast Loan Service! We know how important it is for operators to get their equipment operational when repairs are needed. We support businesses with prompt attention to enquiries and fast processing of applications to get quick answers. Many operators will receive their answer – approval or not, with offer, within 24 hours, enabling the okay to be given to the repairers and the work to commence. **For a machinery repair loan to get unserviceable units back to work, speak with Jade Equipment Finance [1300 000 003](tel:1300000003)**. *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.* **Categories:** Finance --- ### [Get low rate machinery loan on new compact Kubota track loader](https://www.jadeequipmentfinance.com.au/blog/get-low-rate-machinery-loan-on-new-compact-kubota-track-loader) **Published:** February 6, 2024 **Author:** Publisher **Content:** Due to be available in dealerships early this year, the new compact Kubota track loader may make the ideal addition to machinery fleets across construction, excavation, agriculture, landscaping and other industries. The compact size and versatility may also make the SVL75-3 the ideal way for new operators to transition to self-employment. **Jade Equipment Finance provides low rate loans on the new Kubota track loader for operators adding to an existing fleet or starting their own business**. Funding at low rates to ensure this compact machine can deliver the returns expected by buyers. The new [SVL75-3](https://kubota.com.au/product/track-loader-svl75-3 "Access information about Kubota's SVL75-3") is a replacement for the SVL75-2 and includes many new features to improve the performance of this compact unit and the comfort of the operator. The company says its ready to tackle digging, grading, dumping and material movement with its 74.3 hp engine and higher torque. Prior to its arrival in dealerships, consider if the features of this compact unit will be a productivity booster for your operation and talk to use about how we can make the purchase a cost-effective decision with cheaper funding. ## Kubota Track Loader SVL75-3 Features In addition to higher torque provided by the Tier 4 Stage 5 emission level engine, other major notable features are the one piece cab and the hydraulic system. The benefits of the one-piece cab which is sealed, are in preventing dust, debris, dirt and rain coming into the operator’s space and the reduction in noise. Add to those the convenient ease of entry/exit provided by the sliding door and this door can be opened when the bucket or the loader arms are in any position. Visibility is enhanced with the large windshield and operator comfort and convenience improved with the 7” LCD touch panel. Providing easy access to the essential operating data. The hydraulic system on the SVL75-3 has the Advanced Multifunction Valve. An innovative inclusion which ensures the movement of hydraulic functions is smooth when operating at the same time. So multiple actions can be operated together with less risk of the machine stalling. This compact unit is a 4 cylinder diesel with 73.2 HP net and 74.3 HP gross, with 3331cc displacement and a rated speed of 2400 rpm. Easier access to engine allows for easier maintenance. All great features which may provide significant benefits to your business operation. But for any new machinery to truly deliver on the bottom line, the financing must also have the features that suit the operation. We match operators and machines with the right lenders, the right credit facilities and the most affordable interest rates, to ensure the investment is cost-effective and delivers on expectation. ## Kubota Track Loader Loan Options Match your business objectives and set up with the right credit facility to purchase a compact SVL75-3. To cater for all types of commercial entities, we have a complete portfolio of machinery credit facilities. These include Rent-to-Own, [Equipment Leasing](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Click here to learn about equipment rental services"), Commercial Hire Purchase and Chattel Mortgage. As with the varying features of loaders, credit facilities also have varying features, relating to accounting matters. These include different methods of preparing business accounts – cash and accruals methods; different approaches to the entity’s balance sheet – whether or not it is preferable to have a large asset on the books; the approach to tax including GST; possible differences between corporations and ABN-only holders; and the general targets and goals and operator may have for their business. While our brokers will work to achieve the best offer on the preferred credit facility, we strongly recommend referring to an accountant to decide which credit facility best suits the set-up. The interest rates vary with credit facilities and operators can use our calculator to see how these rates result in different monthly repayment amounts for each facility. Alternatively, simply brief one of our brokers as to your requirements and let us find you the lowest rate and most workable funding outcome. ## Kubota Track Loader New Operator Loans The purchase of compact units can be a great way for an individual to cost-effectively start their own business as a contractor. While a great idea, being approved for affordable funding may a greater challenge. We assist new and start-up operators with [Low Doc and No Doc Machinery Financing](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "See what our straightforward machinery financing can offer") funding to provide a smooth transition into self-employment. This is sourced from specialist lenders that approve commercial credit applications based on minimal trading history and financials. The personal financial records of the operator are typically requested as part of the assessment process. Individuals planning such a move are strongly advised to maintain a good credit score to ensure the best interest rate is offered. Speak with us ahead of your purchase to source the best option. ## Getting Pre-Release Loan Approval With the new SVL75-3 scheduled to be available early this year, operators can start talking to us about getting credit approval. Applications can be approved based on an estimated amount well ahead of purchase and specific rates and repayment approvals and offers obtained closer to purchase date. **If a new compact Kubota track loader will boost your operation, contact Jade Equipment Finance on 1300 000 003 for a low rate loan.** *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.* **Categories:** Buying Tips --- ### [Update to Keep Up with IT Finance Options for Tech Hardware, Software, Systems](https://www.jadeequipmentfinance.com.au/blog/update-to-keep-up-with-it-finance-options-for-tech-hardware-software-systems) **Published:** July 8, 2024 **Author:** Publisher **Excerpt:** Jade Equipment Finance provides IT finance options to cover all components and elements of an upgrade including the hardware, software and installation. **Content:** Keeping up to date with the latest computer and tech systems can be essential to stay up with the competition, continue to meet customer demands and expectations, and to protect the business with safe, secure systems. But the process of upgrading to new computers and entire operating systems with multiple inclusions – hardware, software, installation, can be complex, time-consuming, and expensive. Support to cover the costs is available with our affordable IT finance options. Providing an affordable means of updating tech, without using cash reserves. Depending on the individual system or upgrade, there can be numerous components or items to purchase when updating computers, operating and safety systems, and business technology. Different types of credit facilities may be required to finance the different components, while some systems may be financed with a single, inclusive loan arrangement. Jade Equipment Finance provides IT finance options to cover all components and elements of an upgrade including the hardware, software and installation. ## Hardware IT Finance The hardware components of a tech upgrade such as desktops, laptops etc are considered business assets and can be financed with asset acquisition credit facilities. Business owners can choose the most suitable facility from [Asset Lease](https://www.jadeequipmentfinance.com.au/asset-lease), Rent-to-Own, Chattel Mortgage and Hire Purchase. As business assets, the computer hardware is used as collateral for the loan, with many operators not needing to offer additional security. Tax deductions are available on all asset acquisition financing. ## Software Finance Options An upgrade may involve hardware only, software only, or both may be combined into the one system acquisition. The way the software is purchased determines how the cost can be financed. Where an entire system – hardware and software, is acquired from the same IT supplier and on the one invoice, our lenders may approve to entire purchase for asset acquisition financing such as Leasing. But where the hardware and software are purchased separately, or where the upgrade involves software-only, asset acquisition financing may not be suitable. Key can be, if the software is considered a suitable asset for loan security. If so, then Leasing, Rent-to-Own, Chattel Mortgage or Hire Purchase may be used. Leasing can be very popular for financing goods that require regular replacement, such as software. Where software is not considered an asset suitable for loan collateral, we provide a number of loan options. These include a Lender Overdraft or Secured and [Unsecured Business Loans](https://www.jadeequipmentfinance.com.au/unsecured-business-loans). Unsecured Business Loans and Overdrafts attract similar interest rates which are higher than secured loans but can provide flexible arrangements. Overdrafts can be paid down over a timeframe which suits cash flow. With unsecured loans there is no need to tie up other assets in finance arrangements. Secured Business Loans attract a lower rate due to the secured nature. While the software may not be considered acceptable collateral, business owners may offer other assets as security against the financing. This option offers a fixed repayment schedule which we negotiate to best work with individual cash flow projections. ## IT Finance Options for Systems Extras Acquiring new technology can involve extra costs, in addition to the hardware and software. Security and surveillance systems, business-wide operating and accounting systems, and even integrating new desktops, can require professional services for the installation and set-up. Depending on the size of the business and the IT purchase, this may involve an IT professional for a few hours, but with a large-scale installation and integration, the time and cost may be significant. As with software, costs of installation are not a business asset, but may be financed with overdrafts and business loans. Where one supplier is engaged to supply and install the entire acquisition, we may be able to source a finance package to cover the entire cost. Streamlining purchase and payments. Our brokers will discuss your specific acquisition and provide guidance as to the best IT finance option. ## IT Finance Budgeting and Planning Tools Before embarking on a major tech update or upgrade, most business owners will need to prepare budgets to plan the financing and consider the affordability and viability of the move. Our [Financing Calculator](https://www.jadeequipmentfinance.com.au/calculator) is a great tool for obtaining estimates for planning purposes. This tool can be extremely helpful if considering different tech supplier quotes. Simply calculate finance estimates on each, to get an idea of the monthly finance commitments for each option and see how the repayments can be budgeted. If preparing budgets some way ahead of the planned upgrade, be aware that interest rates may change. Lenders may alter their rates with [Reserve Bank](https://www.rba.gov.au) cash rate decisions. ## Get Fast IT Finance Approval for Urgent Tech Purchases If your system has crashed or been compromised, then the need to replace it can be extremely urgent. Our fast approvals capabilities can have most applications approved within 24 hours for prompt access to funds to proceed with the purchase. Fast loan approvals still include our best rates, most workable terms, and individually sourced and tailored packages. **To update your computers and IT systems with financing, contact Jade Equipment Finance on 1300 000 003 to discuss a workable loan package.** *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.* **Categories:** Buying Tips --- ### [What’s new for 2024 - new farming machinery, RBA interest rates changes. ](https://www.jadeequipmentfinance.com.au/blog/whats-new-for-2024-new-farming-machinery-rba-interest-rates-changes) **Published:** February 6, 2024 **Author:** Publisher **Content:** If you’re looking for a boost to your agri operation in 2024, there is new farming machinery hitting the Australian market which may assist. As equipment investments typically require funding, the changes happening at the [Reserve Bank of Australia (RBA)](http://www.rba.gov.au "Reserve Bank of Australia (RBA)") are important to stay across. We’ve compiled details of a few of the new machines, how to get the best rates and most suitable credit facilities for their purchase and provide an update on changes at the RBA which affect the timing of interest rates decisions. Timing which may influence when operators choose to apply for funding for upgraded equipment. ## New Farming Machinery for 2024 Quite a few machines are scheduled to make their Australian market debut this year. Units from well- known brands and from overseas brands fairly new to our market. Many of these will be displayed at upcoming field days and shows. But operators that are keen to move sooner can review the details including availability dates and arrange their finance through Jade at any time. The [Amazone ZG-TX](https://amazone.net/en "Amazone ZG-TX") combi spreader allows operators to spread fertilisers in granular form up to 54 metres and to spread lime up to 16 metres. The switch from one to the other is actioned with just a few simple adjustments. Providing versatility to the operation. Loads more features to check out. Available through [Croplands](https://croplands.com/au/ "Croplands") the Stara Imperador Sprayer 4000 is made in Brazil, a country with a huge agricultural sector. The features noted are the 26m boom which is mid-mounted to provide better application; the 4000 litre capacity; underframe clearance of 1.6m; and many more. The company, Stara, is the largest manufacturer of farm machinery in Brazil and this machine has undergone extensive Australian testing. Speak with Croplands for more information. Also through Croplands is Magrowtec technology to assist with spraying. They are experts in spray tech from Ireland and have brought their magnetic assist tech to Australia. The technology claims to reduce the costs of spraying and is available as a kit to retrofit on boom sprayers. Two new tractors in the Steiger range are due from Case IH this year. A new range of tractors to also come to Australia are from Fendt. For those looking for a new skidsteer, check out the latest compact model from Kubota, the SVL75-3. Just a few ideas which may increase your potential, improve productivity and save costs on your property. ## Timing Changes to RBA Interest Rates Decisions When it comes to changes in the financial sector for 2024, the major news relates to the RBA. As most will be aware, there was a Review of the Reserve Bank carried out with recommendations made to the Treasurer and the Bank board late last year. One of the changes being implemented as a result of that Review is the timing of when the RBA Board meets and makes decisions on monetary policy and interest rates. Instead of the usual monthly decisions, from February 2024 the decisions will be made every 6 weeks. There will also be a change in the process for making those decisions with two days set aside to discuss economic indicators and issues with relevant staff and other officials before the Board makes their final decision. The RBA Governor, Ms Michelle Bullock, will then hold a media conference to announce the decision and provide the RBA’s forecasts and insights. The change means less rate decisions each year. The move from 11 to 8 rate decisions each year may have significance for operators seeking equipment finance from a number of perspectives. It can provide longer time intervals between any increases or cuts for operators to make vital acquisition decisions and take action on applying for new equipment loans. For operators that are also dealing with property loans, the change represents less chances for their mortgages to change each year. Potentially providing for improved budgeting especially for those that need to juggle personal and business financial commitments. An issue which can affect many small producers, contractors and sole traders. ## Supporting Farmers with Best Rates Loans for New Farming Machinery **Jade Equipment Finance supports agricultural sector operators with the best rates, terms and conditions on loans to acquire new farming machinery.** The agricultural sector is a major focus for our business, and we support farmers and other operators with [affordable farm and agricultural equipment financing](https://www.jadeequipmentfinance.com.au/farm-machinery-and-agricultural-equipment-loans "See what our low-cost farm machinery financing can offer you"). In addition to offering the full selection of credit facilities – Lease, Commercial Hire Purchase, [Chattel Mortgage for Equipment](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Access information on our equipment mortgage solutions") and Rent-to-Own, our accreditations with over 80 lenders provides access to the best interest rates. If you’re interested in boosting your operation with upgraded machines, brief one of our brokers and allow us to handle the entire funding process. Sourcing the most suitable lender, the best rates and structuring a tax optimise solution with a repayment schedule to suit your projected cash flow. **For support in sourcing the best rates on new farming machinery finance contact Jade Equipment Finance on 1300 000 003 for quotes.** *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.* **Categories:** Buying Tips --- ### [Struggling for cost savings? Consider equipment refinancing to ease cash flow pressures](https://www.jadeequipmentfinance.com.au/blog/struggling-for-cost-savings-consider-equipment-refinancing-to-ease-cash-flow-pressures) **Published:** June 10, 2024 **Author:** Publisher **Content:** Economic conditions are creating issues for many businesses. Uncertainty, low consumer confidence, and labour shortages can impact the ability of businesses to achieve the required output and turnover to cover costs. Causing pressure on cash flow and pressure on business owners and managers. Finding savings through cutbacks can be a challenge. Where repayments on plant, machinery and equipment are a major monthly outgoing, business owners may consider equipment refinancing as a possible solution. As experts in commercial funding, Jade Equipment Finance works with individual operators to structure equipment refinancing to meet key objectives. There are a number of reasons why a business may seek to revise their existing loan arrangements, with seeking lower repayments one of the key objectives we address. While our experts handle the process on behalf of clients, it is important that operators understand what is involved to ensure they can make a well-informed decision as to whether to proceed or not. ## Key Aspects of Equipment Refinancing [Refinance ](/equipment-refinancing/ "Refinance ")may sound complex, but the process is essentially straightforward, but with details that do require consideration. Refinance replaces an existing machinery loan with a new loan part-way through a finance term. The new loan encompasses the full amount which is outstanding on the existing loan, including the lender’s exit fees and any other charges, plus applicable charges for establishing the new arrangements. The new loan may be arranged with the same type of finance as the existing one – Leasing, [Chattel Mortgage](/chattel-mortgage/), Rent-to-Own or CHP, or a change may be preferred. The features of the selected loan type, including tax deductions, residuals, balloons and buybacks, would apply to the new loan arrangement. The new loan may be sought from the same bank or lender or another lender. We will be working to find the best offer from our large lender market to present for consideration. An important factor to realise is that the machinery would be assessed as second-hand when applying for refinance. This means, the lender must accept the unit as suitable loan collateral, as the sole security, or additional collateral may need to be provided. The interest rates relevant to second-hand goods would apply. These may be higher than the rates for new goods. The rate would be based on the current interest rate market with lenders generally setting their rates in line with [RBA](http://www.rba.gov.au/) decisions and the market forecasts. Some lenders also place special conditions on used machinery loans such as loan and term limits. Lenders assess refinance applications based on the current credit profile and financial documents provided. For operators that have improved their credit rating since the existing loan was established, this may represent an opportunity for a better rate. If the business has grown significantly since the existing loan was established, refinance may present the opportunity for more workable conditions. We guide operators through the process to source the most acceptable and workable solution. The result of refinance is the existing arrangement is finalised and a new schedule of repayments is established over the term we negotiate with our lender. ## Using Equipment Refinancing to Lower Monthly Repayments Where an operation is seeking to reduce outgoings, targeting a lower monthly repayment through the process of refinance may be a way to achieve that objective. In pursuing that objective, our brokers consider all options – achieving a lower interest rate, extending the finance term, and increasing the balloon. We contact the existing lender to establish the payout figure – the total amount due to finalise the loan at that time. This will include that lender’s fees and provides the basis for the amount required for the refinanced loan. We speak with our lenders, especially those that specialise in the customer’s industry, to source and negotiate the best offer. The best offer is presented to the operator for their decision. ## Comparing Equipment Refinancing with Alternatives Comparing refinance with other finance products for easing cash flow pressures can provide operators with a full understanding of their options. Overdrafts and lines of credit are available as finance tools to provide support for cash flow. The interest rates on overdrafts tend to be higher than for asset acquisition loans but may provide a flexible, short-term solution. We also provide business loans on a secured or unsecured basis, for a range of purposes. Your Jade broker can go through the details of these products to consider whether they present a workable alternative to refinance. ## Applying for Equipment Refinancing As with our process of applying for new asset acquisition funding, applying to refinance is also a streamlined, simple procedure. Operators brief our brokers on their requirements, provide the necessary financial documentation on the business, and we take it from there. Due to the nature of refinance, an initial phone conversation is preferable so we can get easily get the full picture. If contact by phone is a challenge due to work schedules, our online tools are readily available to connect from anywhere around Australia at any time. If machinery loan repayments are hampering your operation, speak with us about your options through refinance. **To access expert equipment refinancing services, 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.* **Categories:** Buying Tips --- ### [Start Planning for 2025 Heavy Equipment and Machinery Show](https://www.jadeequipmentfinance.com.au/blog/start-planning-for-2025-heavy-equipment-and-machinery-show) **Published:** March 3, 2025 **Author:** Publisher **Excerpt:** The Heavy Equipment and Machinery Show in Brisbane 15-17 May will showcase products, innovations & machines for the infrastructure & civil construction sectors. **Content:** The Heavy Equipment and Machinery Show in Brisbane 15-17 May will showcase products, innovations & machines for the infrastructure & civil construction sectors. The event is presented by the Civil Contractors Federation Queensland and has grown to one of the biggest showcases of earthmoving and construction equipment in the country. The show provides operators across the construction, building and earthmoving sectors, with the opportunity to see many new products, especially innovations, to support and grow their businesses. With tickets already on sale, operators should start planning their Brisbane visit and their machinery finance. Operators intending to order new units at the expo can pre-arrange their loans through Jade Equipment Finance in the weeks ahead of gates opening. Allowing them to potentially save time and speed-up the process of getting those new machines delivered, commissioned and working in their operation. ## Heavy Equipment and Machinery Show (HEMS) Details Previously known as Civil Construction Field Days, [HEMS](https://brisbanetruckshow.com.au/heavy-equipment-and-machinery-show/ "HEMS") runs alongside the extremely popular Brisbane Truck Show, and will be held at the Brisbane Showgrounds from 15 to 17 May. The show opens 8am-4pm each day. This year’s event is scheduled to have over 100 exhibitor sites with the big names in the industry expected to display their latest machines, accessories and technologies. [SITECH Construction Systems](https://sitechcs.com/ "SITECH Construction Systems") will be showcasing its products and systems with technologies which focus on improving efficiency and productivity for construction sites. KOR Equipment Solutions will be exhibiting their ranges which include brands such as Schwarze Road Sweepers, Uraca pumps, Cappellotto units, Vanguard systems, and many others. Operators looking to upgrade their positioning equipment for construction, machines and surveying, can head to the C.R. Kennedy stand. For durable and tough axles, earmark catching up with the team from Transport Equipment Australia. Many more exhibitors will be announced closer to the show date. Stay across the event website for more information, and also head to the website to book your tickets. ## Arrange Your Loans Now for Heavy Equipment and Machinery Show When booking tickets and planning travel and accommodation, include organising machine finance ahead of the show. Having loans for new equipment approved prior to attending an expo can prove advantageous in many respects. Being in a position to place an order can save operators the time and hassle of having to visit their local dealership after the expo. Being able to commit to a purchase at an expo may mean capitalising on any expo discounts and specials on offer. Many manufacturers present special offers at these types of industry events. While some manufacturers may also offer financing, having your loan secured by expert brokers sourcing the best possible interest rate, may prevent operators from committing to more costly finance on the day. Dealer and manufacturer finance are loans provided through that company’s finance partner and do not typically offer buyers any choice of lender. We provide many choices with our brokers sourcing the best rates from across our extensive selection of lenders. Ensuring the most competitive rates and most affordable offer is secured. Pre-approved finance provides buyers with important information on how much they are approved to borrow. Allowing them to order units within the financing limits and include extras and accessories within their specific repayment budget. Pre-approved loans through Jade are available to all business operators on our full selection of asset acquisition credit facilities. Business owners can select the credit product that will best suit their operation from Chattel Mortgage, [Leasing](/asset-lease), Commercial Hire Purchase and Rent-to-Own. Where the technologies and systems being ordered are not suited as loan collateral and hence asset acquisition loans, Unsecured Business Loans are available. Our pre-approved finance service extends to our Low and No Docs Loans. Allowing start-ups and new operators to have the confidence of a confirmed loan to be able to proceed to order the machines they require. Applying for asset finance follows the same process both before and after units are selected or ordered. The exception being with the exact amount required. This may not be known until a specific make and model is selected, accessories included, and a purchase price negotiated with the dealer. For pre-approval, an estimate only is required along with an indication of the machinery to be financed. The same [rates](/equipment-finance-interest-rates) apply, borrowers realise all the same tax benefits and features including residuals, payouts and balloons. Our pre-approved loans come with no obligation. If you attend HEMS with your finance confirmed and do not proceed to ordering equipment, the offer expires in the timeframe as advised when the loan is approved. Start planning how you would like your machinery loan structured using our [Equipment Finance Calculator](/calculator). **To have your machine finance approved and confirmed prior to the Heavy Equipment and Machinery Show in Brisbane, 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.* **Categories:** Buying Tips --- ### [John Deere Harvester Efficiency & Automation Updates](https://www.jadeequipmentfinance.com.au/blog/john-deere-harvester-efficiency-automation-updates) **Published:** April 23, 2025 **Author:** Publisher **Excerpt:** John Deere recently announced updates for 2025 models and included on 2026 models, with automation and efficiency to boost Australian farm productivity. **Content:** John Deere recently announced updates for 2025 models and included on 2026 models, with automation and efficiency to boost Australian farm productivity. These new features are designed to assist farmers to achieve better productivity with less intervention required by the machine operator. Improving productivity can be key to increasing profitability and these updates may be an ideal consideration for your business. Deere’s Marketing Manager, Royce Bell said that the update would unlock the company’s combine harvesters’ full potential whether in crop variability, weed detection or with unloading grain. Assisting farmers to optimise their work time fully, especially where tight windows for harvesting exist. ## [John Deere](https://www.deere.com.au/en/ "John Deere") Automation Updates The automation updates include predictive ground speed automation where the speed adjusts automatically to the terrain. Prior to this automation, when working in sensitive areas, the auto feature needed to be disengaged. It can now be used with many crops including lentils, beans, wheat, barley, soybean, corn and peas. Cameras mounted on the cab detect weeds in the crops. ## Productivity Enhancement from John Deere The company has incorporated updates to enhance productivity with less intervention by the machine operator on the models in the 2026 range. A feature which allows farmers to ensure the quality of their harvest is maintained, without as much concern for the experience of their machine operator. Another automation update is the AutoTrac Turn feature. This inclusion allows for ‘hands-free’ turning. The update automatically raises or lowers the front of the machine in response to triggers in the field. Reducing the possibility of starting a pass in the wrong position and missing crops. With Operations Centre updates, farmers can monitor harvesting via their mobiles. These updates include a number of features, some such as HarvestLab, which was previously only available on certain models. From the middle of this year, the company will be offering JD Link Boost to Australian customers. A solution which enables operators to use the features where mobile reception is poor. A kit which can be ‘field-installed’ enables a machine to transmit the data in real time. Reducing issue diagnosing time and potentially, reducing any downtime for repairs. ## New John Deere Equipment A new 3-piece CAM reel has been released by the company to provide operators with the ability to capture as much of their crop as possible This front-end feature has dense pack fingers which provide for optimum performance with crops that can pose a challenge, including pulses. Upgrades have also been made inside the cab. The 2026 model harvesters include an instructor seat which flips out of the way to use as a shelf when not required. These new models also have a dual USB-C charging module. ## Acquiring John Deere Upgrades with Finance To discuss what upgrades are available for your current harvester machinery, contact your JD dealer or catch up with them at an upcoming field day. We may have solutions to finance acquiring upgrades to existing machines that would suit these new automation features. Enabling current JD harvester owners to take full advantage of the efficiency and productivity gains on offer. Upgrades that involve installing new software and technical systems onto existing machinery would not generally be considered as acceptable loan collateral and may have a low value for asset acquisition credit facilities. We can offer operators [Unsecured Business Loans](/unsecured-business-loans) which can be used for a many general business expenses. Brief one of our brokers on what the upgrade purchase entails and we will advise the most suitable loan, source the best quote, and arrange the financing for you. ## John Deere 2026 Model Harvester and Header Finance Options Operators considering securing a [new Deere harvester](https://www.deere.com.au/en/harvesting/combine-harvesters/ "new Deere harvester") from the 2026 range which include the upgrades as recently announced, can speak with us at any time about financing. Financing new assets is available with [Chattel Mortgage](/chattel-mortgage), Leasing, Rent-to-Own, and Hire Purchase. Planning to take on finance can start well ahead of the purchase using our current interest rates as a guide. Use the Finance Calculator to work up estimates and loan structure preferences based on the pricing obtained from Deere. With the markets tipping the Reserve Bank to announce cash rate cuts this year, we may see our lenders cut their asset finance rates in response. s Pre-approved loans can be secured closer to the purchase timing and will be quoted on the best current rates we can secure from our large lender selection. Loans are available for all types of agricultural machinery, equipment and tech systems. **To discuss financing the purchase of the new John Deere harvester upgrades for your machines, 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.* **Categories:** Buying Tips --- ### [Are you ready to order at Food and Hospitality Week?](https://www.jadeequipmentfinance.com.au/blog/are-you-ready-to-order-at-food-and-hospitality-week) **Published:** April 28, 2025 **Author:** Publisher **Excerpt:** Food and Hospitality Week, 18-20 May Melbourne, combines four key industry shows, providing opportunities to see and order new equipment, technology and systems. **Content:** Food and Hospitality Week, 18-20 May Melbourne, combines four key industry shows, providing opportunities to see and order new equipment, technology and systems. This [must-attend event](https://fhweek.com.au/ "must-attend event") for the industry combines the Foodservice Australia Show, [Commercial Kitchen Show](https://commercialkitchenshow.com.au/ "Commercial Kitchen Show"), Restaurant Technology Show, and the Pizza Pasta and Italian Food Show. The combining of all these popular shows in the one location over the same days, offers operators across the industry the opportunity to be introduced to new innovations and be inspired with new ideas and equipment for their business. Described by organisers as a ‘landmark event’, the expo includes a trade show, social activities and a conference element. An event for restaurants, pubs, cafes, takeaways, food production and processing, hotels, in-house kitchens, caterers, suppliers, cleaners, and others across the entire sector. [Registration](https://fhweek.com.au/registration-pricing/ "Registration") includes one ticket to cover all four shows with the event being held at the Melbourne Convention and Exhibition Centre from 18 to 20 May 2025. Equipment, technology, systems, uniforms and many other goods required by the industry will be showcased by exhibitors. For businesses wanting to be ready to place an order at the event, speak with us about arranging financing ahead of the date. ## Food and Hospitality Week Exhibitors An impressive [line-up of exhibitors](https://foodserviceaustralia.com.au/exhibitor-list/#site=all.commercial-kitchen-show.food.pizza-pasta-show.restaurant-technology-show "line-up of exhibitors") is set to showcase a wide range of goods, equipment and ingredients. Technology systems are particularly showcased with systems for food safety, efficiency in ordering, point of sale, accounts, procurement and inventory management software and systems, payroll, compliance and other requirements. For businesses interested in installing new software systems, loans can be secured to cover these expenses. Exhibitors include Euroquip, Bidfood, Amore Catering Equipment, JL Lennard, Konen, Dynamic Catering Equipment, HIT Equipment, Baker Refrigeration, Prestige Modular Coolrooms and Freezers, Alsco Uniforms, CTB, CBS Foodtech, Brizo FoodMetrics, METAPOS, LG Electronics, and many more. ## Financing Support for Hospitality, Food Service Industry We fully understand that the hospitality sector is being particularly impacted at the moment as customers cut back on dining out with current cost-of-living pressures. Whether in pubs, clubs and restaurants, at local cafes and takeaways, or in the catering and events sector, many operators are doing it tough. We know that any decision to upgrade or replace systems and equipment will be a major one and one that must be financed affordably. We support the hospitality sector with specialist services to source the most competitive interest rate loans and structure solutions that do not pressure cash flow. Supporting operators to acquire and install the equipment and systems they need for their business. To finance assets such as equipment, machines and tech systems, operators have their choice of asset acquisition credit facilities. These include [Chattel Mortgage](/chattel-mortgage), Lease, Rent-to-Own and Commercial Hire Purchase. Leasing can be extremely attractive to businesses that need to upgrade equipment quite regularly and for those that do not want large assets posted to their balance sheet. Chattel Mortgage, at the lowest interest rate in asset finance products, can offer a very affordable solution for assets that are held over a longer term. Discussing the credit facilities and their suitability to an individual business with an accountant is highly recommended. Asset finance is secured at a fixed rate of interest and over a fixed repayment term to provide a fixed monthly repayment schedule. All credit product features such as balloons, residuals, and tax deductions are available when arranging finance through Jade. The Food and Hospitality Week shows include exhibitors of many non-asset goods and services, such as uniforms, software, and other systems. Loans are available for these expenses through Unsecured [Business Loans](/unsecured-business-loans) and Lender Overdrafts. We have a large selection of lenders that includes the major banks as well as specialist hospitality sector non-bank lenders. While your Jade broker will be selecting the lender that is best aligned with your business profile, we will handle negotiations through your bank if preferred. ## Get Financing to Order at Food and Hospitality Week To be ready to place an order for new machines, equipment and tech systems at the shows, business owners can apply for loans ahead of the event. Pre-approved loans involve being approved by a lender for a given loan amount before the goods are purchased. Businesses estimate how much they will need for their loan and provide us with as much detail as possible on the goods to be financed. We process the application to the conditional approval stage and finalise the specifics after the purchase is made. If no purchase is made, any offer simply expires at the end of the validity period. ## Budgeting for Hospitality, Kitchen Equipment To prepare a loan budget ahead of the show, use our [Finance Calculator](/calculator). This device can also be used while at the show to obtain loan estimates while discussing pricing with exhibitors. **To discuss your equipment, tech and systems finance options before Food and Hospitality Week, 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.* **Categories:** Buying Tips --- ### [Guide to 2024 Equipment Finance Tax Deductions](https://www.jadeequipmentfinance.com.au/blog/guide-to-2024-equipment-finance-tax-deductions) **Published:** January 23, 2024 **Author:** Publisher **Content:** While the focus for tax can be either at the start of a new financial year or in a last-minute rush towards the end of one, the start of the calendar year can be an ideal time to review options and opportunities. For businesses considering investing in new machinery and plant to upgrade and boost the operation, being across current equipment finance tax deductions can form an important part of the funding process. Realising maximum allowable deductions and benefits can reduce the overall costs and tax payable by the business. Business tax rulings typically cover a financial year – 1 July to 30 June. Changes to tax rulings are typically made by the Federal Government in the Annual Budget, brought down in May and effective when the Budget Act is passed into law. The intention being for changes to come into effect from 1 July in the specified year. An exception to this was with the introduction of IAWO/temporary full expensing as a COVID business support measure. This measure ended at the end of the last financial year. But a new measure was announced by the Federal Government in the Budget – 2023/24 [Instant Asset Write-Off](https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/small-business-support-20000-dollar-instant-asset-write-off "Find out more about Instant Asset Write-Off eligibility") for small businesses on assets up to $20,000. It appears this has not yet been passed into law with the Bill still before Parliament according to the latest ATO update. However, deductions are still available on asset acquisitions for all types of businesses under the usual regulations. **With experienced brokers across the latest rulings, Jade Equipment Finance assists business to optimise equipment finance tax deductions with customised loans**. ## Optimising Equipment Finance Tax Benefits – Choice of Credit Facility There are four main commercial lending products which businesses can use to fund asset purchases – Chattel Mortgage, Lease, Commercial Hire Purchase, Leasing and Rent-to-Own. There are differences in the way that tax – both GST and income, is treated with the credit product. So the choice of loan type is an important consideration to achieving a tax-optimised solution. But the deductible benefits may not necessarily be the key to the choice. The accounting method used by the business can be a deciding factor. Chattel Mortgage and CHP are compatible with the cash method of accounting and Leasing, Rent-to-Own and CHP compatible with the accruals method. Speak with your accountant as to which loan type is the best match with the accounting method used to prepare your annual accounts. ## Treatment of GST with Equipment Finance How the GST charged on a machinery purchase can be claimed by the business varies with lending products. With CHP and Chattel Mortgage, businesses can claim the full amount of GST charged on the purchase on the next BAS return after purchase. Businesses acquiring new machinery with these forms of credit can benefit with a significant GST deduction on their quarterly or annual return which may ease cash flow. As the entire amount has been claimed, no further GST is claimable on that acquisition. With Lease and Rent-to-Own the GST is applied to the monthly payments. This can then be claimed on the corresponding BAS returns over the full term of the funding. GST is not charged on interest payable on any forms of commercial asset acquisition credit. Of course, GST can only be claimed by entities that are registered for GST. This is not essential to getting approved for a machinery loan, but may be preferred by lenders and may deliver benefits to the entity. Small and new businesses can review how to apply and what is involved at [Business.gov.au](https://business.gov.au/registrations/register-for-taxes/register-for-goods-and-services-tax-gst "Business.gov.au")[.](https://business.gov.au/registrations/register-for-taxes/register-for-goods-and-services-tax-gst) ## Chattel Mortgage Equipment Finance Tax Deductions [Chattel Mortgage for equipment](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Get started with our Chattel Mortgage solutions for equipment") is one of the most popular forms of machinery funding as it suits the cash accounting method and is a secured form of credit. Tax deductions are realised with this form of credit through deductible interest portions of the repayments and through the asset depreciation allowance each year. Lender fees and charges are also typically deductible. The balance of repayments, ex interest, are not deductible. ## Deductible Elements of Equipment Lease and Rent-to-Own Leasing and [equipment Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "equipment purchase through renting") are off balance sheet lending products and as such, the assets cannot be depreciated by the borrowing business. These forms of credit have fully deductible monthly payments which would include the interest payable and any lending charges applicable. This simple format makes it easy to work out what benefits would be derived from an acquisition with these types of funding. ## Expert Assistance in Tax-Optimised Equipment Finance Our brokers stay up to date with all ATO rulings in regard to asset funding deductions. We will structure your funding solution to meet the requirements of your particular entity and your objectives. To start maximising your benefits in this financial year, speak with us about funding options for your upcoming acquisitions. **For loans that optimise equipment finance tax deductions, 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.* **Categories:** Finance --- ### [How to Minimise Monthly Outgoings with Lower Equipment Finance Payments](https://www.jadeequipmentfinance.com.au/blog/how-to-minimise-monthly-outgoings-with-lower-equipment-finance-payments) **Published:** January 23, 2024 **Author:** Publisher **Content:** While inflation is falling with each monthly CPI Index release from the [Australian Bureau of Statistics (ABS)](http://www.abs.gov.au "Australian Bureau of Statistics (ABS): Your Data Source for Australia's Insights") recently, prices across many sectors still remain high, placing pressures on households and businesses. High fuel and energy prices as well as materials and labour, presented challenges for many businesses to minimise their monthly outgoings to maximise returns. When an investment in new machines or other assets is required, achieving lower equipment finance payments will be a priority. Committing to credit with repayments that stress cash flow can lead to a range of issues for all types of enterprises. As experts in commercial lending, we work with operators of all sizes and all types to structure machinery funding solution with repayment schedules that will work with cash flow and keep monthly commitments on target. ## Get Lower Equipment Finance Payments from the Get-Go Acquiring new assets with funding provides the opportunity to achieve the target repayment level from the get-go. By using our buying tools including the [loan equipment calculator](https://www.jadeequipmentfinance.com.au/calculator "Equipment Loan Calculator: Calculate Your Equipment Financing Options"), operators can work out their preferences in loan term, balloon and credit total that calculate out to their targeted repayment level. Then comes the task of getting approved for that preferred credit structure. To achieve rates, terms and conditions that will deliver the target wanted by the operator, can start with the choice of lender. The criteria that lenders use to set rates on individual applications and to approve certain repayment terms and other conditions, varies across the market. Access to the most suitable lender is provided by using our specialist broker services with multiple lender accreditations in many key industry sectors. We know the matrix used by our lenders, ie what types of set-ups they offer the best rates to and what guidelines they use for approval, so we can quickly align our customers with the most suitable lender. ## Lower Rates Deliver Lower Equipment Finance Payments Monthly repayments are calculated with a combination of total borrowed, term and the interest rate. By far the interest rate is critical and the focal point both for our customers and for our brokers. Get approved for the lowest rate and that can flow-through to lower repayments. Rates vary across the sector, with the selection of commercial credit facilities, with the profile of the applicant and with new and used machinery. While our brokers negotiate for the lowest rates, operators can review their credit profile and position to see if these can be improved to increase the prospects of a better rate offer. When considering whether to purchase new or used, possibly request quotes for both options to compare the rates and repayments. Used models will typically have a lower purchase price and hence less required in borrowings, but may attract a higher interest rate. Having quotes for both options may assist with the buying decision and the funding outcome. Chattel Mortgage and CHP attract lower rates than Leasing and Rent-to-Own. Operators may discuss the choice with their accountant to see if one of the lower rate options will work with their accounting practices and objectives. Commercial Hire Purchase is compatible with both the accruals and the cash accounting methods so may be an option to consider against Leasing and Rent-to-Own. ## Get Expert Support to Structure Loans for Lower Repayments With multiple elements working together to determine the monthly repayment, funding structure is critical to the monthly commitment. To keep this amount down to the minimum, operators can consider the amount requested, the term and the balloon. A change to either or several of these will change the repayment amount. Our brokers will work with you and negotiate with our lenders to achieve the optimum solution. ## Refinancing to Achieve Lower Equipment Finance Payments For operators mid-way through a funding arrangement with repayments that are pressuring cash flow, [business equipment refinancing](https://www.jadeequipmentfinance.com.au/equipment-refinancing "business equipment refinancing") may be an option to consider. While many operators seek to refinance for a lower interest rate, a lower monthly outgoing is an equally important and much-sought objective. The interest rate on the refinanced credit will be based on current rates, not the rates that were applicable when the current loan was secured. For loans secured during the historic low rate period in 2020-2021, this will likely mean a higher rate. The [RBA](http://www.rba.gov.au "RBA") is tipped to hold the cash rate steady in the near future, so the rate environment may be seen as more stable than in the past few years making it somewhat easier for operators to plan financing. While the rate on refinancing may be higher than for the original purchase, the amount required to pay out the existing loan may be less than the original amount and the term and balloon may also be reviewed to achieve a target lower monthly repayment. If machinery payments are weighing your business down or if you are planning new investments, we do have a wide range of products and services and the capabilities to support operators achieve their lending objectives. **To minimise monthly outgoings with lower equipment finance payments contact Jade Equipment Finance on 1300 000 003 to discuss the options.** *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.* **Categories:** Finance --- ### [Diarise Dates, Consider Farming Machinery Finance for 2024 Field Days & Events  ](https://www.jadeequipmentfinance.com.au/blog/diarise-dates-consider-farming-machinery-finance-for-2024-field-days-events) **Published:** February 6, 2024 **Author:** Publisher **Content:** The annual farming and agricultural events schedule, which includes 2024 field days, has already started. In the next few months there are events happening across several states and territories. While the content – exhibitors, activities, sessions, can vary with each show, many can present opportunities to see demos of new machinery. The ideal setting to speak with representatives on how that machine may work in the specific region, with a particular crop and in a certain application. With the opportunities for demonstrations can also come the chance to place an order. All this, often available in the local area. Eliminating the time-consuming need to travel to a larger town for a machinery dealership to investigate what’s available. Taking full advantage of having reps in the local area to place machine orders at these events, requires having financing in place. Earmark the dates of events accessible to you and speak with us ahead of the date about get approved for funding to place an order. Save time, save hassle and possible save with show specials. ## First Half Year 2024 Field Day and Events The annual calendar of agricultural and farming events is extensive. We note just some of the dates to diarise in the coming months. The expos and shows listed may allow operators to acquire new machinery to realise relevant tax deductions in this current financial year. The details provided are as per our research at time of writing. We strongly advise those considering attending to check in with the event website to confirm dates and times and find out more about ticketing. - February 23-25, Royal Canberra Show, Exhibition Park. - March 5-7, [Wimmera Machinery Field Days](https://wimmerafielddays.com.au/ "Wimmera Machinery Field Days"), Longerenong Victoria. - March 8-9, Wagin Woolorama, Wagin WA. - March 15-16, South East Field Days, Lucindale SA. - March 22-24, Farm World, Lardner Victoria. - March 22 – April 2, Sydney Royal Easter Show, Sydney Showgrounds. - April 5-6, East Gippsland Field Days, Bairnsdale Aerodrome, Bairnsdale Victoria. - April 12-14, Seymour Alternative Farming Expo, Kings Park, Seymour Victoria. - April 12-14, [National Diesel Dirt and Turf Expo](https://www.dieseldirtandturf.com.au/ "National Diesel Dirt and Turf Expo"), Sydney Dragway, Eastern Creek NSW. This show will be of interest in operators across multiple industries. It is billed as Australia’s largest construction expo with Pickles Auctions conducting a live auction of machinery at the event. Mark the auction time – 1pm 12 April and get in touch with us in March to lock in your credit so you can bid on the day. - April 17-19, FutureAG Expo, Melbourne Showgrounds. - May 2-4, Agfest Field Days, Quercus Park, Carrick, Tasmania. - May 10-11, Riverina Field Days, Griffith Showgrounds, Griffith NSW. - June 4-6, FarmFest, 11465 Warrego Highway, Kingsthorpe QLD. ## Planning Machinery Finance for 2024 Field Days As noted, many of these events and shows will have machinery manufacturers exhibiting their latest models and providing customer demos. For agricultural operators planning to order at an upcoming event, it can be advisable to be prepared with pre-approved funding. This can save time down the track and is a straightforward process. **Jade Equipment Finance provides pre-approved low rate machinery finance to assist agricultural and farming operators to be prepared to order at 2024 field days.** Pre-approved credit follows the same process and attracts the same interest rates post-purchase funding. But pre-approval can have additional benefits in convenience, budgeting and planning. Ordering at an expo or show with pre-approved funding rather than inspect at the show and have to visit a dealership later, after arranging funding can be a major time-saver. Pre-approval can also allow buyers to capture event special discounts, speed up delivery times, secure limited stock lines and be one of the first with the latest models and machines. Pre-approval is available on all [commercial equipment loan options](https://www.jadeequipmentfinance.com.au/farm-machinery-and-agricultural-equipment-loans "Business Financing for equipment") for all types of operators – small, SME, sole traders, companies and family enterprises. Once approved, buyers have a set timeframe within which they can take up the offer. There is no obligation to proceed if the right machine is not available at the event. This is definitely an option that agricultural operators should consider ahead of the upcoming events and expos. ## Comparing Rates for Pre-approved Finance Interest rates on pre-approved credit are at the rates relevant at the time of application and relevant to the credit profile of the applicant. When comparing [commercial equipment loan rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Access our information on favorable equipment loan rates") some time before applying for funding, consideration should be given to what may happen in the rates market in the interim. The Reserve Bank starts it’s 2024 cash rate decision process on 5-6 February with meetings for 2024 each 6 weeks. That is a change from the monthly meeting schedule and has been brought about by the RBA Review of 2023. That means a number of cash rate decisions are scheduled prior to say the May and June events. Should the RBA decide to cut or raise the cash rate at any of these meetings, there is potential for machinery lenders to also change their rates. Keeping this in mind when comparing rates and calculating estimates may provide more accurate budgeting. **For pre-approved farming machinery finance for 2024 Field Days & Events contact Jade Equipment Finance on 1300 000 003 for quotes.** *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.* **Categories:** Finance --- ### [Harvesting Success: The impact of machinery loans on agricultural growth](https://www.jadeequipmentfinance.com.au/blog/harvesting-success-the-impact-of-machinery-loans-on-agricultural-growth) **Published:** June 17, 2024 **Author:** Publisher **Content:** ## Opening thoughts Efficiency is a concept that all industries in our fast-paced world strive for. Each day, individuals and business owners across the globe ask themselves, how can we do this better? Agriculture is no different, with heavy machinery a key piece of equipment for farming productivity and efficiency. However, obtaining this equipment is often a very expensive undertaking and this is where the importance of [heavy machinery loans](https://www.jadeequipmentfinance.com.au/machinery-finance) comes into focus. If you’re an agricultural professional looking to bolster your productivity with high-quality equipment, heavy machinery financing is a strategic move that could have a huge impact on your business’ growth and profitability. In this guide we will uncover the significance of heavy machinery and what an agricultural equipment loan could provide for farmers. ## What is the significance of heavy machinery in modern agriculture? Heavy machinery is an important part of any agricultural business. It includes farming equipment like tractors and harvesters that significantly increase the efficiency of agricultural operations. Heavy machinery is designed to perform specific tasks with precision while cultivating larger areas and harvesting more crops in less time. In addition to increasing crop yields and speeding up the entire process, with the right equipment, farmers can also often enjoy consistency, safety, and reduced costs – three integral cogs in the wheel of agricultural business growth. As the demands of the modern farming industry continue to grow, the benefit of investing in heavy machinery is obvious. By investing in upgraded tools for your farm, a myriad of benefits could await you. One of the key ways to do this is by obtaining an agricultural equipment loan. ## Benefits of a heavy machinery loan ### **Faster access to cutting-edge technology** Improved technology is the key to bolstering productivity and efficiency in the modern world. In the farming industry, some of the tools that have been providing these game-changing benefits include GPS-guided tractors, automated irrigation systems, [aerial crop imaging](https://www.jadeequipmentfinance.com.au/aircraft-and-aviation-financing), and remote monitoring. However, the price tag on this state-of-the-art equipment is eye-watering, which is why agricultural equipment financing is so important. By securing a heavy machinery loan, business owners and individuals are able to use the latest farming equipment straightaway without exhausting capital on huge upfront costs. With the seasonal nature of the farming industry, maintaining capital for unexpected costs is extremely important. ### **Improved cash flow management** Cash flow ebbs and flows are directly linked to the seasons, weather, and market prices in the farming sector. This fluctuation can make it risky for farmers to make financial decisions like purchasing expensive equipment upfront. However, by financing agricultural equipment, individuals and business owners are provided with the opportunity to spread the cost of the machinery over an extended period of time. This eliminates the need for a large upfront payment, and can enable them to preserve savings and income for other pressing needs or unexpected expenses. ### **Predictable expenses** Stability and financial foresight is a welcomed advantage in any business. By securing an agricultural loan for a costly machinery purchase, the large expense is transformed into regular, scheduled payments which are much easier to plan for. A heavy machinery loan enables farmers to determine how much they owe each month, resulting in less financial stress and more financial foresight to help them allocate resources effectively. ### **Opportunities for tax benefits** Purchasing agricultural equipment outright may seem more simple, however, by financing a piece of machinery, you could unlock some unique tax benefits. Depending on the type of loan you choose and your location, certain aspects of the purchase may be tax-deductible – like the cost of the equipment or the interest. To determine the potential tax benefits you could obtain by equipment financing, speak to your tax adviser or accountant. ### **Maintenance and upgrading** Equipment and machinery in agriculture is an ever-evolving industry. The must-have technology of a few years ago is likely already outdated. This can be a financial burden if you’ve purchased machinery outright. However, by entering a financing arrangement, like leasing, often there are provisions for maintenance and upgrades. By doing this, you could consistently have the latest and most efficient technology at your disposal without financial strain. In addition, sometimes servicing and repairs are included in the loan provisions, which means if something goes wrong, you won’t have to cover the costs alone. ## Closing Thoughts For potential business and production growth, agricultural equipment financing is a powerful tool. It can provide you with the opportunity to not only build your business, but also stay competitive and manage your financial health. The benefits of a heavy machinery financing – like control over cash flow, access to advanced technology, predictable expenses, tax benefits, and maintenance advantages – are multitudinal and could help unlock the efficiency dreams you’re after. When looking for a heavy machinery loan, it’s important to use a broker who specialises in the farming industry who may offer terms and conditions tailored to the needs of the agricultural sector. To determine if an agricultural equipment loan is the right investment for you, [consult with an expert](https://www.jadeequipmentfinance.com.au/contact-us) to see how it could serve your long-term business vision and goals. ## Heavy machinery finance is ‘in our DNA’. Finance your heavy vehicle today with JADE Finance. As the go-to finance broker when it comes to getting a great deal for the full range of heavy machinery – Jade Equipment Finance has a number of [loan options for Australian Businesses](https://www.jadeequipmentfinance.com.au/equipment-finance-australia) that could work for you. We have several expert brokers who operate exclusively in this sector and have done so for a very long time. Our consultants not only know finance, they are also well informed about the heavy machinery, trucking and the transport sector. Our list of lenders is extensive and we will work hard to source you the very best deal available – from [tractor finance](https://www.jadeequipmentfinance.com.au/tractor-loans), [agricultural farm machinery loans](https://www.jadeequipmentfinance.com.au/farm-machinery-and-agricultural-equipment-loans), [diggers](https://www.jadeequipmentfinance.com.au/digger-finance), [excavators ](https://www.jadeequipmentfinance.com.au/excavator-loans)and more. To talk to one of our experienced brokers, call us on 1300 000 003 or [Request a Quote](https://www.jadeequipmentfinance.com.au/approval). **Categories:** Finance --- ### [Get agricultural machinery finance confirmed ahead of AgQuip 2024](https://www.jadeequipmentfinance.com.au/blog/get-agricultural-machinery-finance-confirmed-ahead-of-agquip-2024) **Published:** July 22, 2024 **Author:** Publisher **Excerpt:** Operators intending to order machinery at AgQuip 2024 can secure financing approval through Jade Equipment Finance in the lead-up to the event. **Content:** It is now less than a month out to most anticipated annual event on the agricultural industry calendar – [AgQuip](https://acmruralevents.com.au/agquip/home). The premier field days for primary industries, and the ideal opportunity for operators across the sector to catch up on the latest products and innovations with machinery manufacturers. Catch up and order new farm machinery and equipment! Ordering equipment at field days is convenient in saving operators time in visiting showrooms and dealers on another occasion and can speed up delivery of necessary machinery. Visitors to AgQuip can expect the big names in the agri business to be on hand to showcase their latest releases to support operators to achieve greater efficiencies and productivity. But in order to be ready to place that order, most business owners will be looking to have the financing confirmed. Machinery loans already organised and locked-in can provide confidence to proceed to place the order and to be in a position to purchase units in a price category that meets their approved loan limits. Pre-arranged finance may also allow buyers to take advantage of any discounts that manufacturers may be offering for orders placed at the field days. Operators intending to order machinery at AgQuip 2024 can secure financing approval through Jade Equipment Finance in the lead-up to the event. Pre-approved machinery financing still attracts our highly [competitive interest rates](/equipment-finance-interest-rates), individually negotiated terms, and tailored solutions. ## Getting Pre AgQuip Approved Machinery Finance For operators that have always sourced financing after rather than before machinery selection and purchase, be assured, our same level of service, low rates and individual attention apply. Financing is available through Jade for a wide range of assets used in the agricultural sector. These can include machinery and tools as well as IT and tech systems. Keep that in mind when browsing the exhibitor listing for AgQuip. The same credit facilities apply to pre-approved machinery loans. Operators still select the most appropriate loan product from [Chattel Mortgage](/chattel-mortgage), Leasing, Rent-to-Own and Hire Purchase. Balloons, residuals, buybacks and relevant tax deductions apply. ## Details Required for Pre-Purchase Finance Approval The major difference between finance applications before and after purchase is providing specific details of the machinery and the exact loan amount needed. While some operators will have an idea of what they intend to purchase, the exact details would not be available when applying for finance before purchase. In some cases, the exact price and hence finance total required is also not available. To complete the pre-approval application and secure conditional approval, our brokers discuss individual plans with clients and obtain an indication of the machinery and the estimated loan needed. When estimating the total loan required, don’t forget to include the cost of the attachments and accessories which may be needed with the machine. We can usually include these expenses in the machinery finance when purchased concurrently with the machine. This can be sufficient information, along with the business credentials, for our brokers to secure approval on the most attractive finance offer. Finance offers made prior to purchase are valid for a set period of time after which they expire, without obligation. Allowing operators the flexibility to have their loan confirmed but make final decisions after inspecting the units at AgQuip. Alternatively, giving the acquisition further thought after the show, and proceeding to order with the dealer by phone post-show. When final details of the purchase are supplied with the dealer invoice, we can amend the loan offer accordingly. ## Applying for Machinery Finance Prior to Purchase Applications for finance prior to purchase can be made online or by phone with one of our brokers. Options include applying for a loan on a specific item of machinery or for a credit limit to acquire new assets TBA. A more general credit approval can allow for those purchases on items seen at the event but perhaps not previously considered. Many approvals are received within 24 hours, catering for those last minute decisions to attend and buy at AgQuip. For pre-application planning, use our [Machinery Finance Calculator](/calculator) to work up estimates, compare the different makes and models available, and set preferred terms and repayment parameters. ## AgQuip Event Details Over 100,000 visitors are expected over the 3 days of this year’s field days. So pre-planning your visit can be essential. AgQuip will be held from Tuesday 20 August through to Thursday 22 August at Gunnedah in NSW. Gates are open from 8.30am to 4.30pm on Tuesday and Wednesday and close at 4pm on the Thursday. Parking on site opens at 7.30am. Tickets can be arranged by visiting the event website. This major industry event only comes around once a year. Don’t miss your opportunity to not only attend, but to order new machinery and equipment to support growth in your operation. Apply for financing with Jade to ensure that purchase is cost-effective and affordable with finance tailored to your specific requirements. **To update your computers and IT systems with financing, contact Jade Equipment Finance on 1300 000 003 to discuss a workable loan package.** *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.* **Categories:** Buying Tips --- ### [What are the best equipment loan tax deductions? Comparing depreciation with deductible repayments.](https://www.jadeequipmentfinance.com.au/blog/what-are-the-best-equipment-loan-tax-deductions-comparing-depreciation-with-deductible-repayments) **Published:** September 30, 2024 **Author:** Publisher **Excerpt:** Jade Equipment Finances provides a brief comparisons of equipment loan tax deductions to assist operators better understand and select their finance product. **Content:** Business owners have an expectation that when acquiring assets for their operation, the cost would be considered an expense and as such, a tax deduction. Operators expect that they can ‘write-off’ expenses incurred by their business. But when it comes to the costs associated with asset finance, equipment loan tax deductions vary with the different credit facilities available. Some commercial credit products allow for the loan repayments to be fully deductible. While with other products, the deduction is realised not from the repayments but through depreciating the equipment over time. So, which is the best credit product for deductions? In addressing that issue, Jade Equipment Finances provides a brief comparisons of equipment loan tax deductions to assist operators better understand and select their finance product. ## Equipment Finance Deductions – Basic Explainer There are four main types of asset acquisition credit facilities – Chattel Mortgage, Lease, Rent-to-Own and Commercial Hire Purchase. Across this selection there are two ways that businesses can realise a tax deduction on their asset acquisitions – through depreciating the asset and through a straight deduction of the monthly loan payments. With [Lease](/asset-lease) and Rent-to-Own, the Australian Tax Office (ATO) recognises the monthly repayments as an expense for the business, allowing the full amount to be deducted. With Commercial Hire Purchase and [Chattel Mortgage](/chattel-mortgage), the main tax deduction is realised through the depreciation of the asset over the effective life of the equipment. With both approaches, the deduction is made when the accountant prepares the annual tax return for the business, and the annual accounts. ## Depreciation as Equipment Loan Tax Deductions While deducting repayments is straightforward, depreciation is not as simple and possibly not as widely understood. The exception being when the Federal Government introduced Instant Asset Write-Off as a COVID stimulus measure. Many businesses took advantage of this measure to ‘write-off’, or depreciate, the full amount of the acquisition in the same year it was purchased. Under normal depreciation rulings, only a portion of the value of the asset is allowed as a tax deduction each year. Depreciation is the devaluation of an asset over its effective life. The computations to calculate annual depreciated value are somewhat complex. The [ATO](https://www.ato.gov.au/forms-and-instructions/depreciating-assets-guide-2024) details how this is calculated for those interested in learning more. There are two methods plus simplified rulings for small businesses. As a basic explanation, depreciation is the value based on the purchase cost of the equipment, whether it be new or second-hand, at the time of acquisition. If a downpayment is made, the value to be used for depreciation is the total purchase cost, not the loan amount required. The start time for the depreciation schedule is the first time the equipment is used. For most businesses, this will be the date of purchase or finance settlement. An ‘effective life’ is established for the equipment to determine over what time period the goods will be depreciated. The method selected is then used to calculate the depreciative value each year, which is then deducted from taxable income. The depreciative value is deducted from the total value for the ensuing year. The total value and the depreciative value decrease each year until the equipment is fully depreciated or expended. ## Equipment Loan Tax Deductions Compared Comparing tax deductions – either deducting the repayments or deducting the depreciative value, and the end result will essentially be the same. Over a Leasing or Rent-to-Own term and when the residual is finalised and deducted, the full purchase cost of the goods will be realised by the business as a deduction. With Chattel Mortgage and CHP, the full value of the goods will also be released as a deduction, but likely over a longer timeframe. If say a finance term is for 7 years but the effective working life of the equipment is 10 years, the deductions will be made over 10 years not 7. These forms of finance also allow for the interest applied to monthly repayments to be deducted annually. All commercial credit facilities allow for tax-deductible lender fees and charges. So, in comparing equipment loans based on tax deductions, the overall outcomes are equitable. ## Selecting the Right Equipment Finance Facility In selecting the equipment finance product, businesses should be looking at a range of issues, rather than focussing on the availability of tax deductions. One of the key deciders is the method of accounting used by the business to prepare the annual accounts. There are two methods – accruals and cash method. Different credit facilities are compatible with different accounting methods. Leasing and Rent-to-Own are compatible with the accruals method, Chattel Mortgage is compatible with the cash method, and Commercial Hire Purchase can work with both. Another factor to consider is whether or not the business wants an asset the size of the equipment being purchased, posted in their books, on their balance sheet as an asset/liability. Some businesses can make a strategic decision to not have large assets on their books to improve the appearance of the balance sheet. This may be achieved with Lease and Rent-to-Own, where the lender retains ownership of the goods. As the business does not own the asset, it is not in a position to depreciate the asset to realise a tax deduction. Hence the deductible repayment method. With CHP and Chattel Mortgage, the business takes ownership of the equipment, posts the asset to their books, and depreciates the asset over time. To decide on the right form of credit to finance plant, machinery and equipment, we advise business owners to consult with their accountant. As a finance broker, our role focuses on sourcing the most affordable loans and structure solutions to optimise equipment loan tax deductions. **For cost-effective equipment loans, 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.* **Categories:** Buying Tips --- ### [Going out on your own does not mean doing it alone. Get expert support with new business equipment finance](https://www.jadeequipmentfinance.com.au/blog/new-business-equipment-financing-help) **Published:** November 11, 2024 **Author:** Publisher **Excerpt:** Individuals setting up their own new enterprise can directly access expert support to secure new business equipment finance through Jade Equipment Finance. **Content:** If you’ve been working very hard all year for your employer while harbouring plans to work for yourself, now could be the time to put those plans into action. Going out on your own can be a brave move. But bravado is not necessary. You don’t need to do it completely alone. Utilising available services and resources, especially with acquiring new business equipment finance, can be a very astute move. Starting and successfully operating a self-employed business in any industry sector can be challenging, with sourcing affordable loans one of the biggest setbacks. As specialists in asset acquisition financing, we support new operators with the lenders and the expertise to source the machinery financing they need to get their operation underway. ## New Business Equipment Finance: Overview A key difference between machinery loans for established and new enterprises is the documents provided in the loan application. A standard commercial loan application form requires operators to provide financials for their enterprise. These financials can include the annual and current accounts, bank statements, tax returns, BAS returns and other documents. Some lenders also require an enterprise to have been trading for a minimum of 12-24 months in order for businesses to be eligible for loan approval. While established businesses do have all these financials, a new operation typically does not. They require specialised loans which are referred to as Low Docs or No Docs – without or with less documentation or without financials. This description can also refer to enterprises that have been operating for less than 12 months. These types of loans are not usually offered through traditional lending channels such as the major banks. They are offered through specialised non-bank lending channels. Many of these lenders provide loan services via a network of selected brokers, which can include Jade Equipment Finance. ## Eligibility, Criteria and Conditions for New Business Equipment Finance While the basic description of loans for new enterprises is [No or Low Docs](/no-docs-low-docs-equipment-finance), there are eligibility requirements. Enterprises do need an Australian Business Number and ID. The approval criteria vary with individual lenders and may include providing 6 months of turnover figures. For operators in the very initial stages of setting up with no trading figures at all, our brokers work to secure workable financing from one of our 80+ lenders that does approve applications with no financials. New operators can expect different loan conditions compared with loans for established businesses. These can include the financials of the owner and their credit profile being included in the application assessment. Additional assets or a personal guarantee may need to be provided as loan collateral by the owner. There may be a limit placed on the borrowing which may require a deposit to be made on the machinery purchase. Interest rate differences typically apply due to the higher perceived risk of lending to a start-up. ## Choice of Commercial Credit Facilities for New Businesses While special criteria and conditions can apply to loans when starting up, the same credit facilities can be used as used by established businesses. [These facilities](/overview-of-equipment-loan-products) include Leasing, Rent-to-Own, Hire Purchase and Chattel Mortgage. Deciding which is the most suitable facility for a particular set-up involves assessing the features of each in relation to the accounting method to be used by the entity, the preferences in regard to posting major assets to the balance sheet, strategies around tax benefits, and taking into account the overall financial objectives of the enterprise. It is strongly advised that operators refer to an accountant to discuss how the accounts will be set-up and as such, which facility will work best for them. ## Eligible Assets for New Business Loans Commercial assets are broadly defined as any tangible items which are used in a commercial enterprise. That can include vehicles, plant, machinery, equipment, fixtures, fittings, IT and technical devices, and others. While conditions apply to the loan itself, new operators can apply for loans for a wide range of machinery. This can include backhoes, diggers, graders, skidsteers, cranes, engineering machinery, medical devices and equipment, IT and tech, and many more. The construction and earthmoving sectors can be extremely popular industries for contracting, and machines from major manufacturers such as CASE, [CAT](https://www.cat.com/en_AU.html), Bobcat and many others may be financed for new operators. ## Securing Expert Support for New Business Equipment Financing While there are special lending conditions and criteria for start-ups, there are no barriers or obstacles to accessing experts to support and secure the required loans. Individuals setting up their own new enterprise can directly access expert support to secure new business equipment finance through Jade Equipment Finance. No referral is needed to contact us or to use our specialist broker services. Just phone or request a quote to get started. Our brokers work closely with operators to understand their requirements and find which of our lenders is their best match. We handle sourcing and negotiating the financing and assisting with settlement. If your plan is to go out on your own in 2025, don’t do it alone. Connect with us for expert support and access to financing to get your operation happening and prospering. **For expert support and assistance with securing new business 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.* **Categories:** Buying Tips --- ### [The Tax Advantages of Financing Construction Equipment](https://www.jadeequipmentfinance.com.au/blog/tax-advantages-of-financing-construction-equipment) **Published:** December 4, 2024 **Author:** Publisher **Excerpt:** Discover tax benefits of financing construction equipment in Australia, including write-offs, depreciation, GST credits, and interest deductions. **Content:** Having a business in the construction industry is an expensive endeavour. Almost every purchase to help your business upgrade or grow is going to be an expensive one. And when it comes to equipment purchases, large investments are required. While buying upfront might seem much more straightforward, many industry players do not have piles of savings to sacrifice on one large purchase. There are a number of benefits to financing construction equipment over immediate purchase. Improved cash flow management, gaining up-to-date machinery without a hefty price tag, faster returns on investment, and the ability to preserve lines of credit. However, in this guide we will be discussing the huge **tax benefits** financing construction equipment can provide. Understanding the tax benefits of business equipment finance helps companies to make more informed decisions about their financing options, and maximise their financial resources. ![A tractor towing a hay bail trailer is driving up the road between farming paddocks](https://www.jadeequipmentfinance.com.au/wp-content/uploads/2024/12/image.png) ## Instant Asset Write-Off One of the key tax advantages of financing your construction machinery is the Instant Asset Write-Off scheme. The scheme allows eligible businesses to immediately deduct the cost of purchasing machinery up to a specified limit. The current regulations in Australia allow businesses with an annual turnover below the limit, to claim an immediate deduction for the business portion of the cost of an asset in the year it was first used/installed ready for use. By claiming the Instant Asset Write-Off on construction machinery financing can significantly reduce a business’ s taxable income and enhance its cash flow. ## Depreciation Deductions Under the Australian Taxation Office (ATO) guidelines, construction equipment will generally be eligible for depreciation deductions. This means, construction businesses can depreciate their financed equipment over its effective life, allowing them to spread the cost over a longer period of time. By depreciating the equipment, businesses are able to reduce their taxable income. This can be done by straight-line or diminishing value methods, with businesses selecting the method that will optimise their deductions. ## GST Benefits Businesses who choose to finance their construction machinery and equipment can also receive Goods and Services Tax benefits. For businesses registered for GST, they can claim input tax credits for the GST paid on the purchase price of the machinery. The benefit of this is that the cost of the equipment can be further reduced and cash flow can be improved. ## Tax Benefits of Interest and Fees When it comes to financing construction machinery and equipment, another benefit is that the interest paid on the loan is generally tax-deductible. This means that businesses can claim their interest expenses as deductions, thus reducing their overall tax liability. Loan fees like establishment fees and/or ongoing charges may also be deductible. ## Closing Thoughts Construction businesses can unlock a variety of financial benefits by informing themselves of the tax advantages that exist in equipment loans. Through Instant Asset Write-Off, depreciation deductions, GST input tax credits, and Interest deductions – businesses are able to better manage their tax liabilities to improve their financial situation. *Our expert brokers at Jade Equipment Finance recommend consulting with a tax professional to ensure your business is staying compliant with Australian regulations, and to try and optimise the tax strategies you are eligible for.* **Experts in Financing Construction Equipment – Jade Equipment Loans offers the cheapest interest rates available on the market.** Limiting your loan options to just one bank or one lender is limiting your business growth and investment opportunities. Jade Equipment Finance breaks those limitations by offering you more lenders, more options and more chances to reduce your financing costs. As the go-to finance broker when it comes to getting a great deal for the full range of construction machinery and equipment – Jade has a number of loan options for Australian businesses that could work for you. To talk to one of our experienced brokers, call us on [1300 000 003](tel:1300000003) or [Request a Quick Quote](https://www.jadeequipmentfinance.com.au/approval). **Categories:** Buying Tips --- ### [Financing options for construction equipment](https://www.jadeequipmentfinance.com.au/blog/financing-construction-equipment) **Published:** December 4, 2024 **Author:** Publisher **Excerpt:** Explore various construction equipment financing options to help your business stay competitive without heavy upfront costs. **Content:** As the number of commercial, residential, and industrial projects grow across the country, the amount of equipment construction companies require to stay competitive in the booming market, has also increased exponentially. Bulldozer, cranes, forklifts, graders, excavators, and more – Whether you’re working on a construction site or conducting road maintenance, there’s a wealth of construction equipment available to you. However, there’s one major hurdle to overcome – the price. You might be seeking a new piece of equipment for safety reasons, or maybe you want to make your project more efficient and tackle bigger tasks. Most construction businesses need equipment in order to operate. However, funding such substantial items can be impossible without financing. Fortunately, there is a wealth of financing options available on the lending market, making it possible for construction companies to get the equipment they need without shouldering the full burden of upfront costs. ## Equipment Leasing In construction equipment finance, equipment leasing involves a business renting machinery from a leasing company for a certain period of time, rather than buying it outright. In this arrangement, the leasing company will still have ownership of the equipment, but will receive monthly rental payments from the business over the lease term. At the end of the lease term, the business might have the option to return the equipment, purchase the equipment, or extend the lease. [Equipment leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Equipment Finance Lease | Machinery Leasing") is a good financing option because it requires less initial capital to buy, allowing businesses to preserve their cash flow. ## Equipment Chattel Mortgage A chattel mortgage for construction equipment finance is when the lender uses the construction equipment as security for the money extended in the loan. Under a [chattel mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Chattel Mortgage – Equipment Finance Loan") arrangement, the borrower will repay the loan in equal monthly repayments over a fixed loan term. By financing your construction equipment with chattel mortgage, you’ll be able to acquire necessary equipment without a significant upfront cost. Chattel mortgages can often include flexible terms, including a balloon payment option, making them ideal for optimising cash flow. ## Equipment Hire Purchase Financing construction equipment via equipment hire purchase involves a business buying construction equipment through a series of regular payments. [Equipment hire purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Equipment Loans – Commercial Hire Purchase (CHP)") is similar to leasing, however the business will own the equipment once all payments have been made. For this form of finance, an initial deposit will generally be made, followed by the fixed monthly payments over a specific period of time. During the hire purchase period, the business can use the equipment but does not own it until the final payments has been made. ## Unsecured Business Loan Option for Equipment Businesses wanting to acquire construction equipment without providing collateral, can do so via an [unsecured business loan](https://www.jadeequipmentfinance.com.au/unsecured-business-loans "Unsecured Business Loans | Finance Broker"). This financing option is ideal for businesses who don’t have substantial assets, or prefer not to put them at risk. Unsecured business loans are based on the creditworthiness and financial health of the business, and will often have higher interest rates. While this financing option is flexible and able to be obtained quickly, your business must have a strong credit profile to qualify. Unsecured business loans are suitable for construction businesses who want to maintain asset flexibility while acquiring the equipment they need. ## Learn More About Construction Equipment Finance with Jade Finance Are you looking to purchase or rent a piece of construction equipment for your next job or project? Jade Finance is a reputable and highly trusted brokerage in the Australian lending market, providing top-quality equipment finance via our extensive list of 80+ lenders and brokers. Our team of dedicated, experienced brokers are eager to help you get the most out of your purchase. [Contact us online](https://stage.jade.finance/free-finance-quote) to learn more about the financing options we provide, or [call us on 1300 000 003](tel:1300000003). **Categories:** Buying Tips --- ### [Be ready with machinery loans for ag events & field days 2025](https://www.jadeequipmentfinance.com.au/blog/plan-machinery-loans-field-days-2025) **Published:** January 6, 2025 **Author:** Publisher **Excerpt:** Agri operators looking to order equipment at field days 2025 can connect with Jade Equipment Finance to discuss for pre-arranged machinery loan options. **Content:** The dates are set for the major agricultural events and field days 2025. Time for operators to start planning their visits and considering their machinery loans to be ready to order on the day. These events are integral to the agricultural sector and present ideal opportunities for operators to see many new equipment models in the one place, discuss specifics with manufacturer’s agents, and place orders. We appreciate that agri operators need to plan their visits to these events in advance as they often involve travel as well as the need to organise others to look after their property and stock. To assist operators with advanced planning, we’ve collated a list of some of the events in the early part of the year along with information from our specialist brokers on pre-arranging machinery loans. Agri operators looking to order equipment at field days 2025 can connect with Jade Equipment Finance to discuss for pre-arranged machinery loan options. Our experts will assist with timelines on when best to apply for confirmed pre-approved finance and with pre-application credit limit confirmations. Information to streamline and simplify acquiring new machines with cost-effective finance. ## 2025 Field Days Calendar There are many agricultural sector events scheduled across Australia throughout the year. Several of the major events include AgQuip and the National Diesel Dirt and Turf Expo. Operators should also note that the Brisbane Truck Show in May also incorporates the Heavy Equipment and Machinery Show. [Details and ticketing](https://brisbanetruckshow.com.au/) for this event are already available so operators can see if any of the machines being exhibited will suit their application. In addition to these drawcard events, operators can also note the dates for shows in their state and local region. The calendar is so extensive, we’ve listed only a small selection, focussing on the early part of the year and the major events. Dates are as currently available, and we recommend visiting the event website to confirm dates, times, exhibitors and ticketing details. - 21-22 March, South-East Field Days, Lucindale, SA - 27-29 March, Farm World, Lardner, VIC. - 4-6 April, Seymour Alternative Farming Expo, Seymour, VIC - 11-12 April, East Gippsland Field Days, Bairnsdale, VIC - 1-3 May, Agfest Field Days, Carrick, TAS - 2-4 May, Tocal Field Days, Paterson, NSW - 15-17 May, Primex Field Days, Casino NSW - 16-18 May, [National Diesel Dirt and Turf Expo](https://www.dieseldirtandturf.com.au/) Eastern Creek Sydney, NSW - 15-18 May, Heavy Equipment and Machinery Show, Brisbane, QLD - 28-20 May, Rotary FNQ Field Days, Mareeba, QLD - 24 May-1 June, Casino Beef Week, Casino, NSW - 11-12 July, Mudgee Small Farm Field Days, Mudgee, NSW - 18-20 July, Australian Wool and Sheep Show, Bendigo, VIC - 19-21 August, [AgQuip Field Days](https://acmruralevents.com.au/agquip/home), Gunnedah, NSW - 27-28 August, Dowerin Machinery Field Days, Dowerin, WA - 23-25 September, Henty Machinery Field Days, Henty, NSW - 30 September – 2 October, Yorke Peninsula Field Days, Paskeville, SA - 23-26 October, Australian National Field Days, Borenore, NSW ## Planning Machinery Loans to Order at 2025 Field Days Advanced planning for machinery finance can commence well before placing the order or making the purchase. An important first decision is what is the most suitable credit facility. Agricultural machinery, and some accessories, may be financed with Chattel Mortgage, [Leasing](/chattel-mortgage), CHP and Rent-to-Own. Operators can have an early discussion with their accountant to decide if the same facility as used for previous acquisitions still suits the current structure and objectives of the business. [Interest rates](/equipment-finance-interest-rates) vary with different credit facilities and may change throughout the year, depending on RBA rate decisions. To work up loan estimates to compare credit facilities and machines based on current rates, use our [Finance Calculator](/calculator). Establishing how much an individual business is approved to borrow on a large asset can be important information to know in advance. This may impact the choice of make or model and may determine how much deposit the operator will need to have to make the purchase. We can assist by having the financials and credit profile of the operation assessed by the most suitable lender, and the credit limit conditionally approved. This conditional approval is subject to the financial position when the application is made. Pre-approved machinery loans can be secured in the lead-up to an event. The process is simple, following the same steps as applying for finance after a unit is purchased or selected. We secure the best offer with the most competitive rates from the most suitable lender, source from our large lender base. This offer is based on the estimated loan amount provided by the operator. The offer is valid for a set time period after which it simply expires if not used, without obligation. To find the right time to apply for pre-approved finance for the event you are attending, contact us online or by phone. Engage with us early and appreciate the benefits of having your individual broker working in your best interests. **To discuss machinery loans ahead of field days 2025, 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.* **Categories:** Buying Tips --- ### [New Agri ‘Robot’ Product – Croplands Autonomous Sprayer](https://www.jadeequipmentfinance.com.au/blog/financing-croplands-autonomous-sprayer) **Published:** January 20, 2025 **Author:** Publisher **Excerpt:** Croplands autonomous sprayer the Pinto, developed with SwarmFarm, is a newly launched optical spot spraying solution, fully integrated, to suit broadacre farms **Content:** With many operators in the agricultural sector facing labour shortages and seeking greater productivity while keeping costs down, autonomous machinery may be a workable solution. Croplands autonomous sprayer the Pinto, developed with SwarmFarm, is a newly launched optical spot spraying solution, fully integrated, to suit broadacre farms. The Pinto continues the company’s strong reputation and philosophy for quality engineering, functionality and simplicity. A ‘robot’ sprayer which may provide agricultural sector operators with a workable solution to contain costs and overcome labour issues. But for any new machinery to be a ‘solution’, the financing must also be functional. We showcase this new product and the affordable finance options we can offer to acquire the asset. ## [Croplands](https://croplands.com/au/) Autonomous Sprayer – Overview The company is known as a pioneer in known in Australia when it comes to autonomy in farm machinery and this latest product launch also looks like a winner for many operators. The Pinto features the company’s WEED-IT system which is a proven performers for many properties. The Robot Ready Pinto has a suspended gooseneck attachment with a 3000 litre tank and 18 metre and 24 metre booms. The unit is designed to integrate with SwarmBot, an autonomous unit from Swarm Farm. The company says it is ideal for broadacre property applications. Lachlan Coom, the Product Lead at the company said that the Pinto had been testing in different types of soil across different terrains in Queensland. Testing has been conducted in areas such as in the Darling Down’s heavy black soil areas. Mr Coom said the company was impressed with the stability of the boom and how the gooseneck operated. The company was also pleased with how the sprayer integrated with the robot at set-up. Features of the Pinto include a 18 metre or 24 metre boom, a 3 metre axle with suspension that is rubber block and unique suspension on the gooseneck. The unit is powered by a 83 hp Hatz 4-cylinder diesel with hydraulic drive. The main tank has a capacity of 3000 litres plus has a handwash tank. The extra tank may be used for flushing or for additional capacity. The wheel track is 3 metres which suits many crops, and the unit provide a 1 metre ground clearance. Mr Coom said that the company had designed the Pinto boom specifically to allow for twin line plumbing and sensors that point to the ground. This provides accurate delivery of the liquid. Features of the chassis include 1” stainless steel, triple nozzle bodies and centrifugal pump. Standard inclusions are dual flow meters to enable accuracy when blanket spraying which is additional to the spot spray function. Lights are also standard on the Pinto and blue lights are available for those wanting to carry out night spray work. With testing of this new machine completed and deemed a success, it’s time for broadacre operators to consider adding the Pinto to their fleet. Autonomous technology is no longer ‘emerging’, but very much here and ready for growers to integrate into their operation and achieve improved efficiency and productivity. And no sick days and holiday leave to cover with the Pinto! [Dealers](https://croplands.com/au/dealer-locator/) are located throughout Australia and the company may be contacted for further information. Also check out the other equipment in their range. Some units currently available with discounts. ## Financing Croplands Autonomous Sprayer We support broadacre growers that are keen to introduce a Pinto into their operations with a complete selection of [agricultural machinery finance facilities](/farm-machinery-and-agricultural-equipment-loans). Businesses can select the facility that best suits their approach to their balance sheet and tax, and that works best with their chosen accounting method. Finance for the Pinto is available with Leasing, Commercial Hire Purchase, Chattel Mortgage and Rent-to-Own. Balloons are available on Chattel Mortgage and CHP to reduce monthly commitments, Leasing offers a residual component and Rent-to-Own a buyback option. Our brokers focus on structuring all elements of the loan to ensure a workable, cost-effective outcome is achieved to suit individual requirements. The most competitive fixed [interest rates](/equipment-finance-interest-rates) are secured from across our vast lender selection. Flexible fixed terms are negotiated by our brokers to suit the ROI targets of individual operators. Balloons can be negotiated to best achieve a fixed repayment schedule which works with projected cash flow. A necessity for growers with seasonal income. Large-scale operations may consider purchasing several Pintos to operate simultaneously and achieve even greater productivity. Financing packages may be arranged for multiple units in the one loan arrangement to simplify repayments, or as separate loans, depending on individual preferences. Prior to discussing a purchase with the local dealer, growers can use our Finance Calculator to work up estimates of repayments on financing a Pinto and to establish how they would like their loan structured. **To discuss finance on the new Croplands Autonomous Sprayer, 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.* **Categories:** Buying Tips --- ### [Preparing for National Diesel, Dirt and Turf Expo](https://www.jadeequipmentfinance.com.au/blog/preparing-for-national-diesel-dirt-and-turf-expo) **Published:** March 31, 2025 **Author:** Publisher **Excerpt:** The National Diesel, Dirt and Turf Expo this May in Sydney, is Australia’s largest show for the construction sector with 1,000 brands and a live Pickles auction. **Content:** The National Diesel, Dirt and Turf Expo this May in Sydney, is Australia’s largest show for the construction sector with 1,000 brands and a live Pickles auction. With the date approaching, now is the time for operators to plan their visit, including arranging finance to order from suppliers and to bid at the auction. This annual event for the construction and related industries has grown significantly in the relatively few years it has been running. Becoming a ‘must-attend’ for established and new operators to connect directly with suppliers of machinery and equipment for many applications. A highlight of the show is the live auction by Pickles with the opportunity to acquire late model machines on the day. ## National Diesel Dirt and Turf Expo Details The date for this annual event has been brought forward for 2025, so time to diarise and prepare. The show runs over three days, Friday 16 May through to Sunday 18 May at Sydney Dragway Eastern Creek in Sydney. Hours are 9.30am to 5pm on the first two days and 10am to 3pm on the final day. Tickets can be pre-purchased via the link on [the event website](https://www.eventbrite.com.au/e/national-diesel-dirt-and-turf-expo-2025-sydney-dragway-eastern-creek-tickets-905748206267 "the event website"), or at the gate. Parking is available on site. ## [Exhibitors](https://www.dieseldirtandturf.com.au/exhibitors-list/ "Exhibitors") on Display Operators keen to see the latest machinery and equipment will have plenty of opportunities at the event with around 1,000 brands and an impressive line-up of companies exhibiting their products. Hitachi Construction Equipment, WesTrac, Kobelco, Komatsu, Sany, CJD, CNH Industrial, Semco, Aussie Buckets, Mow Master, All Lift Equipment, Pipeboss, Allied Earthmovers, Apollo Engineering, Tool Range, Toyota Material Handling and Zoomlion are just some of the many companies displaying at the show. To plan your visit, refer to the exhibitor listing for the stand number of the companies you want to see and then to the Site Map for their location at the show. A demo area will be set-up to provide operators with the opportunity to test, operate and drive certain machines. These may include wheel loaders, skid steers, excavators, earthmoving attachments, dump trucks, turf and lawn machinery and many others. Head to the outdoor stands at the show to see the latest new releases in action. ## Pickles Live Auction A very popular inclusion in this show is the [Pickles Live Auction](https://www.dieseldirtandturf.com.au/visitors/pickles-live-auction/ "Pickles Live Auction"). The sale is held at 1pm on the first day of the expo, Friday 16 May. The sale is conducted at the expo site and is live streamed through the Pickles website. The machinery to be auctioned is available for viewing on Stand M1 and includes a range of items including earthmoving machines, construction machinery, machines for mining and quarrying, plant machinery, access and forklift equipment, farm vehicles, mowers and more. Further information can be sourced at [the Pickles website](https://www.pickles.com.au "the Pickles website"). Those planning to bid should speak with us about their finance ahead of time to be ready to get involved. e The auction will also include fundraising for the Clancy Ward at The Children’s Hospital, Westmead. The funds raised from specific items donated by Semco will be donated to the Hospital. ## Pre-arranging Loans for Auction & Ordering Operators planning to place equipment orders at the show or bid at the live auction can pre-arrange their finance through Jade before the show date. Finance arranged prior to purchase, pre-approved loans, are available with all commercial credit facilities – Chattel Mortgage, [Rent-to-Own](/equipment-rental-finance), Commercial Hire Purchase and Lease. We offer [Low and No Doc opportunities](/no-docs-low-docs-equipment-finance) for small and new business operators. The same application processes and lender approval criteria apply, and operators receive the same interest rate and term offers that they would if applying for finance after they had essentially bought their equipment. To apply, you will need to provide us with an estimate of the finance amount required and an indication of the machinery being financed. Based on those details and your financials, we source the most competitive rate offer and arrange conditional approval. When the order is placed, signalling the purchase has been made, we finalise the loan details based on the specifics of the sale. If requiring finance to bid at the Pickles auction, operators should be aware that auction purchases will be second-hand equipment which may attract different rates, terms and collateral requirements to new equipment finance. To get a pre-purchase loan quote, source as much information on the auction lot to brief our brokers. ## Take on the Excavator Challenge Consider yourself a star with the excavator? Take on the challenge for the title of the National Excavator Operator Champion at the challenge event at the show. To enter, put your name on the board at the show to compete. A daily prize of $1,000 is up for grabs, courtesy of sponsors Takeuchi and Semco. **To discuss financing to order new machinery and equipment at the National Diesel, Dirt and Turf Expo, 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.* **Categories:** Buying Tips --- ### [Capitalise on EOFY Deals with Pre-approved Equipment Loans](https://www.jadeequipmentfinance.com.au/blog/capitalise-on-eofy-deals-with-pre-approved-equipment-loans) **Published:** May 19, 2025 **Author:** Publisher **Excerpt:** Pre-approved equipment loans are finance for assets such as plant, machinery and equipment where the application is conditionally approved prior to the purchase. **Content:** Pre-approved equipment loans are finance for assets such as plant, machinery and equipment where the application is conditionally approved prior to the purchase. Having loan approval prior to confirming a purchase is a common practice with many astute business owners. Pre-approval can deliver many benefits especially in capturing and capitalising on EOFY sales and special deals. Operators with finance already arranged can be fast to snap up bargains of units which may be limited in stock. Many EOFY sales are for clearance items and end-of-run stock, with often only a limited quantity available. The buyer that is ready to commit with finance confirmed, can be the one that walks away with the great deal. With the end of financial year now approaching and some businesses already advertising pre-EOFY sales, now is the time to start planning not only your acquisitions but also how you will finance those acquisitions. For operators that have never considered getting a loan before they committed to their purchase, we provide this overview of what is involved with pre-arranging an asset loan. ## What are Pre-Approved Equipment Loans? As stated above, pre-approved finance is a loan that is approved before the purchase is made. It may be approved before the choice of which machine, make or model or specifics are even decided. The loan application is submitted with all the standard financials documentation. The applicant typically advises us of roughly what they think they will need in terms of their loan total. An estimate is fine. As much information as possible on the asset which they are planning to buy is preferable. This may be general information such as IT systems, tractors, a loader, kitchen equipment, medical devices, etc. Alternatively, it may be more specific with details of the make – [CASE IH](https://www.caseih.com/en-au/australia "CASE IH"), [Kubota](https://kubota.com.au/ "Kubota"), John Deere, etc and model which has already been earmarked. Whether the asset is being purchased new or second-hand is required as loans for these can differ. Details on the goods to be financed is required as lenders will need to determine if they are suited for acceptance as loan collateral. Operators will also need to specify the asset acquisition credit facility that they require – Chattel Mortgage, Lease, [Rent-to-Own](/equipment-rental-finance) or [Commercial Hire Purchase](/commercial-hire-purchase). A discussion with an accountant may be required to confirm this choice. Applications are assessed based on the current financial position of the business and priced at current interest rates. A loan offer is made by a lender, which is ‘conditionally approved’. This means it is approved based on the information provided with the application. The offer is valid for a set time only. The business owner can then proceed to purchase their asset knowing their financing is approved. When the purchase, or commitment to the seller, is made, the specifics are advised to us for the lender. The loan is then adjusted if required, to reflect those specifics. The specifics may be a different loan total – possibly higher or lower than the estimate. If interest rates have changed over the time between the offer was made and the loan required due to [RBA](https://www.rba.gov.au "RBA") cash rate decisions, the loan rate may also be amended. When the details are finalised, the finance is settled and the purchase completed. ## Types of Pre-Approved Equipment Loans Finance can be approved ahead of purchase for all types of businesses across all industry sectors for all types of business assets and non-asset expenses. We provide the service for large and small businesses in construction, health and medical fields, agriculture, hospitality, general business services, and many other sectors. Small and new businesses can especially benefit from having their finance approved before making a purchase commitment. Many smaller operators can be unsure of exactly how much they would be approved to borrow based on their turnover, size, or time in operation. A scenario which can make them reticent to proceed with placing an equipment order, with those doubts about getting the funds to finalise the sale. Pre-approval removes the doubt and allows small operators, and others, to proceed confidently. Asset finance can be pre-approved for all credit facilities as mentioned above – [Chattel Mortgage](/chattel-mortgage), Lease, Rent-to-Own or Commercial Hire Purchase. If the purchase does not suit asset financing, pre-approval is also available for [Unsecured Business Loans](/unsecured-business-loans). This facility can be used for many business purchases not considered an asset suitable for loan security and where the loan required is relatively low, say for components, attachments and machinery accessories. ## Apply Now for EOFY Sales EOFY sales can start as early as the beginning of June so now can be an ideal time to apply for finance to be ready to buy. Budgets can be prepared using our [Finance Calculator](/calculator), and applications can be made online or by phone. **Be ready to capture the best EOFY deals by applying for pre-approved equipment loans with 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.* **Categories:** Buying Tips --- ### [Something holding your business back? Need help to get equipment finance? Expert assistance is readily available](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-help-for-business) **Published:** October 28, 2024 **Author:** Publisher **Excerpt:** As a commercial finance broker, Jade Equipment Finance provides specialist assistance for all types of businesses that need help to get equipment finance. **Content:** There can be any number of issues that can hold a business back from realising its full potential. One of the major ones can be difficulties in obtaining loans to acquire the assets they need. Many operators can need help to get equipment finance. The reasons for assistance can be varied and can include time constraints; knowledge of the options available; not having a full grasp of the terminology and requirements; language barriers; credit issues and other issues around their business set-up. Whatever the reason that is inhibiting your ability to secure the financing required for your business, assistance can be quickly and directly accessed through finance brokers. As a commercial finance broker, Jade Equipment Finance provides specialist assistance for all types of businesses that need help to get equipment finance. ## Specialist Help to Get Equipment Finance The role of the finance broker is different from a bank or other lender and different from a financial consultant and an accountant. The role is to specifically source the most suitable, most affordable and workable credit for the client. Services provided by a broker can vary but typically include taking the client’s brief of their requirements, contacting lenders to find the best interest rate and best offer, negotiating with the lender, structuring the financing to meet the client’s requirements, and handling the settlement process – finalising the purchase with funds from the lender. While the broker handles all these steps, all decisions are made by the client. The broker will present any quotes or offers to the client for their consideration. It is always the client’s decision whether or not to proceed. Brokers are not banks or financial institutions. They source funds from a wide selection of credit providers, which can include banks, specialist non-bank lenders and financial companies. The lender must provide their approval for a broker to approach them to source funding on behalf of clients. This is known as accreditation. The larger the number of accreditations that a broker has been granted, the more options and opportunities they may offer for clients. ## Assistance for All Types of Businesses – New and Established Getting help from a broker is not restricted to any particular type or size of business operation. All businesses can use the services, even small and new businesses. Businesses that are just starting up can particularly benefit from broker services through the access to lenders that provide loans without full documentation or financials. Time is a major factor holding back many operators from securing financing. Using a broker can significantly reduce the time that a business owner needs to spend on sourcing a loan. ## Help to Get Equipment Finance for All Assets Assistance can be obtained for financing all types of business assets – plant, machinery and other business equipment. Some brokers may specialise or focus on particular industries or sectors, but Jade handles loans for all types of business assets. We assist operators in all industries – sourcing loans for farming machinery from big names like [CASE IH](https://www.caseih.com/en-au/australia), Deere, JCB; construction machinery loans from Caterpillar and others; assets for general business, retail, hospitality, medical, engineering and other sectors. ## Getting Help with All Types of Credit Facilities Not understanding the options available, not knowing what the financing terminology means, can hold business owners back from sourcing credit. We assist by providing the full selection of [asset acquisition credit facilities](/overview-of-equipment-loan-products) – Chattel Mortgage, Leasing, Rent-to-Own and Commercial Hire Purchase. Our brokers clearly explain all the details of any offer in an easy-to-understand way. We do recommend that clients refer to their accountant for advice on which is the most suitable facility for their business. The decision can depend on the accounting method used. If credit issues are holding you back, we may have solutions through our specialist non-bank lenders. If being a new operation is preventing you from getting approved for a loan, we may assist with our low doc and no doc loans. ## Help to Get Equipment Finance Best Interest Rates It can be common practice for business owners to simply, and only, apply to the bank they use for their transactions for machinery loans. The major banks can be competitive but not always the most competitive on interest rates. Having access to the large lender base we provide can be the assistance needed to access better interest rate loans. Rates can vary considerably across the lending market. Having specialists cover off on many lenders to find you the best rates, can be a great help for many business owners. Assistance with securing the cheapest loan, easing cash flow pressures, and working towards a more profitable venture. ## Working with a Finance Broker Don’t let a lack of confidence or sense of reluctance through being embarrassed to ask for help hold your business back. Many large, well-established business owners always use brokers to handle their financing. They appreciate that using specialist expertise will not only save them valuable time but they can source more affordable financing at the best interest rates. There is no special forms or processes needed to use our services. Contacting our brokers is made directly, without any referral. Business owners can contact us using our online enquiry forms or by phone. No obligation is attached. A wealth of information is also available on our website in the News & Tips section and a free estimating tool available with our [Finance Calculator](/calculator). If you have issues around sourcing affordable loans that are holding your business back from achieving optimum performance, contact Jade for professional, expert assistance **For help to get 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.* **Categories:** Buying Tips --- ### [Attending Henty Machinery Field Days? Start Thinking Pre-Purchase Machinery Loans.](https://www.jadeequipmentfinance.com.au/blog/attending-henty-machinery-field-days-start-thinking-pre-purchase-machinery-loans) **Published:** August 17, 2026 **Author:** Publisher **Excerpt:** Henty Machinery Field Days is the single largest event in southern Australia for the agricultural sector with the 2026 event to be held 22-24 September. **Content:** Henty Machinery Field Days is the single largest event in southern Australia for the agricultural sector with the 2026 event to be held 22-24 September. This farmer-driven event attracted over 55,000 visitors and 860 exhibitors last year and this year is shaping up as another not-to-be-missed occasion. This is a not-for-profit event which is held each year and has grown over its 60+ years to be an impressive showcase of the latest farming and agricultural machinery and equipment, agribusiness, technology, and many related businesses and services. For operators, the event represents an annual opportunity to catch up with others in the industry and see the latest machinery in action and place orders for new equipment. To assist operators with their acquisition plans, we provide pre-purchase finance services. Start planning your visit and include speaking with a Jade broker so you arrive with your machinery finance sorted. ## Henty Machinery Field Days – Event Details For those who have never attended the [Henty Machinery Field Days](https://hmfd.com.au/ "Henty Machinery Field Days"), the event is held at 22 Lubkes Road, Henty, which is in south-western NSW. Gates are open 8am to 5pm each day, 22-24 September. Tickets can be purchased online or at the gate with the link on [the event website](https://www.123tix.com.au/events/53441/henty-machinery-field-days?step=1-select "the event website"). For out-of-area visitors, organisers have included a handy Accommodation Guide on the website. In addition to the exhibitors, the event includes an impressive line-up of features including the annual Henty Machine of the Year Awards, Working Dog Trials, a Vintage Machinery Showcase, and a Country Lifestyle Pavilion. ## Exhibitors to Visit With over 860 exhibitors last year, this event covers a broad scope of machinery, goods, and services of interest to agri operators. Visitors can [review the list](https://hmfd.com.au/index%2Ephp/exhibitors/2026-exhibitor-list) prior to arrival to earmark those that they definitely want to visit. There are separate lists for exhibitor companies and segmented into products and services, making it easy to search for the machinery you are interested in inspecting. The Site Map on the event website is a great resource to plan your movements around the site over the days and ensure you don’t miss visiting a key exhibitor. Exhibitors include: Stockline Trailers, JCB, Precision Seeding, Honda Motorcycles and Power Equipment, Riverina Helicopters, Croplands Equipment, Fence-Line Solutions, Hybrid-Ag, Jayco, JMA Conveyor Products, Kubota, International Mowers, Maxilift, Oz Ag Machinery, Silo Ventilation Systems, Volvo Penta and many more. ## Pre-Purchase Machinery Loan Options Arranging finance prior to purchase can be a major advantage when planning to order at Henty Machinery Field Days. Operators can confidently proceed to discuss details with dealers and confirm their order, knowing they have been approved for the loan. This saves time in not having to visit the dealership on a separate occasion after the show when financing has been secured. We offer a full range of machinery loan products including [Leasing](/asset-lease "Leasing"), Chattel Mortgage, Rent-to-Own and Commercial Hire Purchase. All are available for applications made before and after a purchase has been made with the same interest rate applicable. When sourcing finance before purchase, the application is assessed based on the current financials and credit score. Where approval is given, a pre-approved offer may be provided which is valid for a limited time. Giving operators the confidence to order and the reassurance that if they do not proceed to order, any offer simply expires without obligation. If you do arrive at the Henty Machinery Field Days without finance arranged and you decide to place an order, use [our online Equipment Finance Calculator](/calculator "our online Equipment Finance Calculator") to quickly compare our rates with any other finance you may be offered by a dealer. ## Fixed Rate, Fixed Term Equipment Finance All our machinery loans include [our highly competitive fixed rates](/equipment-finance-interest-rates "our highly competitive fixed rates") and are secured over fixed terms. We source the best possible rates from our large lender base to specifically suit the individual profile of the business. The asset finance market is competitive and rates do vary. If you’re wondering if better rates may be available down the track, consider the outcome from the last Reserve Bank rate decision. With the cash rate held steady by the Reserve Bank at its August meeting, asset finance rates are also expected to remain fairly consistent. The RBA Board meets again at the end of September, and based on comments from the RBA Governor Michele Bullock, the bank is not ruling out another rate increase if the economic conditions require it. For anyone considering waiting for rates to be cut to make their equipment purchases, the RBA does not expect inflation to drop to its target level until late 2027. Reading into that, a rate cut would be highly unlikely in the near future. ## Non-Asset Loans A range of providers and suppliers of goods, systems and services will be exhibiting at Henty, items which would not be suited to asset finance facilities. Non-asset goods and business services may be financed with Unsecured Business Loans and Overdrafts. If considering this type of purchase, speak with one of our brokers for the most suitable type of loan. **For machinery loans ahead of the Henty Machinery Field Days, speak with Jade Equipment Finance [1300 000 003](tel:1300000003).** *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.* **Categories:** Finance --- ### [Need business finance support for your operation? How we help operators](https://www.jadeequipmentfinance.com.au/blog/need-business-finance-support-for-your-operation-how-we-help-operators) **Published:** August 3, 2026 **Author:** Publisher **Excerpt:** Business finance support includes a range of commercial loans to address specific issues and asset acquisition credit facilities to fund new equipment. **Content:** Business finance support includes a range of commercial loans to address specific issues and asset acquisition credit facilities to fund new equipment. In the commercial credit sector, there is not a ‘one loan fits all’ option. To be effective and truly support an operation, the financing facility should be selected, sourced and structured to address the specific need or objective. Businesses have a range of options to consider and different options to source the support required. While it can be a positive to have many options, the downside may be confusion which may lead to inaction. Need funding support but not sure of the right option or where to go to find it? Confused by all the options in the commercial lending sector? Uncertainty about future RBA rate decisions have you baulking at taking on more credit? As specialists in commercial lending, we assist business operators with not only their equipment financing requirements but with other commercial credit solutions to specifically target key issues. ## How We Help Operators As finance brokers our role is to work with our clients to source the most suitable and affordable funding to suit their requirements. With the commercial lending sector large and diverse, we provide that vital link between business operators and lenders, while offering a comprehensive financing service. Essentially, once we have your brief, we do the hard work for you. Through our accreditation with a large lender base – banks and non-bank lenders, including specialists in key industry sectors, we help businesses navigate through the commercial lending sector. Clearing the confusion, saving them time, and providing access to essential funding channels. A key aspect of our assistance is in finding the [best possible rates](/equipment-finance-interest-rates "best possible rates") in this large market. While the [Reserve Bank](https://www.rba.gov.au) sets the cash rate, lenders set their own rates. Different rates can be offered on a similar credit facility from different lenders, and for operators on similar equipment but in different industries. We stay across market moves at an industry level, know where the best rates are currently on offer and know the criteria used by our lenders to offer the best rates. Using this knowledge, we support operators by sourcing their best possible rate from the most suitable lender. Using our finance expertise, we negotiate with the lender for the most suitable term and structure funding that best addresses the objectives of our customer. ## Business Finance We Offer We know financing and we know business. When operators approach us for business finance support, we listen. Listen to the issues they are facing and suggest and source a suitable solution to address the issue. We understand the needs of operators and have access to the right lenders to provide funding support. The need may be for new plant, machinery and equipment to boost production, reduce costs with more economical, fuel-efficient units, or to replace ageing and unserviceable machines. We offer a complete portfolio of asset loans to suit all business set-ups and structures. Our clients can select from Chattel Mortgage, Lease, [Rent-to-Own](/equipment-rental-finance "Rent-to-Own") and Commercial Hire Purchase to fund the purchase of new and used machinery. New and small operators including sole traders and owner-operators can access vital funding through our accessibility to No Doc and Low loans across our portfolio. Existing credit arrangements can become a source of issues for businesses where changes in turnover or changes in variable interest rate loans make repayments unworkable. A more workable solution may be sourced through [our refinancing services](/equipment-refinancing "our refinancing services"). When quotes for refinancing are requested, we source the most affordable solution. Refinancing can include costs such as lender fees for early payouts and to establish the new loan. Different rates can apply compared with the existing loan as the asset is refinanced as used goods. Where we do not consider refinancing improves the situation for the business, we do not advise proceeding. Our brokers source alternative funding support options. A widely used business finance support facility is the Overdraft. While an extremely versatile and popular credit product for businesses, it is also widely available in the banking sector. What operators may not be aware of, is that we also source Overdrafts through some of our non-bank lenders. Rates can be highly competitive and may offer a more affordable option than using your bank. As experts in commercial finance, we offer specialised solutions to target specific business pain points such as large insurance premiums with Insurance Premium Funding and delayed receipt of payments with Debtor Invoice Funding. ## Using a Broker for Business Finance Businesses do not need referrals to connect with us. Contact is made directly and you are assigned one of our brokers to handle your specific requirements. Personal attention and service is assured with our focus on your needs and delivering solutions to support your operation. **For business finance support and asset finance solutions, connect with Jade Equipment Finance [1300 000 003](tel:1300000003).** *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.* **Categories:** Finance --- ### [Beat high diesel costs – invest in alternatives with affordable green Equipment Finance.](https://www.jadeequipmentfinance.com.au/blog/beat-high-diesel-costs-invest-in-alternatives-with-affordable-green-equipment-finance) **Published:** June 8, 2026 **Author:** Publisher **Excerpt:** Green equipment finance is funding for business investments in energy efficient and eco-friendly machinery, equipment, tech, systems and charging infrastructure. **Content:** Green equipment finance is funding for business investments in energy efficient and eco-friendly machinery, equipment, tech, systems and charging infrastructure. With the recent spike in diesel prices as a result of the conflict in the Middle East, many operators are looking for options. Seeking ways to counter the higher costs in the current scenario and to mitigate risk against any future threats. Interest in renewables and alternative power machinery and vehicles is reportedly high, as businesses look at options to diesel powered equipment. Investing in new assets can always be a major decision. Under the current economic conditions with many operators facing cost and other pressures, the decision may become even more significant. Key to the viability of investing in energy efficient assets can be the funding. Sourcing affordable loans to ensure the investment not only counters fuel costs but also works with cash flow and long-term financial objectives. We support operators to invest in alternative power source assets by sourcing the most cost-effective financing solutions. ## Green Equipment Finance Facilities There are no specific or different loan types to acquire ‘green’ assets. All business assets are financed with the same credit facilities, whether diesel or renewable driven. The choices include [Lease](/asset-lease "Lease"), Chattel Mortgage, Commercial Hire Purchase and Rent-to-Own. Operators can select the credit facility that suits the accounting method they use and their approach to their balance sheet and tax deductions. All these asset loan products are secured loans, using the asset as the collateral, with most operators not required to provide additional assets as collateral. [Rates](/equipment-finance-interest-rates "Rates") are fixed and will vary with the credit facility, lender and the individual business operation. Where a bank or lender is currently offering special rates for energy-efficient asset loans, your Jade broker will source these options for your consideration. Terms are fixed, as are the monthly repayments. New businesses looking to start their operation as energy efficient as possible, can use our access to specialist lenders for [Low Docs and No Docs Equipment Finance](/no-docs-low-docs-equipment-finance "Low Docs and No Docs Equipment Finance") opportunities. The start of a new financial year is a popular time for many individuals to make that move into self-employment. These loan opportunities for businesses without complete financials, may make that move a reality and set a strong foundation for the operation. ## Assets Funded with Green Equipment Finance The types of ‘green’ assets which can be funded are extensive and will depend on the specific industry and availability of suitable models. Energy efficient assets can include battery operated cranes and other machines, units that can be converted to alternate power systems, vehicles, systems and technology. Battery and solar systems to power the business and the assets is a very popular way to beat high energy prices. These systems may include the acquisition and installation of charging infrastructure to support an electric fleet of vans, cars, trucks and machines. Funding is available for both new and used assets. The same lending products are used, but different rates and conditions may apply with second-hand unites. To start budgeting to invest in energy efficient machinery, use our Equipment Finance Calculator for loan repayment estimates on different priced units. ## Loans for Costs to Support Green Equipment Depending on the industry and the type of business activity, investing in energy-efficient machinery may be just one stage of the process to convert the operation. An important consideration for many businesses can be training staff to operate and service the new machinery. Battery operated units and vehicles can require different maintenance and servicing techniques and that may require additional training. Consultants may be required to advise the business on the most suitable systems and infrastructure. Specialist services may be required to install the required technology and systems. Secured and Unsecured Business Loans and Business Overdrafts are available to fund non-asset business expenses such as staff training and consultant fees which would not be suitable for asset finance facilities. Rates may be fixed or variable and terms negotiated to best suit the individual business operation. ## Tailored Green Equipment Finance Solutions Each business will have its own individual requirements and objectives in moving to a more energy efficient operation. Individual requirements which mean individual financing solutions. We work with individual businesses to fully understand their goals and objectives and advise and source the most effective and affordable funding. Tailoring loans to target specific cash flow and ROI goals. With our access to a large lending base, we have the resources to source special offers, rates and loan offers for businesses investing in green equipment. Businesses of all sizes can directly access our services and custom financing to invest in the assets they require for their operation. **To set up your business to beat high diesel costs with an investment in energy efficient assets, speak with Jade Equipment Finance [1300 000 003](tel:1300000003 "1300 000 003") about our Green Equipment Finance opportunities.** *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.* **Categories:** Uncategorised --- ### [Assessing Prospects for New Fin Year? Business Cashflow Loans & Other Options](https://www.jadeequipmentfinance.com.au/blog/assessing-prospects-for-new-fin-year-business-cashflow-loans-other-options) **Published:** July 6, 2026 **Author:** Publisher **Excerpt:** Cashflow loans may take the form of Overdrafts, Lines of Credit, Trade Loans for short-term support and Unsecured Business Loans for longer term solutions. **Content:** Cashflow loans may take the form of Overdrafts, Lines of Credit, Trade Loans for short-term support and Unsecured Business Loans for longer term solutions. The start of the new financial year is a popular time for many businesses to take stock and assess their prospects for the year ahead. In the current economic climate, that means taking into account high inflation rates, the prospect of further rate rises, and the possibility of further supply issues. The ceasefire between Iran and US is already shaky. In an address to an Economists’ Conference on 8 July, Assistant Governor of the [Reserve Bank](https://www.rba.gov.au "Reserve Bank") Sarah Hunter discussed the issues of supply shocks and demand shocks and their implications for Monetary Policy. While complex concepts, the overall message could be an alert for businesses to be ready to sustain what may be ahead. Are you confident with your current arrangements? Setting the business up to sustain the expected and unexpected may include ensuring the cashflow is supported with affordable finance products. As specialists in commercial credit, our objective is to support businesses with cost-effective finance across their operation. As part of your new financial year business review, consider the credit facilities that are available to support your operation. ## Cashflow Loans – Short-Term Numerous issues can create cash shortfall issues. They may come from a downturn in income from a drop in demand, an increase in operational costs, or from slow paying customers. Leaving the business with insufficient funds at hand to meet its own commitments. Leaving bills unpaid while waiting for the cash to come in risks damaging the credit history and existing good relationships with suppliers. Issues which may result in more serious problems if the situation continues. Where the need for additional funding is short-term or intermittent, cashflow loans with Lines of credit, trade loans and Overdrafts may offer a flexible solution. Funds are provided for the business to use when and how they are required. This can include purchasing supplies, meeting wages and other loan commitments and general operational expenses. Interest rates are higher on these types of loans than other forms of credit. But the interest is only charged on the funds used each month. Allowing operators a level of control over their funding costs by prioritising payments. While banks are the traditional source for Overdrafts, they are not the only source. We have connections with commercial lenders that offer highly competitive rates and flexible arrangements for lines of credit. Assess your requirements and request a quote to consider if we can source a workable solution to ease your cash flow pressures. ## Alternatives to Cashflow Loans While most businesses will operate with an Overdraft at some stage, other more workable options may provide solutions to longer term issues. Such issues may arise with contracts which require extensive purchase of materials and supplies and where the progress payment schedule means delayed receipt of income. This can often be the case for manufacturers, especially when product lines are being developed and new equipment commissioned. There can be a lengthy period between commencement of production, the product launching into the market and income from sales received. Similar scenarios are not uncommon in building and construction where materials and labour need to be covered upfront and payment for services schedule at different completion stages. For these types of scenarios, businesses may consider [Secured and Unsecured Business Loans](/unsecured-business-loans "Secured and Unsecured Business Loans"). These can be sourced with terms from 1-2 years to 7 years. Providing versatile funding for a wide range of expenses. Unsecured loans attract higher [rates](/equipment-finance-interest-rates "rates") than secured loans. But operators may offer other assets as loan collateral where the materials or expenses are not acceptable collateral, to be eligible for lower rate secured options. Use our [Finance Calculator](/calculator "Finance Calculator") to work up estimates on your requirements. Where pressure on available funds arises from one large payment such as large insurance premium, Insurance Premium Funding may offer an affordable solution, spreading that annual premium payment over several smaller payments. ## Refinancing Equipment Loans Refinancing existing asset loans may be considered an option where there are pressures on available funds. While refinancing can present a workable solution to reduce repayments at some times, with the current interest rate scenario, it may not deliver a better outcome. Having said that, where a business urgently needs to reduce their monthly equipment loan payments, a compromise with current higher interest rates may be acceptable. We can work up options for you to consider. ## Help to Select and Source Cashflow Loans It cannot be understated that Australian businesses are facing complex and challenging conditions. Our specialist brokers are available to help operators with financing solutions to face and overcome challenges and address specific and general issues. **Speak with Jade Equipment Finance [1300 000 003](tel:1300000003 "1300 000 003") on the cashflow loans we may source to support your business operation.** *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*. **Categories:** Finance --- ### [Capitalise on Machinery and Equipment EOFY Sales – Understanding Discount Offers.](https://www.jadeequipmentfinance.com.au/blog/capitalise-on-machinery-and-equipment-eofy-sales-understanding-discount-offers) **Published:** May 25, 2026 **Author:** Publisher **Excerpt:** Machinery and equipment EOFY sales can take the form of price cuts, percentage off, cash back, finance offers, free extras, clearances and run-out sales. **Content:** Machinery and equipment EOFY sales can take the form of price cuts, percentage off, cash back, finance offers, free extras, clearances and run-out sales. All can present great opportunities to purchase assets at lower prices, essentially. But understanding what is involved in some offers can be confusing. Operators may lose time securing limited stock units while working through the details of the deal on offer. To simplify the process and enable operators to capitalise on the best deals available, we clarify the types of deals and discounts typically available during sale events. ## Equipment EOFY Sales – Discount Pricing Discounted pricing is the simplest type of sale technique for buyers to understand. The advertised price is cut by a set dollar amount or by a percentage. Discounts may be offered directly from dealers or from manufacturers. What to watch for with discounted pricing sales is the machines that the price cut applies to. - Is it the specific model or variant that you need for your business? - What is and is not included in the discounted price? - Are there extra costs to prepare the unit for delivery? - Are there any terms and conditions? - If so, is your business eligible? If the offer applies only to selected models, possibly limited quantities, you may need to be ready to act quickly. Arrange your financing beforehand and be confident to commit to the purchase immediately. ## Cash Back Equipment EOFY Sales Cash backs can be widely used and popular with manufacturers and dealers but can be a more complicated option for buyers than a straight price cut. A cash back is a form of offering a discount, but the responsibility is with the buyer to claim the rebate. Usually, the units will be sold at dealer level and the cash back redeemed through the manufacturer. Amounts can present attractive discounts and will vary. Guidance offered by the [ACCC](https://www.accc.gov.au/ "ACCC") with cash backs includes finding out what buyers have to do to redeem their money and how long the process takes. Also check if the time required to redeem the cash back has an expiry date. Operators planning to purchase machines in a cash back sale will need to finance the full purchase price, not the price less the cash back. When working out repayment estimates using our [Equipment Finance Calculator](/calculator), ensure you include the full price as the loan required. ## Run-Out Model Equipment EOFY Sales Clearances and run-out sale events are used by both machinery brands and individual dealers at various times through the year. When the brand is launching new models, dealerships need to clear their inventory and space to make way for the arrival of the new shipment. Hence, they clear stock of current or older models. Run-out sales may also refer to models that are being cut from the range. These events are often exceptional opportunities to acquire recent year model machines with a price cut. Before rushing to the local dealership, check which machines are being cleared. Ensure that this is the right unit for your operation. The clearance may be on highly optioned variants which you don’t really need. Even with a price cut, other variants may present a cheaper buy and do the job for you. Check dealerships for stock as clearances will include limited units. Have your finance locked in so you can secure your machinery. ## Finance Deals With Equipment EOFY Sales An ever-increasing sale technique is to offer what appears as cheap financing, with very low rates. This is the type of sale offer that operators really need to scrutinise closely before committing. Does the offer include your choice of credit facility – [Lease](/asset-lease), Chattel Mortgage, Rent-to-Own or CHP? Is the advertised rate for a full fixed term? If the rate is only for a set period, what is the rate for the remainder of the term? Does the offer include the opportunity to negotiate terms and balloons to suit your business cash flow? Are all business operators eligible? Do you have your choice of lender? If you’re a sole trader, new or small business is there a Low Doc option in the offer? To be confident that you are making the financing decision that is right for you, have a no obligation discussion with one of our brokers. We will source your lowest fixed rate loan from our large lender base, negotiating terms and balloons to suit your business and best meet your preferences. Use the calculator to see how competitive we are with fixed rates and fixed terms of up to 84 months. End of financial year is prime sale time across most sectors. Great buying opportunities can be available, but operators should be on alert to ensure they know the deal they are getting. Our brokers are available to support you with quick quotes on the lowest possible financing, fast approval and prompt settlement. **To be confident when approaching equipment EOFY sales, speak with Jade Equipment Finance [1300 000 003](tel:1300000003) to secure pre-approved financing.** *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.* **Categories:** Buying Tips --- ### [Be ready for Food and Hospitality Week with pre-approved restaurant equipment finance](https://www.jadeequipmentfinance.com.au/blog/be-ready-for-food-and-hospitality-week-with-pre-approved-restaurant-equipment-finance) **Published:** May 11, 2026 **Author:** Publisher **Excerpt:** Food and Hospitality Week is an exhibition event for the restaurant and hospitality sector including a showcase of equipment and systems and seminars. **Content:** Food and Hospitality Week is an exhibition event for the restaurant and hospitality sector including a showcase of equipment and systems and seminars. A great opportunity for operators in the hospitality sector — restaurants, cafes, hotels and pubs, to see the latest developments to support and assist their business. As specialists in business finance, we fully appreciate how this sector in particular has been facing challenges lately. Inflation, costs of living and increased food costs associated with the fuel crisis are just some of the issues that can affect trade and impact turnover. While investing in new equipment and systems may not appear to be a realistic goal at this time, the benefits to productivity and efficiency of installing the latest technologies may be worth considering. As is the prospect of acquiring the goods to boost the business with affordable financing. Before heading to the show, have a no obligation discussion with one of our brokers for an indication of your loan prospects. Or apply for pre-approved finance and be ready to place your order. ## **[Food and Hospitality Week](https://fhweek.com.au/ "Food and Hospitality Week")** – What’s On This major event for the hospitality industry runs from 25-27 May at Sydney’s International Convention Centre at Darling Harbour. Shows, educational sessions, demonstrations, seminars, social events and plenty more. The agenda includes a great line-up of speakers. Topics cover a range of issues, of note – the future of tech for the industry. The educational element includes a business stage, tech stage, café success stage and demonstrations. One pass covers all shows and [registration can be done online](https://fhweek.com.au/registration/). Secure your pass and see what is available to support your operation to prosper. ## Food and Hospitality Week Shows The week includes a number of shows which focus on different areas of the sector. The Restaurant and [Food Service Show](https://fhweek.com.au/restaurantfoodserviceshow/) has been incorporated into the week and offers a must-see showcase for hospitality operators. A show presented as the largest exhibition in Australia which is dedicated purely to operators in the food away from home industry. A comprehensive and inclusive line-up of suppliers, manufacturers, professionals, and many others from across the sector will present products, systems and ideas. The ideal opportunity for operators to find out what is new, what is trending and most importantly, what they should be across for what is emerging in their sector. See the latest and consider upgrading your venue to cater for peak demand, while delivering first class meals to your customers. Increase productivity and efficiency with the latest technology, equipment, systems and food service machines. The Café and Coffee Show focusses on the world of coffee and speciality drinks. A great opportunity to see what’s new to add to your menu and expand your market. The Pizza Pasta and Italian Show, also running at the main event, showcases the latest in food trends, ingredients and what’s new in Italian cuisine. Restech is the technology show element of the event. Technology has become an essential and integral part of hospitality operations. Keeping up with the latest developments in digital platforms, hardware and software may ensure your business achieves productivity and profitability targets. Exhibiting brands across the shows include Eka, Club Chef, HIT, EOS, Federal Hospitality Equipment, Duplex Cleaning Machines, Cold Express, BM Refrigeration, Foodhub, KPay Systems and many others. ## Securing Restaurant Equipment Finance The shows may include the opportunity for ordering new equipment and systems for your business at the event. Saving you time in meeting with representatives at another time. But to be in a position to order, many operators will want the confidence that they have their financing secured. We provide loans for both equipment and technology with options to secure finance before or after you purchase or attend the event. Equipment can be financed with [Chattel Mortgage](/chattel-mortgage), [Lease](/asset-lease), Rent-to-Own or Commercial Hire Purchase. Technology systems may be financed with asset loans or with Business Loans. Speak with our brokers about the most suitable credit facility for the items you are considering. Financing arranged prior to purchase – pre-approved loans, attract the same [interest rates](/equipment-finance-interest-rates), terms, loan conditions, tax deductions and credit facilities as loans approved after purchase. Pre-approved loans do offer the added advantage of knowing exactly how much you would be approved to borrow, at what interest rate, and with what loan payments. Providing a clear picture of what items you can consider ordering. To start planning, use our [Finance Calculator](/calculator) and our latest rates for quick estimates of possible repayments. When speaking with our brokers, ask if you are eligible for the small business $20,000 Instant Asset Write-off. This measure has been extended in the Federal Budget for 2026/27. Purchases made before 30 June 2026 may be eligible for full expensing in your 2025/26 tax return. **To discuss your restaurant equipment finance options to be ready to order at Food and Hospitality Week, speak with Jade Equipment Finance [1300 000 003](tel:1300000003).** *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.* **Categories:** Finance --- ### [How to decide which is the right equipment loan for your business.](https://www.jadeequipmentfinance.com.au/blog/how-to-decide-which-is-the-right-equipment-loan-for-your-business) **Published:** April 27, 2026 **Author:** Publisher **Excerpt:** To decide the right equipment loan facility for a business, align the features of the loan with the accounting method, balance sheet and tax objectives. **Content:** To decide the right equipment loan facility for a business, align the features of the loan with the accounting method, balance sheet and tax objectives. Selecting the right asset finance facility is an essential step in sourcing financing. Businesses are offered a range of different types of loans, each with its own set of features and benefits. The same selection of lending products can be used to finance all types of business assets including plant, machinery, and equipment. The features of different lending products work with different accounting methods and have varying approaches to how the asset is treated in the balance sheet. Lending products also offer varying end-of-term payout processes, different tax deductions and different interest rates. To ensure businesses realise the optimum benefit from their finance, they need to select the most suitable lending product. While your broker will find you the best loan offer, it is your accountant that will provide expert advice on the right equipment loan. ## First Step in Choosing Right Equipment Loan The first step is to consider the accounting method used by the business to prepare its accounts. Businesses may use the accruals or the cash method. The accounting method is usually determined when the business is set up and can only be changed at the start of a new financial year. The [Leasing finance](/asset-lease) and Rent-to-Own Loans are only compatible with the accruals method. [Chattel Mortgage](/chattel-mortgage) is only compatible with the cash method. Commercial Hire Purchase can be used with both methods of business accounting. ## Equipment Loan and the Balance Sheet The approach taken by the business to their balance sheet is a critical consideration in selecting asset finance. This involves how the equipment being purchased with finance is posted to the books – the balance sheet, as an asset/liability. A business that has ownership of an asset must post it to their balance sheet. Lease and Rent-to-Own do not require the business to post the equipment being financed to the balance sheet as the lender has ownership of the equipment until the loan is fully repaid. Chattel Mortgage and CHP differ in this respect. The business takes ownership of the asset as soon as the finance is settled and must post it to their balance sheet. Small and new businesses may have a preference for loans that do not require posting to their balance sheet. The equipment is an asset and the finance is a liability. In the initial term of a loan, the weight of the liability would be greater than the amount of the asset owned. Not posting the asset can improve the appearance of the balance sheet and may improve the business’ prospects for securing finance for other purposes. ## Equipment Loan Tax Benefits Businesses may select a credit facility based on the tax benefits available. All offer tax deductions but the deductions are calculated and realised differently. Lease and Rent-to-Own have fully tax-deductible monthly payments. When the annual accounts and tax return is prepared, the amount of loan payments made over the 12 months are deducted from tax payable income. Chattel Mortgage and CHP derive a deduction through asset depreciation. The asset is depreciated by a set percentage, as set by the ATO depreciation schedules, each year. As the value of the asset decreases each year, the amount of the deduction will depreciate each year. The asset is depreciated until the full value is accounted for. This is known as fully depreciated. Interest is also deductible. ## Asset Finance Terms and Rates When considering finance options, one of the first things most operators will notice is the difference in [interest rates](/equipment-finance-interest-rates). Chattel Mortgage and CHP offer the best rates, Leasing slightly higher and Rent-to-Own attracts the higher asset finance rate. This is standard across the market, but lenders set their own rates. Asset finance rates are typically fixed. When the [RBA](https://www.rba.gov.au) announces a cash rate change, there would be no change to the rate on your equipment loan. While it can be tempting to select the finance facility with the lowest rates, as discussed above, there are many other issues to take into consideration. Terms on asset finance are arranged in the same way for all credit facilities. As brokers we negotiate with lenders to achieve the most suitable rate to meet customer expectations. Up to 7 years/84 months can be achieved for many businesses. ## End of Equipment Loan Term Payouts All asset finance products offer the option for a lump sum end of term payout with differences with each loan type. While this feature may not be significant to selecting finance products, it may be advantageous for business owners to fully understand their options. Leasing includes a residual. This is a percentage of the amount borrowed which is payable at the end of the term. The percentage of the residual is subject to [ATO](https://www.ato.gov.au) schedules. Chattel Mortgage and CHP include the option to include a balloon in their finance. This is a percentage of the loan that is set aside for payment in full after the final monthly payment. The difference between a balloon and residual is that a balloon can be negotiated with the lender. It is not subject to ATO rulings. Rent-to-Own borrowers have the option to take full ownership of their equipment by negotiating a buyback at the end of the loan term. ## Assistance to Secure the Right Equipment Loan With so many issues to consider, operators can benefit from using experts to assist them secure their most suitable financing. Consult with an accountant on choice of facility and our specialised broker service to source and secure the most competitive offer. **For the right equipment loan for your business, speak with Jade Equipment Finance [1300 000 003](tel:1300000003).** *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 WHO CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR*. **Categories:** Finance --- ### [Will your agri business benefit from EU Free Trade Agreement? The effect on Machinery Prices.](https://www.jadeequipmentfinance.com.au/blog/will-your-agri-business-benefit-from-eu-free-trade-agreement-the-effect-on-machinery-prices) **Published:** April 13, 2026 **Author:** Publisher **Excerpt:** The new EU Free Trade Agreement with Australia presents opportunities for exporters, especially farmers, as well as lower prices on Euro brand machinery. **Content:** The new EU Free Trade Agreement with Australia presents opportunities for exporters, especially farmers, as well as lower prices on Euro brand machinery. While many farmers will welcome the opportunities for their export prospects, the Free Trade Agreement (FTA) also presents opportunities when acquiring machinery and equipment. The opportunities? The reduction of duty on machines from European Union manufacturers should mean lower purchase prices. In announcing the agreement, the Prime Minister, Anthony Albanese said that the FTA would create new opportunities for exporters in the EU’s $30 trillion dollar as well as cost reductions for consumers in Australia. No doubt many farmers would have been following the progress of this FTA since negotiations were first opened in 2018. The announcement of the agreement was made in late March this year but the date that the FTA will come into effect has not as yet been announced. While there has been some [criticism of the FTA by the Farmers Federation](https://nff.org.au/media-release/extremely-disappointing-eu-deal-offers-little-meaningful-access/ "criticism of the FTA by the Farmers Federation") on commercial market access, some sectors should be set to realise benefits, especially with asset acquisitions. ## What is the EU Free Trade Agreement? The Australia EU Free Trade Agreement is a trade deal between the two markets to lower or remove many of the duties and tariffs on trade. The Government sees this as lowering barries with investment and with trade. The Federal Minister for Trade and Tourism, Don Farrell, said removing these tariffs on most Australian exports provides exporters with opportunities to diversify into EU countries. This market represents 450 million consumers. On the import side of the FTA, tariffs on approximately 98% of goods coming into Australia from European Union countries will now be duty free. Currently there is around a 5% duty applied to these imports. ## EU Free Trade Agreement and Machinery Prices When implemented, the new FTA should see prices on machinery, equipment, trucks and vehicles from EU manufacturers reduced. The current 5% import duty, which would have been paid by the Australian representative removed. This should flow through to lower prices for buyers. Some of the big European brands in the agricultural sector include [Deutz-Fahr](https://www.pfgaustralia.com.au/deutz-fahr/ "Deutz-Fahr"), [Claas](https://www.claas.com/en-au/ "Claas"), and Liebherr. Many other manufacturers of equipment used in construction and earthmoving will also be subject to this tariff removal. With the purchase price on some of these new units, any price reduction may represent a significant savings for businesses. A savings which may mean upgrading machinery with new units to improve productivity, increase output and take advantage of the latest efficiency technologies is a realistic prospect. If your operation can take advantage of new market opportunities, there may be an advantage on the other side of the ledger also – increased income. Further improving the prospects of investing in new machinery and equipment. When the FTA comes into effect, it will affect only new shipments of equipment. Units that are currently available in dealerships and were imported prior to the FTA will not see price reductions. Unless dealers offer a sale event. Second-hand units would not be subject to the FTA. ## FTA Effect on Machinery Financing While reductions in the price of new machines may be realised, there will be no changes to the credit facilities used to finance asset acquisitions. The same [commercial loan products](/overview-of-equipment-loan-products) – Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent-to-Own will be available. These products will still include the same features and tax deductions. [Interest rates](/equipment-finance-interest-rates) will not be impacted by the FTA as lenders set their rates and assess applications based on their own guidelines. These guidelines are not influenced or impacted by trade agreements. Rates across the market are very much driven by Reserve Bank decisions. Should the FTA result in a significant positive impact on the country’s economic position, this may be an influencing factor in future RBA decisions. What may change when producers require finance for new machines from Euro brands is how much they may require for the loan. Any reduction in price may mean less financing required. This can flow through to lower repayments, and, in some cases, lower interest rate offers. Buyers will need to wait until the FTA comes into effect and new shipments arrive in order to take advantage of any price changes. To prepare for acquiring new assets and to commence the planning process, businesses can apply to Jade for conditional pre-approval on the loans they require. This approval stage provides operators with a figure that lenders would extend to them, based on their current financials. This figure can be extremely useful in the preparation stages and in selecting units within the loan limits. **To capitalise on better machinery prices as a result of the new AU EU Free Trade Agreement, [speak with Jade Equipment Finance on 1300 000 003](tel:1300000003) for affordable financing.** *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.* **Categories:** Finance --- ### [With rates rising, how can operators find the lowest equipment loan rates?](https://www.jadeequipmentfinance.com.au/blog/with-rates-rising-how-can-operators-find-the-lowest-equipment-loan-rates) **Published:** February 16, 2026 **Author:** Publisher **Excerpt:** When lending rates rise, operators may find the lowest equipment loan rates by maintaining a good credit score and financials and using an expert finance broker. **Content:** When lending rates rise, operators may find the lowest equipment loan rates by maintaining a good credit score and financials and using an expert finance broker. The Reserve Bank’s February decision to increase the official cash rate will have an impact across the lending sector, but with varying outcomes. The cash rate is the overnight lending rate for loans between banks. With this rate increasing, the funding costs for some lenders can increase. This typically results in lenders repricing their lending products with a higher rate. Effectively passing on the rise, either in whole or part, to borrowers. But as in all markets, there will be lenders looking to capture or retain a competitive edge by keeping their pricing as affordable as possible to attract new customers. The task for business owners requiring asset loans is to find those lenders. We provide guidance on how to achieve that task with background on why we’re seeing a rate rise at this time and how it may impact asset finance rates. ## Why are rates on the rise? Business owners seeking asset financing will likely see that the interest rate offered by many lenders has risen lately. The reason is that the [Reserve Bank (RBA)](http://www.rba.gov.au) Monetary Policy Board announced a 0.25% increase to the cash rate on 3 February. While this is a lending rate between banks for overnight borrowing, it is a funding cost, and many banks and non-bank lenders will be reacting by raising their rate on different loans. The markets were expecting the RBA to raise the cash rate early this year, but not all forecasted a February rise and not for 25 basis points. The reason the RBA acted was in response to the sharp uptick in inflation. This first arose in the latter part of 2025 and was noted by the RBA in its December Monetary Policy Statement. At that point, the Board was not certain if the uptick was in response to a temporary factor or was a sign of an upward trend. The [Australian Bureau of Statistics (ABS)](http://www.abs.gov.au) revealed on 28 January that the Consumer Price Index (inflation rate) rose to 3.8% in December. A rate well above the RBA’s target of 2-3%. As stated by the RBA Governor, Michele Bullock, inflation is expected to remain above target for a while. Thus resulting in the cash rate hike. Inflation had been coming down from the 2022 peak, and the RBA did cut rates in August 2025. But the current scenario seeks heightened demand in the private and public spending not being met by capacity. Uncertainty in the global economy was also noted by the RBA Governor, but this is not having a negative impact on the Australian economy. The next CPI data will be released by the ABS on 25 February and will be closely watched and considered by the RBA Board ahead of its 17 March interest rate decision meeting. ## What lenders offer the lowest equipment finance rates? While the lending sector is not compelled to change their lending rates when the RBA cuts or lifts the cash rate, many will. The mortgage sector is typically the first with banks passing on rate changes usually withing the first day or so after the RBA decision is announced. Across other lending sectors, especially asset finance, there can be mixed reactions. Lenders may be facing additional costs for their funding and will need to recoup those costs with higher rates. But the need also exists to remain affordable for borrowers in a large and highly competitive market. Identifying which lenders offer the lowest rate for the specific industry, the type of equipment, and for that suit the profile of the business can be a challenge for even the most experienced operators. A highly effective and time-efficient way to find the best asset finance rates is to engage a specialist finance broker such as Jade. We have accreditation with a large selection of lenders, including those that specialise in lending to key industries. Enabling our brokers to quickly find customers their best option, [best asset finance rate](/equipment-finance-interest-rates), and negotiate for the most affordable solution. How can operators get the lowest equipment finance rates? Whether acquiring construction equipment, agricultural machinery, or IT and other types of equipment for an office or business operation, the objective will be to [get financing](/farm-machinery-and-agricultural-equipment-loans) at the lowest possible rate. A low rate not only lowers the monthly commitment but also lowers the overall investment outlay. Businesses can use our broker services to find the lender that best suits their profile. But operators can also be proactive in maintaining a good payment history and credit score to ensure they receive the best possible offer. Rates advertised by lenders will be for good credit applicants. Newer and smaller businesses may consider what additional assets they can offer as loan collateral. Providing additional collateral as well as the asset being financed, may reduce the risk assessment by lenders and result in a better rate offer. Operators may also give thought to how much they are requesting for their financing. While it is typical for businesses to apply for no deposit asset finance and borrow the full purchase price, a lower borrowing may deliver a better rate. Use our [Finance Calculator](/calculator) to see how a lower loan amount reduces interest payable and repayments to assist with your planning To find the lowest equipment loan rates, contact Jade Equipment Finance [1300 000 003](tel:1300000003). 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. **Categories:** Finance --- ### [Getting affordable equipment finance rates in wake of RBA increase.](https://www.jadeequipmentfinance.com.au/blog/getting-affordable-equipment-finance-rates-in-wake-of-rba-increase) **Published:** March 20, 2026 **Author:** Publisher **Excerpt:** Affordable equipment finance rates may be sourced following the RBA rate rise through specialist non-bank lenders accessible through finance brokers. **Content:** Affordable equipment finance rates may be sourced following the RBA rate rise through specialist non-bank lenders accessible through finance brokers**.** The Reserve Bank Monetary Policy Board decided to increase the cash rate from 3.85% to 4.1% at its 17 March meeting. The impact on fuel prices domestically as a result of the Middle East fuelled the domestic inflation rate even further. But the major concern for the Board is Australia’s rate of inflation and the cash rate is the only tool available to the RBA to manage inflationary pressures. An RBA rate rise decision is always going to attract more interest than a hold. The impacts and flow-on effects can be significant and affect both businesses and households. But with rates looking like they were on the downward trend in mid-late 2025, these two recent increases may feel like they’ve come out of nowhere. Business owners trying to schedule asset acquisitions as the new financial year approaches, will understandably want to know what’s happening now and what could happen in the months ahead. Are affordable asset loan rates available? Where can they be found? Should they hold off acquiring new assets until rates are cut? The March RBA decision attracted a lot of attention and there is plenty to unpack from the detail. We provide a summary of the key points with information for business owners seeking new finance for asset purchases. ## Why the RBA Increased Interest Rates The [RBA](https://www.rba.gov.au "RBA") Board announced an increase of 0.25% to Australia’s official cash rate on 17 March. Lifting the rate from 3.85% to 4.1%. This follows the 0.25% hike in February. Another rate hike this year was widely expected by economists, though some were expecting the announcement in May. But the Board voted – 5 for a rise, 4 for a hold, to lift the rate in March. Australians seeing petrol prices surge since the Middle East conflict started may think this is the main reason for the Board’s decision. But it is only one of the contributing factors. Months before that started, Australia was already recording spikes in the rate of inflation. As Michele Bullock, the Governor of the Reserve Bank, explained, the inflation rate was too high even before fuel prices started rising. The uncertainties around the Middle East situation are a major concern. But if the Board failed to address rising inflation, the situation could worsen and be more difficult to control at a later time. The spike in oil prices stoked fears of a further uplift in inflation with a flow-on effect expected in food costs, transport and many other sectors. The February decision was unanimous by the Board. Raising questions around the March split decision. Ms Bullock explained the difference between the two views was in the timing of when the next rate rise should occur. The Board was unanimous on the direction that rates should go in response to rising inflation. Some Board members wanting more time to see how the conditions played out. How long the Middle East conflict continues, especially the disruptions to oil supplies and shipping, may be highly significant to global economic conditions. Ms Bullock said that with inflation rising and with the current scenario, there was a real risk that the rate of inflation could stay above the RBA’s target for a longer time than the Board had anticipated previously. The next data set on inflation is released from the [ABS](https://www.abs.gov.au "ABS") on 25 March and will provide further information for the RBA Board prior to their 5 May rate decision meeting. Business owners can also look to the Federal Budget, due to be brought down on 12 May, to assess the outlook for their industry sector. ## Outcomes for Equipment Finance Rates The market trend is for lenders across all lending sectors to change their rates following RBA cash rate decisions. But the asset finance market is diverse and variations in fixed rates for [Lease](/asset-lease), Chattel Mortgage, Rent-to-Own and CHP will still be found. Existing fixed rate finance arrangements will not see any change. Variable rate credit facilities such as Business Overdrafts and Unsecured Business Loans will likely see a rate rise. Business owners can speak with one of our brokers about the prospects of refinancing through a different lender for a better rate on their variable rate loans. ## Securing Affordable Equipment Finance Rates As under in market scenarios, asset finance rates do vary across the lending sector. With our access to many lenders, we continue to be competitive in securing the best possible rate to suit their profile and objectives. Business owners can work with our brokers to find their best rates and obtain expert advice and assistance on structuring the loan to achieve workable payments. Options may include considering a deposit rather than borrowing 100% of the equipment price, as is the usual practice for many operators. The lower loan to value ratio may result in a better rate offer. Our brokers will negotiate with our lenders on securing terms and balloons that deliver a repayment level that does work with cash flow. To start planning, [use our calculator](/calculator) and [our latest rates](/equipment-finance-interest-rates) to establish your preferences. **To secure affordable equipment finance rates in wake of the March RBA rate increase, contact Jade Equipment Finance [1300 000 003](tel:1300000003).** *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.* **Categories:** Finance --- ### [What are the alternatives to refinancing equipment loans? Targeted solutions financing.   ](https://www.jadeequipmentfinance.com.au/blog/what-are-the-alternatives-to-refinancing-equipment-loans-targeted-solutions-financing) **Published:** March 4, 2026 **Author:** Publisher **Excerpt:** Alternatives to refinancing equipment loans in an increasing interest rate scenario can include targeted solutions financing to address key business issues. **Content:** Alternatives to refinancing equipment loans in an increasing interest rate scenario can include targeted solutions financing to address key business issues. A key objective for many business owners with refinance is to achieve a lower interest rate to reduce monthly repayments. But if rates are higher than the original loan was established, the refinance process may not result in a better, lower interest rate. That may be the scenario currently facing many businesses. [The Reserve Bank (RBA)](http://www.rba.gov.au "The Reserve Bank (RBA)") increased the cash rate in February 2026 and the markets are expected a further rise at either the 17 March or 5 May Monetary Policy Board meetings. The prospect for further rate rises strengthened on the back of recent inflation figures and with expectation of repercussions in the Australian economy from Middle East conflict with the USA, Israel and Iran. With rates expected to rise across most lending markets at least once more this year, a lower rate may not always be a realistic prospect. Where the original loan was established on [a Low Docs No Docs](/no-docs-low-docs-equipment-finance) or Bad Credit basis, a lower rate may be achievable, even in the current rate rise scenario. Where the loan was established at the best rates at the time, by a business with strong financials and good credit, the prospects may not be as high. Where a business using the accruals method of accounting opts to refinance with a change from Lease or Rent-to-Own to a [lower rate Commercial Hire Purchase](/commercial-hire-purchase), a lower rate may be achievable. If the prospect of a lower interest rate with refinance is not good, business owners may need to look ‘outside the square’. To look for solutions to the reasons as to why they need or choose to refinance. If achieving a lower interest rate and lower repayments are not realistically achievable, especially when taking into account the costs, other business finance options may be considered. ## Why is there a need to refinance? The need or choice to refinance can emanate from a range of business situations. Typically, it is that finance repayments are pressuring cash flow and a lower rate and lower repayments are sought. Businesses may switch their focus from those repayments on that loan to taking a broader approach and considering the bigger business picture. For example, why the business is experiencing cash flow pressures. Is the situation temporary or has there been a major change which indicates a longer-term issue? Is the pressure coming from the increased cost of supplies and materials and operating expenses or is it coming from the income side of the business? Is the receipt of payment for work not in line with when loan payments and other expenses need to be made? Is the issue seasonally related such as in the agricultural sector? By analysing the situation and isolating the root of the problem, finance alternatives to refinancing equipment loans may be found in our portfolio of commercial credit solutions. ## Alternatives to Refinancing Equipment Loans Where cash flow is under pressure, an alternative to seeking to refinance a large loan may be to source cash flow support finance. This type of finance typically involves a Lender Overdraft or an ongoing line of credit. Rates can be competitive and with interest only charged on the funds used each month, this can be a very affordable solution for many businesses. An Overdraft may be considered as a short-term measure and refinancing the large machinery loan at a later time when the interest rate market presents a more attractive option. Where the issue emanates from the income side – from slow-paying customers, or if the business has committed to a contract with 60-90+ day invoice payments, [Invoice Debtor Financing](/debtor-finance) may offer a solution. This is a specialised form of commercial credit, not available through all banks and lenders. We have lenders that do provide this credit facility and can source quotes and set-up the process for you. The concept is that the lender pays the business a set percentage of the invoice value at the time of invoicing. The customer pays the full amount to the lender on their terms. When the full amount is received, the lender pays the business the final outstanding amount. This lending product is individually structured to meet the specific requirements of each business. The business decides how much of each invoice they need asap and how much they can wait to receive. Interest accrues depending on the timing and the invoice values. For temporary hiccups and unexpected expenses, Secured and [Unsecured Business Loans](/unsecured-business-loans) are versatile credit facilities which can suit a wide range of expenditure. ## Sourcing Solutions Target Financing Targeted finance solutions may sound complex. Sourcing these solutions through our experienced brokers can be a streamlined, straightforward process. We listen! Our brokers are interested only in assisting customers by first understanding their requirements. We will provide you with quotes on the most suitable options and when you agree to proceed, we work with our lenders to arrange the financing. If refinance of machinery loans does not appear to be a viable, affordable solution, think outside the square and speak with Jade about alternatives. **To discuss targeted credit solutions as alternatives to refinancing equipment loans, contact Jade Equipment Finance 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.* **Categories:** Finance --- ### [What are the best loans for machinery repairs?](https://www.jadeequipmentfinance.com.au/blog/what-are-the-best-loans-for-machinery-repairs) **Published:** February 2, 2026 **Author:** Publisher **Excerpt:** Loans for machinery repairs with secured or unsecured finance can provide operators with an affordable option to replacing equipment with new units. **Content:** Loans for machinery repairs with secured or unsecured finance can provide operators with an affordable option to replacing equipment with new units. When equipment is unserviceable, unreliable or simply not delivering up to expectations, the outcomes for the business can be detrimental. But not all businesses will be in a position to immediately replace units with newer models, especially in the current economic conditions. It’s only early in the year but the scenario may be shaping up as problematic for some industries. Weather events have devastated some regions, inflation has spiked which can put pressure on costs-of-living and impact demand for some goods, and we could see interest rates rise this year. Playing it safe by repairing rather than replacing equipment may be the best decision for many operators. It may also be a very affordable decision with finance for equipment repairs at affordable rates and workable payments. ## What are loans for machinery repairs? Loans for machinery repairs are finance to cover the cost of a wide range of services to repair and overhaul equipment. The type of services which may be financed can include complete engine reconditioning, tyre replacement, costly major services, installation of new major components, upgrading to new tech systems, the purchase of new attachments, and similar. Work or additional parts may be required to adapt the unit to suit different applications or to change the unit to a more efficient fuel system. Repair and upgrade finance may be used to fund the purchase and installation of new software systems to increase productivity and efficiency. A move which may be far more affordable than completely replacing an entire production line or operating process. Financing can be sourced to cover the full or part cost of the services required. This may include parts, labour and extras such as delivery charges, installation and commissioning of production lines or a portion of the costs only. This may be required for the production of new products to suit consumer demand. Construction equipment may need to be upgraded or adapted to suit new contracts on different projects. Agricultural machines may be adapted to suit different produce. This type of finance is available to cover work on all types, makes and models of equipment used across all sectors – agriculture, construction, manufacturing, logistics, medical and others. Makes may include [Deere](https://www.deere.com.au "Deere"), Komatsu, [CAT](https://www.cat.com/en_AU.html "CAT"), and others. ## Types of Loans for Machinery Repairs Financing equipment servicing and repair may be provided with secured and unsecured credit facilities. In most cases, the work, components and parts would not be approved as suitable as loan collateral. This type of repair may be funded with either an [Unsecured Business Loan](/unsecured-business-loans) or even a Business Overdraft. An unsecured loan may suit covering large costs where operators are seeking longer terms to repay the funding. Rates may be fixed or variable, terms negotiated to suit individual requirements, and a fixed repayment schedule provided. An Overdraft offers a flexible option where the funding may be paid down when cash flow permits. Overdrafts may be established for either short-term purposes or as an ongoing credit facility. As both unsecured loans and Overdrafts are unsecured, rates are similar. Where the work required is an upgrade with say new attachments, secured credit may be approved. Attachments, systems and major components that are accepted by the lender as loan collateral may be financed with a Secured Business Loan or with asset acquisition finance – Lease, Chattel Mortgage, CHP or Rent-to-Own. Where a business can provide collateral other than the purpose for the funding, a Secured Business Loan may provide a more affordable option to an Unsecured Business Loan. Having a conversation with a Jade broker can quickly clarify which is the most suitable credit product for your repair work. ## Interest Rates on Loans for Machinery Repairs Rates for repair finance will be dependent on the financials and credit rating of the business and the type of credit product. Unsecured loans attract [higher rates](/equipment-finance-interest-rates) than secured credit facilities. With variations across the market, using our service provides businesses with access to a large lending market, including non-bank lenders that specialise in key industries and markets. ## Comparing Repairing with Buying New Equipment While rates on unsecured loans for machinery repairs may be higher than rates for secured asset finance, the costs of repairing rather than replacing may be a more affordable option. Use our Finance Calculator to get repayment estimates on buying new units and funding major upgrades and repair work. To find out if repairing rather than replacing is an affordable option for your business, connect with Jade to have your best offer sourced and negotiated to meet your requirements. **Contact Jade Equipment Finance [1300 000 003](tel:1300000003 "1300 000 003") for quotes on loans for machinery repairs at highly competitive rates.** *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.* **Categories:** Finance --- ### [How can operators improve their prospects for cheap equipment finance?](https://www.jadeequipmentfinance.com.au/blog/how-can-operators-improve-their-prospects-for-cheap-equipment-finance) **Published:** January 5, 2026 **Author:** Publisher **Excerpt:** Operators may improve their prospects for cheap equipment finance by considering the rate, term, amount, financial position, credit profile, and the lender. **Content:** Operators may improve their prospects for cheap equipment finance by considering the rate, term, amount, financial position, credit profile, and the lender. What is cheap equipment finance? Essentially it is financing for machinery and other assets that is the least expensive. That may mean with the lowest possible interest rates, lowest monthly repayments, and/or the lowest possible total cost when interest and lender fees are included. There are multiple factors that affect the cost of finance and what a business operator will be offered for asset loans. Offers can vary from different lenders, with different credit facilities and with different loan structures. Understanding what factors contribute to the cost of financing may assist business owners to work towards achieving their most inexpensive loan. ## Factors Contributing to Cheap Equipment Finance The asset acquisition credit market is extensive and there are variations in loan pricing and criteria with different lenders. Where a business does not meet the lender criteria, they may expect to be offered a higher rate or not be approved for the loan elements that may deliver a more affordable outcome. By using a broker with access to a large lender base including specialist asset finance non-bank lenders, may assist in achieving a more inexpensive loan. The credit profile and financials of the business are key when it comes to achieving the cheapest interest rates. Businesses with a less than good credit rating are considered higher risk and higher rates typically apply. The relationship between rate, term, loan amount and optional balloon is integral to the cost of financing. Varying one or all of these elements may lead to a more inexpensive loan. The size of the loan relative to the value of the asset is an important factor when lenders price finance. For example, no deposit finance may be considered higher risk than if the operator makes a downpayment and reduces the loan to say 80% of the purchase price. This may also be achieved with using a trade-in to reduce the loan-to-value ratio. Where ‘cheap’ is considered as the lowest overall cost of the finance, the interest element should be considered. Lowering the overall cost of finance can involve lowering the total interest accrued. This may be achieved with a better rate, lower loan amount and with a shorter term. Opting for a longer-term loan can result in lower repayments, but more interest accrues than with a shorter-term loan. This brings into consideration the issue of whether the operator considers the lowest monthly payment as the definition of a cheap loan or the total interest and resultant overall cost. If the focus for achieving the most inexpensive repayments, the balloon may be addressed. Chattel Mortgage and CHP allow for a balloon. A larger balloon can result in smaller monthly repayments and a smaller balloon in larger monthly payments. ## Securing Best Rates for Cheap Equipment Finance For most operators, the cheapest loan will mean the cheapest possible interest rates. Asset loan rates are set by individual lenders with many using the cash rate as set by the [Reserve Bank](https://www.rba.gov.au "Reserve Bank") as the basis from which to set their own rates. Rates vary across the market and with different asset financing facilities. [Chattel Mortgage](/chattel-mortgage) and Commercial Hire Purchase attract the lowest asset finance rates, Asset Lease is slightly higher and Rent-to-Own the highest rates across the market. Businesses must select the credit product that suits their accounting method – cash or accruals, and their balance sheet and tax deduction preferences. While that may limit the opportunity for some operators to use the credit facility with the lowest rate to achieve a cheaper loan, there may be possibilities worth considering. [CHP](/commercial-hire-purchase) can work with both accruals and cash accounting. If operators using the accruals method are happy to take ownership of the machinery from settlement and post the asset to their balance sheet, changing from Lease or Rent-to-Own to CHP may be an option. The lower rates offered with CHP compared with Lease and Rent-to-Own may be worth compromising on the appearance of their balance sheet. ## Improving Financials for Cheap Equipment Finance The strength of the business financial position and credit history are important factors in being offered the lowest rates and most affordable financing. These are areas where operators with a less than good position may be able to take action to improve their prospects. The financial position may be improved by reducing debt levels before applying for new loans. This may provide more capacity to invest in new assets and attract better rates. Maintaining a good payment history and credit rating are important at all times. To improve from a less than good to a good rating may take time as entries on credit reports are in place for several years. For operators with a less than good credit rating, finding lenders that will approve loans with affordable rates to such applicants may be the way to achieving the cheapest possible financing solution. Speak with a Jade broker about your objectives and we will advise the cheapest possible asset loans we can secure for you. **For cheap equipment finance, request a quote with the cheapest possible interest rates from Jade Equipment Finance [1300 000 003](tel:1300000003).** *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.* **Categories:** Finance --- ### [What is the most suitable finance for automation?](https://www.jadeequipmentfinance.com.au/blog/what-is-the-most-suitable-finance-for-automation) **Published:** November 26, 2025 **Author:** Publisher **Excerpt:** Finance for automation infrastructure, equipment and systems is available with asset loans and strategically structured commercial credit facilities. **Content:** Finance for automation infrastructure, equipment and systems is available with asset loans and strategically structured commercial credit facilities. Depending on the system or machinery being purchased, secured and unsecured credit at our highly competitive rates, are available to suit the business and the investment. Providing opportunities for businesses of all sizes, across all sectors, to take advantage of AI, automated systems, and robotics to supercharge their operation. New generation systems and equipment are being used across many industries. Including in agriculture, logistics and warehousing, processing plants, health and medical and in corporate customer service and call centres. Customer service centres incorporate AI and automated systems to solve simplistic queries from customers. With the simple issues solved automatically, the customer service teams have more time to attend to complex issues. In logistics, investing in automated infrastructure may improve accuracy, reliability and efficiency. Investing in automated systems may deliver benefits to the business in efficiency, productivity and profitability. But optimising those benefits may depend very much on the cost of the acquisition finance. We work closely with business owners to source and structure a finance package that is cost-effective and targeted to achieve individual objectives. The investment may be in infrastructure across the operation, individual machines and equipment, or for consultants, developers and programming of custom systems. ## Secured Finance for Automation Equipment Where the acquisition is for assets such as equipment, plant and machinery which can be accepted as loan collateral, secured asset acquisition credit facilities may suit. Businesses can select from [Chattel Mortgage](/chattel-mortgage), Leasing, Rent-to-Own and Commercial Hire Purchase. Where the machinery is a longer-term investment, ownership with Chattel Mortgage may suit. Where systems and equipment need to be upgraded in short to medium term, an Operating Lease may better suit. When selecting the most suitable credit facility, businesses must consider the suitability of the loan product with their accounting method and approach to tax deductions and their balance sheet. ## Finance for Automation Programming, Consultants, Training Key to business taking on new systems, especially AI, is the programming and development. The costs of engaging consultants to plan the system and the expense of the technical developers and other specialists can be the major outlay. This can be especially relevant where custom systems are being developed to suit the unique functions and operations of the business. Once the system is installed, staff typically require training. This is an added expense to be considered. These types of expenses would be considered by lenders as non-asset expenses. The purchase itself not being suitable to be offered as collateral. Commercial credit facilities including Secured and [Unsecured Business Loans](/unsecured-business-loans) are available for these purposes. While unsecured loans typically attract higher rates than secured loans, businesses with strong financials, high turnover and significant asset holdings may be offered highly competitive rates. Smaller businesses may provide other assets or opt for an unsecured loan without collateral. Where the acquisition includes a combination of both assets and non-asset expenditure, we work to structure an inclusive, custom finance package which is affordable and effective. ## Individually Structured Finance Solutions To genuinely deliver positive outcomes for a business, an investment in automated systems must be cost-effective. The overall outlay for the investment – the purchase and the finance, must be offset by the benefits to the operation. Our brokers are highly experienced in structuring commercial loans, and we have access to specialist lenders in many key industries. Loans are strategically sourced, negotiated and structured to meet the life cycle of the machine or system and avoid businesses operating with obsolete equipment in the future. While the most competitive rates are sourced, close attention is paid to negotiating the term of the loan and any balloon or residual. This can be particularly significant with systems that will require upgrading. Where the term of the loan is in line with the life cycle of the asset or system, this may place businesses in a better position to upgrade when required, without facing a significant payout on the existing loan. ## Compare Rates, Calculate Loan Estimates for Planning Planning will be essential for most businesses considering an investment in new generation AI and automation. Planning not only with the providers, but for the financing. [Our Finance Calculator](/calculator) is readily available online to assist business owners estimate and plan their finance. The calculator can be used to carry out a range of functions including estimating repayments and total interest accrued, comparing outcomes with different terms and balloons, and for comparing interest rates. Specific quotes can be obtained by contacting us online or by phone. To upgrade your operation with the latest technology and realise the benefits that may be on offer, speak with us about cost-effective financing to suit your objectives and cash flow. **For strategically structured finance for automation systems and equipment, contact Jade Equipment Finance 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.* **Categories:** Finance --- ### [What’s happening with interest rates? RBA & Asset Rate Update](https://www.jadeequipmentfinance.com.au/blog/whats-happening-with-interest-rates-rba-asset-rate-update) **Published:** November 14, 2025 **Author:** Publisher **Excerpt:** With the RBA November cash rate hold and no cuts expected until 2026, operators can use our brokers to secure the lowest equipment interest rates in the market. **Content:** With the RBA November cash rate hold and no cuts expected until 2026, operators can use our brokers to secure the lowest equipment interest rates in the market. Businesses and households were hoping for a rate cut before the end of the year. But the release of the key inflation data just prior to the [Reserve Bank](http://www.rba.gov.au "Reserve Bank") Board’s meeting, quashed the possibility of a rate cut. That key data was the September Quarterly Consumer Price Index, commonly referred to as the inflation figures. [The Australian Bureau of Statistics (ABS)](http://www.abs.gov.au "The Australian Bureau of Statistics (ABS)") released the figures on 29 October, and rather than the recent downward trend, the report revealed that the Consumer Price Index had risen 1.3% in the quarter. Increasing the annual inflation figure to 3.2%. This is up from the 2.1% to the June quarter. ABS Head of Prices Statistics, Michelle Marquardt said that the rise was the highest for a quarter since March of 2023 and the highest annual inflation rate since June of 2024. Noting electricity costs as the largest contributing sector to the increase. Inflation figures are integral to RBA monetary policy. The Bank has been targeting 2-3% inflation. The news took the markets and analysts by surprise and sent shocks through the sharemarket and to businesses and households hoping for that rate cut. When the RBA Monetary Policy Board met on 4 November, the decision was to leave the cash rate on hold. What does this mean for asset finance rates? When will there be a rate cut? Can operators secure affordable rates? This update covers on the key issues and provides direction on securing competitive asset financing rates for your equipment acquisitions. ## RBA Update The decision by the RBA Monetary Policy Board at its 4 November meeting was to hold the cash rate at 3.6%. In announcing the decision, RBA Governor Michele Bullock noted the pick-up in inflation and that the September figures were higher than expected when the August Monetary Policy statement was issued. Ms Bullock said some of the factors behind the rise in inflation were temporary. The forecast in the November Monetary Policy statement was for underlying inflation to increase above 3% over the quarters ahead before lowering to 2.6% in 2027. While economic activity in Australia was recovering, Ms Bullock highlighted the uncertainty in the outlook and for inflation on both the domestic and global perspective. Global uncertainty remains at a high level and developments in trade policy are expected to have adverse effects on global growth. Due to persistent inflation which the Board says may remain and the tight labour market, decision was made to ‘remain cautious’ and leave the cash rate on hold. The next meeting of the Monetary Policy Board and next rate decision is on 9 December. ## What is the outlook for asset finance interest rates? Businesses keen to maximise returns on equipment acquisitions will no doubt be wondering, when will there be another rate cut? As is standard procedure in announcing the November decision, the RBA did not provide any indication around future decisions. Saying only that it would be watching the data as it evolved. Commentary and reaction from the markets, analysts and other specialists tends to forecast that a rate cut could be as far away as beyond the February RBA meeting. More information on the RBA’s thinking may be gleaned when the Minutes of the November meeting are published to the Bank’s website on 18 November. ## How can businesses get best asset finance interest rates? For operators looking to purchase new equipment and machinery, competitive rate finance can be secured. Some lenders may have reduced rates in anticipation of a November cash rate cut. Though it is typical for most banks and lenders to await the RBA decision before altering their pricing. With no decrease to the cash rate, most lenders will leave their own rates on hold. But with varying across the lending market, better rates can be found. With our large selection of lenders we have the resources to secure customers their most affordable rate on Chattel Mortgage, [Asset Lease](/asset-lease), Commercial Hire Purchase and Rent-to-Own loans. Business owners can also contribute to achieving their best rate by maintaining a good payment and credit history and minimising debt levels. Consideration can also be given to the size of the loan required. A larger loan in comparison to the value or price of the equipment may attract a higher rate. Making a larger deposit in addition to any trade-in available, may result in less being required for the finance and potentially a better rate offer. To start planning and preparing asset acquisition budgets, refer to [our current rates](/equipment-finance-interest-rates) and use the [finance calculator](/calculator) to establish preferred terms and loan levels. **For competitive asset finance interest rates, contact Jade Equipment Finance 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.* **Categories:** Finance --- ### [What is the cheapest equipment loan?](https://www.jadeequipmentfinance.com.au/blog/what-is-the-cheapest-equipment-loan) **Published:** November 3, 2025 **Author:** Publisher **Excerpt:** The cheapest equipment loan may be achieved by securing the lowest interest rate or may be considered finance with the lowest monthly payments. **Content:** The cheapest equipment loan may be achieved by securing the lowest interest rate or may be considered finance with the lowest monthly payments. The interpretation of the most affordable finance or lowest priced, can vary with different business operators. Some business owners may seek the lowest rates to reduce the total cost and the payments. Others may seek to structure the finance to achieve the lowest monthly repayments. Whatever your interpretation, our brokers work towards achieving the most affordable, least costly loans for every customer. Understanding what factors contribute to the cost of finance – rates, repayments and total investment, may assist operators to formulate their expectations and prepare budgets when buying new machinery and other assets. ## Securing Lowest Rates for Cheapest Equipment Loan Interest rates are the key to the overall cost of finance and to the repayments. Achieving the lowest possible rate will be the objective of most business operators when sourcing finance. Rates vary across the lending sector as banks and lenders set their own rates. Lenders typically use the cash rate as set by [the Reserve Bank](http://www.rba.gov.au "the Reserve Bank") as a basis from which they establish their lending rates across their portfolio. In addition to the cash rate, lenders need to allow for their own funding costs. Lenders vary their rates according to their own forecasts and guidelines and the perceived risk of lending at a particular time and to a particular industry sector. One lender may be offering the best rates at one time, while another may emerge as the most competitive at another time. The market can present a complex scenario. Using our broker services can assist operators to quickly identify which lender is currently offering the best asset finance rates. Lenders advertise or display their best rates at that time. These figures will be for new assets and for businesses that have good credit. Businesses with less than good credit can expect a higher rate. Higher rates can apply to used compared with new machinery finance. Interest rates can also vary with different industry sectors. The interest rate is essentially the lender’s assessment of risk in lending to that business. Lenders can assess different sectors as a higher risk than others at different times. This may be due to economic conditions impacting the sector, the overall Australian economy, or global scenario. Different finance products attract different rates. [Chattel Mortgage ](/chattel-mortgage)and Commercial Hire Purchase attract the lowest asset acquisition finance rates, Lease rates are slightly higher, and Rent-to-Own attract the highest rates in asset finance. Choosing the finance product based purely on the one with the lowest rate is not advisable as the credit facility may not be suitable to the business structure and objectives. Credit facilities don’t just vary with rates. They also vary with their suitability to the different accounting methods and have varying structures relating to posting assets to the business balance sheet. Tax benefits available with all asset acquisition finance products provide deductions to reduce the cost of acquiring machinery and equipment. Deductions may be taken into consideration when assessing the most affordable finance option. To achieve the lowest possible interest rate to keep your finance costs to the lowest possible, maintaining a good credit history is a very important factor, as is using a finance broker such as Jade. We have access to 80+ lenders and the resources to know which lender is currently offering the best rates to suit your profile. Compare [our current rates](/equipment-finance-interest-rates) as a guide. ## Cheapest Equipment Loan with Lower Repayments If achieving the lowest monthly payments is your interpretation of the least costly finance, there are a several factors to consider. Obviously borrowing a lower amount will reduce repayments. This may be achieved by selecting a lower priced unit or by paying a larger deposit. A lower loan amount may also contribute to being offered a lower interest rate to further reduce the overall finance costs. In addition to securing a better rate, the structure of the finance can contribute to lowering monthly payments. The balloon available with Chattel Mortgage and CHP may be varied to achieve a lower payment schedule. But it is advisable to ensure the balloon is aligned with the end-of-life value of the asset. The finance term is also key to the monthly payment schedule. Longer terms deliver lower monthly payments, shorter terms a higher monthly amount. But a larger total interest will accrue on longer term loans. Adding to the overall cost of the finance and the asset investment. ## Get Estimates to Find Your Cheapest Equipment Loan Operators can use our Finance Calculator to see how all the elements of the loan contribute to the cost. All values can be altered to calculate a different monthly payment estimate. **To secure your cheapest equipment loan contact Jade Equipment Finance 1300 000 003 for your best interest rate and finance structure.** *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.* **Categories:** Finance --- ### [Secure Your Finance Now for Orange October - Kubota Sale and Discounts   ](https://www.jadeequipmentfinance.com.au/blog/secure-your-finance-now-for-orange-october-kubota-sale-and-discounts) **Published:** September 22, 2025 **Author:** Publisher **Excerpt:** Operators seeking to take advantage of the discounts on certain tractors and equipment at the  Kubota sale event can arrange finance ahead to be ready to buy. **Content:** Operators seeking to take advantage of the discounts on certain tractors and equipment at the Kubota sale event can arrange finance ahead to be ready to buy. Kubota is one of the most popular brands of machinery and equipment for a wide range of industries and this October event is sure to attract attention. Discounts are being offered on key models and as with many sales, the stock available may be limited in quantity. Operators that are ready to buy, with financing already locked-in, may put themselves in the ideal position to secure their choice of machinery. Applications for loans can now be submitted to Jade for fast approvals at competitive rates. ## Kubota Sale Event The [Orange October sale event](https://kubota.com.au/campaigns/orange-october "Orange October sale event") offers discounts on a number of very popular machines. The BX series sub-compact tractor is available for an advertised pricing of $22,462. This is described as sized for efficiency but including great capabilities in many applications. For just under $41k operators may consider the M Series range of tractors. These feature a quiet but powerful diesel engine, high-end componentry and features to suit many applications. When considered this tractor, include the attachments you need for your application at the time so we can include the entire package cost in your finance deal. The promotion also includes run-out deals on the RTV-X900. Suitable for many farms and work sites, this could be your ideal opportunity to upgrade your machinery to achieve improved efficiency and output. Operators in landscaping, property management, golf course and sporting fields maintenance may consider the deals available on Kubota’s ride-on mower range. Sale time is a great time to stock up on new attachments and accessories to support your business. Check out the deals available on Kubota’s Land Price stock clearance and speak with us on a package finance deal. ## Finance for Kubota Sale Purchases Finance for machinery and equipment is available with Lease, [Chattel Mortgage](/chattel-mortgage), Rent-to-Own and Commercial Hire Purchase. To be eligible for these types of credit products, the machinery would need to be accepted as loan collateral. This would typically apply to items such as tractors and mowers. Where attachments are purchased at the same time as the machine, we can generally include the entire outlay in the one loan package. Where attachments only are being acquired, lenders would need to approve their suitability as collateral for asset finance. Where multiple attachments and accessories only are being purchased, we can source workable solutions either with asset finance or with Unsecured Business Loans for the entire package. Our [rates](/equipment-finance-interest-rates) are highly competitive with the best offers sourced from our large lender base of both banks and non-bank lenders. When purchasing from the October sale, operators are presented with finance through the brand, that is known as dealer finance. This type of finance can be attractive, but we urge buyers to consider the details closely, compare with our rates and overall offers, and request our quote to ensure you are securing your best offer. Considerations with dealer finance may include:- if your operation is eligible such as sole traders and new operations; does any low rate offer extend over the full term; are rates fixed or variable; are loans available only through the one designated credit provider or sourced from across the market; do deposit requirements meet your preferences; does the credit provider offer all and especially your preferred loan product; and are there any special terms and conditions included that do not suit your business operation. Some of the details noted in the sale promotion information include the requirement for a deposit and set terms. Through Jade, many operators are approved for no deposit finance to free up cash flow and for terms of up to 7 years. Allowing for the cost of the acquisition to be spread over a longer period and monthly repayments reduced to work with cash flow. We also offer the full selection of asset acquisition credit facilities to ensure every operator secures the financing to suit their set-up and approach to balance sheet and tax deductions. ## Set-up New Business with Purchase at Kubota Sale With the end of year looming, there are sure to be plenty of individuals planning their 2026 launch into self-employment. Possibly in gardening, landscaping, construction or agriculture. Now could be the ideal time to secure tractors and ride-on mowers and all the necessary attachments while prices are discounted. We have lenders that do approve loans without full documentation – No Doc and Low Doc Machinery Loans. Opportunities which may enable new operators to purchase their machinery now and be ready to launch their new business at the start of the new year. ## Secure Kubota Finance Ahead of Time Be ready to secure your machinery at the October sale by securing your finance now. Applications for machinery loans can be approved prior to purchase, based on an estimated loan amount. Submit your application by phone with one of our brokers or use our convenient online facilities. **Apply for your Kubota sale finance today – contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Buying Tips --- ### [COVID-19: Our Support, Your Finance](https://www.jadeequipmentfinance.com.au/blog/covid-19-our-support-your-finance) **Published:** March 16, 2020 **Author:** Publisher **Content:** As the Government response to the coronavirus outbreak escalates on a daily, sometimes hourly basis, with increasing impacts across the community, we felt it timely to reassure you that you have our support with Jade Finance operating under our normal conditions for the foreseeable future. Continuity of Jade Finance Services - All current finance applications will continue to be processed as usual. - Settlements will continue to be finalised as usual. - We do not anticipate any disruption to our services. - Should our team be ordered by government regulation to work remotely, the appropriate systems will be put in place with security measures, to enable continuity of our service. - It is an unknown factor what disruptions may occur to the services of our banks and lenders. - Should there be a delay in handling your finance due to a delay by the lender, your consultant will be working hard to resolve the issue and expedite your loan. - New finance and loan enquiries and applications are still being accepted and handled as usual. - You can contact us on 1300 000 003 or your consultant’s direct line. - If you are experiencing challenges around an existing loan due to the impact of COVID-19, contact your lender directly. There has been some narrative around leniency measures being applied by banks and lenders in these circumstances. We cannot provide specific details but recommend you contact your lender. ## Government Stimulus Finance Packages - The Federal Government has announced a stimulus package with benefits to some individuals and businesses. - Payments for [individuals and households](https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Assistance_for_households.pdf "Assistance for individual and households") - [Cash flow assistance](https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Assistance_for_businesses.pdf "Learn more about the government's plan for cash flow assistance for businesses") for businesses - Support for [business investments](https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Support_for_business_investment.pdf "How the government will support business investments") Business Stimulus: Explained Our team has analysed the business stimulus package and identified a number of opportunities for our customers who are considering asset acquisitions. **Instant Asset Write-Off:** *The Government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.* What this means for your business… Under a [Chattel Mortga](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Chattel Mortgage Equipment Loans with Jade FInance")[ge](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Chattel Mortgage Equipment Financing")[ Loan](/chattel-mortgage "Chattel Mortgage Equipment Loans"), cars, trucks, boats, caravans, etc that are tax deductible you will be able to claim 100% of the depreciation on the goods up to a value of $150k if you [finance equipment with us](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote for your next equipment purchase"). Then claim the interest back as you pay it off. **If you would like to take advantage of this opportunity, please speak with one of our [Jade consultants](https://www.jadeequipmentfinance.com.au/contact-us "Contact us, send an enquiry form to our team or request a free quote") to discuss a Chattel Mortgage for your asset purchase.** ## State Government Stimulus Finance Packages Several state governments have indicated that they will be releasing their own stimulus packages in addition to the federal package. Our team will be across developments in this space and will advise you of any aspects related to finance and lending. We strongly recommend that you stay across the government advisories in regards to protecting yourself and your family against COVID-19. The scenario is fast-moving and updates are being issued through all media on a very regular basis. Be sensible, follow the directions from authorities and stay well and safe! Your Jade Finance Team *DISCLAIMER: THE INFORMATION PROVIDED IN THIS PUBLICATION IS INTENDED AS AN OPINION AND A GUIDE ONLY. IT IS NOT INTENDED AS FINANCIAL ADVICE. CONTACT YOUR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE ON YOUR SITUATION.* **Categories:** Finance --- ### [Hitachi Machinery Loans](https://www.jadeequipmentfinance.com.au/blog/hitachi-machinery) **Published:** March 18, 2020 **Author:** Publisher **Content:** Globally, Hitachi is one of the best known and highly respected manufacturers of machinery for many industries. The company is renowned for its engineering capability and excellence and is an international supplier of leading-edge machinery. ## What Does Hitachi Make [Hitachi](https://www.hitachi.com.au/) manufactures equipment and machinery for the agricultural sector, air conditioning, healthcare, industrial equipment, air compressors, chain hoists, information technology systems, mining and construction industries and general business equipment. Particularly dominant in the Australian mining, construction, quarrying, forestry and recycling industries, the Hitachi name appears at many Jade customers’ work sites, factories and facilities. ## Jade Equipment Finance Jade Equipment Finance shares the key Hitachi benefits of achieving low costs and better flexibility in providing lower cost, more flexible finance packages for customers purchasing Hitachi equipment. ### Finance for Hitachi Machinery Jade provides the full range of [commercial equipment loan products](https://www.jadeequipmentfinance.com.au/overview-of-equipment-loan-products "Access specialized financing for construction equipment loans and purchases.") for the purchase of Hitachi machinery: Chattel Mortgage, Commercial Hire Purchase (CHP), Machinery Leasing and Rental. The decision as to which finance facility is best for your business is based not necessarily on the machinery but on your business. More specifically your accounting method, tax and GST treatment and balance sheet approach. Speak with your accountant to make this decision. ### Equipment Finance Brokers As [professional equipment finance brokers](https://www.jadeequipmentfinance.com.au/broker "Talk to our professional finance consultants about purchasing your next equipment"), your Jade consultant will structure a finance package, specifically targeted towards you achieving the ROI and productivity goals you are expecting from your Hitachi purchase. We have a very large customer base, which includes Hitachi equipment purchasers, so our consultants are familiar with the manufacturer and their range of machinery. We work with Hitachi buyers through [financing forestry and logging machinery](https://www.jadeequipmentfinance.com.au/logging-equipment-finance "Explore our finance solutions for logging and forestry machinery"), and loaning construction and [mining equipment](https://www.jadeequipmentfinance.com.au/mining-equipment-loans "Uncover funding options for your mining equipment investments."), along with our business operations in other sectors. ### New and Used Machinery Finance Hitachi machinery is engineered to the highest standards of excellence and its reputation for long-life is exceptional. But many companies still choose to regularly upgrade, leaving a strong used market for Hitachi equipment. Jade provides finance for both new and used Hitachi equipment purchases. This includes purchases made through authorised [dealers](https://www.hitachiaircon.com.au/find-a-dealer "Find a Hitachi dealer"), from a private seller, another business or at auction. Your consultant can liaise with the seller to expedite the purchase process. If you plan to buy at auction, discuss pre-approved finance with your Jade consultant. This will involve sourcing you a quote and having your application approved before you actually purchase the equipment. Knowing your finance is approved provides confidence when bidding at auction and expedites the settlement time. ### Cheap Interest Rates, Fixed Terms Our Jade policy of [cheap equipment loans interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check out cheap equipment loan interest rates here") applies to all Hitachi machinery quotes that we source. So you are assured that the finance offer we present you, is the cheapest available. A deal that will work with your cash flow to assist you realise the ROI on your Hitachi that you expect. **Speak with a Jade Equipment Finance Consultant to discuss a financing solution for Hitachi machinery. Call 1300 000 003** **Categories:** Finance --- ### [Coronavirus Stimulus: Equipment Instant Asset Write-Off](https://www.jadeequipmentfinance.com.au/blog/coronavirus-stimulus-equipment-instant-asset-write-off) **Published:** April 14, 2020 **Author:** Publisher **Content:** The coronavirus pandemic has had a significant impact on Australian businesses with some experiencing severe hardship while others are pivoting, preparing and planning for the new normal and towards a post-COVID-19 economy. Businesses are looking for opportunities both to remain viable in these uncertain times and retain their workforce. To take advantage of these opportunities and/or adapt to changing demand, many businesses are looking to investment in new equipment. ## **Instant Asset Write Off: Explainer** - To support business investment, the Federal Government announced an increase in instant asset write-off (IAWO) from $30,000 to $150,000 to 30 June 2021 for businesses with aggregated annual turnover of $500 million at 30 June 2020. - This is a 15 month time limited incentive. - [IAWO](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off "Instant Asset Write-Off") applies to new assets depreciable under Division 40 of the Taxation Act - Equipment must be utilised or installed for use by 30 June 2021. - IAWO applies per asset so multiple items of equipment may be purchased under this measure. - For full details please refer to the [Australian Government fact sheet](https://treasury.gov.au/sites/default/files/2020-04/Fact_Sheet-Delivering_support_for_business_investment.pdf "See how the government will deliver support for business investments") - Please refer to your accountant for specific advise on your individual business circumstances. ## **Choice of Equipment Finance** To support business to take advantage of this IAWO measure, Jade Equipment Finance is providing continuity of service to ensure finance for equipment finance applications are processed swiftly and at our cheap interest rate policy. Issues to consider include: - The type of finance facility selected requires consideration in regard to taking advantage of the IAWO. - [Equipment L](https://www.jadeequipmentfinance.com.au/asset-lease "See how you can loan and finance equipment from us")[easing](/asset-lease "See how you can loan and finance equipment from us") and Equipment Rental are off-balance loan products. The equipment appears as an asset/liability on the lender’s balance sheet, not the borrower’s. Therefore IAWO may not be claimable. - Commercial Hire Purchase and [Chattel Equipment Mo](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore Chattel Mortgage financing options with Jade Finance..")[r](/chattel-mortgage)tgage are on-balance sheet finance and as such suited to IAWO. - Choosing which finance type is best suited to the accounting method implemented by your business is best done in discussion with your accountant. ### **Opportunities to Seek Out** The coronavirus pandemic has without doubt, started as a health crisis and quickly morphed into a global economic crisis. While the big economic picture may be extremely alarming, individual businesses may take some comfort by viewing the situation from their own ‘small frame’ perspective. From the individual perspective there are numerous examples of businesses pivoting their operations and of prospects for growth into new areas into the future which may require the purchase of equipment or [business equipment loans](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Find the perfect funding solution for your business needs."). We quote a few examples:- - For some business owners who have seen the market for their products and services significantly reduced or disappear, they are pivoting to use their existing skills and equipment to producing goods that are in demand. Examples include a staging company that pivoted to producing desks to cater for the surge in work from home requirements and gin and other spirit manufacturers pivoting to produce sanitiser. - Many companies have moved to assist health authorities by adapting their resources to produce and [finance medical equipment](https://www.jadeequipmentfinance.com.au/medical-equipment-loans "Invest in medical equipment for your business today by clicking this link") including ventilators, masks and personal protective equipment (PPE). - Research, development, testing and trials into finding a COVID-19 vaccine and possible treatments have been accelerated and fast-tracked which is opening opportunities in pharma and medical fields. - A wide range of companies who have been forced to close their bricks-and-mortar stores or are seeing a significant decrease in trade, have expanded their online and delivery services. This is requiring companies to [invest in transportation](https://www.jadeequipmentfinance.com.au/transport-equipment-finance "Finance your transportation with our tailored finance solutions") such as trucks, delivery vehicles, along with additional warehousing/storage facilities and software systems to process orders. Jade can provide finance for all these types of equipment. - The increase numbers of people transitioning to work from home has seen a surge in demand for products required to [set up a home office](https://www.jadeequipmentfinance.com.au/computer-and-it-equipment-loans "Explore flexible finance options for tech equipment.") which have necessitated companies in that sector to increase production. - The COVID-19 pandemic has created delays and issues in procuring some goods from overseas manufacturers. In particular PPE but also many other items. These issues have put the spotlight on Australia’s domestic manufacturing capabilities. Capabilities which have significantly reduced over recent decades in preference for cheaper overseas options. Both Governments and industry are now looking closely at local manufacturing capabilities to better protect supply lines of essential goods. This may represent opportunities for many businesses to expand and grow. - Many food and household goods producers have seen a surge in demand as consumers have panic-bought key items. This has forced a quick scale-up by companies in production by purchasing and [financing manufacturing](https://www.jadeequipmentfinance.com.au/manufacturing-equipment-loans "If you need manufacturing equipment, contact us about our machinery financing options") to meet that demand. - Some businesses have had to focus on different markets and invest in equipment to facilitate this shift. For example, food producers that have seen their supply to restaurants and catering industry decline have had to shift to directly supplying consumers which has seen investment in delivery systems and vehicles. - The stay at home restrictions have seen a surge in demand for DIY hardware and home improvement products. Businesses in this space have had to scale-up to cope and with some experts predicting that many of the current movement and distancing regulations will be in place for some time, this may be a longer term trend. #### **Pivoting. Preparing. Producing** As Hon Dan Tehan, Minister for Education said in a press conference on 12 April, if you’re given lemons you make lemonade. It’s an old adage but in classic Australian spirit, businesses are making what they can of a bad situation. The IAWO measure will benefit many businesses and Jade is committed to supporting businesses to facilitate their equipment finance requirements. **To discuss the options for your [equipment finance loan](https://www.jadeequipmentfinance.com.au/ "Get a free quote from us at Jade Finance.") requirements contact us on 1300 000 003 to speak with a Jade Equipment Finance consultant.** DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE *PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.* **Categories:** Finance --- ### [COVID-19 Equipment Finance Repayment Relief](https://www.jadeequipmentfinance.com.au/blog/covid-19-equipment-finance-repayment-relief) **Published:** April 15, 2020 **Author:** Publisher **Content:** Business across Australia have been devastated by the effects of COVID-19. Either forced to close by Government orders, closed to protect the health of staff and customers or seeing a significant decrease in business activity. Many of our equipment finance customers have reached out to us asking for direction in regard to relief for repayments on their equipment finance loans. As [equipment finance brokers](/broker "Machinery Finance Brokers Australia Wide") not lenders, we are not authorised to issue support or relief on behalf of any bank or lender. Through our contact with many of our lenders, we have assessed that individual lenders and banks are applying their own set of policies and support for [equipment finance loans](/ "Machinery Finance Brokers Australia Wide") with many assessing individual loans on an individual needs basis. From our contacts and research we have managed to compile some information to assist you with navigating the COVID-19 support scene and provided you with links to some banks to apply for repayment relief. ## **How to Seek Equipment Finance Repayment Relief** - If you are facing difficulties meeting your equipment finance repayments due to the impact of COVID-19 on your business, we recommend you immediately access your lender’s website for specifics around their individual relief policies. - We’ve observed that most banks and lenders have already set up dedicated websites for the coronavirus support measures. Many mention equipment finance specifically, while for others equipment finance will be included in their [business lending](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "See how Jade Finance can support your business through financing.") and finance section. - The most common relief being offered for small business by lenders for [low doc equipment finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance) loans is deferment of loan repayments. - The contact details for your lender should be displayed on their webpage. The phone lines are likely to be very busy so it advisable to contact the lender via email if possible. - In your contact email, ensure you include your full contact details; your equipment finance loan account number; state that you are seeking COVID-19 support; give a clear indication of the size of your business in terms of turnover so the lender can assess if you are eligible for any special small business relief; if possible, outline the percentage decrease in turnover you are experiencing as a result of COVID-19; request the deferment period you are requiring, be that 3 months or the usual 6 months. - The lender should be able to assess your request and respond with details of the support you have been granted. - Each loan may require separate applications. If you have several equipment loans with the same lender, include the individual details of each one, ie account number, in your email. ### **Business Support Information** - The Federal Government, state and territory governments, local councils, banks and lenders and many other authorities have announced a range of different support measures for business in relation to COVID-19. - Jade Equipment Finance is accredited with many lenders and banks and each has their own approach to delivering repayment relief. There is not a general or large-scale generic response that we can report though most lenders tend to be offering a 6 month deferral on business loans ranging from [medical equipment financing](https://www.jadeequipmentfinance.com.au/medical-equipment-loans "Click here to explore equipment lending solutions for healthcare.") to industrial equipment loaning. Some are extending overdrafts. - If you are not familiar with finance terminology we emphasise that there is a clear difference between deferment of payments and waived payments. - A deferment is putting off payments or delaying them to be paid at a later date. The financial obligation on your equipment finance still exists. You may be given a repayment holiday for 3-6 months but then you will be required to resume your payments at the fixed repayment level. - Interest may still apply to the loan over the deferred period. Subject to individual lender policies. - As opposed to deferment, a waiver infers that the fees, charge or payment has been forgotten or forgiven and no financial obligation exists. This does not usually apply to equipment finance loans but may apply to some fees and charges by a range of organisations. ### **Contacts for Equipment Finance Lenders** To assist yo u in sourcing relief for your equipment finance repayments, we have gathered contact details for some of the major banks. If your lender is not listed here, please go direct to their website and search for COVID-19 support. It should be easy to find. #### **COMMONWEALTH BANK** If your equipment finance loan is with the CBA, go to for information on support. #### **WESTPAC** If you have an equipment loan with Westpac, go to #### **ANZ** If your equipment finance is with ANZ, head to for further information. #### **MACQUARIE BANK** Macquarie Bank is offering support to its business customers, it can be found at #### **Assistance from Government** To review what COVID-19 assistance you are entitled to from the Australian Government, go to Search your relevant state or territory Treasury site for local support packages. Go to our blogs for information on instant asset write-offs and other measures which we will be posted at regular times.. **At Jade Equipment Finance we’ve moved to work from home arrangements but will be providing continuity of service throughout the COVID-19 crisis.** *DISCLAIMER: THE INFORMATION PROVIDED SHOULD BE USED AS A GUIDE ONLY. ALL INDIVIDUAL LOANS AND ARRANGEMENTS WITH SPECIFIC LENDERS SHOULD BE MADE DIRECTLY. JADE EQUIPMENT FINANCE IS NOT IN A POSITION TO PROVIDE SPECIFIC ADVICE ON ANY SPECIFIC EQUIPMENT LOAN.* **Categories:** Finance --- ### [Equipment Refinancing Explainer](https://www.jadeequipmentfinance.com.au/blog/equipment-refinancing-explainer) **Published:** April 16, 2020 **Author:** Publisher **Content:** Even before the [coronavirus crisis](https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert "Corona Virus Health Alert") hit with a massive impact to the Australian economy, many savvy business operators were already eyeing off the historic low interest rates, from the [RBA](https://www.rba.gov.au/statistics/interest-rates/ "Corona Virus Health Alert"), with a view to refinancing their existing equipment loans. The emergence of COVID-19 and its far-reaching impacts, has intensified the interest in refinancing as businesses grasp for all the levers available to reduce costs, ease pressure on cash flow and remain viable in these unprecedented times. Refinancing your existing equipment may be an astute move to take advantage of low interest rates while at the same time reviving your business and shoring up your defences to come out the other side of the crisis in a better position. This can be especially relevant if you have a very long term equipment loan over 84 months and are part-way through the loan term or have multiple loans on different pieces of equipment that you would like to roll into one monthly repayment to streamline your finances and ease cash flow. You may also have had a change in business structure or business objectives since you established your existing loan. Perhaps the benefits from [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Chattel Mortgage with Jade Equipment Finance") or Leasing or CHP are no longer working for your business and changing to a different commercial finance product will deliver better outcomes. We’ve outlined a range of pros and cons to consider before you give us a [call to talk equipment refinancing](https://www.jadeequipmentfinance.com.au/ "Contact us directly about financing equipment for your business"). ## **The Finance Process** - [Equipment refinancing](https://www.jadeequipmentfinance.com.au/equipment-refinancing "Check out our refinancing solutions with us at Jade Equipment Finance") involves establishing a new loan for the balance owed on your existing equipment finance loan. - It may be through your existing bank or lender or a different lender. - Your Jade consultant will go through a similar process as when setting up all equipment finance deals, sourcing you the best offer from our lending panel at the cheapest rates. - The new finance package will have a few fixed repayment, new loan term and new residual/balloon/buyback. ## **Loan Considerations** If you are experiencing changes in your business structure or objectives, as addressed above, changing to a different type of finance product may give you greater benefits. - Your repayment record with your existing lender will be considered. - Income will be closely examined by lenders, especially under the current coronavirus conditions. Some businesses have seen a downturn due to forced closure of their business or their customers but will expect to bounce back quickly when they emerge from hibernation. Others will be anticipating a much slower recovery while for others, the future is not as clear. - To what extent your business is relying on the 6 month [JobKeeper program](https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_0.pdf "Fact sheet on supporting businesses") and other short-term stimulus measures will be considered. - If you have applied to a lender for a 6 month deferral of repayments on any business loans, this may be viewed negatively by prospective new lenders. - The value and security of any personal guarantees you may have given for your business, eg your home, will be assessed in the COVID-19 scenario. Property values in some capital cities had been on a recovery trajectory prior to the coronavirus, but whether this will continue is uncertain. ### **What you may achieve** There are a number of ways to approach refinancing to achieve different objectives:- - Use the low interest rate scenario to reduce your repayments while keeping the same loan term. - Keep the same repayment level while reducing the loan term to payout the equipment loan faster. - Retain the repayment and loan term but reduce the balloon/residual. All strategies have an outcome and each needs to be considered in view of your individual circumstances. **If you would like to discuss refinancing your equipment loan, please contact a Jade consultant for a confidential conversation. Call 1300 000 003** **Categories:** Finance --- ### [Equipment Finance With Covid 19](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-with-covid-19) **Published:** April 23, 2020 **Author:** Publisher **Content:** The coronavirus has changed lives and businesses with the long-term impacts still to be determined. But throughout the COVID-19 crisis in Australia, many sectors have continued to operate, with some necessary changes to procedures. These businesses look to have further opportunities to stay strong and thrive as Australia moves along and towards the other side of the metaphorical bridge that Prime Minister [Scott Morrison](https://www.abc.net.au/news/australia/ "For news on Australian Businesses") constantly refers to. ## Jade Equipment Finance – Open For Business The construction, mining and transport sectors are notably operating pretty much as normal and Jade Equipment Finance has also been ‘business as usual’ throughout the crisis. We’ve also witnessed many manufacturers pivoting their operations to produce different products to deal with a drop in demand for their current lines. Staging companies now making desks, alcohol producers making hand sanitiser and many businesses swinging into action to produce PPE to supply our frontline medical staff. Some manufacturers have needed to ramp up production of consumer goods to cater for panic-buying and hoarding purchasing behaviour. We have fielded many calls from businesses for [equipment to cater for these new ventures](https://www.jadeequipmentfinance.com.au/ "Finance equipment for your next business venture with us") and expanded operations and will be available to handle your equipment finance needs at all times. With the all-important national [COVID-19](https://www.theguardian.com/australia-news "Latest news on COVID-19") curve flattening somewhat faster than authorities envisaged, businesses are now looking ahead of the curve and wondering what business will look like on the other side of the bridge. We explore the opportunities that we see for our equipment finance customers. ### **Opportunities on the other side of the bridge** Businesses are understandably nervous about investing in equipment in the current uncertain economic environment. On one hand, the RBA and other economic forecasters are predicting unemployment levels not seen for decades and a long recovery. On the other hand, key sectors have been flagged as the way out for Australia in the recovery phase. Construction is already being talked about as a key player in the recovery phase. In particular government infrastructure projects. So companies with contracts on these projects and their supply chains, are experiencing a level of optimism with increased [financing for construction equipment](https://www.jadeequipmentfinance.com.au/construction-equipment-financing "Finance construction equipment with Jade Finance"). Transport has been experiencing a surge throughout the coronavirus crisis with an increased demand for delivery services and to ensure supply chain continuation of both consumer goods and essential supplies requiring businesses to [invest in transport equipment](https://www.jadeequipmentfinance.com.au/transport-equipment-finance "Explore options to finance transportation equipment for your business with Jade Finance"). As lockdown restrictions continue to be eased, schools resume and more and more workers return to their normal place of business rather than working from home, the retail sector should see a return of business also. All good signs for manufacturers of consumer goods. After being in lockdown for such an extended period, many Australians will be keen to get into the outdoors and make up for lost time with shopping and engaging in their sport and recreational activities. With international travel off the agenda for some time, we forecast a growth in interstate and intrastate [travel and opportunities for businesses](https://jade.finance/aircraft-finance "Explore aircraft financing for your business with us") in these sectors. The conversation around ‘sovereignty’ and ‘national self-reliance’ is growing louder and it is an interesting one. Going back a very long way, manufacturing in Australia essentially died as it could no longer compete with cheap overseas imports. Manufacturers moved to an offshore business model in increasing numbers. The benefit was cheaper prices for consumers. But during the COVID-19 crisis, weaknesses in our supply chains were clearly exposed. There is now a move to restore a lot of local manufacturing, especially in the production of essential supplies to reduce the reliance of overseas suppliers. All these plans, ideas and predictions provide opportunities for investment in equipment. ### **Investment opportunities** For construction, transport and manufacturing businesses considering investing in new equipment, it may be worth acting promptly to take advantage of the [Federal Government Instant Asset Write-Off (IAWO)](https://www.jadeequipmentfinance.com.au/blog/coronavirus-stimulus-equipment-instant-asset-write-off "Coronavirus Stimulus: Equipment Instant Asset Write-Off") measure. This was announced as part of the coronavirus stimulus package for business. The threshold for eligible asset purchases under Division 40 of the Taxation Act has been increased from $30,000 to $100,000 for assets purchased and operational by 30 June 2021, for eligible businesses. With [current equipment finance interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Uncover interest rates for financing equipment") currently at very low levels, this will make Equipment Leasing even more attractive to many of our customers. We certainly hope our outlook is on the money and we’re here, as always, to assist you to take advantage of any opportunities you can with cost-effective equipment finance. **To discuss your equipment finance requirements, contact us on 1300 000 003 to speak with a Jade Equipment Finance consultant.** *DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.* **Categories:** Finance --- ### [Business Support for COVID-19 Recovery](https://www.jadeequipmentfinance.com.au/blog/business-support-for-covid-19-recovery) **Published:** April 30, 2020 **Author:** Publisher **Content:** Throughout the coronavirus pandemic, Jade Equipment Finance has been operating ‘as usual’ to assist businesses navigate their way through the crisis. As restrictions on both the lending front and the government front are being eased, we’re looking to increase that level of support with both great equipment finance deals and information to keep you across a range of issues. We’ve been buoyed by the easing of lending restrictions by some of our accredited lenders which puts us in an even better position to secure equipment loans for a wide range of businesses, including those with [no docs equipment finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "How the government will handle the covid-19 pandemic financially") or low docs. The speed at which this scenario unfolded, especially in economic terms, has been so rapid and so unexpected that it’s been a challenge just to keep up with what’s happening. It caught everyone off-guard. Who could have even imagined that an Australian government would close borders, order businesses to close and the majority of the population to stay home? But it happened and throughout the unfolding scenario we’ve been continually warned that ‘it’ won’t be the same ‘on the other side of the bridge’. This messaging can create confusion especially for businesses that are keen to get back into full operation and production. But will the ‘new normal look like? As the [curve flattens](https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/coronavirus-covid-19-current-situation-and-case-numbers "Covid-19 situation and case numbers"), a sense of complacency has edged into the community but may also be edging into business. [Governments are stumped up with billions of dollars in stimulus](https://treasury.gov.au/coronavirus "How the government will handle the covid-19 pandemic financially") and support measures. But smart business owners know that they cannot rely on or depend on a continuation of hand-outs to solve every problem. Complacency is now one of business’ worst enemies and ‘doing nothing’ comes in a close second. We want our Jade Equipment Finance customers to lead the way through recovery by forging and shaping their own ‘new normal’ by being well-positioned to capture and create business opportunities. To do this, you need to ensure you’re taking action now. The crisis hit fast and left everyone in its wake. We don’t want you to be behind the recovery curve. To ensure your business is prepared, speak with us about your equipment finance requirements. ## IT Requirements Many companies have moved to or increased their online presence during the lockdown or are considering doing so. Many have more employees working from home and this could shape their new normal. Both these elements put pressure on your IT systems. The increased demands of online purchasing, having a robust and secure system to process online payments, and conducting meetings and client contact via Zoom, Skype and other systems all expose flaws in existing IT systems. Our [IT equipment finance](https://www.jadeequipmentfinance.com.au/computer-and-it-equipment-loans "We provide financing for computer and IT equipment at Jade Finance") services include loans for upgrades of IT systems including your website, software and hardware. For tangible acquisitions Chattel Mortgage, Leasing and CHP are available. For investments such as websites and other marketing resources talk to our consultants about business loans, non-bank lender overdrafts and other options. ## Construction Equipment Infrastructure and construction is set to drive the recovery phase so civil works and other operators will be looking for the release of tenders and other offers to bid on. In order to boost your proposal and your prospects, you may need to invest in new equipment. We provide extensive range from [heavy machinery loans](https://www.jadeequipmentfinance.com.au/construction-equipment-financing "Acquire loans and financing for construction and heavy equipment from us"), and [earthmoving equipment finance](https://www.jadeequipmentfinance.com.au/excavator-loans "Acquire loans and financing for construction and heavy equipment from us") required for the construction, mining and building sectors. ### Workplace Fit-out and Furniture The Chief Medical Officer, Professor Brendan Murphy, has said that many of the social distancing guidelines will be a part of our lives permanently. That is, both the 1.5m distance rule and the 4 square metres per person capacity rule as well as good hand hygiene. This is posing challenges for workplaces that currently do not meet those guidelines. Open plan spaces may need to be re-configured with investment in a new fit-out so you can get your staff back to work in a safe environment. Some manufacturers are working on creating zones within their warehouses, factories and other facilities to comply with the guidelines. This may involve installing new facilities within the zones – lunchrooms, and bathrooms etc, to make them self-sufficient so workers can complete their entire shift in that one zone. Jade Equipment Finance provides finance deals for workplace [fit out furniture](https://www.jadeequipmentfinance.com.au/fit-out-finance "Fit out your location with equipment by financing with us") and equipment finance so please give us a call to discuss your plans. ### Equipment Manufacturing Pivots Companies that pivoted to manufacturing a different product during the coronavirus crisis are seeing opportunities to continue operations in these new markets as well as resuming previous production at the same time. Hand sanitiser appears to be a product that is here to stay as will be shields and dividers to protect especially retail workers in the workplace. Now might be the time to think about expanding your capabilities with new [plant and machinery equipment](https://jade.finance/plant-and-machinery-finance "Click here to discover financing for manufacturing equipment.") so give us a call so we can get moving on your finance requirements. These are just a few of the ideas to start you thinking about how an investment in equipment can set your business up to shape your new normal. We’ll be bringing you more ideas to inspire and motivate so stay tuned to our blogs. For all your equipment finance requirements our Jade Equipment Finance consultants are ready to support you so please give us a call 1300 000 003 **Categories:** Finance --- ### [Equipment Lending: COVID-19 Update](https://www.jadeequipmentfinance.com.au/blog/equipment-lending-covid-19-update) **Published:** May 3, 2020 **Author:** Publisher **Content:** The economic aspects of the COVID-19 crisis have been unfolding at a rapid rate with all sectors of the economy taking a hit. But as the now infamous curve is flattening well ahead of Government expectations, the focus is changed to the recovery stage and getting people back to work. For most businesses that time can’t come fast enough. The finance sector is a crucial part of the economy and your business as it is the source of funding to enable your equipment investments. To give you a broader understanding of what’s happening, we’re providing this update on the equipment finance scene. Just about everyone, individuals and businesses, has taken a hit as a result of the coronavirus pandemic and that has included the finance sector. The [stock market](https://www.asx.com.au/products/shares.htm "Check the stock market here") has seen massive fluctuations as it follows the unpredictable Wall Street markets. The superannuation funds are experiencing a run on funds as people access their super as part of the Government’s stimulus measures. The banking sector has been called on to assist especially the worst-affected businesses to find a way through. In response to the multitude of calls for assistance, like so many of us, the banks were not prepared for the speed and the extent of the economic effects of this health crisis. Initially, their approach was over-cautious and many applications for loans and other assistance from business were rejected. Many tightened their lending guidelines and several lenders even paused all lending activity especially in some categories such as low doc and no doc loans. Initially some banks were reticent to offer funding for businesses who had applied for [JobKeeper](https://www.ato.gov.au/general/JobKeeper-Payment/?=Redirected_URL "Uncover funding and loaning options for equipment with us at Jade Finance") and needed to pay staff for several weeks prior to receiving the payments. This presented massive challenges for many businesses. But as governments started easing restrictions on populations, so the banks and lenders have started easing their restrictions. Some banks are actually contacting business customers directly to offer bridging finance in regard to JobKeeper. Most have released their pause on business loans and are back in business. Several have eased their low docs and no doc guidelines allowing both businesses and individuals to [finance low doc equipment](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Uncover funding and loaning options for equipment with us at Jade Finance"). All in all, the situation is looking much better for businesses looking to invest in new equipment. And it’s all playing out against a backdrop of historically low interest rates and the Instant Asset Write Off measure. So if you want to purchase new equipment, especially to boost your business through the COVID-19 recovery, the time to speak with us is probably NOW. Even if you have no docs or low docs, we may be in a position to assist you with equipment finance. ## Equipment Finance Options Whether you’re a large corporation, sole trader, SME or owner-operator, Jade Equipment Finance offers the full range of commercial finance products including: • Equipment Chattel Mortgage • [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Lease assets with us at Jade Finance") • Commercial Hire Purchase for Equipment • [Equipment Rental Loans](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Check out Jade Finance's options for financing equipment rentals") These products suit a wide range of business structures with a facility to suit cash accounting and accruals accounting systems. Speak with your accountant as to which is best for your business. ### Financial Solutions While we focus primarily on finance for equipment asset acquisitions, we also work with businesses on providing a wide range of other business finance options. • [Debtor Invoicing Funding](https://www.jadeequipmentfinance.com.au/debtor-finance "Click to explore debtor invoice financing alternatives."): cash flow is more important than ever and most businesses can’t wait a long time for clients to pay invoices. If you’re in a situation where your clients’ payment terms are impacting your cash flow, speak with us about Debtor Invoice Funding. • [Insurance Premium Funding](https://www.jadeequipmentfinance.com.au/insurance-premium-funding "Click here to discover insurance premium funding solutions."): if you’re equipment or any other part of your business has an insurance policy with a large premium, having the funds available to pay the premium in one annual payment can be a challenge in good times, let alone in challenging circumstances. We can provide a solutions by way of insurance premium funding for many policies. ### Jade Finance Benefits are Ongoing The benefits of the services offered by Jade Equipment Finance as a business equipment finance broker have been even more obvious throughout the coronavirus crisis and will continue through the recovery period as businesses work through the challenges presented by the lending sector. Approaching the banks and finance companies yourself can be even more difficult at a time when banks are taking a more cautious approach and in some cases tightening guidelines. Having your Jade consultant handle the process for you in a highly professional manner not only eases the pressure on yourself, it allows you access to many industry-only lenders. Our accreditation includes the major banks and many well-known finance companies but also a lot of lenders which are accessible only to finance brokers and in some cases, a selected group of brokers. This provides you with the opportunity to have a wider choice for your equipment loan and therefore, improved opportunities to source a better loan. This is just one of the many benefits we offer our clients. You can realise many of the others by contacting us to discuss your equipment finance requirements. For all [your equipment finance requirements](https://www.jadeequipmentfinance.com.au/ "For equipment financing needs, visit Jade Finance") our Jade Equipment Finance consultants are ready to support you so please give us a call 1300 000 003 **Categories:** Finance --- ### [Capitalising on Cheap Interest Rates](https://www.jadeequipmentfinance.com.au/blog/capitalising-on-cheap-interest-rates) **Published:** May 10, 2020 **Author:** Publisher **Content:** Interest rates are at historic lows and many businesses are keen to make the most of the situation by bringing forward investment in new equipment or looking to utilise the scenario to expand their equipment fleet or facilities now to be ready to quickly capture new opportunities as they emerge in the future. But knowing that interest rates are low is one thing. Knowing how to make those low rates work for you and in your best interests is the more important issue. Beware of ‘too good to be true’ offers in this time of low interest rates. Some equipment low interest rate loan offers may include higher fees and charges which make the total cost of the loan higher. It may be a low interest rate loan but not a genuinely cheap finance deal. Fortunately, by using our services, you know your consultant is working in your best interests and will source you a genuine cheap equipment finance offer. You can also make use of our [finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Calculate your repayments and interest with our online tool") to see your estimated repayments. At Jade Equipment Finance, [we always offer our customers the cheapest finance for equipment finance](https://www.jadeequipmentfinance.com.au/ "Explore our cost-effective equipment finance solutions for your business") to suit their individual requirements. But we also offer a personalised service to structure their equipment finance deal to suit their objectives. And that’s where you can truly capitalise on low interest rates. Before you react to the first ‘low interest loans’ ad you see, it’s wise to be across the detail. - Different banks and lenders set different [comparison interest rates](https://www.canstar.com.au/interest-rate-comparison/ "Canstar Interest Rate Comparison") for borrowers in different sectors. E.g. rates for home loans differ from business loans from car loans from equipment loans. - Lenders set their rates based on how much they pay for their funds and how they assess the industry or sector they are lending to. That is, if a lender has little experience in your particular field, they may not have the knowledge or confidence in lending, and hence charge a higher interest rate. A lender that does operate in your sector will better understand your business and offer a better rate. - Individual lender rates are based on their risk assessment of both the industry sector and the individual application. - Sourcing a lender that specialises in your industry and lends primarily to business is essential to sourcing the cheapest interest rates. Whether it be medical or At Jade, we have experience across many industry sectors so we have the knowledge to assist. - Negotiating with a lender for the cheapest equipment finance interest rates requires skill, knowledge of how they operate their business and some level of bargaining power to enhance your application. Jade Equipment Finance has the experience, knowledge and contacts to assist you. We are accredited with a broad mix of banks and lenders, many are available only to brokers, so our consultants will know which lender will be offering the cheapest interest rate finance for your sector. ## **Structuring the Machinery Deal** Making the cheap interest rates work for you comes down to how you structure your finance contract. That is, what type of [commercial equipment finance product](https://www.jadeequipmentfinance.com.au/overview-of-equipment-loan-products "Discover our extensive catalogue of equipment financial options") will give you the greatest benefits in the long term, how long you want for the loan term, how much you would like in the balloon or residual, having a monthly payment level that does not put undue pressure on your cash flow while minimising capital outlay. Unfortunately, not all banks and lenders are amenable to being flexible with loan terms and conditions. But your Jade consultant knows which lenders will be the most flexible and can handle the process on your behalf. You may want to capitalise on cheap interest rates by either: - Reducing the monthly repayment to support your current and predicted cash flow OR - Electing for a higher repayment amount with a shorter loan term to pay out the loan sooner for strategic purposes OR - Reduce monthly repayments by increasing the balloon or residual and effectively deferring a larger portion for payment at the end of the loan term. Speak with your accountant as to which commercial finance product and which loan structure will best support your financial objectives and then your Jade Equipment Finance consultant can negotiate the deal you want with the lender. At Jade Equipment Finance we are committed to always sourcing the best interest rates and the cheapest equipment finance deals, despite what the general interest rate market is doing. **To discuss a genuine cheap interest rate equipment loan, call Jade Equipment Finance 1300 000 003 and have an initial discussion with one of our consultants**. **Categories:** Finance --- ### [Cheap Finance for Equipment Innovations](https://www.jadeequipmentfinance.com.au/blog/cheap-finance-for-equipment-innovations) **Published:** May 25, 2020 **Author:** Publisher **Content:** COVID-19 has changed many aspects of the way we work and conduct business. The [impacts of the crisis on the economy](https://www.bbc.com/news/world-australia-52131939 "The impact of COVID-19 on the economy") will be playing out for some time to come. Both governments and industry are implementing plans to get the country on the road to recovery and investing in innovation is in the conversation. Smart business operators are implementing their own plans and not waiting for governments to bail them out completely. Many are looking at what innovations they can incorporate into their operations to boost production and productivity and grow their operations with [manufacturing equipment financing](https://www.jadeequipmentfinance.com.au/manufacturing-equipment-loans "Find out how Jade Finance can help with your manufacturing equipment financing"). To motivate and inspire business, there’s a look back into history which reveals numerous examples of businesses that invented, developed and released new products during or just after the [1930s depression](https://www.history.com/topics/great-depression/great-depression-history "The history of the great depression"). Think Jaffas, Milo, Heinz baked beans and Australia’s first milk bar which all emerged in the 30s and were considered key innovations for their time. The widely known definition of innovation is in reference to high tech start-ups and processes that require significant research and development. But the more contemporary interpretation is accepted as new ways of working, new process, pivoting, diversifying, resetting – whatever new impetus you can inject into your operation. That may mean investing in new equipment, in new systems or simply changing the way you conduct business. Whatever innovation or change you decide will work for your business, Jade Equipment Finance is the equipment financing broker that is ready to work with you to make it happen. ## **Cheap Equipment Finance** If you’re pivoting or diversifying into new sectors, Jade Equipment Finance can assist with cheap equipment finance for the purchase of a wide range of equipment. Possibly moving further into construction to take advantage of infrastructure projects and need different types of equipment to handle new contracts. While there is still doubt cast over what the ‘new normal’ will look, it is highly likely restrictions will be in place until a vaccine is available or the country considered COVID-19-free. Smart businesses will be assessing their market landscape and predicting where they see opportunities in the current, changed environment. Jade provides cheap equipment finance for a [wide range of equipment types](https://www.jadeequipmentfinance.com.au/overview-of-equipment-loan-products "We offer finance solutions for an extensive range of equipment and machinery") across all industries. Manufacturing, construction, resources and mining, medical and health, fitness, aviation and many more. We provide the full range of commercial finance products for equipment purchases including:- - Chattel Mortgage - Commercial Hire Purchase - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Explore equipment leasing options at Jade Finance") - [Equipment Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Get equipment for your business with rental financing at Jade Equipment Finance") To expedite your purchase or to allow you to budget the purchase into your forecast, discuss pre-approved finance with your Jade consultant. ### **Finance for Processes and Systems** Your innovation may involve updating or upgrading your internal business systems. This may include IT, communications, production or accounts. COVID-19 has led to a big move to contactless payments and transactions with many businesses needing to change their business systems. The lockdown sent many employees home to work which created security concerns for companies and the need to strengthen their IT networks. If you need to upgrade any of your internal company processes and systems with new equipment, contact Jade Equipment Finance to discuss a cheap equipment loan whether you need large or [small business equipment loaning](https://www.jadeequipmentfinance.com.au/blog/small-business-equipment-loans "Explore options for small business equipment loans at Jade Finance"). #### **Changing Your Financing Habits** Innovation doesn’t have to mean investing in an actual piece of equipment. It may mean changing your ways and adopting more innovative or just better ways of running your business. That may apply to the way you go about sourcing your [finance for equipment](https://www.jadeequipmentfinance.com.au/ "Get More Information On All Loans For Equipment Here"). If you’ve always just contacted your bank and handled the entire process yourself, now could be the right time to change that by using the services of a finance broker – Jade Equipment Finance. We offer many advantages over sourcing your own finance including:- - Having access to a large number of banks and lenders including lenders that specialise in equipment finance. Lenders that you may not have considered or you may not have access to. - Sourcing the cheapest [equipment loan rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Current Best interest Rates for equipment and machinery") and being able to negotiate the best terms and conditions. - Saving you time and hassle, especially when it comes to handling the paperwork. - We have the bargaining power to negotiate a better deal. - We can handle loans with your own bank if you have reasons for wanting to go with your bank. Whatever innovation you decide to implement to boost your business through the coronavirus recovery, Jade Equipment Finance can assist with cheap loans for your asset acquisitions. **Contact Jade Equipment Finance 1300 000 003 and [discuss your ideas with one of our highly trained consultants](https://www.jadeequipmentfinance.com.au/broker).** **Categories:** Finance --- ### [SFI Orbimax Mechanical, Construction and Piping solutions](https://www.jadeequipmentfinance.com.au/blog/sfi-orbimax) **Published:** June 5, 2020 **Author:** Publisher **Content:** If you’re in the mechanical, construction or pipe industries you want access to the leading equipment brands. Not just access, but easy access. [SFI Orbimax](https://www.sfiorbimax.com.au/ "Orbimax official website") is the company you need to head to. They are leaders in both the supply and the hire of world class welding and piping equipment with access the top brands. They are exclusive agents in Australia for several brands including [Lorch](https://www.lorch.eu/en/ "Lorch official website"), E H Wachs, Torc LLC, [Orbitalum](http://www.orbitalum.de/en.html "Orbitalum official website") and Fastorq. Located in Wendouree in Victoria, SFI Orbimax offers a massive range of piping and mechanical equipment and the consumables you need to get the job done. To check out the range, head to their website where you can easily shop by brand or by the type of equipment or consumables you require. The equipment range is extensive within each category. In bolting and torquing, they hydraulic torque wrenches; pneumatic torque wrenches; battery electric torque wrenches; nut splitters; torque spanners; hydraulic tensioners; flange spreaders; pneumatic hoses and fittings and many more. If you’re after equipment for cutting, drilling and bevelling, their selection includes GF saws; split frames; orbital cutters; cutting blocks; pipe bevellers; oxy cutters; band saws; drill presses amongst many others which can all be funded by [financing woodwork machinery](https://www.jadeequipmentfinance.com.au/woodworking-equipment-loans "Explore woodwork equipment financing options with Jade Finance") with us. In the pipe stand selection you have a wide choice of stands, vices and clamps. Chain clamps, cage clamps, pipe rollers, rim clamps and more. If you need hand tools, SFI Orbimax has a wide range to offer. Everything from callipers and hammers through to levellers and pliers, chisel bits, files, spanners, screwdrivers, socket sets – head to the website and you’re sure to find the quality tools you need to get the job done. For welding equipment, you can’t go past SFI for orbitals, TIG, automated units and more from world-leading manufacturers. In addition to the equipment, SFI Orbimax offer you a huge range of consumables. Paints, lubricants, markers, sealants, welding consumables, polishing and abrasives needs, safety requirements and even a range of janitorial products. Their website is extremely comprehensive both with the range of equipment and with handy resources. Conversion charts and a range of videos so you can easily see how to use many of the different equipment ranges. Shopping online is easy at SFI Orbimax, just order online and they will ship from their Wendouree Victoria base to your location. Of course, if you need finance for your equipment, you can’t go past Jade Equipment Finance. We offer cheap finance with the [best interest rates on all types of equipment acquisitions](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Explore Jade Equipment Finance's many options to fund your equipment") with your choice of commercial finance facility: CHP, Leasing or Chattel Mortgage. Your [professional Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Talk to one of our professional Jade brokers") will work with you to source and structure a loan that works for you. **For great equipment finance deals, contact Jade Equipment Finance for a discussion of your requirements. Call 1300 000 003** **Categories:** Finance --- ### [Rule 78: Explainer](https://www.jadeequipmentfinance.com.au/blog/rule-78-explainer) **Published:** June 11, 2020 **Author:** Publisher **Content:** Providing information around lending is a major priority for [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Find out more about lending and financing with Jade Equipment Finance"). There are many complex issues in our area of finance and we attempt to provide as clear explanation as possible. Education and information being key factors in instilling the confidence required to make well-informed business decisions. In this article we take on a quite complex topic – Rule 78, which is also known as The Rule of 78 and The Rules of 78s. The information we provide is intended to be used as general background only and you should always refer to your accountant for specific financial advice on your individual business. The Rule of 78. Possibly you’ve never heard of it and more likely, it’s not keeping you up at nights. But we’ve been asked about it, so we’re diving in deep to provide as simple explanation as possible for those who are interested. ## **General Explainer** Rule 78 is one of several methods that lenders use to calculate how interest on a commercial finance loan, such as equipment finance, is apportioned, i.e. allocated, over the term of a loan. It uses an arithmetic progression, which we will provide you a link to the Australian Taxation Office website to review for full detail. - This method allocates or apportions a greater amount of the total interest payable on the loan to the earlier repayments. So the borrower pays off more of the interest and less of the principal in the early stages of the loan term. - The loan amount, known as the principal, is reduced at effectively a slower rate. - In the earlier repayments, i.e. the first months/years, more of the amount paid is offset against interest as opposed to the principal. - Over the life of the loan, if you continue to the full loan term, the same total interest is paid and the outcome the same, regardless of method of calculating interest used by the lender. (see below for other methods). - If the borrower pays out the loan before the end of the loan term, they may discover that more is owed than expected as less of the principal is being reduced in the earlier repayments. - A loan statement detailing interest and principal payable on instalments and in balance may be provided by some lenders. - Rule 78 applies to fixed term commercial loans only. ## **ATO Information** With all things financial and where tax implications are present, it is always advisable to refer to the ATO. In the case of Rule 78 it is covered under Taxation Ruling TR 93/16 which considers when using Rule 78 is appropriate in apportioning repayments. This ruling specifically states that it does not cover tax implications around interest. That is covered under other Rulings. It does however, state that when Rule 78 is used, it must be done consistently over the loan term. [To swat up further please head to ATO](https://www.ato.gov.au/law/view/document?DocID=TXR/TR9316/NAT/ATO/00001&PiT=99991231235958 "Application of Rule 78 by the ATO") ## **Impacts of Rule 78** So what? You may well ask. Well the method used by a lender in apportioning interest over the loan term may impact when you can claim the interest or other elements of the loan as a tax deduction. As mentioned above, it also has an impact in the event that you choose to pay out your loan early. If for instance you decide to trade up to a new piece of equipment and have a value for your current piece in mind to sell or trade, you might find you owe more on your loan to pay out than anticipated. ## **Comparing Other Methods** The Rule of 78 is possibly best understood when compared with other methods of calculating and apportioning interest. Rule of 78 is one of three methods which may be implemented by lenders: - The Flat Rate Method: possibly the easiest to grasp and for many, seemingly the most logical. The total interest for the loan is calculated and apportioned equally over all the repayments. So with each repayment, an equal part of the interest is being paid with each repayment and a portion of the principal is being repaid. Compared with Rule 78, the principal will be decreasing at a faster rate in the early repayments but more interest will be payable later in the loan. - The Actuarial Method: the interest for each repayment is calculated individually by multiplying the balance by the interest rate. More of the principal is being repaid with each instalment and the amount of interest included in each repayment decreases over time. Regardless of method used, the total interest on the loan is the same. It is just paid at different times in the loan cycle. ### **Jade Input** Despite the method used by the lender, your Jade consultant will be [advising you of the cheap interest rate we source](https://www.jadeequipmentfinance.com.au/blog/capitalising-on-cheap-interest-rates "Discuss with a Jade Broker about potential financing methods"). The total interest and all fees and charges are included in our quote which you can get for free or by using our [finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Check interest rates and repayment scheduling with our calculator"). Hopefully this has been helpful and added to your knowledge bank when it comes to understanding equipment finance. Now, it’s time for us to help you with a great equipment finance deal. **To discuss equipment finance, contact Jade Equipment Finance 1300 000 003 and talk with our consultants.** **Categories:** Finance --- ### [Cheap Construction Equipment Loans](https://www.jadeequipmentfinance.com.au/blog/cheap-construction-equipment-loans) **Published:** June 11, 2020 **Author:** Publisher **Content:** Throughout the economic phase of the COVID-19 crisis, much of the conversation has been around the construction sector. Governments talking about infrastructure spending set to be a major driver of recovery, the sector still working while many in lockdown, housing price slump, the future for tradies and the housing construction sector and in large scale projects, the China trade issues has raised other questions. [The HomeBuilder program](https://treasury.gov.au/coronavirus/homebuilder "See how the government is supporting homebuilders during the COVID-19 pandemic") looks set to give the sector a boost and state governments are pouring billions of dollars into building programs. Whatever your opinion on what the road ahead holds, it is quite clear that construction is receiving a lot of attention. So what equipment do you need to ensure you’re set to give your own business a boost? The [Instant Asset Write-Off offer in May](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/) was welcomed by many and now it’s EOFY. EOFY is the time when many dealers are offering the best prices so what better time to start looking for a great deal. ## **So what’s new and what’s on offer, we took a browse around to bring you a few ideas:-** - Since [Komatsu released its Intelligent Machine Control](https://www.komatsu.com.au/innovation/intelligent-machine-control "Komatsu's innovative intelligent machine control") a few years ago, the take-up of this technology has been impressive and reports are now emerging of users realising great gains in productivity and efficiency. - From Volvo, we found another efficiency machine. The [EC300E hybrid excavator is an eco-friendly machine](https://www.volvoce.com/global/en/news-and-events/press-releases/2020/pre-conexpo-las-vegas-2020/volvo-ec300e-hybrid-reduces-fuel-consumption-by-up-to-15/ "Volvo's new hybrid eco-friendly excavator") that the manufacturer claims can produces less emissions and reduce fuel consumption. - John Deere has also recently rolled out some new equipment – the G-series skid steers. The new models add to the existing 5 models in the range but include significant feature upgrades aimed at productivity increases. - The industry’s favourite, [Caterpillar has also recently announced new releases in the backhoe loader range](https://www.cat.com/en_AU/products/new/equipment/backhoe-loaders.html "Caterpillar's newly released backhoe loader range"). The new models replace the F2 range. These new additions include change some improvements and changes including a 4-speed powershift transmission. - CASE is also in the news releasing the DL550B dozer load. A compact dozer load which is fully integrated. Suitable for loading and grading – could be worth checking out. - The use equipment market remains robust with many good listings on the various online marketplace sites. While the manufacturers do the unveiling of new products, it’s usually at dealer level where you’ll source the great EOFY deals. With most trade shows and field days off the agenda due to coronavirus restrictions, you’ll likely have to do your own research as to what’s available from your local supplier. ### **The Outlook** Mid-year is a good time for a general business review to coincide with EOFY or SOFY (start of financial year) whichever you prefer to mark. But 2020 is not quite a normal year. COVID-19 has changed many aspects of both our personal and business lives. In 2020, mid-year has more significance as it is when the Prime Minister and Treasurer are due to review the results of the stimulus packages implemented in March and decide what else needs to be done. It has been widely discussed that packages will be introduced to target key sectors which will still require assistance through the recovery phase. This is worth you keeping an eye on as it may indicate more work for you in some areas. To get a holistic view of business, we need to look beyond our own operations and into what’s happening with our customers. That’s where the work will be coming from. We are pleased to have experienced an uplift in business in recent months and as each first Tuesday of the month Reserve Bank board meeting passes, it is looking more and more likely that low interest rates will be with us for some time. One economic reporter recently wrote for rates to go into negative territory. But [Reserve Bank Governor, Philip Lowe](https://www.rba.gov.au/about-rba/people/gov.html "Governor of the Reserve Bank of Australia"), has quite often mentioned that he didn’t intend to take rates any lower. So at Jade Equipment Finance, we’re still ideally placed to source you cheap construction equipment loans at the best interest rates including [financing CAT equipment](https://www.jadeequipmentfinance.com.au/cat-caterpillar-equipment "Uncover finance options for construction equipment") such as those above. We continue to work closely with our lender panel to deliver quality, workable financial solutions for all sized businesses. **To discuss equipment finance, contact Jade Equipment Finance 1300 000 003 and [talk with our consultants](https://www.jadeequipmentfinance.com.au/broker "Get in contact with our consultants about financing your business' next equipment").** **Categories:** Finance --- ### [Don’t Write-off Your Instant Asset Write Off Opps](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps) **Published:** June 17, 2020 **Author:** Publisher **Content:** With the effects of the coronavirus pandemic being felt across just about every sector, many businesses have pretty much written-off their equipment investment plans, at least for the first half of 2020. Not surprising with the level of uncertainty many businesses were facing. But as we hit the mid-year mark, positive signs emerged and on 9 June, a significant announcement which has many businesses revisiting their previously written-off asset investment plans. Specifically, the extension to the Instant Asset Write Off (IAWO) initiative to 31 December 2020. ## **IAWO Explained** - Under normal conditions and existing tax regulations, i.e. before COVID-19, businesses could write-off up the $30,000 on business equipment purchases in a financial year. - In order to stimulate the economy through the purchase of business equipment assets, the Australian Government introduced the IAWO increase as part of the business stimulus package announced in March 2020. - This measure allowed for eligible businesses with an annual turnover under $500m to write-off up to $150,000 on asset acquisitions. That is, the threshold was increased from $30,000 to $150,000. - We covered the measure in our COVID-19 articles and you can read all the detail on the [original fact sheet provided by the Australian government](https://treasury.gov.au/sites/default/files/2020-04/Fact_Sheet-Delivering_support_for_business_investment.pdf "Read how the government will support business investment"). - But the deadline for business to take advantage of this benefit was to have acquired the asset and have the equipment operating in the business by 30 June 2020. That was only a 3 month window in the midst of an economic crisis for business to put their investment plans into action. - A 3 month period when many businesses were forced to close due to lockdown restrictions or significantly reduced their operations due to the population effectively being ordered to ’stay home’. - Unfortunately a missed business opportunity for many. - As restrictions were eased, consumer confidence increased and businesses started reopening the Government revisited their raft of relief measures and rejigged some elements. - The IAWO was one of those measures which was revised, with the change set to benefit up to 3.5 million businesses. ## **Deadline Extended** On 9 June 2020 the Federal Treasurer and the Minister for Employment fronted a joint press conference to announce that the deadline for IAWO measure was being extended from 30 June 2020 to 31 December 2020. The extension means that businesses now have until 31 December 2020 to purchase equipment assets and have them operational in their businesses. The extension is designed to encourage businesses to stay with their investment plans to stimulate the economy and also realise a cash flow benefit through the tax deductions. The additional 6 months has many businesses now reassessing their investment plans and putting those plans into action with the purchase of new equipment. The IAWO covers a wide range business equipment – vehicles, trucks, machinery, fit-outs, fitness business equipment, medical equipment, mining equipment, construction industry equipment, catering and hospitality sector requirements and many more. [Check the official ruling on the ATO](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/In-detail/Depreciating-assets/ "Australian Taxation Office Depreciating Assets") or Treasury website or consult with your accountant to ensure your equipment is eligible. The measure does cover both new and used equipment so you can still take advantage of great buys on the second hand equipment market. It does not appear to be limited to any specific purchase channel, so you may consider buying new or used from a dealer, a private seller or even at auction. ## **What to Keep in Mind….** As an extra encouragement to implement investment plans, the announcement came just in time for end of financial year special offers. Manufacturers and dealers in the new equipment market usually offer discounts to coincide with EOFY. These offers are usually only for a limited time, so it is still semi-urgent to get moving on sourcing the equipment you need. Keep in mind that some large pieces of machinery equipment, especially in say the engineering and manufacturing sector, may take time for you to take delivery. There may be delays with shipments from overseas manufacturers that you should take into account as the IAWO requires the equipment be operational in a business by 31 December 2020. Same applies to custom-made equipment and to equipment that may have a lengthy installation and commissioning period. Also keep in mind that not all [commercial equipment finance products](https://www.jadeequipmentfinance.com.au/overview-of-equipment-loan-products "Click here for an overview of equipment loan products") will be suitable for IAWO. We strongly advise that you have the conversation with your accountant or one of our Jade Equipment Finance Brokers around how you should finance your equipment investment to realise the maximum benefit to your individual business. ### **Cheap Equipment Finance** With all those deadlines and considerations to take into account, you’ll be very pleased to know that Jade Equipment Finance takes the pressure off sourcing cheap equipment finance. No deadlines for our service or our cheap interest rate deals – they are always available. We provide the complete range of [business finance options](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Discover business equipment financing and leasing options with Jade Finance") for equipment including Chattel Mortgage, Leasing and Commercial Hire Purchase. Your Jade Equipment Finance consultant will provide a quote, structure the deal to suit your requirements and streamline the process to save you time. Should you need to act fast, just ask for our fast approvals service and if you’re heading to the auctions, we also offer pre-approved finance. **To discuss cheap equipment finance [contact us](https://www.jadeequipmentfinance.com.au/ "Call the number or receive a free quote from us about your equipment loan") on 1300 000 003 to speak with a Jade Equipment Finance consultant.** *DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.* **Categories:** Finance --- ### [Cheap Hospitality and Catering Equipment Loans](https://www.jadeequipmentfinance.com.au/blog/cheap-hospitality-and-catering-equipment-loans) **Published:** June 17, 2020 **Author:** Publisher **Content:** The hospitality, events and catering sector has been one of the hardest hit in terms of COVID-19 restrictions. The reopening after the extended closure of many businesses was greatly welcomed. Especially as it was several months ahead of the earlier anticipated September timeline. But the ‘new normal’ is presenting many challenges to operators, especially in implementing the 1 person per 4 square metre capacity ruling. This has been placed on businesses across many areas to safeguard patrons, but there has not been a definitive timeframe offered for how long this will need to be in place. The challenge faced by the hospitality and catering sector – pubs, clubs, restaurants, event venues, cafes etc – is how to maximise their operation while complying with the regulations. Some innovative operators are looking to rejigging their businesses in various ways. Revising their seating layouts, reviewing their offerings and modifying their business plans. Some strategies may include pivoting to takeaway and delivery offerings; altering the dining experience; or reducing the size of function spaces by dividing larger spaces into multiple smaller areas. To implement these changes, investment may need to be made in new equipment to cater for revised business model. Commercial kitchens may need a layout change so less staff can work in the space in a more COVID-safe manner. Modified or new wash-up areas may need to be installed to [comply with the new regulations](https://www.foodauthority.nsw.gov.au/help/covid-19-advice-for-businesses "Advice from the government for businesses during COVID-19"). You may need to install additional or altered kitchen and prep areas to prepare the different styles of food offerings. E.g. a dedicated kitchen for the takeaway menu and a separate area for the fine dining. Seated areas may need to be expanded to [comply with the 4 sqm rule](https://www.nsw.gov.au/covid-19/what-you-can-and-cant-do-under-rules/four-square-metre-rule "Advice from the government for businesses during COVID-19") while optimising your takings. On the staff facilities side of the business, in order to qualify as a COVID-safe business, you may need to modify staff break spaces and shower/clean-up facilities. As a safeguard, you may be considering installing a modified ordering system which requires a new IT installation with software, POS and accounting systems. ## **Assistance with your Equipment Investment** Investing in equipment at this point in time may seem an overwhelming prospect, but you can get assistance with cheap equipment finance and other helpful services with us at Jade Equipment Finance [here](https://www.jadeequipmentfinance.com.au/ "Explore Jade Equipment Finance's help with investing into your prospects"). As a professional [equipment finance broker](https://www.jadeequipmentfinance.com.au/broker "Talk to our Jade Equipment Finance Brokers about any of our services "), our services are available to all sized businesses – whether you’re a small café owner, a large multi-venue corporation or a suburban publican, you can take advantage of the benefits of working with a finance broker. We are accredited with multiple banks and lenders so we have greater choice when it comes to sourcing the best finance deals. For the purchase of catering equipment, we provide the complete range of business loan types:- - Chattel Mortgage - [Commercial Hire Purchase (CHP)](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Click here to see how our commercial hire purchase can finance a range of equipment for your business") - Equipment Leasing Each loan type has different features and benefits which you can review on our dedicated web pages and we strongly advise you to consult with your accountant as to which is best suited to your business objectives and accounting method. We stand by our policy of sourcing the best interest rates and offering the *cheapest equipment finance deals* achievable, tailored to suit the individual business. Our services include: - Dedicated consultant so you have one point of contact to stay across your loan progress - Negotiating interest rates and terms and conditions to suit individual businesses - Large lender base, including industry-only sources to provide more choices for the best deal - Fast-approvals, pre-approved finance - Fully licensed professional finance brokers And if you do want your own bank to finance your equipment, your Jade consultant will handle the negotiations on your behalf. ### **Equipment Financed** - Shelving, trolleys, food displays, work and preparation benches. - Commercial ovens, grills, [kitchen tools](https://www.jadeequipmentfinance.com.au/catering-and-kitchen-equipment-loans "Finance your kitchen and catering equipment needs with Jade Equipment Finance") and other commercial cooking equipment. - Banquet carts, pizza ovens, steamers. - Refrigeration units, ice makers, self-serve fridges. - Sinks, wash-out basins, dishwashers, glass washers and laundry machines. - Waste disposal equipment, glass crushers. - [Fit-out](https://www.jadeequipmentfinance.com.au/fit-out-finance "Fit out your home or business by financing with Jade Equipment Finance"), Furniture, and furnishings. - Signage, décor changes. - Bathroom facilities. - Wine storage and cellaring systems. - POS systems, IT Systems and [computer equipment financing](https://www.jadeequipmentfinance.com.au/computer-and-it-equipment-loans "Connect with our computer and IT equipment finance methods for your business"). And just about anything you may need to set up, modify or upgrade your hospitality, food service or catering business. Jade Equipment Finance provides finance for both new and used catering equipment. If you’re planning to buy at auction, contact us beforehand so we can equip you with pre-approved finance. An incentive to get moving on your investment and acquisition plans is the extension of the [Government’s Instant Asset Write Off stimulus measure](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "See what you can do with the instant asset write off initiative"). This measure was introduced in March 2020 with an original 30 June 2020 deadline. But in early June, that deadline was extended to 31 December 2020 to have any equipment operational in the business. We stay across announcements of Government measures and support for business, especially in relation to the coronavirus crisis, so stay in touch and check back regularly for more news and articles that may assist you grow your business. **To discuss cheap equipment finance contact us on 1300 000 003 to speak with a Jade Equipment Finance consultant.** **Categories:** Finance --- ### [Shaw Machinery - Metalworking and Engineering Equipment](https://www.jadeequipmentfinance.com.au/blog/shaw-machinery) **Published:** June 17, 2020 **Author:** Publisher **Content:** Engineering requires precision, exactness, and accuracy. You need to be sure of every part of the process, every detail, every specification. You need to be sure of your machinery and sure that you can access reliable, expert support and service when you need it. When ‘being sure’ is paramount to the success of your metalworking business, head to Shaw Machinery. Shaw Machinery has been supplying and supporting the [metalworking and engineering industry for over 30 years](https://www.shawmachinery.com.au/about/ "History and About Shaw Machinery") with both new and used machinery sales and the essential service and backup. Service and support that ensures their customers minimise downtime and maximise productivity. ## **Expert Services** From their premises in Clontarf in the Moreton Bay region of Queensland, just north of Brisbane, Shaw Machinery provides a comprehensive range of services delivered by expert staff. Some of the staff have been involved in engineering since 1968 and have an impressive depth of knowledge that has proven invaluable to their customers over many years. The Shaw team has the experience to understand your needs and the expertise to advise and supply to meet those needs. In addition to selling both new and used machinery, [Shaw have the service technicians on site to provide repair and maintenance services](https://www.shawmachinery.com.au/services/ "Shaw Machinery Repair and Maintenance Services") for a wide range of equipment including:- - Replacing, sharpening and rotating guillotine blades. - Servicing and repairing hydraulics - Upgrading NC machines to Australian [CNC controllers](https://www.jadeequipmentfinance.com.au/cnc-machinery-finance "Finance CNC machinery equipment with us at Jade Equipment Finance") - Customisation and fault-finding Technicians with expertise in servicing electrics, electronics, hydraulics and mechanical machinery so – you can be sure! ## **Sales of New and Used Equipment** Shaw have developed an enviable reputation for delivering both high quality equipment and advising customers on the right machinery for their applications. They buy, sell, trade and consign all types of machinery for the metalworking, sheet metal and tooling industry. Lathes, mills, press brakes, drill presses, guillotines, band saws, laser cutting and marking, CNC and HVAC machines – both new and used. Whatever your metalworking application, Shaw Machinery is likely to have the machine to do the job. At Shaw you’ll find quality new machinery from the world’s leading manufacturers including Kleen, Pacific, YSD, Hafco, Amada, Promecam, Steelmaster, CMT, Metalmaster, Machtecj, Hydrabend, Strand, Thomas, LVD and many more. And if it’s not in stock or you need something specific for your application – the Shaw team will source the machinery for you, nationally and even internationally if required. To save time in making your selection, head to [Shaw Machi](https://www.shawmachinery.com.au/ "Shaw Machinery Official Website")[n](https://www.shawmachinery.com.au/ "Shaw Machinery's Official Website")[ery](https://www.shawmachinery.com.au/) and browse the machinery available right now. The website is easy to navigate and listings include detailed specs and features for each piece of machinery. Easily compare new models with well-priced used equipment and don’t miss the invitation to ‘call for our best price’! Based outside Queensland? Buying from Shaw is not a problem. They will arrange delivery across Australia and you can finance their products with us from their CNC machines to [steel sheet equipment](https://www.jadeequipmentfinance.com.au/sheet-metal-equipment-loans "Finance CNC machinery equipment with us at Jade Equipment Finance"). If you’re after used machinery, you can be also sure at Shaw. Used machinery is meticulously prepared by the skilled technicians prior to being offered for sale. But the stock moves quickly so don’t delay. If you want to sell or trade, speak with the team about a great deal. ### **Reliable Support** Shaw Machinery provide customers with the support required including arranging for the delivery, installation and commissioning of the machinery and training of your staff by qualified training providers. Visit Shaw Machinery online or in person at their premises to inspect the huge range of sheet metal, metal working and tooling machinery. To finance your metal working machinery, Jade Equipment Finance offers the full range of commercial finance products including Equipment Leasing, Chattel Mortgage and [CHP at the best interest rates](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Check our interest rates and options for commercial hire purchases"). **For a great equipment finance deal on your Shaw Machinery purchase, new or used, contact Jade Equipment Finance 1300 000 003 and discuss your requirements with one of our consultants.** **Categories:** Finance --- ### [Mid-Year 2020 Business Update](https://www.jadeequipmentfinance.com.au/blog/mid-year-2020-business-update) **Published:** June 26, 2020 **Author:** Publisher **Content:** Yes, it’s mid-year already. Hard to believe as the speed at which the unprecedented events of 2020 have rolled out has made it a challenge just to keep up with everything. Keep up with the continual announcements around COVID-19 restrictions being placed and now being lifted. Keep up with the, gratefully, ongoing announcements of support programs and relief measures from both State and Federal Governments and have the time to review and apply. All this while keeping up with running your own business in very challenging conditions. Many businesses were still dealing with the bushfires and then the major rain events when the coronavirus emerged with its own unique set of challenges. It’s likely you may have missed some of the opportunities and updates so we’re providing a quick wrap of key topics around lending especially to assist with your equipment investment decisions. A mid-year update would normally be framed within the policies of the annual Federal Budget which would have been brought down in May. But due to coronavirus, the Treasurer has pushed that back to October. Meanwhile, as the economy is in recovery phase we focus on both sides of the outlook: - The bad: recession, high unemployment, risk of a coronavirus second wave - The good: low interest rates, rising consumer confidence, Government support for key sectors including infrastructure projects and manufacturing, easing lender restrictions. ## **Supporting Your Business** - Throughout the coronavirus crisis, both State and Federal Governments rolled out numerous support packages and measures. Many are still available and extend for some time and more announcements are expected with targeted support for some sectors. - JobKeeper was key to the Federal Government’s support package and as its expiry date of 30 September approaches, many businesses are waiting to see if it will be extended. - [The Instant Asset Write Off ](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/ "How Instant Asset Write Off helps you and small businesses save")(IAWO) measure has utilised by many businesses to invest in a range of equipment. But due to forced closures, many also missed out by not being in a position to acquire, install, commission and have equipment operational by the original 30 June deadline. That [deadline has now been extended to 31 December 2020](https://www.jadeequipmentfinance.com.au/blog/coronavirus-stimulus-equipment-instant-asset-write-off "How Instant Asset Write Off helps you and small businesses save"). Could be good timing for your equipment investment plans. - Talk to your accountant as to whether your business is eligible and what type of finance product works best for your business and get in touch with Jade Equipment Finance for a quote on financing equipment. - A number of industry sectors have been singled out for special attention by way of support, to drive the economy’s recovery. If you operate in construction and building, infrastructure or manufacturing there could be new business opportunities available and support measures to capture. - Some manufacturers pivoted to the production of alternative products during the crisis and now could be the time to review if that is a sustainable new market and hence worthy of further expansion with additional equipment. ## **Snapshot of the Economy** While the commentators talk recession and how long and how deep in the wider economic terms and framework, astute operators will be focussing on their own businesses and looking for opportunities to capture. Here’s a selection of aspects for consideration:- - The Reserve Banks’s quantitative easing, aka money printing, measure announced early in the COVID-19 crisis, was designed to allow lenders access to cheaper funds to facilitate lending and drive investment. - Interest rates are low and the [RBA Governor has indicated that he does not intend to take rates into negative territory](https://www.rba.gov.au/speeches/2020/sp-gov-2020-03-19.html "Responding to the Economic and Financial Impact of COVID-19"). So now is a good time for businesses to set up equipment finance deals. - Unemployment is high but on the flip side, consumer confidence rose in May after significant falls in March and April. - The Federal Government has signalled support for Australian manufacturing on several occasions. While we don’t have specific programs to mention, there is a marked shift in interest in growing Australia’s capabilities. - Businesses requiring heavy equipment, i.e. construction and infrastructure projects, should be seeing opportunities emerge for new work. Could be time to prepare to take on new contracts with new equipment so consider [speaking with our Jade brokers](https://www.jadeequipmentfinance.com.au/broker "Speak to our Jade Consultants about finance solutions for equipment"). ## **Equipment Finance Recap** Jade has continued to support our customers at all stages of the crisis and with restrictions eased, interest rates low and business equipment investment being encouraged on several fronts, we are well-placed to deliver cost-effective finance deals. Manufacturing presents opportunities for metalwork and engineering workshops and possibly the need to invest in a range of equipment – lathes, plasma cutters, laser cutters, specialist waterjet cutters and more which have required business to [finance manufacturing equipment](https://www.jadeequipmentfinance.com.au/manufacturing-equipment-loans "Click here to access manufacturing equipment funding options at Jade Equipment Finance"). Jade Equipment Finance can assist with a wide range of your business equipment requirements. We provide finance for the heavy duty equipment required for earthmoving, mining and construction through to precision engineering equipment and the sensitive devices and machines required by the medical profession. We’ll be staying across the economic and business scene and will be bringing you specific updates each month. **To discuss your equipment acquisition requirements, [contact Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Speak with us directly or receive a free and fast quote about your equipment purchase") 1300 000 003** DISCLAIMER: THIS INFORMATION HAS BEEN PROVIDED *AS GENERAL MATERIAL FOR YOUR CONSIDERATION. INFORMATION IN REGARD TO GOVERNMENT POLICIES IS SOURCED FROM OFFICIAL AUSTRALIAN GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ERRORS IN PRESENTATION OR IN THE INTERPRETATION OF FACTS OR THE COMMENTARY AND ANALYSIS OF INFORMATION WHICH IS AVAILABLE IN THE PUBLIC DOMAIN. INDIVIDUALS ARE ADVISED TO CONSULT WITH THEIR FINANCIAL ADVISOR OR ACCOUNTANT FOR SPECIFIC ADVICE REGARDING THEIR INDIVIDUAL SITUATION.* **Categories:** Finance --- ### [Addressing the Risk of Cyber Attack](https://www.jadeequipmentfinance.com.au/blog/addressing-the-risk-of-cyber-attack) **Published:** June 26, 2020 **Author:** Publisher **Content:** Hackers, ransomware attacks, Denial of Service (DOS), cybercrime, cyberattacks are all terms for online threats to business and individuals which have been prevalent on a global basis for some time. But in the [urgent alert issued by Prime Minister Scott Morrison on 19 June 2020](https://www.theguardian.com/australia-news/2020/jun/19/australia-cyber-attack-attacks-hack-state-based-actor-says-australian-prime-minister-scott-morrison "Cyber-attack Australia: sophisticated attacks from ‘state-based actor’, PM says") that has prompted us to alert our customers to the risk and how Jade Equipment Finance may assist you in dealing with the threat. In his press conference, the Prime Minister advised of sophisticated cyberattacks which were targeting both government agencies and organisations across a number of sectors. Mr Morrison went on to say that the attacks were ongoing and the frequency and the scale of such attaches was increasing. This alert prompted the [Australian Cyber Security Centre](https://www.cyber.gov.au/ "Australian Cyber Security Centre Official Website") to issue its own alert to business on the issue. This followed reports that a major brewer in Australia had been targeted and its production of beer had been interrupted. **Review Your Business Systems** Consider your own business – what systems, processes, procedures and operations rely on computer controlled systems? Computer, digital and general IT systems are used in far more applications than communications and data storage. For some businesses, their entire manufacturing operations are computer controlled. An attack can leave an entire business essentially, out of business. The threat extends through many areas of a business from operations through to the risk of reputational damage which can be long-lasting. During the COVID-19 a lot of the workforce moved to a ‘work from home’ situation and at that time, we wrote about addressing your IT and systems security in our blogs. Now the threat has increased significantly and we urge all our customers to address the security of their IT systems. **How can Jade assist?** Upgrading your systems to mitigate the risk of cyber threats may require the purchase of new systems or the upgrade of your existing systems. This may mean purchasing new hardware or installing an operation-wide system upgrade which can be supported by us through [computer equipment financing](https://www.jadeequipmentfinance.com.au/computer-and-it-equipment-loans "Discover Computer and IT equipment financial solutions at Jade Equipment Finance"). Jade Equipment Finance can assist with cost-effective finance for the purchase of IT equipment and systems. We provide finance for the acquisition of both hardware and software so you can package all your requirements into the one finance deal. Not only do we finance hardware, but we also provide [software finance](https://www.jadeequipmentfinance.com.au/software-finance "Finance any software you or your business need with Jade Equipment Finance"). This type of system usually requires specialist installation, commissioning and possibly training of your staff. These types of costs attached to asset acquisition may be included in the one finance deal to better suit your cash flow and streamline your repayments. The types of finance available for IT investments include: - Chattel Mortgage - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Lease equipment from heavy machinery to computer and IT equipment with us") - Commercial Hire Purchase (CHP) Deciding which is best suited to your business should involve consulting with your accountant. Keep in mind that the acquisition may be eligible under the [Instant Asset Write-Off Scheme](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off "Instant asset write-off for eligible businesses"). All our IT equipment finance deals are tailored to suit individual requirements and include: - Our cheap interest rate policy, with interest rates fixed for the term of the loan. - Fixed loan terms and fixed repayments. - Balloon or residual as an option We welcome enquiries from all sized businesses – sole traders, SMEs and large corporations. Your Jade Equipment Finance consultant will discuss your individual requirements and source a quote, negotiate the best interest rates and best terms with the most appropriate lender from our large number of banks and lenders. Pre-approved finance service is available. This involves having your loan application processed based on an estimated spend rather than a specific dollar value. This would allow you to proceed with ordering the equipment you require and confidently proceed to finalising your purchase to expedite the installation. **Suggested Action** As a matter of urgency, businesses should consult with their IT consultants as to what steps they should be taking and procedures implemented to check their systems and what new systems need to be installed to mitigate risk. We refer you to resources provided by the Australian Cyber Security Centre and follow the Advisory 2020 which outlines details of the tactics and techniques used. The Centre outlines [The Essential Eight mitigation strategies that organisations](https://www.cyber.gov.au/publications/essential-eight-explained "Essential Eight Explained") should implement as a baseline. While most of these strategies relate to application controls, adjusting settings, installing patches and other processes, some businesses may find a more significant investment is required. The threat of cyberattacks is very real and is happening worldwide with great frequency. Not all events ‘make the headlines’ in the way that the June events have, but the risk exists. Jade Equipment Finance provides support for businesses to address such threats through the provision of cost-effective finance, expediting processes, streamlining services and personalised attention to every detail. To stay ahead of the risk, we strongly advise you to address your IT operations as a matter of urgency. **To discuss your computer and IT equipment acquisition requirements, contact Jade Equipment Finance 1300 000 003** *DISCLAIMER:* THIS INFORMATION HAS BEEN PROVIDED *AS GENERAL MATERIAL FOR YOUR CONSIDERATION. INFORMATION IN REGARD TO GOVERNMENT POLICIES IS SOURCED FROM OFFICIAL AUSTRALIAN GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ERRORS IN PRESENTATION OR IN THE INTERPRETATION OF FACTS OR THE COMMENTARY AND ANALYSIS OF INFORMATION WHICH IS AVAILABLE IN THE PUBLIC DOMAIN. INDIVIDUALS ARE ADVISED TO CONSULT WITH THEIR FINANCIAL ADVISOR OR ACCOUNTANT FOR SPECIFIC ADVICE REGARDING THEIR INDIVIDUAL SITUATION.* **Categories:** Finance --- ### [Start-Up Saviour: ABN-only Equipment Loans](https://www.jadeequipmentfinance.com.au/blog/start-up-saviour-abn-only-equipment-loans) **Published:** July 3, 2020 **Author:** Publisher **Content:** There is nothing more deflating and demoralising than committing to the major decision to head out on your own, start your own business, and exchange employee status for the freedom of being a contractor only to have your plans cruelled by being unable to secure a loan for the equipment you require for your work. When starting a new business, many people will head straight to the bank to set up their bank accounts and enquire about credit and loans to purchase the equipment required. But the banks have strict guidelines and requirements in regard to business loans and those guidelines have been tightened significantly in recent times. As a finance broker, [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or receive a free quote for your next equipment purchase") has a large lender panels which includes non-bank lenders that offer more specialised loans including the topic of this blog – ABN-only Equipment Loans. The veritable saviour for many start-ups and new business operations. ## **Descriptor** - An ABN-only loan is in the same loan type category as [no docs and low docs loans](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Get equipment financing with low or no docs with us at Jade Equipment FInance"). - An ABN is essential as is extensive proof of ID - GST status: you need to advise if your ABN/business is registered or not registered for GST. ABN holders that are not registered for GST may attract stricter conditions on their loan, a higher interest rate. - The more docs, as in financial information and accounts, that you can provide, the better your application will be viewed. This may include bank statements, BAS docs or even basic trading accounts which you have prepared yourself. - This is considered a higher risk type of loan and therefore will attract a higher interest rate than a comparable loan with full documentation. - While the equipment being purchased is used as security against the loan, especially in the case of new ABN holders, if no other form of security is available, some lenders will require a larger deposit be paid. ## **Equipment Loan Eligibility** Jade Equipment Loans provides finance for a wide range of equipment in all industry sectors including: - Construction and building tools and equipment - [Computer and IT equipment](https://www.jadeequipmentfinance.com.au/computer-and-it-equipment-loans "Finance your business' computer and IT machines with us") - Gym and fitness equipment - Medical equipment - Hospitality and catering equipment - Beauty industry equipment - [Printing equipment](https://www.jadeequipmentfinance.com.au/photocopier-loans "Learn how to finance your printing equipment with Jade Equipment Finance") And many more – refer to our individual web pages for details of the equipment that Jade finances in your sector. A wide range of people may find themselves in the market for a Jade ABN equipment loan:- - Web designers and IT consultants setting up their own freelance business and [needing the hardware and software equipment](https://www.statista.com/outlook/tmo/software/worldwide#revenue "Increased revenue within the hardware and software business") - Tradies moving to contractor status or setting up their own business needing their own tools and equipment - Contractors in general business roles requiring office fit-out and other business equipment - Creatives and craftspeople transitioning from a hobby or side-hack style business to a formal structure - Medical and health professionals including doctors, psychologists, physiotherapists and other therapist requiring equipment to establish their own surgery - Construction and building industry contractors needing, say, a backhoe or digger to get started - Personal trainers ready to set up their own fitness operations - Gyms requiring more weights and seats for example, requiring [gym equipment financing](https://www.jadeequipmentfinance.com.au/gym-equipment-loans "Get started with fitness equipment funding with Jade Equipment Finance") - Chefs and hospitality operators setting up a café or catering business - Beauty therapists and hairdressers There is quite a growing trend for many people to set up as contractors to take on extra work or to branch out and start their own businesses in many fields and most will need some form of equipment or machinery as their tools of trade. So this list could go on and on! You’ve got your plans, sometimes dreams, so get your ABN and then you need the financial backing in an affordable equipment loan to bring it all together. To discuss if you would be eligible for an ABN equipment loan, just give Jade a call. Each application is treated individually and has its own unique characteristics so we cannot give a blanket guarantee in this forum that you will be eligible and successful. But your Jade Equipment Loans consultant will be working hard to achieve a successful outcome for you. ## **Types of Equipment Loans** While ABN Equipment Loans are a somewhat specialist type of loan, they can be apply to the full range of commercial finance products. Including: - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Talk to us about using a chattel mortgage for financing your business or personal equipment") for Equipment - Equipment Commercial Hire Purchase (CHP) - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Click here to discover equipment leasing options with Jade Equipment Finance") We refer you to our web pages which cover the details of each of these loan types so in consultation with your accountant, you can assess which is most suitable for your particular business model. Then discuss your requirements with a Jade consultant in full confidence of course. **To discuss an ABN Equipment Loan, contact Jade Equipment Finance on 1300 000 003** **Categories:** Finance --- ### [5 Ways to Make Lemonade: Business Boosters](https://www.jadeequipmentfinance.com.au/blog/5-ways-to-make-lemonade-business-boosters) **Published:** July 5, 2020 **Author:** Publisher **Content:** The first half of 2020 has been a lemon! COVID-19 has given the entire global economy a massive sour serve that will leave many businesses grimacing for some time. But business can’t stay in a holding pattern forever. Hibernation can’t be permanent, you need to emerge at some time. Complacency can easily set in when Governments are footing the bill to provide large-scale support to prop-up both individuals and businesses. It’s a new financial year so what better time to give your business a boost. It’s a well-worn and probably over-used cliché but we think totally suited to this point in time – if you’re served lemons, make lemonade! [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Visit us at Jade Equipment Finance for a free quote on any kind of equipment you need") is committed to supporting businesses to invest in equipment which will grow their operation and work towards their goals to achieve efficiencies, productivity and profitability. So we’ve put together a few recipes for making ‘lemonade’ which may be just the refresher that your business needs to awake from a covid-coma and set you up for a highly successful FY21. ## **Recipe 1: Invest in new Equipment at Low Interest Rates** As we’ve been highlighting and reminding customers for months, interest rates are currently at historic low levels which makes business finance as cheap as it’s been for a very long time. While not the only element of an equipment finance deal which needs to be considered, interest rates are definitely the major determining factor of the repayments and the overall cost of your finance. With equipment in some industries, for example heavy duty earthmoving equipment such as excavators and drills, engineering and manufacturing machinery, plant and fit outs for starters, coming with hefty price tags, the overall cost of the finance you achieve can have a significant impact on the ROI that you will realise. Finance on larger priced items can structured over longer loan terms. So securing a [long-term finance deal for heavy machinery](https://www.jadeequipmentfinance.com.au/blog/5-ways-to-make-lemonade-business-boosters "5 Ways to Make Lemonade: Business Boosters") from Jade at the current low interest rates now, may be a very astute investment decision. Invest now and realise the ROI for the coming years. ## **Recipe 2: Realise the Tax Benefits of the Instant Asset Write-Off Scheme** We’ve posted several articles detailing the Federal Government’s [IAWO initiative and with the recent extension announced, businesses now have until 31 December to take advantage of the scheme](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/ "Instant asset write-off for eligible businesses"). Eligible businesses will need to have eligible items of equipment purchased and in operation by that date to realise the tax benefits. Jade can provide a suitable commercial finance product that meets the IAWO guidelines and works with your cash flow for the equipment purchase. Refer to our article that details the scheme and for more information, consult with your accountant or head to the ATO website. ## **Recipe 3: Capture an EOFY Equipment Sale Deal** End of financial year is a great time for sales, discounts and massive offers on all types of business equipment. After the slow start to 2020 thanks to COVID-19, many suppliers are even more eager to move stock and despite slower business, are offering great discounts. While EOFY is officially 30 June, the EOFY sales and mid-year clearances seem to continue until the stock runs out at many outlets. Business equipment which crosses-over into the consumer market are especially well-discounted. Think computers, electronics and electrical equipment in particular. In the heavy equipment sector, check in on your preferred manufacturer’s website to see what they’ve marked down. To prepare ahead, contact Jade Equipment Finance for a pre-approved loan before you start discussions with the equipment dealer or supplier. An EOFY discount paired with [our cheap interest rate on equipment loan](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Explore our equipment financing interest rates") and you’ve got a great business booster! ## **Recipe 4: Refinance Existing Equipment Finance** Giving your business a boost might involve freeing up funds to ease cash flow or for new investments. If you have a number of existing equipment finance contracts, possibly at higher than the current rates, now could be a great time to review and refresh. In addition to providing cheap finance for new and used equipment acquisitions, we can also assist with refinance for a range of purposes. Such a move may involve combining several loans into one to streamline your outgoings, changing from one type of finance to another due to a change in business structure, e.g. leasing to [Commercial Hire purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Access our methods of commercial hire purchasing at Jade Equipment Finance"), or just getting a better deal on a loan contract which still has a few years to run. Speak with a Jade consultant as to how we may be able to assist with securing your business a better outcome on equipment finance. ## **Recipe 5: Pivot to New Markets** During the peak of the COVID-19 crisis, there were great examples of companies that pivoted from their usual business operations into new areas. Either to meet a pressing demand such as for PPE and hand sanitiser or because demand for their existing products and services was restricted due to lockdowns and closures. Many of these pivots were so successful that companies have made them permanent business moves. Changing times can signify time to change. What new markets could you venture into? With a [Jade Equipment Finance deal](https://www.jadeequipmentfinance.com.au/ "Contact us directly or get a free and quick quote so we can secure a deal for your next equipment purchase") facilitating the purchase of the required equipment, having a change of business direction at this time could be a very savvy move. So there’s 5 ways that you may choose to boost your business and set yourself up for a successful FY21. **To discuss how Jade Equipment Finance can assist in giving your business a boost, call for an obligation free discussion 1300 000 003** **Categories:** Finance --- ### [Small Business Equipment Loans](https://www.jadeequipmentfinance.com.au/blog/small-business-equipment-loans) **Published:** July 8, 2020 **Author:** Publisher **Content:** - Small engineering workshop looking to replace ageing machinery? - Small-scale manufacturer looking to acquire new equipment to open up new markets? - Small medical partnership needing new devices and technology to provide essential services? - Small business fitness professionals seeking to expand services with the latest equipment? - Small agricultural concern wanting to invest in new innovations and technology? - Small contractor wanting to purchase backhoe, excavator etc to expand services? - Small landscaping business wanting to upgrade equipment? - Small family business wanting to expand and need new office and IT equipment? Small businesses are in just about every sector of Australian industry. According to figures published by the [Australian Small Business and Family Enterprise Ombudsman](https://www.asbfeo.gov.au/ "Australian Small Business and Family Enterprise Ombudsman"), in 2019 there were more than 2 million small businesses in Australia which collectively accounted for more than 35% of the country’s GDP and employed around 44% of the workforce. That’s an amazing contribution. Politicians continually applaud and mention small businesses for their efforts but when it comes to seeking finance to invest in new equipment – hello, are you there? Yes, the requests often fall on deaf ears or at the very least, businesses face massive challenges in terms of tight lending requirements of the banks. Jade Equipment Finance is not deaf to small business and we certainly do not pose challenges for our customers. We work on achieving positive and workable financial solutions for our small business customers. Our services are not the exclusive territory of big business. Our finance broker services are readily available and easily accessible to all sized businesses in all industry sectors –building, medical, agriculture, engineering, fitness and health, beauty salons, manufacturing, transport, creative, IT and digital, consultancies and the professions, retail, landscaping – the list goes on. By the ATO definition, for tax purposes, a small business entity is defined as having an aggregated turnover under $10m and less than 15 employees. These may include sole traders, family businesses, small companies and partnerships. ## **Specialist Small Business Services** Small businesses may benefit significantly by using the services of a finance broker as we have the access and connections with many lenders including those that specialise in particular industries and that specialise or welcome loan requests from small businesses. Often these are industry-only lenders which are not accessible directly by businesses. Our brokers have the flexibility to negotiate terms and conditions and [cheap equipment finance interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Discover Jade Equipment Finance's interest rates") on behalf of our clients. While banks make you fit their tight requirements, we work at achieving tailored finance packages that suit your business. ## **Types of Small Business Finance** The range of commercial finance products offered by Jade Equipment Finance are suited to both large and small businesses, depending on the specifics of individual companies. The loans differ in suitability for either the cash accounting or the accruals accounting method; the treatment of GST (at what stage of the loan term a business can claim GST); the tax deductibility of the various loan elements; how the equipment can be depreciated; and on which balance sheet, lender or borrower, the equipment is entered. The loan features offer different benefits to businesses depending how the business is structured and specific financial goals. We always advise our customers to consult with their accountant as to which finance type will best achieve the best outcome for their business. Your accountant knows your accounts set-up and most likely has a long-term outlook for your business, so they are best-placed for that decision. ## **The Jade Equipment Finance portfolio includes:-** - Chattel Mortgage for Equipment - Equipment Leasing - Equipment Rent to Own - Equipment Commercial Hire Purchase We have covered the details – features and benefits – of each of these loan types on our web pages, so please refer to these for all the information. All Jade [Small Business Equipment Loans](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing) include:- - Fixed interest rates at the lowest rates we can achieve - Fixed Loan Term - Fixed Monthly Repayments - No deposit possibilities - Balloon/residual options ## **Equipment Finance Specialist Solutions** For businesses just starting out that do not have all the documentation demanded by the banks for finance, we may be able to source you a solution. We have contacts with lenders that consider ABN loans, and no and [low doc equipment Loans](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Talk to us about financing equipment with low or no documents") for small businesses. These types of loans are rated at a higher risk assessment than fully documented loans and as such attract a higher interest rate and some special conditions may also be applied by individual lenders. But they do offer solutions! If you’re in that situation, please don’t hesitate to reach out to Jade Equipment Finance and have a discussion about your options. If you’re a small business operator seeking finance to invest and upgrade your equipment, contact us for a great finance solution. **To discuss a small business equipment loan, contact Jade Equipment Finance on 1300 000 003 to [get in touch with our professional finance consultants](https://www.jadeequipmentfinance.com.au/broker "Discuss with our brokers on how they can help save you money on your next equipment purchase")** *DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.* **Categories:** Finance --- ### [Don't waste your time. Cheap finance for recycling and waste equipment available now!](https://www.jadeequipmentfinance.com.au/blog/dont-waste-your-time-cheap-finance-for-recycling-and-waste-equipment-available-now) **Published:** July 10, 2020 **Author:** Publisher **Content:** Does the recent announcement by the Federal Government of a commitment to divert waste from landfills and effectively transform recycling present opportunities for your business? Need to upgrade your own equipment so you can take advantage of new opportunities? Well the clock is ticking on a number of fronts so now is the time to get in quick and talk with Jade Equipment Finance about a cheap loan to purchase your new trucks and equipment. ## **Changes to Waste and Recycling Industry** The Federal Government has announced a major commitment of $190m to transform the waste and recycling industry in Australia. On 6 July 2020, Hon Sussan Ley, [Minister for the Environment made the announcement](https://www.dcceew.gov.au/sites/default/files/documents/report-minister-ley-special-envoy-jan-june-2020.pdf "Report to the Minister for the Environment the Hon. Sussan Ley MP") which is timed to meet the impending deadlines on banning the exports of unprocessed waste. You can read the Minister’s full statement for the specifics but we’ll cover the highlights so you can see where your business may seek opportunities. Australia has been [exporting much of its waste recycling](https://www.dcceew.gov.au/environment/protection/waste/exports "Waste exports | Department of Climate Change, Energy, the Environment and Water") but only around 12% of plastics are recycled and the rest goes into landfill. In quite a publicised move, in 2018, China was the first country to flag a crackdown on waste from Australia and that was followed by other countries. So the country needs to find new ways to dispose of this previously exported waste and to find a solution for all the rest that is currently going into landfills. The Government announcement is designed to put valuable materials back into the economy through major infrastructure investment to transform the recycling sector. What’s the hurry? Well, the export bans are fast approaching after the roll-out was delayed due to the COVID-19 crisis. Glass exports are first – exports of glass waste banned from 1 January 2021, from 1 December 2021 a ban on exporting whole new tyres comes into effect, from 1 July 2022 the ban on unprocessed single resin/polymer resins starts and from 1 July 2024 mixed, unsorted cardboard and other paper will be prohibited from being exported. According to the Government, Australians want to know that their recycling efforts are being rewarded and the waste used to create new products, not just going to landfill. The announcement by the Minister is aimed at creating a circular economy – creating new products from recycled materials right here in Australia. Creating jobs and business opportunities! ## **Cheap Equipment Finance – Capture Your Opportunities** So where does your business fit into this? Are you a supplier or contractor in the waste or recycling sector? Operate a processing plant or transport materials to/from the plants? What equipment do you need to take advantage of these new government initiatives by capturing your share of the business? Those are questions you will have to address yourself. But what we can answer is who you can approach to source the finance to acquire the equipment. [We provide finance to all types of businesses](https://www.jadeequipmentfinance.com.au/ "Contact us or receive a quote about your next equipment purchase") – sole traders, owner-operators, SMEs and large corporations for the purchase of all types of equipment. If you require new specialised trucks, plant and machinery, heavy duty equipment or perhaps IT systems to better manage the increase in your business, Jade can assist with cheap loans including [recycling and waste equipment financing](https://www.jadeequipmentfinance.com.au/waste-and-recycling-equipment-loans "Finance recycling and waste equipment with Jade Equipment Finance"). ## **Equipment Loan Types** Depending on your individual business structure and financial objectives, Jade offers a complete portfolio of loan products to suit: - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Learn about how a Chattel Mortgage may suit your equipment financing the best") - Equipment Leasing - Rent to Own Finance - [Commercial Hire Purchase for Equipment](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "See how we can provide a commercial hire purchase for your business equipment") These loan types differ in suitability to cash or accruals accounting methods, treatment of GST and tax and other aspects so we advise discussing this with your accountant. They may differ in approach but all Jade Equipment Finance deals all include:- - Jade’s best, cheap interest rates - Fixed interest rates - Fixed Loan Terms - Fixed Monthly Repayments ## **Impending Deadlines** Your Jade consultant will act quickly to get you a quote and on approval can provide fast approvals and swift settlements so you can take delivery of your equipment to meet any deadlines. In particular the [Instant Asset Write-Off initiative which has a 31 December 2020 deadline](https://www.jadeequipmentfinance.com.au/blog/coronavirus-stimulus-equipment-instant-asset-write-off "Coronavirus Stimulus: Equipment Instant Asset Write-Off")! Don’t waste your time haggling with the bank and waiting for callbacks from multiple finance companies for quotes on your finance. If you want to move quickly on upgrading your recycling and waste industry equipment, then just call Jade. One call gives you access to multiple banks and lenders and someone to do the hard work of finance sourcing for you. **To discuss a cheap equipment finance deal, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.* **Categories:** Finance --- ### [Cheap Finance for Skid Steer Loaders](https://www.jadeequipmentfinance.com.au/blog/cheap-finance-for-skid-steer-loaders) **Published:** July 13, 2020 **Author:** Publisher **Content:** Skid steer loaders are an essential piece of equipment in the materials handling sector and many companies will operate a number of units to cater for various load capacities and individual load requirements. While checking out what’s currently available in the skid steer market to share with you, we came across a great story of an interesting application – in Melbourne Zoo. Reported in the media in May 2020, a [Toyota Huski 55 DK8](https://www.toyotamaterialhandling.com.au/press-room/2020/toyota-huski-skid-steer-loader-helps-melbourne-zoo-elephants/ "TOYOTA HUSKI SKID STEER LOADER HELPS MELBOURNE ZOO ELEPHANTS") is being used by the zoo keepers on the enrichment programme for their Asian Elephants. The loader is put to work to move material around the elephant enclosure to create changes in their environment and encourage their natural behaviour. Jade Equipment Finance provides cheap equipment loans for many different applications but this is one of the most interesting uses of a skid steer we have seen recently. Your application may not be quite as endearing as helping some of the world’s favourite animals, but we know, to you, it’s just as important and needs the right equipment. So let’s check out some of the top movers in the skid steer loader market and then tell you how to get cheap finance to purchase one. ## **Toyota Huski Skid Steer Loaders** Toyota is one of the biggest names in material handling with their national branches 100% owned to ensure quality and service. Within the large Toyota structure [Huski Construction Equipment](https://www.toyotaskidsteerloader.com.au/ "Official Huski Construction Equipment Website") is one of their divisions in their material handling operations. Huski offers a range mini excavators, scissor lifts, forklifts, platforms and skid steer loaders. In fact, it is a Huski unit being used at Melbourne Zoo. The range of skid steers includes a number of models to take on a range of tasks. The smallest in the skid steer range is the [Toyota 4SD K4](https://www.toyotaskidsteerloader.com.au/products/skid-steer-loaders/toyota-4sdk4-skid-steer-loader/ "Toyota 4SDK4 Skid Steer Loader"). A compact but powerful unit which is especially suited to applications where access is limited. The 4SD K4 features a high lift capacity, self-levelling system on the lift, lifting hook and the Toyota safety system. At the top of the Huski skid steer range is the [Toyota 55D K11](https://www.toyotaskidsteerloader.com.au/products/skid-steer-loaders/toyota-5sdk11-skid-steer-loader/ "Toyota 5SDK11 Skid Steer Loader") with a massive 900 kg operating load and is suited for use on both smooth concrete and those difficult surfaces such compacted gravel and unsealed dirt and grass. Features of this model improve the stability and provide for simpler dumping operation. If you’re interested in investing in a Huski Toyota skid steer loader to make easy work of materials handling in your operation contact Jade Equipment Finance for a quote on finance. Your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Speak with our professional Jade Finance Brokers about financing you and your business' equipment") will make easy work of the loan process for you. Sourcing the cheapest quote, processing your application and handling the paperwork. ## **John Deere Skid Steer Loaders** As another option to consider in the skid steer loader market is also from one of the big names in equipment – [John Deere](https://www.deere.com.au/en/index.html "John Deere Official Website"). They also have a big range of skid steers and with the new models they’ve added power as well as increased the lift height and dump clearance. John Deere has also addressed key operator concerns and made improvements to the multi-function capabilities of its loaders in this range. The John Deere skid steer load range starts with the 704 kg capacity [312GR FT4](https://www.deere.com.au/en/skid-steers/312gr-ft4-skid-steer/ "John Deere Skid Steer Catalogue"). The G series is a range of compact models from this leading manufacturer, with options to take on many jobs in many working environments and feature both radial and vertical lift options. The top of the range is the [332G iT4](https://www.deere.com.au/en/skid-steers/332g-it4-skid-steer/ "John Deere Skid Steer Catalogue") which has a massive 1634 kg rated operating capacity and operating weight of 4540 kg. Don’t be misled by the compact size of these loaders, they are big on performance, as you would expect from John Deer. If you’re tossing up between the different models, estimate your monthly repayments with our Equipment Finance calculator [here](https://www.jadeequipmentfinance.com.au/calculator "Use our free calculator to find out your interest rates and repayments with us"). You can quickly calculate rough ballparks on the price of different units and see how much extra going up in size may cost you each month. Very handy tool for comparing brands and models of skid steer loaders. ## **Cheap Finance on Skid Steers** As essential kit in your operation, your new skid steer needs to pay its way and deliver a good ROI. We understand your objectives and to assist you achieve your operating cost targets, your Jade Equipment Finance consultant will be working to achieving you the cheapest [skid steer loan](https://www.jadeequipmentfinance.com.au/earth-moving-equipment-loans "Finance your skid steer loaders or other earthmoving equipment at Jade Equipment Finance") at our best interest rates. To sweeten the purchase even further, your purchase and business may be eligible for the Instant Asset Write-Off scheme – deadline 31 December 2020!!!!! Jade Equipment Finance offers a complete range of business finance types for skid steers including: - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Make use of our equipment leasing options at Jade Equipment Finance") - Rent to Own - Chattel Mortgage - [Equipment Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Explore our options for equipment commercial hire purchase") We’ll negotiate with the banks and lenders on your behalf to tailor the finance deal to your needs. **To discuss a cheap finance on skid steer loader, contact 1300 000 003** *DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER’S WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.* **Categories:** Finance --- ### [Flexible Finance in a Rigid Business Climate](https://www.jadeequipmentfinance.com.au/blog/flexible-finance-in-a-rigid-business-climate) **Published:** July 16, 2020 **Author:** Publisher **Content:** - Are you frustrated with the trying to get on with business amidst the current restrictions? - Had enough of waiting endlessly on-hold to arrange business finance while bank phone lines are jammed with others seeking deferrals? - Trying to source loan options but banks have diverted staff to other duties? - Wanting to invest in new equipment for new business opps but the constantly changing lending market is causing you problems? - Needing new construction equipment to compete for infrastructure projects but can’t get suitable finance terms? The coronavirus crisis has created a very restrictive business environment on many fronts and it seems to be having an impact on both those who are doing it tough and those who are doing OK. Thriving businesses that are trying to operate ‘business as usual’ or trying to move forward with their investment plans are having those plans thwarted by the effects of the overall economic climate. For many, it’s just getting too hard to sourcing their usual flexible finance deals to purchase new equipment. At Jade Equipment Finance, we fully understand your situation and can offer solutions to many of the obstacles to sourcing flexible finance in a rigid economic climate. ## **Direct Access to Business Finance** As professional finance brokers, we have been in constant and direct contact with our large group of banks and lenders, as usual, throughout the year. We’re quite aware that some lenders have been changing their loan requirements and conditions quite suddenly, in response to the changing economic scene. As brokers we have industry-only access to the lending market and can fast-track your finance requests directly to the lender team that makes the offers and grants the approvals. Our lending panel includes both the major banks and specialist lenders and we know which financier is offering the best equipment finance at any one time. If you do want your bank to finance your equipment, your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Contact one of our brokers on how you want your equipment financed") can approach the bank on your behalf via our industry channels. Using Jade Equipment Finance as your broker offers industry access, a larger range of lenders and many other benefits which may be critical levers in sourcing flexible finance for your business. Give us a call for an obligation-free conversation. ## **Wide Range of Equipment Financed** - Construction: Governments are pushing forward on many infrastructure projects. If you need to purchase or loan construction equipment for these or any other construction projects, we may be able to assist with [financing construction equipment](https://www.jadeequipmentfinance.com.au/construction-equipment-financing "Explore finance solutions for your construction equipment with Jade Equipment Finance") for your business. - Manufacturing: With issues in some areas of international trade combined with increased demand for some locally-produced products, we’re aware that manufacturers in some sectors need to ramp up production with new equipment. - General Business: Creating a COVID Safe working environment for customers and workers and complying with changing health orders may require you to acquire equipment to make the necessary alterations to your workplace or site. Whether for a large or small business, we provide [business equipment loans](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "For your business equipment financing needs, contact us at Jade Equipment Finance") of all kinds. - WFH Environment: With many workers set to work from home for some time, businesses need to invest in suitable IT systems to ensure continuity and security across the operations. Jade Equipment Finance provides cheap, cost-effective and workable finance for most business equipment. ## **Flexible Solutions** As brokers, we know that businesses have individual financial objectives and we offer the full portfolio of finance products to suit: - [Equipment Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Get equipment for your business through rental finance") - Equipment Leasing - [Equipment Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Look into chattel mortgage options at Jade Equipment Finance") - Equipment Commercial Hire Purchase Our standing with our lending panel provides us with the ability to tailor finance deals to suit the needs of our individual customers: - Tailored finance deals - Cheap equipment finance interest rates - Varying the balloon/residual to suit long-term objectives - Flexible repayments to ease cash flow - Loan terms up to 7 years on some equipment - Flexibility to include delivery, installation and commissioning of equipment in the loan - No deposit possibilities - Fast approvals - Pre-approved financed - Prompt settlements ## **Tax Benefits** There are potential tax benefits to be realised for businesses that choose to invest in new equipment during 2020 courtesy of a number of time-limited Federal Government measures. - [Instant Asset Write-Off – deadline is 31 December 2020](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps") - Backing Business Investment (BBI) – a limited time depreciation tax benefit introduced by the Federal Government. To be eligible, businesses must have a turnover of less than $500m and there are eligibility conditions on the assets including that they must not have already been included in the IAWO or other benefits. - BBI applies to assets acquired and installed from 12 March 2020 through to 30 June 2021. For more information on eligibility and other details refer to [business.gov.au](http://www.business.gov.au "Business Australia Government") or [www.ato.gov.au](http://www.ato.gov.au "Business Australia Government") or discuss your equipment acquisition requirements with Jade Equipment Finance. We always advise that you discuss with your accountant the eligibility of your business for any Government tax measures and the suitability of finance products for your individual business framework. So if you’re frustrated with your efforts in sourcing flexible finance in these unprecedented economic conditions, just contact Jade Equipment Finance and let us source a workable solution for your business. **To discuss flexible finance for your equipment purchase, contact Jade Equipment Finance 1300 000 003** *DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER’S WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES* **Categories:** Finance --- ### [Realise Tax Benefits on Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/realise-tax-benefits-on-equipment-finance) **Published:** July 25, 2020 **Author:** Publisher **Content:** The new financial year is the ideal time to set your business on the right track for making the most of opportunities and programs so you can realise the tax benefits over the coming year. With 2020 being seriously disrupted due to COVID-19, many businesses are looking to make up for lost earnings and getting on with their plans for growth as best they can. Fortunately, there are Government programs in place which you may be in a position to take advantage of in regard to your asset acquisitions and investments. Throughout the COVID-19 economic crisis, the Federal Government has stepped-up with numerous measures to support both individuals and businesses, with most hoping more is still to come. One measure which was announced back in March 2020 but is still on the table and may be worth you considering is BBI. Named with a typical catchy Government title – Backing Business Investment. ## **BBI – Don’t Miss the Deadline** While many of the Government’s COVID-19 support measures have run their timeframe or due to finish later in 2020, the BBI measure has a longer lifespan with a deadline of 30 June 2021. This initiative or measure is designed to support a range of businesses – small through to large – with [accelerated depreciation allowances](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Backing-business-investment---accelerated-depreciation/ "Backing business investment – accelerated depreciation") on eligible business asset acquisitions. You may, not unsurprisingly, been a bit distracted to pay close attention to this when it was announced in March, so we’re revisiting the details so you don’t miss the opportunity. As with all business asset acquisitions, Jade Equipment Finance is ideally positioned to provide cost-effective and workable finance solutions at the best interest rates. ## **BBI Benefits** As with all tax-based decisions, we advise you consult with your accountant as to whether BBI is suited for your individual business. We also advise you discuss which of the finance products offered by Jade Equipment Finance would best suit your business while enabling you to realise the benefits of BBI. The BBI measures allows eligible businesses, as defined in the guidelines, to accelerate the depreciation rate on assets which are eligible under the guidelines. Specifically, a 50% deduction on the costs of those assets by the 30 June 2021 deadline. Depreciation on the other 50% must be treated according to the existing ATO rulings. ## **Eligibility: Businesses** The business eligibility criteria will require you to read the guidelines closely at [ato.gov.au](http://www.ato.gov.au/ "Australian Taxation Office") or discuss with your accountant who is highly likely to be totally across the details. But in brief:- - Eligible business must have turnover of less than $500m for the 19/20 and 20/21 income periods. - The ATO has set out differing rules for small business which have more simpler rulings in regard to capital allowances. ## **Eligibility: Assets** - In general terms, the assets must be purchased after the announcement of the measure, i.e. 12 March 2020 and be installed and operating in the eligible business prior to 30 June 2021. - But there are some guidelines around what is not eligible especially with R&D equipment and when using other depreciation rulings, so we strongly advise you to read the full details and all the conditions which are published on the ATO website. Such as if you are already taking advantage of the [Instant Asset Write-Off](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps") measure in regard to the purchase of your requirement. - There is however, not a limit on how many assets an eligible business can acquire and apply the accelerated depreciation measure. A wide range of business equipment may be eligible and there are significant benefits available, so this could be worth considering and definitely worth following-up. ## **Assets Not Eligible** As with some ATO rulings and many Government programs, not all equipment assets will be eligible to be depreciated under this measure. These include some capital, second hand, low value Division and primary production assets. ## **Facilitating Your Asset Purchase** When you have made your decision around whether or not this BBI initiative suits your investment plans and decided on your equipment asset purchase, Jade can assist with cost-effective equipment finance. While the accelerated depreciation measure may offer great tax benefits, a great equipment finance deal may provide additional benefits in easing cash flow and supporting your business growth. Our connections with a wide range of banks and non-bank lenders, allows us access to flexible equipment finance products so our consultants can tailor solutions to directly address your [business equipment financing](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "For large or small businesses, talk to us at Jade Equipment Finance about financing your business equipment") requirements. Full selection of finance products including leasing, CHP, Chattel Mortgage, Rent to Own. - Fixed interest rates - Fixed repayments - Fixed loan term - And our Jade best interest rates guarantee! Jade Equipment Finance provides finance for many types of equipment across the full spectrum of Australian industry for sole traders, SMEs, partnerships and large corporations. So to take full advantage of measures and initiatives and the services of a professional, licensed broker that is working in your best interests – contact Jade today. **To discuss flexible, workable equipment finance through Morris Finance [contact Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Get in contact with us with a phone call or by receiving a quote about your equipment finance needs") on 1300 000 003** *DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER’S* WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE *PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES* **Categories:** Finance --- ### [July 2020 Business Update: COVID-19 Support](https://www.jadeequipmentfinance.com.au/blog/july-2020-business-update-covid-19-support) **Published:** July 29, 2020 **Author:** Publisher **Content:** July is always a significant month on the financial calendar – start of new financial year, tax time and often the introduction of a new set of changes to a range of fees and charges. But 2020 is a year like no other and July 2020 is even more significant as a result of the coronavirus pandemic. According to the [Prime Minister’s Roadmap to Recovery](https://www.abc.net.au/news/2020-05-08/coronavirus-covid-19-scott-morrison-key-moments-roadmap/12228858 "Scott Morrison introduces a roadmap out of coronavirus restrictions for Australians after National Cabinet meeting") that he announced in a May statement, July should have been the time that the entire economy, with the exception of international travel and some other areas, was reopened. But the unpredictable nature of the virus and the year continues to play out and with new outbreaks in Victoria and NSW many businesses and communities are seeing more not less restrictions being put in place. July is also the half-way mark for one of the Federal Government’s signature coronavirus support measures – JobKeeper – and the time they said they would issue an announcement on the future of the program. Many businesses have been relying on JobKeeper and the 21 July announcement was welcomed. The team and [consultants at Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/broker "Talk to our professional financial brokers about your equipment purchasing needs") keeps a close eye on announcements that may impact our customers and as we have done throughout the COVID-19 crisis, we bring you this update on a number of key government initiatives which may affect your business. ## **Extension and Changes to JobKeeper** [JobKeeper](https://www.ato.gov.au/general/jobkeeper-payment/ "JobKeeper Payment") has been a lifesaver for many businesses throughout the coronavirus crisis and many will be extremely relieved to hear that the program is being extended beyond the original expiration date of 27 September, but with alterations. At a news conference on 21st July, the Prime Minister and Treasurer announced the changes which will affect around 900,000 businesses and millions of their employees Updates to JobKeeper include:- - Instead of one flat rate payment for all employees, there will now be two levels of payments. - One level applies to full-time employees and a lower payment for part-time employees, ie working under 20 hours per week. The employment status is based on that employee’s status as of 1 March 2020. - The program will extend through the March 2021 quarter. - From 28 September to 31 December 2020, the payment for the tier 1 (full-time employees) reduces from $1500 each fortnight to $1200 each fortnight. From 1 January 2021 to late March 2021 it will reduce to $1000 each fortnight. - From 28 September to 31 December 2020, the payment for the tier 2, part-time employees, reduces from $1500 each fortnight to $750 each fortnight. From 1 January 2021 through to the late March expiry date it will reduce to $650 each fortnight. - Businesses will need to reapply each quarter to continue receiving the benefit. Re-application will require businesses to demonstrate reduction in turnover based on the guidelines for their size and category of business. You can see what is required by your business at ATO. If you do wish to continue on JobKeeper, we emphasise you will need to reapply and meet the guidelines. ## **Changes to Government Guaranteed SME Loans** [In April 2020 the Government announced a loan support scheme](https://treasury.gov.au/coronavirus/sme-guarantee-scheme "SME Recovery Loan Scheme") for small businesses which was also due to expire at the end of September. This Coronavirus Small and Medium Enterprises Guarantee Scheme has also been extended with a phase 2 coming into play from 1 October with an expiry date of 30 June 2021. Under this scheme, the government guarantees 50% of unsecured loans to eligible businesses for purposes as outlined in the guidelines. This is not a loan by the government to business or any type of grant. It is for loans which are made by businesses and approved by the government-approved banks and lenders. 44 lenders have been approved to provide the scheme and Jade Equipment Finance is accredited with many of these so we are able to provide businesses of all sizes with [business equipment financing](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Consider Jade for your business equipment financing needs"). So essentially, you go through the loan application process and at the same time apply for the government backing as security against the loan. Originally this was for unsecured loans for working capital purposes. However, in stage 2 the guidelines and eligibility criteria have been amended and now include ‘investment’. We advise businesses to refer to the details in regard to criteria and eligibility but this may include investment in equipment. Jade Equipment Finance may be in a position to assist you with finance for your equipment purchase under this scheme. Or if this does not suit your business, we can source equipment finance through one of our many accredited banks and lenders. ## **Expiry Looming for Loan Deferrals** In the early stages of the coronavirus crisis, a number of banks and many other lenders providing loan deferrals which in most cases were for a 4 month period. For many – that 4 months is nearly up. Lenders have been updating us on their approach to this looming deadline with some advising that were in contact with customers to discuss their individual situations. Some lenders are offering extensions but stress that the extensions are not automatically applied. So if this applies to you, it’s time to get in touch with your lender and update your arrangements. Some of the changes and extensions and expansions to programs may represent a benefit to your business and signal the time to get on with your equipment investments. **To discuss finance for all types of equipment , [click here](https://www.jadeequipmentfinance.com.au/ "Get a fast and free quote from us about the equipment you or your business needs financed") to get in contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER’S WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.* **Categories:** Finance --- ### [Finance for Automation and Robotics](https://www.jadeequipmentfinance.com.au/blog/finance-for-automation-and-robotics) **Published:** July 30, 2020 **Author:** Publisher **Content:** As an Australian-owned business, Jade Equipment Finance strongly supports job creation to build a strong economy. But we’re also focused on supporting our business customers to implement and install innovative equipment which will improve their productivity and profitability. Equipment including automated systems and robots. We provide cost-effective [equipment finance](https://www.jadeequipmentfinance.com.au/ "Get a free quote at Jade Equipment Finance today") for businesses to invest in automated processes and the use of robotic devices and automatic guided vehicles. The use of automation and robots is widespread in workplaces across Australia with customised and off-the-shelf products available. For those considering a move to new systems or to upgrade existing equipment, we took a brief look at the world of automation and robotics. ## **Customised Solutions** There are a number of companies in Australia that specialise in this area and provide customised solutions to business for specific processes and purposes. From our understanding, these companies provided a consulting service which would include an initial audit of the existing processes and systems and an assessment of the business suitability for automation. Customised equipment and installations are then designed and engineered to specifically suit that individual business. This has been widely used across manufacturing, food production, the automotive industry, engineering and packaging sectors for a long time and is increasingly being expanded to many other areas. While many businesses see robotics and automation as a solution to reduce labour costs and stay up with their competition on price, many high-risk areas such as construction, chemicals and medical businesses utilise robotic processes as a safety measure. Having key high-risk processes carried out robotically may represent a significant protection for workers in some sectors. If a customised automated or robotic solution may be the answer to increase your productivity, speak with your Jade Equipment Finance consultant about the finance options. Options may include an entire finance package to cover both the consulting and audit stages plus the development and installation of the equipment. ## **Off the Shelf Robotic Equipment** In addition to customised solutions, there is a wide range of ‘stock-standard’ robotic and automated equipment available through suppliers to the construction, heavy equipment, manufacturing, engineering and other sectors. In packaging, automated stretch wrappers, palletisers and other packaging equipment is available to speed up processes. There are many robots available to carry out a range of processes and the selection of which robots may be based on the number of axes you require movement on. [MOTOMAN](https://www.motoman.com/en-us "Yaksawa Motoman Official Website") is a well-known manufacturer of these types of robots. The [MotoMINI](https://www.yaskawa.com/products/robotics/robots-with-iec/miniature-robots/motomini "Yaksawa Motoman's Motomini") for example, is a 6 axis robot which handles and assembles very small pieces of work. It’s lightweight, has a reach of 250mm, a payload of 500g and with high repeatability, is reported to deliver superior performance. ## **Automated Guided Vehicles (AGVs)** Automated Guided Vehicles (AGVs) are one of the most popular and commonly used types of ‘robotic’ equipment. The technology has been adapted to suit many applications for tasks which would traditionally have been handled by manually driven forklifts or other materials handling devices. - One of the leading manufacturers in materials handling equipment – [Toyota Material Handling](https://www.toyotamaterialhandling.com.au/ "Toyota Material Handling Official Website") – has a range of AGV forklifts, their Autopilot range, which may suit your workplace. These vehicles offer a flexible and cost-effective solution to many businesses that need to move goods and material in an indoor setting. - The [Levio LAE250](https://www.toyotamaterialhandling.com.au/products/automatic-guided-vehicles-agvs/toyota-levio-lae250-autopilot/ "TOYOTA LEVIO LAE250 AUTOPILOT") Autopilot for example, can lift up to 2500 kg and is based on the forklift design that you would be familiar with, but it is has an integrated navigation system. This unit is just one of several in the Toyota range which may suit your business. - NKC is another major supplier of AGVs under the Proxaut brand. The company works with customers to select the most appropriate guidance system for each application whether it laser guidance, inductive or inertial guidance. - [Dexion](https://www.dexion.com.au/ "Dexion Official Websie") also provides AGVs which may be of interest to your business. ## **Individual Finance Solutions** While we support businesses investing in automation and robots to increase their productivity, when it comes to arranging your finance, Jade Equipment Finance maintains a very personalised service. Your consultant will discuss your specific requirements and tailor a finance solution which suits your automated equipment, robot or AGV. We even offer specific solutions for [technology financing](https://www.jadeequipmentfinance.com.au/technology-equipment-financing "Explore our finance options for any of your business technology business"). For the acquisition of entire automated systems or individual robotic products, we offer the full range of commercial finance facilities, including: - [Chattel Mortgage for Equipment](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Find out about our competitive Chattel Mortgage rates.") - Equipment Leasing - [Equipment Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Explore the advantages of Commercial hire purchase financing.") - Rent-to-Own Equipment Finance All Jade Equipment Finance deals are based on our signature cheap interest rates, have fixed interest rates, fixed loan term and fixed repayments. An investment in automated systems or robotic equipment may also be eligible for the government’s Instant Asset Write-Off measure. The deadline has been extended through to equipment installed and operation by 30 June 2021. **To discuss finance for all types of automated and robotic systems and equipment please contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.* **Categories:** Finance --- ### [Sourcing Cost-effective Finance for Compliance](https://www.jadeequipmentfinance.com.au/blog/sourcing-cost-effective-finance-for-compliance) **Published:** August 4, 2020 **Author:** Publisher **Content:** Many sectors of Australian industry are heavily regulated and must meet strict compliance in regard to a wide range of aspects in their operations. Often new regulations and laws are introduced with little warning and businesses face challenges to implement the changes. In many instances, these changes involve the acquisition of new equipment, the introduction of new systems and processes and the implementation of different production techniques and practices. Actions which can involve expenses which may put pressure on cash flow. Jade Equipment Finance eases the pressure on business owners and operators with cost-effective finance options and packages to assist with these compliance issues. We’ve noted a number of recent developments in the compliance area which may be impacting your business. ## **COVID-19 Compliance Requirements** In response to the COVID-19 pandemic there have been nationwide restrictions put in place on both individuals but especially on businesses in regard to creating a [COVID-safe work place](https://www.safeworkaustralia.gov.au/covid-19-information-workplaces "COVID-19 Information for workplaces"). Many of these restrictions involve costs to business in the shape of investing in new equipment, systems and processes and physical changes to workplace fit outs. We are being told repeatedly that until a vaccine is in place, many of these new restrictions and compliance requirements will be in place for a long time. So a short-term fix may not be a viable option in meeting your obligations. These are all types of equipment that Jade Equipment Finance includes in the equipment we finance. The health and medical sector has been particularly impacted with the costs of PPE and creating additional facilities. Aged care facilities are particularly in the spotlight and operators will no doubt be prioritising installing the right equipment to meet compliance to provide safety for their staff and residents. While some of these costs may be covered by governments, some operators may be required to fund the upgrades themselves. If your medical, health or aged care facility requires finance for compliance, please contact Jade Equipment Finance to discuss your requirements for [financing medical equipment](https://www.jadeequipmentfinance.com.au/medical-equipment-loans "If you need medical equipment finance solutions, speak to us at Jade Equipment Finance"). The hospitality sector is another area under close scrutiny in regard to COVID-safe plans. Several venues have been identified as the ‘hot spots’ and the regulations that must be adhered to are very strict. Keeping records of attendance is of particular importance but the expense of installing newly developed software and technology may be burdensome to a business, especially after an extended shutdown period. The additional costs of having COVID marshals, extra cleaning processes and other measures may already be putting pressure on existing cash flow. If you’re a restaurant, bar, club, hotel or café operator that requires finance for new systems installations to meet your compliance requirements, Jade Equipment Finance may be able to assist you with financing your business’ [hospitality equipment](https://www.jadeequipmentfinance.com.au/catering-and-kitchen-equipment-loans "See how Jade Equipment Finance can help with your kitchen and catering equipment finances"). Our finance packages cover the cost of both hardware and software for IT purchases as well as furniture and furnishings in regard to fit outs. Manufacturing and processing plants are also being closely watched as possible places of community transmission. Businesses may face the prospect of having to make major changes to their plant and equipment in order to meet physical distancing and other compliance measures. In some cases it may mean a move to further automation, establishing separate production lines or separate facilities. All changes that may involve new equipment and processes. Whether your business is in food processing, manufacturing and packaging, recycling plants, abattoirs or general manufacturing and engineering, Jade is the equipment finance broker to contact for cost-effective finance for new equipment. ## **Wide Finance Sources** When sourcing finance for compliance issues, many businesses will automatically contact their bank. However, when it comes to equipment finance, we have many contacts that may offer much more attractive loans. Jade Equipment Finance is accredited with many industry-only lenders that specialise in equipment. As specialists in this field, we tend to offer more attractive terms and are more amenable to negotiate on [equipment finance interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Learn about our interest rates for your equipment loans"). Structuring the most cost-effective equipment finance packages for our customers is paramount to our service offering. As brokers, we work only in your best interests, negotiating hard on terms and rates. If you do want your bank to finance your equipment acquisition, your Jade consultant can handle the negotiations with your bank on your behalf. ## **Compliance Finance Products** If you need to purchase equipment to comply with COVID-19 rules or any other regulations specific to your industry, Jade Equipment Finance provides the full range of commercial loan products including:- - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Learn about our flexible equipment leasing options at Jade Equipment Finance") - Rent to Own - Chattel Mortgage - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Learn about Equipment Commercial Hire Purchase opportunities with Jade Equipment Finance") All our finance deals are structured from our cheap interest rates which are fixed, have a fixed loan term and fixed repayments. If you have other financing requirements beyond asset acquisition, we are a full service finance broking business and may be in a position to source solutions for you in other areas also. We want all Australian businesses to operate to their full potential while providing a COVID-safe environment. If you need finance to comply, please call and see how we can assist you with cheap equipment finance. **To discuss your equipment finance requirements, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THIS INFORMATION IS FOR GENERAL CONSIDERATION ONLY. INFORMATION FROM MANUFACTURERS, GOVERNMENT, INDUSTRY AND OTHER SOURCES HAS BEEN GATHERED FROM THE PUBLIC DOMAIN WEBSITES. NO LIABILITY IS ACCEPTED FOR THE* INTERPRETATION OF THE *PRESENTATION OR ERRORS IN CONTENT. READERS ARE ADVISED TO CONSULT WITH THEIR FINANCIAL ADVISOR OR ACCOUNTANT IN REGARD TO FINANCIAL DECISIONS IN REGARD TO INDIVIDUAL REQUIREMENTS.* **Categories:** Finance --- ### [Showcase: Kubota Equipment](https://www.jadeequipmentfinance.com.au/blog/showcase-kubota-equipment) **Published:** August 6, 2020 **Author:** Publisher **Content:** Jade Equipment Finance works with many customers buying a wide range of equipment for all industry sectors including equipment from [Kubota Australia](https://www.kubota.com.au/ "Kutoba Official Website"). This Japanese manufacturer has been supplying equipment to the agricultural and construction industry in particular in Australia for over 40 years and has built a reputation based on durability and performance. We take a look at what Kubota Australia has to offer and showcase a number of items from its wide range of equipment. A Japanese manufacturer, Kubota is a world leader in the manufacture of compact engines and has been producing equipment since the 1950s. The company has supplied equipment primarily to the agricultural and construction sectors for over 40 years and distributes its range through authorised dealers. The Kubota range of equipment is used in construction, agriculture, golfing and sporting areas using turfing and mowing implements and in other general applications. ## **Agricultural Equipment** The Kubota range of agricultural equipment includes tractors, mowers, round balers, rotary balers, utility vehicles, square balers, rotary tedders, forage wagons, disc mowers and rotary rakes. The range of [Kubota tractors](https://www.kubota.com.au/products/tractors/ "Kutoba Tractor Range") include 18-26 hp sub-compacts and into 23-31 hp compacts, through 32-57 hp mid-sized and up to the 130-170 hp high power models. The [BX 80 Series](https://www.kubota.com.au/product/bx80-series/ "Kutoba BX 80 series") is the sub compact and an ideal example of Kubota’s heritage in developing compact engines. These models can be adapted to a range of uses including mowing, slashing, trench digging and general maintenance duty. Kubota is in partnership with Germany’s [Krone Machinery](https://www.kroneaustralia.com.au/ "Krone Machinery Official Website") in supplying their hay and sileage equipment which includes a number of different balers, rakes and other items. The Big Square Balers feature a variable fill system and easy flow pick up which make them extremely popular on many properties. The Kubota seeding equipment range includes planters, drills, hoppers and combo units. If you’re wondering how the price of an item of Kubota agricultural equipment will translate into monthly repayments, just head to our [online equipment finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Use our calculator to determine your interest rate and repayments") to find out. ## **Construction Equipment** For the construction industry, Kubota are renowned for their compact excavators with conventional swing and zero turn features and their wheel loaders and track loaders. Kubota’s origins were in compact engines, so it’s not surprising that this equipment is powerful, yet manoeuvrable to load and unload materials on small sites and tight spaces. The R Series wheel loader is available in two models – the 46 hp R065 and the 47.6 hp [R430](https://www.kubota.com.au/product/r430/ "Kubota Wheel Loader R430") which can be used with numerous attachments depending on the jobs you need to get done on site. With Jade Finance, we can help you purchase their loaders by [financing earthmoving machinery](https://www.jadeequipmentfinance.com.au/earth-moving-equipment-loans "Need finance for earthmoving equipment? Contact us at Jade Equipment Finance"). In the excavator category, Kubota have conventional swing and zero tail swing, [U Models](https://www.kubota.com.au/products/excavators/u-series/ "Kubota U Series Excavators"). The U models are available in a number of variants in the sub 5 tonne class. ## **Power Equipment** The company began making compact engines so you may like to check out their range of diesel generators which are powered by their engines. The range goes up to a 30 kVA models so should be a Kubota to suit your purposes. ## **Finance for Your Kubota** Before you head to your local Kubota dealer to order your equipment, speak with Jade Equipment Finance about pre-approved finance. We can provide you with a quote on one piece of equipment or package several items into the one cheap equipment loan deal. Having multiple items in one finance deal means one rather than multiple repayments which may assist your cash flow and streamline your accounting. As professional finance brokers, we structure every equipment finance deal individually to suit our customers’ requirements. Having pre-approved finance can be a great strategic move when buying equipment. You know ahead of time what your commitments will be on a set spend so you can select your equipment to suit your budget rather than having to perhaps extend yourself to suit the equipment. It may also prevent being tempted to upgrade to something larger by the sales person. Your business structure and individual financial objectives will determine which Jade Equipment Finance product is best suited for your Kubota purchase. Our loan types include:- - Equipment Leasing - [Equipment Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Talk to us about renting to own equipment finance solutions") - Equipment Chattel Mortgage - Equipment Commercial Hire Purchase ### **Cheap Equipment Loans** Despite the challenging economic conditions due to coronavirus, extended drought and global impacts, business operators are always looking for cheap equipment finance to ease the pressure on cash flow and ensure they achieve their ROI projections over the long term. At Jade Equipment Finance we are renowned for achieving better interest rates which deliver cheaper equipment loans for our customers, year after year. Currently interest rates are at historic low rates and there are a number of Government schemes available in regard to equipment write-offs and investment which may make this the right time to proceed with your Kubota acquisition with a loan from Jade by [clicking here](https://www.jadeequipmentfinance.com.au/ "Use Jade Equipment Finance's services to get your next pieces of equipment purchased"). **To discuss a cheap loan on Kubota equipment, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THIS INFORMATION IS FOR GENERAL CONSIDERATION ONLY. INFORMATION FROM MANUFACTURERS, GOVERNMENT, INDUSTRY AND OTHER SOURCES HAS BEEN GATHERED FROM THE PUBLIC DOMAIN WEBSITES. NO LIABILITY IS ACCEPTED FOR THE* INTERPRETATION OF THE *PRESENTATION OR ERRORS IN CONTENT. READERS ARE ADVISED TO CONSULT WITH THEIR FINANCIAL ADVISOR OR ACCOUNTANT IN REGARD TO FINANCIAL DECISIONS IN REGARD TO INDIVIDUAL REQUIREMENTS.* **Categories:** Finance --- ### [Finance for Hitachi Construction Equipment](https://www.jadeequipmentfinance.com.au/blog/finance-for-hitachi-construction-equipment) **Published:** August 11, 2020 **Author:** Publisher **Content:** Despite the impacts of the coronavirus pandemic in many regions and many sectors, the construction and mining industries remain largely operating as usual. There are plans for major government and private projects to stimulate the economy into and through recovery. To tender for major construction project contracts many businesses may be seeking new equipment and cost-effective equipment finance deals. We take a look at the range of excavators available through Hitachi Construction Equipment and update you on the cheap loans available for their acquisition through Jade Equipment Finance. ## **Hitachi Overview** A Japanese manufacturer with interests in many industries, Hitachi offers a diverse range of equipment and machinery for the construction and mining industry. The company has operated in Australia for several decades and support buyers with after-sales support and national coverage. Hitachi focus on technological innovation to deliver machinery that will handle the tough environments of the Australian mining and construction sectors. According to the company, they are a market leader in hydraulic mining shovels and the Hitachi range of excavators include smart design and advanced features. Exceptional engineering and design are incorporated into Hitachi equipment to deliver low operating costs and high productivity machinery. A mission which is shared by [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Equipment Finance & Machinery Loans | Jade"). We aim to deliver especially tailored, cost-effective finance packages at our low interest rates that will deliver productivity to your business. ## **Mini to Large: Hitachi Excavator Range** Whatever your work site, your job reqs or your business size, chances are that Hitachi will have an excavator to suit your job. The range includes mini, medium, large and wheeled excavators. The range is known as being touch as well as fuel efficient and extremely versatile and packed with safety features. The range of Hitachi large excavators, also referred to as loading shovels, includes 6 models so there’s sure to be one suited to your business. We went straight to the top and browsed the [EX 8000-6](https://hitachicm.com.au/machinery/excavators/#product-EX8000-6 "Excavators - Hitachi Construction Machinery Australia"), the largest of the company’s standard backhoe. This machine has an operating weight of 837,000 kg, a 45 cubic metre bucket and 2 x 1450 engine rated power kw. It is powered by a Cummins 16 cylinder, 4 cycle, water cooled, turbo charged diesel engine and has 3 upper rollers, 7 lower and 39 track shoes. If your application doesn’t call for such a massive machine, perhaps one of the [Hitachi medium excavators](https://hitachicm.com.au/machinery/excavators/ "Excavators - Hitachi Construction Machinery Australia") will suit. These machines have operator comfort features plus the all-important durability and safety inclusions and are environmentally friendly. A special feature of the large and medium Hitachi range is the Global e-Service and ConSite system installed. This allows the equipment owner the capability to connect remotely with the machinery to monitor and assess their units. There are 13 models in the medium excavator range, so worth checking out for exactly the unit that matches your job needs. In the mini diggers range there are 7 models to choose from. The smallest is the [ZX 17U-5](https://hitachicm.com.au/machinery/excavators/#product-ZX17U-5 "Excavators - Hitachi Construction Machinery Australia") which is agile and compact but packs a lot of power. When considering which Hitachi excavator to add to your fleet, utilise our [Equipment Finance calculator here](https://www.jadeequipmentfinance.com.au/calculator "Equipment Finance Calculator | Loan Repayments Calculator") to assist with your finance plans. The calculator can provide you with a ballpark estimate on monthly repayments on all types of equipment for all our Jade Equipment Finance loan types. This is only an estimate as the calculator is a generic device, but a quick call to a Jade consultant and you can get a firm quote on your acquisition finance. ## **Hitachi Rigid Dump Trucks** Dump trucks are the iconic image of Australian mining industry and the range of [Hitachi rigid dump trucks](https://hitachicm.com.au/products/rigid-dump-trucks "Rigid Dump Trucks - Hitachi Construction Machinery Australia") is built to meet the toughest tasks and most demanding sites. According to the company these machines have superior capabilities when it comes to hauling and incorporate technology which is industry-leading. These trucks are designed to deliver higher output and performance and Jade Equipment Finance will enhance that performance with a finance deal structured to meet your ROI expectations. ## **Finance Options for Hitachi Machinery** Jade Equipment Finance offers the full range of commercial finance facilities for the purchase of Hitachi Construction Equipment at our signature better interest rates:- - Rent-to-Own Equipment Finance - Equipment Leasing - [Equipment Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Chattel Mortgage - Equipment Finance Loan") - Commercial Hire Purchase for Equipment Your Jade consultant will work with you to structure a finance package over the loan term you require to achieve your projected ROI with repayments to best suit your cash flow. We provide equipment finance solutions for large companies, multi-machinery packages, SMEs and sole traders. Our competitive advantage is having access to not only finance through the major banks but industry-only access to non-bank lenders that specialise in [heavy machinery finance](https://www.jadeequipmentfinance.com.au/heavy-machinery-loans "Heavy Machinery Loans | Machinery Finance - Jade"). These special interest lenders tend to be more negotiable on interest rates and terms than many others which puts Jade in the box seat for achieving you the finance deal that meets your requirements not just the demands of the banks. **To discuss cost-effective finance on any machines in the Hitachi Construction Equipment range, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: ALL INFORMATION PRESENTED IN THESE ARTICLES IS FOR GENERAL INFORMATIONAL PURPOSES AND BUSINESSES AND INDIVIDUALS SHOULD SEEK INDEPENDENT FINANCIAL ADVICE IN REGARD TO THEIR OWN FINANCIAL DECISIONS AND CIRCUMSTANCES. DETAILS ON GOVERNMENT MEASURES, POLICIES AND GUIDELINES AND VEHICLE DETAILS AND SPECS HAVE BEEN SOURCED FROM PUBLICLY AVAILABLE WEBSITES AND SOURCES. LIABILITY IS NOT ACCEPTED FOR ERRORS IN INTERPRETATION OR PRESENTATION OF ANY FACTS AND DETAILS FROM THIRD PARTIES. WE ADVISE INDIVIDUALS TO CHECK DETAILS DIRECTLY AT THE THIRD PARTY SOURCE IF REQUIRED.* **Categories:** Finance --- ### [Finance for Yanmar Equipment](https://www.jadeequipmentfinance.com.au/blog/finance-for-yanmar-equipment) **Published:** August 15, 2020 **Author:** Publisher **Content:** [Yanmar](https://www.yanmar.com/global/ "Yanmar Official Website") is a Japanese manufacturing group which is active in many sectors including agricultural machinery, construction equipment, marine diesel engines and industrial and commercial engine production. Apart from their high quality products, the company’s notable claim to fame is as the developer of the world’s very first mini excavator way back in the late 1960s. Decades on and Yanmar offers a range of highly robust excavators across the size range of 0.8 T to 10 T class from micro, mini and midi as well as mini diggers through their local Australian distributors. All excavators include Yanmar diesel engines. ## **Yanmar Excavators** The full range of Yanmar excavators includes 12 individual units so operators can select exactly the machine to suit their job in regard to operating weight, output, dig depth and width. The range includes:- - [SV08](https://www.yanmar.com/global/construction/products/excavator/sv08/ "Yanmar SV08 Excavator"): the smallest unit in the Yanmar range, this is worth considering for landscapers, pool builders, plumbers and other building applications that require narrow access. This is an ultra mini excavator which is compact enough to access and operate on confined spaces. The SV08 will get you through residential site gates and drives to access sites for laying pipes, excavating for a pool or to carry out landscaping and other building works. - [ViO17](https://www.yanmar.com/global/construction/products/excavator/vio17/ "Yanmar ViO17 Excavator"): step up a level to this model which is still only 950 mm wide and yet has an operating weight of 1740 kg. This unit as true zero tail swing which makes it suitable to many sites and many applications. - [ViO30](https://www.yanmar.com/global/construction/products/excavator/vio30_vio35/ "Yanmar ViO30 Excavator"): in the 3 tonne class this model has an operating weight of 3125 kg and is 1550 mm wide, so still a good small size for tight sites. - [ViO50](https://www.yanmar.com/global/construction/products/excavator/vio50_vio55/ "Yanmar ViO50 Excavator"): up into a larger class again and this high-end mini excavator is engineered to comply with environmental regs. Width is 1940 mm and operating weight 4605 kg. - [SV 100](https://www.yanmar.com/global/construction/products/excavator/sv100/ "Yanmar SV100 Excavator"): at the top 10 T end of the Yanmar range you’ll find the SV 100. This is a boom swing and blade excavator which has the versatility for many applications. A 9625 kg operating weight, a 2320 mm width and a digging depth capacity of 4550 mm make this a great little operator for many builders, construction uses, landscaping and general earth moving requirements. In addition to being easy to operate with tight turning capabilities it can be transported to/from site on a 10 tonne truck for greater convenience. ## **Special Features** A noted feature on some Yanmar equipment is isochronous engine control. This facilities maintaining efficiency throughout the job as it increases fuel injection in the event of the engine slowing due to a heavy load. This is a computer-driven feature and allows speed and output to be maintained. ## **Finance Options for Yanmar** The excavator market is quite extensive with multiple players in the mini, compact and small class sector along with Yanmar. If price is a deciding factor for your purchasing decisions, we recommend you take advantage of our [Equipment Finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Make use of our calculator to find the right finance option for you") to compare possible repayments on the different excavators you are considering. You can use the calculator to compare repayments on different Yanmar models or to see how Yanmar compares with other competitors in the sector. It is also a very useful tool for comparing the repayments on new versus used machines. The result the calculator delivers is to be used as a guide only as it is only a ballpark but when used correctly can be a very useful purchasing resource. You can request a quote and explore options about [financing excavators](https://www.jadeequipmentfinance.com.au/excavator-loans "Explore our options for financing your next excavator purchase or hire") too. When you start narrowing down your choice, that’s the time to contact us to discuss pre-approved finance. With a rough idea of what you’ll need to borrow to purchase your Yanmar, your Jade consultant can proceed to arrange your finance based on that estimate. When you lock-in your specific model with the dealer, then we can finalise the finance for the specifics of that equipment. ## **Finance Products** Whether you’re a large company, a small enterprise, a medium operation or a sole trader owner-operator, Jade Equipment Finance has a loan product to suit your Yanmar acquisition. The choice of which particular product will depend on your business set-up, so speak with your accountant to ascertain which is best for you from our portfolio:- - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "See how you can finance your equipment with an equipment lease") - Equipment Chattel Mortgage - Rent-to-Own - Commercial Hire Purchase (CHP) Each product is tailored to suit your specs and includes fixed repayments and our [cheap equipment finance interest rate](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Explore our low equipment finance interest rates here") so you can be assured of a cost-effective finance solution. ## **Specialist Lenders** While you might only have access to your bank for equipment finance, as a leading broker in the equipment sector, Jade Equipment Finance has access to a large number of banks and non-bank lenders. Our non-bank lenders include financiers that specialise in equipment finance. In fact some operate only in this heavy equipment area so they are experts that understand your industry and the equipment you are purchasing. This access and our standing with these lenders, gives us significant leverage in negotiating better interest rates and more agreeable terms for our equipment finance customers. How good will the rates we can achieve for you be? Just one call to Jade and you’ll find out. **To discuss cost-effective finance on any Yanmar excavators, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: ALL INFORMATION PRESENTED IN THESE ARTICLES IS FOR GENERAL INFORMATIONAL PURPOSES AND BUSINESSES AND INDIVIDUALS SHOULD SEEK INDEPENDENT FINANCIAL ADVICE IN REGARD TO THEIR OWN FINANCIAL DECISIONS AND CIRCUMSTANCES. DETAILS ON GOVERNMENT MEASURES, POLICIES AND GUIDELINES AND VEHICLE DETAILS AND SPECS HAVE BEEN SOURCED FROM PUBLICLY AVAILABLE WEBSITES AND SOURCES. LIABILITY IS NOT ACCEPTED FOR ERRORS IN THE INTERPRETATION OR PRESENTATION OF ANY FACTS AND DETAILS FROM THIRD PARTIES. WE ADVISE INDIVIDUALS TO CHECK DETAILS DIRECTLY AT THE THIRD PARTY SOURCE IF REQUIRED.* **Categories:** Finance --- ### [Replace, Refurb or Refinance?](https://www.jadeequipmentfinance.com.au/blog/replace-refurb-or-refinance) **Published:** August 17, 2020 **Author:** Publisher **Content:** Regardless of your industry sector there comes a time to consider the future of the equipment you’re using. Whether you’re in manufacturing, engineering, construction, mining, medical or general business. Whether you operate heavy vehicles or operate a gym for heavy weight lifting. Whatever your business interests, if you have equipment of any type it will have a lifecycle when it requires attention. That may mean the end of its working life in its current format, the end of its value to your business due to new technologies or the end of your finance deal. Whatever the timing, you may need to decide whether to replace that piece of equipment with new equipment, to refit, refurb and repurpose to get more use or to [refinance equipment](https://www.jadeequipmentfinance.com.au/equipment-refinancing "Explore refinancing options for your individual or business equipment"). For these purposes, Jade Equipment Finance may be in a position to assist with a financial solution. ## **Replace with New** The decision to replace equipment with the purchase of new can be a major decision depending on the purchase price of the equipment and the complexities involved in installation and commissioning and integrating the new into your production process. For manufacturing especially this can be a major decision. For general business equipment such as [computers, IT and other technology](https://www.jadeequipmentfinance.com.au/computer-and-it-equipment-loans "Discover how Jade Equipment Finance can help you finance new computer and IT equipment"), when the systems need an upgrade it can be a no brainer in opting for a total system replacement. Technologies get superseded and trying to continue to operate with outdated tech can drag your business down or at the very least slow you down. If you’re taking on new tenders in construction or engineering, your existing equipment may not be fit for purpose, especially for a long-term project. [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote for you next equipment purchase") provides a complete portfolio of loan products for the purchase of new equipment across all industries and all sectors. These products include Leasing, [Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Acquire equipment for your business with rental finance"), CHP and Chattel Mortgage. Your Jade consultant will work with you through the purchase process to source you the best quotes on the various equipment you are considering to assist with the decision making and assist with the paperwork and other aspects through to settlement. ## **Refurb, Refit, Repurpose Finance** In the construction and mining especially, heavy equipment and machinery is built tough and built to last a long time. But certain elements of certain machinery may reach their lifecycle while much of the rest of the machinery is still workable. In these instances, many of our Jade Equipment Finance customers look at refurbishing the equipment. This may involve a refit with say a new motor or engine or installing new technologies to bring it up to speed and extend the working life. In the agricultural sector or say civil works and excavations, a new crop or a new project may require [repurposing existing equipment to take on the new tasks](https://www.americanmachinist.com/machining-cutting/article/21903182/the-rs-have-it-rebuild-retrofit-repurpose-replace "The R’s Have It: Rebuild, Retrofit, Repurpose, Replace"). These processes may involve significant investment in new motors, systems and componentry. Speak with Jade Equipment Finance about the financial solutions we can offer to assist. Some of our lenders have minimum amounts for equipment finance. But at Jade we have a large lender network, so we have many contacts to source a loan offer to meet your requirements. You may have already discovered that your bank is not in a position to extend you finance for your refurb. Jade Equipment Finance is accredited with many non-bank lenders including specialists in equipment finance who may better understand the equipment scene than your bank and as such be better positioned to assist. Whatever your equipment refit plans, ensure one of the first steps is to contact Jade to discuss the finance options. ## **Refinancing Options** If your equipment finance deal is approaching the end of the loan term, you may be faced with the prospect of finding the money to pay-out the residual, buyback or balloon. All commercial finance products include the option for these ‘end of loan’ lump sum payments and most of our customers take up the option. Depending on the initial purchase price and the percentage balloon you selected, the pay-out figure may be quite substantial. Finding the ready the cash for the lump sum may be looking like it will place undue pressure on your cash flow. If you are choosing to keep that equipment and looking for finance to pay-out the residual/buyback/balloon, Jade Equipment Finance may be able to assist with a solution. Refinancing the pay-out with a new equipment finance deal is common practice. This would involve your Jade consultant sourcing a quote for the specific loan type you require – Leasing, Rent to Own, Chattel Mortgage or CHP. All our commercial finance is based on [our cheap interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "See our cheap and low interest rates for equipment finance") which are currently even better due to the low interest rate environment. The amount of the pay-out may affect the options available as some banks and lenders have minimum amounts that they will finance. Our specialist equipment lenders however are more flexible when it comes to structuring finance. Refinancing the pay-out will involve setting up a new loan deal, possibly with a new lender. They will pay-out the previous lender and the equipment used as security against the loan or for off-balance sheet finance, they take ownership and lease/rent it back to you. Refer to our specific product descriptions on our web pages for details of the different finance types. Whatever you decide – replace, refit or refinance, we are ready to assist with a financial solution. **For financial solutions on all types of equipment, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: ALL INFORMATION PRESENTED IN THESE ARTICLES IS FOR GENERAL INFORMATIONAL PURPOSES AND BUSINESSES AND INDIVIDUALS SHOULD SEEK INDEPENDENT FINANCIAL ADVICE IN REGARD TO THEIR OWN FINANCIAL DECISIONS AND CIRCUMSTANCES. DETAILS ON GOVERNMENT MEASURES, POLICIES AND GUIDELINES AND VEHICLE DETAILS AND SPECS HAVE BEEN SOURCED FROM PUBLICLY AVAILABLE WEBSITES AND SOURCES. LIABILITY IS NOT ACCEPTED FOR ERRORS IN THE INTERPRETATION OR PRESENTATION OF ANY FACTS AND DETAILS FROM THIRD PARTIES. WE ADVISE INDIVIDUALS TO CHECK DETAILS DIRECTLY AT THE THIRD PARTY SOURCE IF REQUIRED.* **Categories:** Finance --- ### [Cost-effective Loans for Kioti Tractors and Implements](https://www.jadeequipmentfinance.com.au/blog/cost-effective-loans-for-kioti-tractors-and-implements) **Published:** August 18, 2020 **Author:** Publisher **Content:** The tractor and ag equipment sector is quite extensive but several of the big names in the industry still appear to dominate the market. But just as Asian manufacturers have emerged in a big way in the motor vehicle and other equipment sectors in Australia, [Kioti](https://www.kiotitractors.com.au/ "PFG Australia Kioti Official Website"), a South Korean manufacturer, recently celebrated 20,000 sales in Australia. Kioti is part of the huge [Daedong Industrial Co](https://daedong-kioti.com/ "Daedong Kioti Official Website") which has a history of producing engines and farming equipment going back to 1947. Kioti joins many other South Korean manufacturing companies such as Samsung, Hyundai and Kia in becoming well-known and respected for practical design and engineering. The company produces a range of equipment in particular tractors, farming implements and utility vehicles amongst other items. Kioti has been distributed in Australia through [PFG](https://www.pfgaustralia.com.au/ "PFG Australia Official Website") for over 20 years and the brand has become quite well-known in this country. Jade Equipment Finance offers a full selection of commercial finance products for the purchase of Kioti equipment. Our cheaper interest rates and large network of specialist equipment lenders ensure that your Jade loan is sourced and structured to best meet your ROI on your Kioti. ## **Kioti Tractor Range** The Kioti range covers compact, sub compact and utility tractors. The Utility selection includes 7 models covering 60 hp, 70 hp, 80 hp, 95 hp, 105 hp and the recently introduced 115 hp. The smallest model, a 60 hp, is the [NX6020](https://www.kiotitractors.com.au/products/tractors/utility-tractors/nx-series "Kioti NX series utility tractors") which is available with/without a cabin. This is promoted as an efficient and great value tractor with HST drive and a good range of standard features for a small tractor. Step up to 70 hp and you find the [RX7030](https://www.kiotitractors.com.au/products/tractors/utility-tractors/rx7030-rops-cab "Kioti Tractors RX7030 Utility Tractors") model with its streamlined hood designed to improve operator visibility. Also available with/without cab, this model has larger tyres, 24 reverse and 24 forward gears so it’s ready to handle a wide range of tasks. The RX7030 has 2 external lift cylinders which gives this machine 2,256 kg lift capacity. If you’re working on your property in your tractor for long days, you’ll no doubt appreciate the cabin luxury afforded in this model. The seat is adjustable, the dash well-laid out for visibility and there is easy access to the necessary controls. Kioti build tractors to suit Australian conditions so yes, the cabin is air-conditioned and equipped with a radio and CD player and a cup holder for that essential refreshment. Top of the Kioti utility tractor range is the [PX1153](https://www.kiotitractors.com.au/products/tractors/utility-tractors/px1153-pc-cab "Kioti PX1153 Utility Tractor"), a powerful 115 hp turbo-charge engine, 3,630 kg lift capacity and significant operator comfort and convenience features. In the Kioti compact tractor range, there are also 7 models which cover a number of vehicles from 30 hp up to 58 hp. One of the newest models in the range is the [CK4220](https://www.kiotitractors.com.au/products/tractors/compact-tractors/new-ck4210-cabin "Kioti CK4220 Compact Tractor") which is available in choice of either hydrostatic or manual transmission. All Kioti tractors include the Daedong engines which according to the manufacturer are eco-friendly and deliver fuel efficiency. They are noted as delivering low levels of vibration, noise and smoke. Performance features which is probably what you would expect as Daedong has been a big name in engine innovation and technology in its region for many decades. ## **Utility Vehicles** While arranging your equipment finance deal on your Kioti tractor with your Jade consultant, perhaps consider including a [Kioti UV](https://www.kiotitractors.com.au/products/utility-vehicles "Kioti Utility Vehicles") in the same equipment finance package. These are very useful machines around any property and just about every ag operator and land owner is always on the lookout for new UVs to replace or upgrade their equipment. The Kioti range are all powered with the Daedong engines which feature in the tractor selection. One of the newer models is the [K9 UTV](https://www.kiotitractors.com.au/products/utility-vehicles/new-kioti-k9-2400-utv "Kioti Tractors K9 UTV") – 24 hp, 3 cylinder diesel powered with a 50 kph ground speed. You may not necessarily seek a separate loan for a small UV, but combining both a UV and a tractor into the one Jade Equipment Finance deal will provide you with not only a cost-effective loan but just the one monthly repayment. ## **Finance Options for Kioti Tractors** Jade Equipment Finance offers you agricultural and [tractor financing](https://www.jadeequipmentfinance.com.au/tractor-loans "Finance your next tractor purchase with us at Jade Equipment Finance") along with a number of choices when it comes to loan types for your Kioti tractor. They include: - Equipment Leasing - Rent-to-Own - Chattel Mortgage - Commercial Hire Purchase Your accountant or financial controller is usually the best person to advise on which loan type is best for your operation. Then your Jade consultant is the best person to source you a [cheap equipment finance](https://www.jadeequipmentfinance.com.au/ "Explore our vast range of equipment finance solutions") deal on your Kioti purchase. Interest rates are at historic low levels and there are a number of government stimulus and recovery measures available which combine to make this possibly a great time to invest in new equipment for your property. Add to that the good winter rainfalls in many parts of the country which could represent reasons to increased production requiring additional equipment. If the scenario all adds up to being a good time for you to invest in equipment and Kioti is your preference, find out how Jade Equipment Finance can assist with a cost-effective finance deal. **To discuss cost-effective finance on a new Kioti tractor, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: ALL INFORMATION PRESENTED IN THESE ARTICLES IS FOR GENERAL INFORMATIONAL PURPOSES AND BUSINESSES AND INDIVIDUALS SHOULD SEEK INDEPENDENT FINANCIAL ADVICE IN REGARD TO THEIR OWN FINANCIAL DECISIONS AND CIRCUMSTANCES. DETAILS ON GOVERNMENT MEASURES, POLICIES AND GUIDELINES AND VEHICLE DETAILS AND SPECS HAVE BEEN SOURCED FROM PUBLICLY AVAILABLE WEBSITES AND SOURCES. LIABILITY IS NOT ACCEPTED FOR ERRORS IN THE INTERPRETATION OR PRESENTATION OF ANY FACTS AND DETAILS FROM THIRD PARTIES. WE ADVISE INDIVIDUALS TO CHECK DETAILS DIRECTLY AT THE THIRD PARTY SOURCE IF REQUIRED.* **Categories:** Finance --- ### [When it's a NO from the bank, what next?](https://www.jadeequipmentfinance.com.au/blog/when-its-a-no-from-the-bank-what-next) **Published:** August 25, 2020 **Author:** Publisher **Content:** Owning and operating a business can be a rewarding experience but it can also have its challenges, especially when it comes to sourcing finance for new equipment. There is the time factor – finding the time in your schedule to seek out sufficient loan quotes to make an informed decision on which bank or lender is offering the best deal. That process may be further complicated by needing to [have a good grasp of finance terminology](https://www.business.gov.au/finance/accounting/key-financial-terms "Key financial terms") to ensure you’re comparing like offers. Then there is the issue of meeting the loan application of the banks in particular. Having all the docs, financials and acceptable trading and asset requirements that they may demand. Under ‘normal’ trading and economic conditions these challenges are not uncommon for some operators at various times in a trading cycle or business development phase. But in 2020, with the effects of COVID-19 having a major impact on both businesses and banks, the challenges of sourcing equipment finance may be more common and widespread and in many cases, more intense. That NO from the bank to your finance application can feel like a devastating, business-busting blow. But, everything in perspective – what you see as a challenge, a blow and a major set-back may be ‘business as usual’ and part of the standard operating procedure for Jade Equipment Finance. We take on your challenges in the same way as we do your most straight-forward equipment finance requests. ## **The Challenge with Equipment Finance** You’ve got orders to fill and need to replace outdated machinery. You’re bidding on construction tenders but need to [expand your fleet of excavation machines](https://www.jadeequipmentfinance.com.au/excavator-loans "Find out how you can finance your next excavator machine purchase with us") to handle the extra workload. Your technology needs upgrading in order to cope with increasing online activity and work from home staff. You need new equipment to be better placed to take on your competitors. You have plans to [st](https://www.business.gov.au/guide/starting)[a](https://www.business.gov.au/guide/starting "Guide to starting a business")[rt a new business](https://www.business.gov.au/guide/starting "Find out how you can finance your next excavator machine purchase with us") or expand your existing operation to meet growing demand and desperately need more equipment. When requiring [finance to purchase new equipment](https://www.jadeequipmentfinance.com.au/blog/replace-refurb-or-refinance "Replace, Refurb or Refinance?"), many businesses automatically and quite understandably, call their bank first to discuss finance. Perhaps you’ve done that for years and its gone well for you and suddenly, you’ve hit a hitch and the bank rejects your application. Perhaps it’s your first application to the bank and they don’t see things your way. Complicating the effects of the pandemic on business requiring finance is the impact that coronavirus has also had on the banking sector. Banks have been facing their own challenges and in some cases may be tightening their already strict loan requirements. So what next when the bank says NO? Call another bank? Head onto the internet and search for any lender that will say YES? That means more time, possibly more rejections and possibly, in desperation or frustration, just accepting whatever loan is offered even if it is more expensive and places pressure on your cash flow. A sensible alternative is to contact Jade Equipment Finance. ## **Challenge Accepted** As an experienced finance broker, Jade Equipment Finance provides financial solutions for businesses seeking equipment loans. While it is advisable to have us handle your loan from the start, before you head off on your own, one of our professional consultants will discuss your requirements and work towards assisting you with a loan offer, even after you have received that dreaded NO from the bank. How? - Jade Equipment Finance is accredited with multiple lenders including the major banks as well as non-bank and specialist lenders. We know how banks price their loans and their loan application guidelines. We use this knowledge to assist businesses to structure their loan applications in order to better meet bank guidelines, if going with the bank is the preference. - Our lending panel includes non-bank lenders, some of which specialise in equipment finance. With their expert knowledge of the equipment sector and the businesses that operate in the sector, they are very often in a better position to offer more competitive and cheaper loans than the bank. - We also deal with industry-only lenders – equipment financiers that only make offers through finance brokers. Companies such as Morris Equipment Finance amongst others. These lenders tend to be more open to negotiating on loan conditions and especially on interest rates! These lenders operate differently from banks and are not as hamstrung by the same strict requirements. - Your Jade Equipment Finance consultant will handle your loan application from the start to save you time and source a quote from our wide selection of lenders and negotiate the rates and conditions. **Specialist Services** For businesses in special circumstances, Jade Equipment Finance may be able to assist you with our expert services for: - [No Docs and Low Docs Equipment Loans](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Have low or no docs? Find out how you can get a loan for equipment with Jade Equipment Finance") - ABN Only Loans - [Bad Credit Loans](https://www.jadeequipmentfinance.com.au/bad-credit-equipment-finance "If you have bad credit, click here to find out how you can finance your equipment") So before or after you face the challenges of sourcing equipment finance from your bank, give Jade Equipment Finance a call to discuss how we can assist you. A NO doesn’t have to be NEVER. **For an obligation-free and confidential discussion around your equipment loan requirements, [contact Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Talk to our brokers or get a free quote from us at Jade Equipment Finance") on 1300 000 003** *DISCLAIMER: THE PURPOSE OF THE INFORMATION PRESENTED IS FOR GENERAL INFORMATION AND NOT INTENDED AS FINANCIAL ADVICE AND SHOULD NOT BE USED AS THE SOLE SOURCE FOR MAKING FINANCIAL OR PURCHASE DECISIONS. THOSE WHO FEEL THEY REQUIRE ADDITIONAL GUIDANCE SHOULD SEEK OUT THE ASSISTANCE OF AN INDEPENDENT, PROFESSIONAL FINANCIAL ADVISOR. ALL DETAILS, INFORMATION, FACTS AND SPECS IN REGARD TO GOODS AND SERVICES AND IN REGARD TO GOVERNMENT POLICIES AND MEASURES HAVE BEEN SOURCED DIRECTLY FROM RESOURCES IN THE PUBLIC DOMAIN. NO LIABILITY IS ACCEPTED IN REGARD TO THE PRESENTATION OR THE INTERPRETATION OF THIS INFORMATION. IF INDIVIDUALS REQUIRE VERIFICATION, WE ADVISE THEM TO REFER TO THE THIRD PARTY RESOURCE.* **Categories:** Finance --- ### [Infrastructure Equipment Finance Deals](https://www.jadeequipmentfinance.com.au/blog/infrastructure-equipment-finance-deals) **Published:** August 27, 2020 **Author:** Publisher **Content:** Are you getting your share of the infrastructure work in your sector? Need new equipment to take on those projects? Need cheap finance to purchase equipment to ensure you’re tender is competitive? Now could be the time to start a conversation with Jade Equipment Finance because infrastructure has been flagged as a big topic in Australia’s economic recovery. Representing potential opportunities for construction, civil works, engineering and businesses through those supply chains. ## **What’s on Offer?** Both the federal and state governments are usually big on investing in infrastructure to not only create jobs and stimulate their economies, but to improve services for their population. In response to the impacts of the coronavirus pandemic, infrastructure has been ramped up and is a key inclusion in government stimulus measures. In June 2020, during a speech at CEDA, the Prime Minister noted a number of projects which would be fast-tracked as part of the JobMaker initiative. These cover several states including rail, iron ore and road projects in WA, inland rail, extension to the Olympic Dam, town water projects in NSW and the Marinus Link for Tasmania and Victoria. The package for shovel-ready projects represents a package around $1 billion in bilateral partnerships. State governments have also announced key funding priorities including, amongst many others: - In NSW, funding to fix transport congestion and upgrading roads especially in the regions. - Queensland has an extensive list of prescribed projects such as Isaac Downs and Lower Fitzroy River. - The Victorian government has committed to [Regional Rail Revival](https://regionalrailrevival.vic.gov.au/ "Victorian Regional Rail Revival") and Princes Highway duplication. In addition to what had already been committed, in late August 2020 during a meeting of National Cabinet, [RBA Governor Philip Lowe](https://www.rba.gov.au/about-rba/people/gov.html "Governor of the Reserve Bank of Australia") requested that state premiers and chief ministers make yet another major commitment, in the vicinity of $40 billion, over 2 years on major projects to boost the economy. In particular, transport, energy, schools and housing projects were mentioned. ## **What opportunities do these announcements mean for your business?** We refer you to your state government infrastructure department website to see what tenders are open for your sector. But why not get started now on preparing or upgrading your equipment resources. With interest rates holding at historic lows and many shovel-ready projects in the pipeline, now may be the right time for the equipment purchases you have been considering or need to take on these or other related projects. It may not be work on those specific projects that is of direct interest to you, but ancillary opportunities or other flow-on effects that may benefit your business. Jade Equipment Finance has access to specialist equipment finance lenders who offer highly competitive deals for new and used equipment acquisitions. ## **Equipment Types** Jade Equipment Finance provides cheap loans for many industries and for many different types of equipment. Infrastructure projects primarily involve the construction, building materials, engineering, civil works, excavation and materials handling and supply businesses. We provide loans for:- - Civil Works equipment: heavy equipment, dozers, graders, compactors, excavators etc. - [Excavators](https://www.jadeequipmentfinance.com.au/excavator-loans "If you need an excavator, contact us for financing at Jade Equipment Finance") from all top manufacturers including CAT, Kobelco, Hitachi, CASE, Komatsu amongst many others. - Road-making equipment: rollers, graders, compactors, profilers and mixers. - Quarrying equipment required to produce, process, store and transport materials. - Tunnelling equipment: both stock standard and custom-built machinery. - Site equipment: buildings, facilities, fencing, lighting towers, accommodation units and vehicles. - Scaffolding and formwork. - Trucks: dump trucks, materials haulers, crane trucks, site utes, service vehicles and [general transportation](https://www.jadeequipmentfinance.com.au/transport-equipment-finance "Explore our options for financing transporter equipment for your business") - Concreting gear: trucks, agitators, etc. - Safety equipment. Whatever your requirements, speak with a Jade consultant about a cost-effective loan on individual items of equipment or a package finance deal on multiple items. ## **Business Types** Cheap equipment loans are available through Jade Equipment Finance for all types of business operations: - SMEs - Large corporations - Owner-operators - Sole Traders, ABN holders - Partnerships ## **Jade Finance Products** Jade Equipment Finance provides cheap loans across our full portfolio of finance products. Including:- - Rent to Own - Chattel Mortgage - Equipment Leasing - [Commercial Hire Purchase](/commercial-hire-purchase "Click here for more information on commercial hire purchase for equipment") All our equipment loan offers are sourced with the cheapest interest rates and include fixed rates, fixed repayments and fixed loan terms plus the option for a residual/balloon/buyback so the loan can be structured to suit your specific requirements, wherever possible. Your Jade consultant sources your quote from our specialist equipment lending panel to ensure you are receiving the cheapest available deal. On acceptance, we’ll handle the paperwork through to settlement to save you time and expedite the acquisition process. We’re keen to ensure that our customers take full advantage of the work available through current and future infrastructure projects. We’ll work hard, in your best interests, to [ensure you get the best equipment finance offers](https://www.jadeequipmentfinance.com.au/ "Get a free quote from us at Jade Equipment Finance") to acquire the machinery you need to compete and complete in this highly competitive infrastructure project sector. Finance deals at the cheapest interest rates and are tailored to your needs. **For a quote on a cheap equipment loan, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE PURPOSE OF THE INFORMATION PRESENTED IS FOR GENERAL INFORMATION AND NOT INTENDED AS FINANCIAL ADVICE AND SHOULD NOT BE USED AS THE SOLE SOURCE FOR MAKING FINANCIAL OR PURCHASE DECISIONS. THOSE WHO FEEL THEY REQUIRE ADDITIONAL GUIDANCE SHOULD SEEK OUT THE ASSISTANCE OF AN INDEPENDENT, PROFESSIONAL FINANCIAL ADVISOR. ALL DETAILS, INFORMATION, FACTS AND SPECS IN REGARD TO GOODS AND SERVICES AND IN REGARD TO GOVERNMENT POLICIES AND MEASURES HAVE BEEN SOURCED DIRECTLY FROM RESOURCES IN THE PUBLIC DOMAIN. NO LIABILITY IS ACCEPTED IN REGARD TO THE PRESENTATION OR THE INTERPRETATION OF THIS INFORMATION. IF INDIVIDUALS REQUIRE VERIFICATION, WE ADVISE THEM TO REFER TO THE THIRD PARTY RESOURCE.* **Categories:** Finance --- ### [Support for the Commercial Cleaning and Restoration Sector](https://www.jadeequipmentfinance.com.au/blog/support-for-the-commercial-cleaning-and-restoration-sector) **Published:** September 1, 2020 **Author:** Publisher **Content:** As in many other sectors, operators in the commercial cleaning industry are dealing with unusual business circumstances as a result of [COVID-19](https://www.health.gov.au/health-alerts/covid-19 "COVID-19 News"). On one hand, with many workers working from home means many office buildings and other commercial premises are unoccupied and not requiring the usual cleaning services. On the other hand, additional and new cleaning services are in demand. Each time a new COVID-19 case is traced as visited a certain premises, venue or location, it creates the need for a professional deep cleaning operation. There have been reports in the media of less than scrupulous and reputable operators preying on unsuspecting customers in regard to COVID-19 cleaning. Already highly competitive, the current business climate may be attracting new players which further intensifies the competition. In order to continue delivering the highest level of services, reputable and highly experienced businesses that offer professional, deep cleaning and restoration services need the best equipment to provide the best results. But equally importantly, they need cheap finance to purchase the necessary equipment in order to remain competitive in a price-driven market. ## **Business Support** Jade Equipment Finance is throwing its support behind the professional commercial cleaning and restoration industry with cheap equipment finance to assist these businesses to stay ahead of the profitability curve. Not only for deep cleaning after COVID-19 cases have been identified but many specialised commercial cleaning businesses are also the ‘second wave heroes’ following natural disasters and domestic incidents. Cleaning up premises after floods, fires and major storms as well as rectifying the damage from incidents in residential and commercial buildings requires specialist restoration services with the right equipment to handle the job. Jade supports the sector by sourcing the [cheapest interest rates for cleaning equipment finance](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Learn how our interest rates can help you save on loan payments") and our professional finance brokers structure individual loans to suit the specific cash flow and finance objectives of your business. Support which we provide on a national basis to all types of business operators – sole traders, contractors, SMEs and large-scale companies. ## **Cheap Cleaning and Restoration Equipment Loans** Jade Equipment Finance provides the full range of commercial finance loan types for the acquisition of cleaning and restoration equipment. Businesses are advised to refer to their accountant as to which of these loan types – [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore how a chattel mortgage may be suitable for your equipment finance"), CHP, Leasing, and Rent to Own – is best suited to their set-up. These commercial finance facilities can be used for the purchase of cleaning and restoration equipment, including:- - Commercial carpet cleaning equipment - Truck mounted cleaning machines - Flood pumpers - Extraction machines - Extraction tools - Dehumidifiers - Air movers - Water removers - Scrubbers - Suction polishers - Heavy duty commercial floor cleaners - Healthcare floor and general cleaning equipment - Industrial cleaning equipment for specialised sectors and operations - Filtration vacuum systems ## **Strategic Loan Structure** The purchase price of some individual machines and equipment may be below the minimum loan guidelines of some banks and lenders. With multiple lenders in our lending panel, Jade has a wide selection to source a loan offer that does suit your purchase. Alternatively we offer finance structuring services. Most cleaning businesses will require a number of different machines for a full system set-up or upgrade. Some of these machines will have say a base unit and then a range of accessories, attachments and variations so buyers can customise the equipment to suit their specific job market. Your [Jade Equipment Finance consultant](https://www.jadeequipmentfinance.com.au/broker "Talk to our professional finance brokers about financing your next equipment purchase") will work with you to package a number of pieces of equipment into the one cheap loan deal. This will provide you with a single monthly repayment instead of multiple payments, which may assist your cash flow and future planning. With fixed repayments and our cheap interest rates, your Jade finance deal will be structured with the objective of delivering the return on investment that you are hoping to achieve over the loan term. ## **Specific Equipment Loans** Jade provides finance offers for high-end, high tech equipment from leading brands. Equipment including:- - Peak 500 Truck Mount carpet cleaning machine. Priced at a significant price-point but offering great performance features. This is a liquid-cooled unit which provides the high heat and vacuum capabilities required to keep a 6-jet wand operating at its highest levels. - Legend Brands Everest 870SS Truck Mount is an extremely powerful extraction and cleaning machine which includes a Kubota engine and Eurus blower. - In restoration machines, Injectidry Systems are one of the world’s leaders. They offer a package which the company claims is an industry first – a Trapped Moisture Ventilating System for Walls and Ceilings. An investment in this type of machinery, either as an addition to your existing resources or as an expansion to your service capabilities, may present exciting new opportunities for your business. In order to ensure that you optimise any new markets, speak with Jade Equipment Finance to discuss how we can support you with a cheap finance deal. **To discuss cheap finance on cleaning and restoration equipment, [contact Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Send us an enquiry about your next equipment purchase and we'll help you finance it") on 1300 000 003** *DISCLAIMER: THE INFORMATION IN OUR ARTICLES IS PROVIDED FOR GENERAL INFORMATION PURPOSES AND IN NO WAY IS INTENDED AS THE SOLE SOURCE TO MAKE FINANCIAL DECISIONS OR AS ADVICE IN REGARD TO FINANCIAL INFORMATION. INDIVIDUALS ARE RECOMMENDED TO REFER TO THEIR FINANCIAL ADVISOR OR SEEK ADDITIONAL INDEPENDENT ADVICE IF THEY CONSIDER THEY REQUIRE SO. THE INFORMATION PRESENTED IN REGARD TO GOODS HAS BEEN SOURCED FROM MANUFACTURER AND SUPPLIER SOURCES AND IN REGARD TO GOVERNMENT AND ATO POLICIES AND PROGRAMS FROM RELIABLE SOURCES. NO LIABILITY IS ACCEPTED IF ERRORS HAVE BEEN MADE IN PRESENTING OR INTERPRETING THE INFORMATION AS PRESENTED* **Categories:** Finance --- ### [Finance for 'Outside the Square' Thinkers](https://www.jadeequipmentfinance.com.au/blog/finance-for-outside-the-square-thinkers) **Published:** September 4, 2020 **Author:** Publisher **Content:** A global pandemic and global economic crisis require some clever, strategic, smart business thinking to survive and thrive. Many businesses have been forced into shutdowns and lockdowns, and others have seen their markets disappear as a result of border closures, travel restrictions and other regulations. So what are you going to do? Try thinking outside the square. Looking outside your comfort zone and beyond your ‘business as usual’ sphere for opportunities. Consider engaging with projects, measures, programs and new ideas that will enable your business to take on new projects, operate in new markets and adapt to the new normal. During the early part of the pandemic, we saw [many companies pivoting into new areas to meet emerging and sometimes urgent demands](https://www.qld.gov.au/health/conditions/health-alerts/coronavirus-covid-19/business "Business and COVID-19"). Chances are some of those pivots may be permanent manoeuvres. But just like many of the ‘pivoters’, chances are you’ll require support by way of workable and cost-effective finance to make it happen. Approach the bank with an ‘outside the square’ business idea and you might end up – outside. Banks don’t always have the flexibility to adapt to offering equipment finance outside their own square of guidelines. As an Aussie finance broker and forward-thinking company, [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote about your equipment financing needs") is ideally positioned to assist businesses with finance for the equipment they require to make those outside the square ideas happen. Finance to incorporate new technologies, install new machinery, commission new processes, design new systems and invest in the required machinery and resources for your new business model or to suit your new workflow. While we are accredited with all the major banks as sources of finance for our customers, we are not limited to only the banks. We are accredited with many non-bank lenders, including those that specialise in equipment finance. These specialist and industry-only lenders can usually be more flexible and open to interesting asset acquisitions. We’ve been staying across the media in regard to new business opportunities and we’ve brought together just a few to get you thinking. ## **Be a Part of the Solution – Funding for Vaccine Production** Maybe you’ve never thought that your business could play a role in a highly significant world-changing way. Well, maybe this is your chance. Much of the conversation around COVID-19 is moving to talk around a vaccine. Which one of the apparently 150 being developed, tested and trialled worldwide will be successful? When will it be available? How will it be produced? How will it be delivered to the population. The Prime Minister, Scott Morrison recently signed the agreement of intent to secure the Oxford vaccine for Australians. So the focus has shifted is on ensuring Australian industry is resourced to produce what is required for both the production and the roll-out. While pharma companies will be tasked with manufacturing the actual vaccine, we have seen call-outs from different government sectors for companies equipped to produce the glass vials and packaging which will be required. Then there will also be a need for the logistics and distribution systems and processes. Can you see your business getting involved in some way in regard to a COVID-19 vaccine? What equipment does your business require to be part of the solution? Jade Equipment Finance provides a range of finance products for the purchase of all types of equipment: - [Medical and pharma equipment finance](https://www.jadeequipmentfinance.com.au/medical-equipment-loans) - Printing and packaging equipment finance - [Manufacturing machinery and equipment finance](https://www.jadeequipmentfinance.com.au/industrial-equipment-finance) - Technology and computer equipment finance Why not discuss your plans with one of our consultants and see what cheap finance offers we can source for your equipment requirements. ## **Aviation and Transport Ideas** Air travel has been hard-hit by border closures but we have read reports that some people are changing the way they get from A to B. Due to issues around interstate travel, reportedly some business people are chartering private executive jets rather than taking a commercial flight. This trend has apparently created unexpected opportunities for businesses in the executive and private aviation sector. Tourism has been hard-hit but how can you adapt to a changing market if you’re in aviation? Take guests on a pub crawl in a remote area by plane? Yes, that’s happening also with a designated pilot. What opportunities do you envisage for your transport business that new [aviation equipment](https://www.jadeequipmentfinance.com.au/aircraft-and-aviation-financing "Explore aircraft and aviation equipment finance solutions with us") may facilitate? Speak with a Jade consultant to discuss how we can work with you to bring your ideas to fruition. ## **‘Outside the Square’ Finance Options** While we of course operate within our compliance requirements as a licenced finance broker and member of the FBAA, Jade Equipment Finance thinks and works on a range of solutions to assist businesses with equipment acquisitions. - Utilising non-bank lenders that often have greater flexibility. - Access to industry-only lenders that only work through a select group of brokers. - Accredited with industry-specific lenders that fully understand how business in key sectors operate. Whatever ideas you come up with when you start thinking outside the square, if they require finance for new equipment, then we want to hear about them and source you an offer. **For financial solutions on all types of equipment, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION IN OUR ARTICLES IS PROVIDED FOR GENERAL INFORMATION PURPOSES AND IN NO WAY IS INTENDED AS THE SOLE SOURCE TO MAKE FINANCIAL DECISIONS OR AS ADVICE IN REGARD TO FINANCIAL INFORMATION. INDIVIDUALS ARE RECOMMENDED TO REFER TO THEIR FINANCIAL ADVISOR OR SEEK ADDITIONAL INDEPENDENT ADVICE IF THEY CONSIDER THEY REQUIRE SO. THE INFORMATION PRESENTED IN REGARD TO GOODS HAS BEEN SOURCED FROM MANUFACTURER AND SUPPLIER SOURCES AND IN REGARD TO GOVERNMENT AND ATO POLICIES AND PROGRAMS FROM RELIABLE SOURCES. NO LIABILITY IS ACCEPTED IF ERRORS HAVE BEEN MADE IN PRESENTING OR INTERPRETING THE INFORMATION AS PRESENTED* **Categories:** Finance --- ### [Should you finance through the bank or a non-bank lender?](https://www.jadeequipmentfinance.com.au/blog/should-you-finance-through-the-bank-or-a-non-bank-lender) **Published:** September 8, 2020 **Author:** Publisher **Content:** When you’re purchasing equipment which represents a highly significant investment, sourcing the most competitive finance that is at the cheapest interest rate and most suitable terms and conditions, can be critical to achieving your business objectives, productivity and profitability. Key to the process is covering off on all the finance options available to your business. The [Australian financial services industry](https://www.business.gov.au/planning/industry-information/financial-and-insurance-services-industry) is large, somewhat diverse, in some ways complex and includes a wide range of companies in the business lending sector alone. While ‘the bank’ has traditionally, and for many business owners still remains, the first call for finance, there are many other options available. In general terms referred to as ‘non-bank lenders’, these alternative options offer businesses greater scope in sourcing finance and their presence creates a more competitive market. As a professional finance broker with specialist skills in sourcing equipment finance, Jade Equipment Finance is accredited with both the major Australian banks including the big 4 – [CBA](https://www.commbank.com.au/ "Commonwealth Bank Official Website"), [NAB](https://www.nab.com.au/ "NAB Official Website"), [ANZ](https://www.anz.com.au/personal/ "Commonwealth Bank Official Website") and [Westpac](https://www.westpac.com.au/ "Westpac Official Website") – and many non-bank lenders. When sourcing equipment finance quotes for our customers, your Jade consultant considers all options with our focus on the best interests of our customer, not the lender category. ## **Who are the non-bank lenders?** So who are these non-bank lenders? Well, some will be extremely familiar companies to you and some you may never have heard of. Essentially, a non-bank lender is a company, business or financial institution that lends money or extends finance and is not a bank under [APRA regulations](https://www.apra.gov.au/policy-and-regulation "APRA Policy and Regulations"). Not deemed ‘lenders of last resort’, the non-bank lenders that Jade Equipment Finance work with are high-profile in the sector and highly regarded companies. Some operate on a global scale, financing major projects, infrastructure and equipment in both the government and private sector. These include companies with impressive board members and personnel, enviable reputations and industry-leading credentials and capabilities in finance. We are accredited with lenders including Pepper Money, Latitude Finance, Macquarie and Morris Finance to name just a few. Some non-bank lenders, such as Morris Finance and others, offer finance only through a select group of finance brokers which includes Jade Equipment Finance. Some do offer finance direct to business customers. These decisions are made by the individual lenders. ## **Specialised Financiers** There are numerous finance companies operating in the lending sector and some specialise just in one particular area. There are specialists in consumer finance, motor vehicle finance, home mortgage lenders and those like Morris Finance, which as their name implies, specialise in equipment finance. This speciality focus often delivers benefits to borrowers as the lender usually has a greater understanding of that type of asset acquisition than those that cover a wider range of purchases. ## **Differences and Similarities** - Banks are registered with APRA (Australian Prudential Regulation Authority) as ADI – an authorised deposit-taking institution. With bank status, these institutions are permitted to accept deposits from customers. So the key difference between banks and non-bank lenders is that non-bank lenders do not accept deposits. - Both banks and non-bank lenders offer the same types of business finance products: Leasing, Chattel Mortgage, Rent to Own, and [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Learn how a Chattel Mortgage suits your equipment financing needs"). The structure of these is standard across the industry in terms of tax-deductibility of elements, treatment of GST and depreciation as these are subject to ATO rulings. - Interest rates vary from lender to lender whether they be a bank or non-bank. Individual lenders set their general interest rates based on the ability to access their funds and other issues. The interest rate that an individual lender offers to an individual customer will vary depending on a range of issues including the purpose for your finance and the risk assessment of that customer. - Banks usually have strict guidelines in regard to finance application approvals. While non-bank lenders are generally perceived as being more open to negotiating and more flexible. - For borrowers requiring specialised finance such as [Low Docs and No Docs Equipment Finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Explore no and low docs equipment finance solutions with Jade Equipment Finance"), more attractive offers are usually achieved by Jade through non-bank lenders. ## **Which is better – bank or non-bank lender?** The simple answer is – there is no simple answer. When sourcing finance for our customers, in some cases one of the big 4 banks may offer the most competitive quote and for some customers, it may be one of our non-bank lenders that presents the better option. Each business finance deal is individually negotiated by your Jade Equipment Finance consultant directly with our lender contacts and the offer achieved is dependent on a number of considerations:- - The credit profile of the borrower and the risk assessment by the lender of the borrower. - The equipment being purchased and the lender’s experience, knowledge and understanding of that type of equipment. - Industry sector. - Cyclical issues in finance: due to impacts on the general finance sector both globally and locally, offers may vary across the lending sector. - Individual lender requirement: each lender has their own guidelines and requirements around equipment finance. ## **Accessing Non-Bank Finance** By using Jade as your finance broker, you have access to both banks and non-bank lenders in sourcing your equipment finance. Jade Equipment Finance is accredited with a large number of banks and non-bank lenders and your consultant will source you the best quote available to meet your requirements. With our extensive experience in the equipment finance sector we have the industry networks and contacts to know which lenders are offering the better deals on specific equipment at any one time. [Engage with Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote for your next equipment purchase") to gain an advantage with covering off on a wide range of options while saving your own time and hassle. **To discuss your options in regard to equipment finance, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: NO LIABILITY IS ACCEPTED REGARDING HOW THE INFORMATION ON MANUFACTURER GOODS AND SERVICES AND ANY GOVERNMENT POLICIES, GUIDELINES AND OTHER INFORMATION IS PRESENTED. SPECIFICATIONS AND FEATURES OF GOODS AND DETAILS OF OTHER ISSUES HAS BEEN SOURCED FROM PREDOMINANTLY ONLINE PUBLISHED SOURCES. NO LIABILITY IS ACCEPTED FOR ERRORS IN FACTS AND FIGURES OR INTERPRETATIONS. IN REGARD TO FINANCIAL DECISIONS, THE INFORMATION IS INTENDED FOR GENERAL PURPOSES. IT IS NOT INTENDED AND NOT TO BE TAKEN AS FINANCIAL ADVICE. INDIVIDUALS ARE DIRECTED TO REFER TO THEIR OWN FINANCIAL ADVISOR SHOULD THEY CONSIDER THEY REQUIRE PROFESSIONAL ADVICE SPECIFIC TO THEIR CIRCUMSTANCES.* **Categories:** Finance --- ### [On and Off Balance Sheet Finance Options](https://www.jadeequipmentfinance.com.au/blog/on-and-off-balance-sheet-finance-options) **Published:** September 11, 2020 **Author:** Publisher **Content:** There are several finance products available to businesses to finance the purchase of equipment including trucks, heavy and light machinery and most general business assets. Jade Equipment Finance offers all of these types of finance: Chattel Mortgage, Rent to Own, Leasing and Commercial Hire Purchase. Each finance product has its own features, which offer benefits based primarily on differing business structures and individual financial objectives. The ‘balance sheet entry’ is a feature which is one of the key differences across finance types. That is, they are either ‘off balance sheet’ or conversely ‘on balance sheet’. ## **Explainer** - When taking out finance on an asset acquisition, the asset is entered into the balance sheet through the company accounts, as an asset/liability. Over time as the finance is repaid and the asset is depreciated in line accounting and [ATO guidelines](https://www.ato.gov.au/general/ato-advice-and-guidance/ "ATO advice and guidance"), the value of the balance of the equipment as an asset or liability varies accordingly. - When taking out finance, the type of finance product will determine if the asset is listed on the borrower’s balance sheet or on the balance sheet of the lender. - If the asset appears on the borrower’s balance sheet it is ‘on balance sheet’. - If the asset appears on the lender’s balance sheet it is termed ‘off balance sheet’. Meaning it is off the balance sheet of the borrowing company. This is commonly considered as ‘improving the balance sheet’ of the borrower because the equipment is not listed as liability/asset in their accounts. - This is determined by which business actually holds ownership of the asset – the lender or the borrower – and that varies depending on the type of finance. - The accounting method used by a business – either the cash accounting method or the accruals accounting method – will also have a bearing on the choice of finance type. ## **Finance Types: Differences** - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore more details on Chattel Mortgage equipment finance") is an ‘on balance sheet’ type of finance. When equipment is purchased via lender finance, the borrower holds ownership to the equipment and the lender holds a mortgage over the equipment until payments are made. This type of finance is suited to companies that use the cash accounting method. The asset appears in the accounts of the borrower and is depreciated according to regulations. - [Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Find out about Rent to Own Finance solutions with Jade Equipment Finance") and Equipment Leasing are known as ‘off balance sheet’ finance. The equipment is technically purchased by the lender and rented or leased to the borrower. The lender is technically the owner of the equipment while the borrower has full use of the asset and is responsible for the ongoing expenses. As the lender ‘owns’ the equipment, it appears in their accounts and balance sheet as an asset/liability. When the borrower finalises all payments including the residual or buyback, the ownership is transferred to the borrowing company. - Rent to Own Finance and Equipment Leasing are best suited to businesses implementing an accruals accounting method. - With off balance sheet finance, the monthly finance payments are considered as an operating expense and are tax deductible and subject to GST. (GST is not applied to the interest portion of the payment). - With Chattel Mortgage, an on balance sheet finance type, the monthly repayment is not fully tax deductible, only the interest portion is deductible. However, the business is receiving the applicable depreciation on the asset over time as a tax deduction. GST is claimed on the full purchase price at the time the finance is taken out, on the next BAS return, and therefore not applicable/claimable on the monthly repayments. ## **Which is better? The Decision** Deciding which is the best finance for your business and the equipment you are purchasing, will be determined by how your business is set-up for accounting and your individual financial objectives. At Jade Equipment Finance it is not our role as your broker that advise on that decision. We advise that you consult with your accountant on that matter as they will be best-placed with the detailed knowledge of your business. When briefing your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Use A Equipment Finance Broker For Your Equipment Loans"), simply advise which type of finance you are seeking and we will source you the most competitive quote. The finance type does not usually affect the interest rate offered for business equipment loans. The interest rate is determined by other factors including the equipment being purchased, individual lender requirements and guidelines, how lenders assess your level of risk and other general economic issues. ## **Sourcing Better Equipment Finance** As your finance broker, Jade Equipment Finance is ideally positioned to source you a quote from our large lending panel of both banks and non-bank lenders. We are accredited with many lenders including non-bank lenders that specialise in equipment and in key industries as well as lenders that only work through brokers. By engaging Jade as your broker, we provide access to a broad range of finance sources to offer you more options and achieve a better overall equipment finance offer. Whether you are seeking an on or off balance sheet finance solution, your Jade Equipment Finance consultant can source you the best quote at the [cheapest interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders"). **To discuss the equipment finance options available for your business, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: NO LIABILITY IS ACCEPTED REGARDING HOW THE INFORMATION ON MANUFACTURER GOODS AND SERVICES AND ANY GOVERNMENT POLICIES, GUIDELINES AND OTHER INFORMATION IS PRESENTED. SPECIFICATIONS AND FEATURES OF GOODS AND DETAILS OF OTHER ISSUES HAS BEEN SOURCED FROM PREDOMINANTLY ONLINE PUBLISHED SOURCES. NO LIABILITY IS ACCEPTED FOR ERRORS IN FACTS AND FIGURES OR INTERPRETATIONS. IN REGARD TO FINANCIAL DECISIONS, THE INFORMATION IS INTENDED FOR GENERAL PURPOSES. IT IS NOT INTENDED AND NOT TO BE TAKEN AS FINANCIAL ADVICE. INDIVIDUALS ARE DIRECTED TO REFER TO THEIR OWN FINANCIAL ADVISOR SHOULD THEY CONSIDER THEY REQUIRE PROFESSIONAL ADVICE SPECIFIC TO THEIR CIRCUMSTANCES.* **Categories:** Finance --- ### [Popular Types of Finance: Tax Treatments](https://www.jadeequipmentfinance.com.au/blog/popular-types-of-finance-tax-treatments) **Published:** September 14, 2020 **Author:** Publisher **Content:** Investing in new equipment is a major business decision and requires consideration of many factors around the purchase. New or used, which brand or manufacturer, which dealer or seller to buy from, which model is best suited to your operation, the price of the equipment, where you will source the finance and what finance facility to use for the acquisition. Business owners strive to come up with the optimum combination of these issues to achieve the best outcome in regard to costs, return on investment and realising the maximum benefits to their business in productivity and profitability. The choice of which finance type is key to this goal especially in regard to the tax implications. Jade offers our customers a complete range of equipment finance facilities so they have the choice of which best suits their business structure and that particular equipment acquisition. The choice of which finance type is best suited may change based on the equipment itself, the company’s business cycle, changing economic environment and changing financial objectives. The type of finance facility selected for say a motor vehicle purchase may differ from that for machinery acquisition by the same company. Jade finance facilities include:- - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Uncover Equipment Lease Finance opportunities with Jade Equipment Finance") - Chattel Mortgage - [Commercial Hire Purchase (CHP)](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Find out about commercial hire purchase equipment financing with us") - Rent to Own ## **Tax Deductibility** Having those all-important tax deductions are important to every business. In regard to finance products, there are differences in the tax deductibility of the different elements of the loan. - Rent to Own and Leasing are [off balance sheet](https://www.apra.gov.au/sites/default/files/reporting_standard_ars_118.1_other_off-balance_sheet_exposures_marked_up.pdf "Reporting Standard ARS 118.1 Other Off-balance Sheet Exposures") facilities, that is, the equipment is not entered on the balance sheet of the borrower. So the full amount of the monthly lease or rent payment is tax deductible as an operating expense. - As the equipment is entered on the balance sheet of the borrower with CHP and Chattel Mortgage the full amount of the monthly repayment is not fully tax deductible. Only the interest portion of those repayments is deductible. ## **Treatment of GST** GST is applied to equipment purchases at the time of purchase on the price of the equipment. GST is not charged on the interest of a loan. When the GST can be claimed and whether the lender or the borrower claims the GST differs across the finance types. This difference arises as a result of who –the borrower or the lender- is actually purchasing the equipment. With Chattel Mortgage and CHP the borrower is the purchaser and the lender takes a mortgage over the equipment as security against the loan. When the loan is finalised that mortgage is released. As the purchaser, the borrower (your business) is charged the GST by the seller and can claim the full amount of the GST when they submit their next BAS return. As all the GST on that equipment has been claimed at the time of acquisition, GST is not applicable to the monthly repayments or to any balloon amount if selected. Leasing and Rent to Own has a different treatment of GST. With these types of finance facility the lender is the ‘purchaser on paper’ of the equipment and leases or rents the equipment to the borrower. So the lender claims the initial GST on the purchase and then applies GST to the monthly payments. So the borrower pays and claims GST on each of their monthly repayments, excluding the interest. When you set up your loan contract, your Jade Equipment Finance consultant or your accountant can advise you of the exact amount of GST in each monthly repayment so you have the figures to enter into your accounts and BAS statement. ## **Depreciation** Depreciation is another tax deduction for business and is determined by ATO rulings. With Leasing and Rent to Own the equipment is not entered on your (the borrower) balance sheet and as such, depreciation of the equipment is not applicable. With CHP and Chattel Mortgage the equipment is entered on your balance sheet so you can realise the depreciation. As you don’t get the tax deduction on the monthly repayments, this may be seen as the tax trade-off. Government initiatives such as the current Instant Asset Write-Off on offer can also present tax benefits. These benefits will be dependent on the [IAWO guidelines](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps") in relation to the value of the asset and the turnover of the business. ## **Sourcing the Best Most Suitable Finance for Your Business** With so many finance products and their varying tax implications available, how do you source the option that is right for your business and for this particular equipment purchase? We recommend that the decision around which finance product best suits your business should be made in consultation with your accountant. The type of finance is in part determined by the accounting method used – either the cash or accruals method – your accountant will know which one your business implements. They should also be across your financial objectives in regard to tax implications. With that decision made, your Jade Equipment Finance consultant can source you the cheapest offer for your equipment finance to optimise the benefits across the entire purchase finance package. You can make use of our [loan calculator](https://www.jadeequipmentfinance.com.au/calculator "Use our calculator to estimate your repayments on the loan") for an estimate on your repayments. **To discuss your options in regard to equipment finance, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION PROVIDED IN THIS ARTICLE IS FOR GENERAL INFORMATIVE PURPOSES AND NOT INTENDED AS FINANCE ADVICE. INDIVIDUALS SHOULD REFER TO THEIR FINANCIAL ADVISOR OR ACCOUNTANT FOR ADVICE IN REGARD TO THEIR INDIVIDUAL FINANCIAL DECISIONS AND SPECIFIC CIRCUMSTANCES. DETAILS IN REGARD TO GOODS, SERVICES AND GOVERNMENT OFFERS AND POLICIES HAS BEEN SOURCED FROM PUBLIC MANUFACTURER AND SUPPLIER WEBSITES AND GOVERNMENT RESOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS OR MISREPRESENTATION OF INFORMATION AND DATA OBTAINED FROM THESE SOURCES.* **Categories:** Finance --- ### [Survival of the swiftest - Reducing the time and hassle of financing](https://www.jadeequipmentfinance.com.au/blog/survival-of-the-swiftest-reducing-the-time-and-hassle-of-financing) **Published:** September 18, 2020 **Author:** Publisher **Content:** Apart from everything else it has thrown at us, 2020 has given businesses a big wake-up call in terms of being ready, being nimble and being quick to react to unexpected changes in operating, economic and environmental conditions. Bush fires, floods, storms and the biggest impact of all, [COVID-19](https://www.health.gov.au/health-alerts/covid-19 "Coronavirus (COVID-19) pandemic"), have all forced businesses across Australia to address change and it address it quickly. A key element to being able to react promptly is having access to ‘fast finance’. Not fast like in fast food which is universally considered not good for your personal health. But fast in a way that saves you time and will deliver prompt results with cost-effective finance deals. Some businesses have required finance for machinery in order to retool and pivot to produce different products. Supply chains have needed to be secured through increased warehousing facilities. Border closures and business closures have resulted in the need for someone to set up and step in to fill gaps. At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Get a quote from us for your next equipment purchase at no cost to you") on many occasions we’ve been central to many businesses being able to act and react quickly to changing conditions. Providing the essential lending services to enable our customers to secure the equipment required to produce essential goods or provide essential services. ## **Prompt Finance Service** If you need to get the drop on the competition, any delays in arranging finance can mean more than a drop in the ocean in terms of profitability. You need to move quickly, get that machinery purchased, installed and commissioned to be first to launch on the market. You might be needing to get that construction equipment finance confirmed in order to be able to submit a competitively priced tender by the deadline date. It’s a cliché but time can be money. Something those that have spent way too long on the phone, perhaps endlessly ‘on hold’, with the bank to discuss equipment finance and then waiting for people ‘to get back to you’ with loan quotes. Jade Equipment Finance supports businesses by expediting the finance process in a number of ways. - We provide our [online loan calculator](https://www.jadeequipmentfinance.com.au/calculator "Make use of our calculator for your repayments and interest") so you can quickly generate rough estimates on equipment finance whenever you want to assist with purchasing decisions. - As business people ourselves, we want your business so we’re ready to take your call and act immediately. We provide a quick quote service to get you off and planning. - We cover more ground more quickly than you can do yourself through our accreditation with multiple lenders. Our consultants can source quotes from multiple lenders quickly and easily. More choices means more chances to get the cheapest quote. - As professional brokers we have direct channels with finance industry level access to the right people in our lending network. While you’re still waiting for that call back we’ve already sourced you a quote. - When you’ve accepting our quote, we provide fast loan approvals to save you time in acquiring your equipment. - We handle all finance for all types of machinery and equipment across many industries:-construction, manufacturing, medical, mining, health and fitness, trucking and transport, warehousing, civil works, concreting, engineering, trades, general [business equipment financing](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Contact us for your business equipment financing needs") and many more. In addition to our accreditation with the major banks, we also have industry-only connections with lenders that specialise in equipment finance and key industry sectors. With this greater understanding of your industry, these lenders are often better placed to make a better finance offer. ## **Full Range of Finance Facilities** Saving time and hassle is also about have access to a full range of finance options in the one place. While most banks offer equipment finance, not all lenders offer all finance products to all business types across all industries on all equipment. Jade Equipment Finance does. We offer the full complement of equipment finance facilities:- - Rent to Own - Chattel Mortgage - Equipment Leasing - Commercial Hire Purchase In addition to the standard commercial finance products, Jade also offers services to those businesses that don’t fit the guidelines of most banks and lenders. Those that don’t have all the financial documentation required to meet the loan requirements and are seeking a low Docs, no docs or ABN-only loan solution. If you’re in the need of [Low Docs Equipment Finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Have no or low docs? Contact us about financing your equipment") it can be a very timely process if you do it yourself. Time that could significantly delay you purchasing your equipment and possibly put you out of the game in winning that work you’re bidding on. By having Jade Equipment Finance as your broker to handle the process, that time can be seriously reduced. Your consultant will address your requirements promptly and work towards a quick quote and if acceptable, prompt settlement. ## **Moving Forward – At Speed** If you’re needing to act and react faster to meet the challenges in your business, to get your product developed and in the market faster, to be able to equip swiftly to capture new opportunities in a changing economic landscape and you need finance to make it all happen, don’t waste time. Make time to talk to a [Jade Equipment Finance consultant](https://www.jadeequipmentfinance.com.au/broker "Speak with our Jade Consultants about finance solutions for equipment") and discuss how we can support you to succeed, swiftly. **For fast service on sourcing equipment finance contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION PROVIDED IN THIS ARTICLE IS FOR GENERAL INFORMATIVE PURPOSES AND NOT INTENDED AS FINANCE ADVICE. INDIVIDUALS SHOULD REFER TO THEIR FINANCIAL ADVISOR OR ACCOUNTANT FOR ADVICE IN REGARD TO THEIR INDIVIDUAL FINANCIAL DECISIONS AND SPECIFIC CIRCUMSTANCES. DETAILS IN REGARD TO GOODS, SERVICES AND GOVERNMENT OFFERS AND POLICIES HAS BEEN SOURCED FROM PUBLIC MANUFACTURER AND SUPPLIER WEBSITES AND GOVERNMENT RESOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS OR MISREPRESENTATION OF INFORMATION AND DATA OBTAINED FROM THESE SOURCES.* **Categories:** Finance --- ### [URGENT: Government Supports Winding Up, Down, Out and On](https://www.jadeequipmentfinance.com.au/blog/urgent-government-supports-winding-up-down-out-and-on) **Published:** September 22, 2020 **Author:** Publisher **Content:** Just when you thought you might be adapting to the new normal under COVID-19 and maybe settled into some sort of routine with your business, more changes in support measure conditions, regulations and restrictions come into effect. Businesses have to remain in a constant state of alert and awareness to stay across and on top of what’s happening in multiple sectors. Key issues to be across at the moment are the changes happening to several of the major Federal Government support measures. Specifically, changes to the [Instant Asset Write-Off initiative](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps") and the JobKeeper wage subsidy scheme which will have an impact on many businesses. If you plan to take advantage of IAWO but have delayed the purchase of your new equipment for any number of reasons, we advise that now is the time to put that asset acquisition to the top of your ‘to do’ list. ## **Winding Up: IAWO** There’s been so much to deal with in 2020, it’s hard to believe it was way back in March that the Prime Minister, Scott Morrison, introduced the Instant Asset Write-Off initiative. Intended as a measure to stimulate business investment and the broader economy in the early stages of the pandemic, the original deadline of 30 June was quite swiftly extended to 31 December. The extension was made in response to the lack of confidence by business at that uncertain time to make significant investments in new assets. Plus the difficulties presented by the shutdowns and lockdowns in businesses actually being able to source, inspect and arrange acquisitions. Well, that extended deadline is now closing in and those that want to take advantage of the benefits need to act quickly. We advise that you refer to the [ATO guidelines around the eligible assets](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/ "Instant asset write-off for eligible businesses") under the scheme and business eligibility criteria to ensure both your business and the equipment you intend to purchase will meet the requirements. ## **Finance for IAWO Equipment Acquisitions** Arranging your finance can be one of your first steps in getting sorted and Jade Equipment Finance can act quickly to expedite your equipment acquisition. If you intend to take advantage of the IAWO, you will need to finance your equipment with a Chattel Mortgage. Jade offers Chattel Mortgage as a popular form of finance for a wide range of equipment acquisitions across many industries. As a full service finance broker, we also provide Leasing and Rent to Own equipment finance. However, these are off balance sheet finance products and as such not applicable for IAWO. The asset must be entered on the company’s balance sheet in order to be ‘written-off’. With Leasing and Rent to Own, the asset is entered on the balance sheet of the lending company. With Chattel Mortgage, the borrower takes ownership of the equipment and the lender takes a mortgage on the equipment as security for the finance. The asset is entered on the borrowing company’s balance sheet. There are other differences in regard to tax deductions and the treatment of GST between Chattel Mortgage, CHP, Leasing and [Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "If you need equipment to rent, contact us so we can help you finance it"). It is advisable to consult with your accountant in regard to which finance product is best suited to your business structure and whether or not utilising the current IAWO scheme will deliver the most effective outcomes for your operation. ## **Winding Down: JobKeeper** [JobKeeper is another Government stimulus](https://www.ato.gov.au/general/jobkeeper-payment/ "JobKeeper Payment") measure that is winding down in stages. The key dates for changes to this wage subsidy scheme are 28 September 2020 and 03 January 2021. Businesses that want to keep receiving the benefit will need to reapply and meet the amended criteria. The amount of the JobKeeper subsidy is being reduced and differing amounts introduced for full time and part-time workers. ## **Winding On: BBI** One Government stimulus scheme which is continuing into 2021 is BBI – Business Backed Investment. This measure allows an accelerated depreciation deduction and applies to assets acquired and installed by 30 June 2021 for businesses with less than $500m turnover. Refer to the Government website for full details of eligibility. Businesses do not need to apply for BBI as any depreciation allowed is realised in their end of financial year accounts. While end of June 2021 may seem plenty of time to source and install the equipment you need, be mindful of disruptions to supply chains and manufacturing facilities both in Australia and overseas as a result of COVID-19. These disruptions may cause delays in the delivery of some equipment. ## **Winding Out: Payroll Tax Deferrals and other Measures** While some support programs are winding up and winding down, several state governments are winding out new measures for their individual jurisdictions. Deferrals and waivers of payroll tax, which is a state-based tax, in particular have been brought into effect by several states. Check your state government treasury or COVID-19 support website for details. ## **Moving On** Being organised well ahead with both your equipment order and your finance may put you in a better position to take full advantage of the measures being offered. Jade Equipment Finance is structured to promptly and quickly assist businesses in planning and arranging their finance requirements for all types of equipment acquisitions. Having one of our consultants as your assigned finance broker will provide you with a direct communication channel to stay across your finance deal and give direct access via your broker to finance deals from a large number of banks and non-bank lenders. Our accreditations include a number of industry-only non-bank lenders that specialise in equipment finance and tend to be far more competitive and negotiable on interest rates and finance terms than the banks. **To discuss your equipment finance requirements, [contact Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Explore how Jade Finance can help you with purchasing or loaning construction equipment") on 1300 000 003** *DISCLAIMER: ALL INFORMATION WHICH IS PRESENTED IN THIS ARTICLE IS INTENDED SOLELY FOR THE PURPOSE OF PROVIDING GENERAL INFORMATION. IT IS NOT UNDER ANY CIRCUMSTANCES INTENDED AS PROVIDING FINANCIAL ADVICE. FOR SPECIFIC FINANCIAL ADVICE ON INDIVIDUAL FINANCIAL CIRCUMSTANCES, READERS ARE ADVISED TO CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR INCORRECT OR OUT OF DATE DETAILS IN REGARD TO GOODS, SERVICES, POLICIES AND PROGRAMS MENTIONED IN THE ARTICLE. THE INFORMATION AND DATA QUOTED HAS BEEN SOURCED FROM PUBLICLY AVAILABLE SOURCES INCLUDING MANUFACTURER AND GOVERNMENT WEBSITES.* **Categories:** Finance --- ### [Are Low Docs Loans eligible for IAWO and BBI?](https://www.jadeequipmentfinance.com.au/blog/are-low-docs-loans-eligible-for-iawo-and-bbi) **Published:** September 26, 2020 **Author:** Publisher **Content:** Most businesses in Australia have been impacted in one way or another by the COVID-19 pandemic to varying degrees. Some have experienced a much-appreciated increase in business activity due to changes in consumer behaviours, pivoting to new markets and grasping emerging opportunities in different sectors. Others have experienced and continue to work through the negative effects that the pandemic is having on their individual operation. Despite the level of impact being experienced, most operators are keen to take full advantage of the [Government stimulus and support measures](https://treasury.gov.au/the-department/accountability-reporting/campaign-certification-statements/coronavirus-economic-response-covidsafe-campaign "Coronavirus Economic Response (COVIDSafe) Campaign") available and suited to their business. Some of the supports rolled out have been in cash or grant form while others are in the form of tax benefits and benefits realised from investment. The purpose of providing incentives for businesses to invest is to realise a benefit across the wider economy. Boosting investment boosts spending. Two of the key investment incentive schemes which are relevant to equipment acquisition are the [IAWO (Instant Asset Write-Off)](https://www.jadeequipmentfinance.com.au/blog/coronavirus-stimulus-equipment-instant-asset-write-off "Coronavirus Stimulus: Equipment Instant Asset Write-Off") and BBI (Business Backed Investment). Both these schemes were rolled out by the Federal Government and are subject to regulation by the ATO. However, in order to realise the benefits of these measures, businesses must first spend. They need to acquire new assets/equipment in order to realise the tax advantages. Acquiring new equipment usually means accessing a workable and cheap finance deal. In any business environment that can be a challenging prospect for some operators. In a pandemic and the current economic conditions it may be even more difficult. Businesses may need to first meet the criteria for Low Docs Equipment Finance and acquire their equipment to then be in a position to appreciate the benefits of IAWO and BBI. So it wouldn’t come as a surprise that Jade Equipment Finance would field enquiries regarding if equipment acquired with a Low Docs Loans is eligible for IAWO and BBI. Which comes first – the low docs equipment loan application or the investment incentive eligibility? With Jade Equipment Finance you can actually cover off on both stages concurrently. Your Jade consultant can commence the process for sourcing you loan options on a pre-approved basis while you investigate the eligibility under the schemes. There is no obligation in requesting a quote but having your finance approved before you start discussing a specific purchase can be highly beneficial. ## **Meeting the Criteria** Jade Equipment Finance provides pathways to Low Docs Finance for the purchase of equipment. However, it is the role of the business or their accountant to advise the business on the eligibility of both the business and the equipment to meet the criteria of any Government programs and schemes. The criteria for IAWO includes:- - Assets must be acquired and operational in the business by 31 December 2020. - Threshold is for eligible equipment up to $150,000 - Businesses must have an aggregated turnover of less than $500 million - For full details, refer to [this link](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off "Instant asset write-off for eligible businesses"). The criteria for BBI includes: - Assets must be acquired after 12 March 2020 and operating in the business by 30 June 2021. - There are a range of a assets/equipment which are not eligible and we advise you refer to the ATO rulings [here](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Backing-business-investment---accelerated-depreciation/ "Backing business investment – accelerated depreciation"). ## **Low Docs Equipment Finance Requirements** For businesses that do not meet the criteria for a standard equipment loan, Jade Equipment Finance may be able to assist with a [Low Docs Equipment Loan](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Finance equipment from us whether you have low or no docs"). We have accreditation with many non-bank lenders which are more flexible with loan terms and extend this specialised form of finance to applicants that meet certain criteria. Criteria for a low docs, no docs or ABN-only equipment loan include:- - Holding a current ABN and having full identification is essential. - Being registered for GST is preferable with current BAS returns. - Providing some form of financial accounts, even simply prepared by the business owner. - If a new start-up and/or depending on the amount and quality of financial documentation provided, the lender may request additional security, place specific conditions on a loan and/or have maximum limits in regard to loan terms and loan amounts. In order for a Low Docs Equipment Loan to be eligible for IAWO, it must be a [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance your equipment with a chattel mortgage at Jade Equipent Finance"). With this form of finance the asset is entered on the borrower’s balance sheet and as such can be depreciated. With Leasing and Rent to Own this is not the case. The equipment is entered as an asset on the lender’s balance sheet. ## **Steps to Proceed** If you would like to proceed with applying for a low docs loan to acquire equipment to be depreciated under the IAWO or BBI, the recommended steps may be:- - Check the ATO requirements that both your business and the equipment meet the criteria. - Have an initial conversation with a [Jade Equipment Finance consultant](https://www.jadeequipmentfinance.com.au/broker "Talk to our professional Jade Equipment Finance Brokers about purchasing your next equipment") about sourcing you a quote for a Chattel Mortgage low docs loan. - Consult with your accountant in regard to whether this is the best option for your business or if an alternative, such as Low Docs Leasing or Low Docs Rent to Own as finance products may deliver more positive outcomes for your business. The deadline for IAWO is fast approaching, so if you would like to take advantage of this scheme, you may need to get moving! **To discuss your options in regard to low docs equipment finance, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: ALL INFORMATION WHICH IS PRESENTED IN THIS ARTICLE IS INTENDED SOLELY FOR THE PURPOSE OF PROVIDING GENERAL INFORMATION. IT IS NOT UNDER ANY CIRCUMSTANCES INTENDED AS PROVIDING FINANCIAL ADVICE. FOR SPECIFIC FINANCIAL ADVICE ON INDIVIDUAL FINANCIAL CIRCUMSTANCES, READERS ARE ADVISED TO CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR INCORRECT OR OUT OF DATE DETAILS IN REGARD TO GOODS, SERVICES, POLICIES AND PROGRAMS MENTIONED IN THE ARTICLE. THE INFORMATION AND DATA QUOTED HAS BEEN SOURCED FROM PUBLICLY AVAILABLE SOURCES INCLUDING MANUFACTURER AND GOVERNMENT WEBSITES.* **Categories:** Finance --- ### [Even Resilient Businesses Need Solid Finance Supports](https://www.jadeequipmentfinance.com.au/blog/even-resilient-businesses-need-solid-finance-supports) **Published:** September 29, 2020 **Author:** Publisher **Content:** A genuine compliment, go-to descriptor for politicians in crisis-mode or an escape comment when there is no solution at hand? Resilient is a description much-used this year. As many of our leaders constantly remind us, Australians and Australian businesses are apparently resilient to bush fires, floods and now pandemics. But while the current pandemic and resulting economic environment is clearly pushing many businesses to their limits, it’s likely pushing just as many others to seek new opportunities – to look for what’s beyond. If your business is resilient and you’re looking for pathways forward we’ve summarised some recent announcements for you to consider possible opportunities for your business. ## **Potential Growth Sectors** The CSIRO recently released a report, “COVID-19: Recovery and Resilience” in which they outline the opportunities they see for key industries such as the manufacturing as well as the advantages that have been created by the pandemic. The document includes a table which lays out the trends and advantages identified by industry sector covering digital, health, food and agribusiness, health, manufacturing and mineral resources. Could be worth a read to see what this leading body sees as possible opportunities in your sector. [Minister for Energy and Emissions Reduction, Angus Taylor](https://www.minister.industry.gov.au/ministers/taylor "Minister for Energy and Emissions Reduction"), recently released a Technology Investment Roadmap and Low Emissions Technology Statement which focus on opportunities in the energy sector. Whether you agree or disagree with the approach, if realised, it may represent potential business opportunities across a wide range of industries. R&D into innovation and tech, construction required to build plants and premises, tech and engineering workshops to develop and manufacture componentry and systems and all the supporting businesses through the supply chains. It’s an interesting area which may be worth staying across. The construction sector continues to be mentioned as a major driver for economic recovery and investing in civil works and other equipment is key for many business to winning profitable contracts and tenders. NSW continues on its major infrastructure investment plans which are rolling on and out with seemingly every new ‘high vis’ press conference. According to media reports, regional tourism is experiencing a boost with international travel off the agenda for Australians. Many hospitality and accommodation providers may need to upgrade their existing equipment and facilities to meet market demand. Caravan and holiday parks may be in line for increased bookings due to the increased interest in purchasing caravans. ## **Resilient, Reliant, Resigned** Whether you identify as resilient and are battling your business through the crisis or you’re totally reliant on support measures or you’re more resigned to going with the flow and dealing with situations as they play out, there is a common reality across business. The reality is that businesses need strong financial supports through all economic conditions. Support that can be provided through a solid working relationship with your finance broker. Those with more salt than pepper in their hair will remember the days when you if you needed finance, you just called your bank manager and it was sorted. Things have changed. The finance scene is more diverse with more options and opportunities and specialist skills are required to seek out the best offers. Skills provided by brokers such as [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Seek our finance solutions for your large or small business equipment"). ## **How a Finance Broker Supports Your Business** If you’ve never used the services of a broker you will likely welcome the many benefits they offer over sourcing your own equipment finance. In many respects, it is in the worst of times that the role of the broker is at its best. When the economy is thriving and business conditions are positive, sourcing finance can be a lot easier than when conditions are not so good. When lenders tighten up, business prospects are less optimistic but businesses still need finance to support growth, your finance broker is the person that may hold the key to achieving your requirements. Jade Finance Equipment is a professional finance broker with extensive experience across many areas of equipment finance and many industry sectors. Our experience and ongoing interest includes but is not limited to:- - [Building and construction equipment finance](https://www.jadeequipmentfinance.com.au/construction-equipment-financing "Discover financing solutions for funding your construction equipment") - Transport, heavy vehicles, excavation and civil works equipment finance - Plant and machinery for all sectors finance - [Engineering and manufacturing machinery finance](https://www.jadeequipmentfinance.com.au/manufacturing-equipment-loans "Need loans or finance for manufacturing equipment? Contact us at Jade Equipment Finance") - Warehousing, logistics and materials handling equipment finance - Health, fitness and medical equipment finance - Energy and utilities industry equipment finance Our services include:- - Sourcing quotes from across our vast lending panel of both banks and non-bank lenders - Access to a network of industry-only lenders that operate only through finance brokers - Access to lenders that specialise in equipment finance - Negotiate [low interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") to the cheapest rates on behalf of clients - Negotiate finance terms to best suit the individual requirements of our customers - Assist with paperwork to expedite asset acquisition - Structure finance to meet the client’s key objectives If you’re seeking equipment finance options to support your business through growth and to strengthen your resilience or you just want a quick quote, give us a call for a discussion. **To discuss your equipment finance requirements, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: INFORMATION, DATA AND DETAILS OF GOODS, POLICIES AND PROGRAMS THAT IS PRESENTED IN THE ARTICLE IS INTENDED SOLELY FOR THE PROVISION OF GENERAL INFORMATION. UNDER NO CIRCUMSTANCE IS THIS INFORMATION INTENDED AS THE PROVISION OF FINANCIAL ADVICE FOR ANY INDIVIDUAL AND/OR FOR THE PURPOSE OF MAKING SPECIFIC INDIVIDUAL FINANCIAL DECISIONS. FOR ADVICE ON INDIVIDUAL CIRCUMSTANCES, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED* FOR ERRORS, INCORRECT DETAILS OR INCORRECT PRESENTATION OF DETAILS OF GOODS, PROGRAMS, SERVICES, ETC. *AS PRESENTED. THE INFORMATION HAS BEEN SOURCED IN GOOD FAITH AS GENERAL INTEREST AND INFORMATION FROM MANUFACTURER, SUPPLIER AND GOVERNMENT WEBSITES.* **Categories:** Finance --- ### [FAQ: Do interest rates vary according to the type of equipment?](https://www.jadeequipmentfinance.com.au/blog/faq-do-interest-rates-vary-according-to-the-type-of-equipment) **Published:** October 3, 2020 **Author:** Publisher **Content:** Equipment Finance is a broad category which embraces not only multiple industries but countless individual pieces of machinery and equipment. The most sensitive diagnostic and treatment equipment for the medical sector, precision drilling, calibrating and cutting equipment for the engineering sector, customised manufacturing machinery, trucks and heavy vehicles for many operators and the largest, heavy-duty earthmoving and excavation equipment that move mountains in the mining and resources sector are all encompassed in the general ‘equipment finance’ category. With such a diverse range of equipment covered under this category, it is not surprising that we would receive a query around if there are different interest rates for different types of equipment. In general terms – no. At Jade Equipment Finance we offer our cheap interest rate across all equipment categories. But – interest rates on the individual equipment finance deals we source for different customers will vary based on a number of factors. For more information, [click here](https://www.jadeequipmentfinance.com.au/ "Get a free quote or contact us directl at Jade Equipment Finance") to get a quote from us. ## **Interest Rates: General Determining Factors** - The Reserve Bank sets the ‘[official interest rate](https://www.rba.gov.au/ "Reserve Bank of Australia Official Website")’ which essentially determines the price that banks and other lenders pay to source their own funds. This in turn will establish their individual benchmarks for the different finance and loan sectors in which they operate. - Individual lenders will have differing interest rates for the same sectors, such as equipment finance. - A lender will establish their base rate for equipment finance based on their exposure to, confidence in and their experience with a certain industry sector. - Lenders that specialise in equipment finance may tend to offer cheaper interest rates than say major banks. Specialist equipment finance lenders tend to have a deeper understanding of their area of interest than lenders and banks that cover a wider and more general field. - Lenders price their interest rates partially in response to global economic influences. ## **Specific Interest Rate Factors** - From the broader general level, we come down to how the interest rate on your specific equipment finance deal is calculated. - The interest rate on individual equipment finance deals is determined primarily on the individual aspects of the business applicant. - Individual lenders conduct their own risk assessment of each application based on the business’ credit profile, trading situation, forward prospects and the financial documentation provided in the application to arrive at their own interest rate on that loan and their overall finance offer. - In general, the more positive the credit profile and financial documentation provided, the lower the risk assessed and the lower the interest rate offered. - Low docs finance applications include less financial documentation and as such attract a higher interest rate. To achieve a better interest rate, businesses seeking a [low docs finance option](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Low or no docs? Talk to us at Jade Equipment Finance for finance and loan services") may look to increasing the quality and quantity of financial documentation they provide with their application. - The total loan amount and the loan term requested may have an impact on the interest rate offered. ## **Finance Offer Determining Factors** While the interest rate is a key determining factor to the overall finance deal, it is not the only factor. Yes, getting a cheap interest rate is critical and achieving better interest rates is Jade’s trademark. But there are other factors which should be taken into consideration when assessing an equipment finance offer. And some of these factors will vary due to the type of equipment. - Whether purchasing new or used equipment, the perceived working life of the equipment may be taken into account by the lender when structuring a finance offer. - The age and condition of the equipment will be considered when lenders assess a finance application. In some cases of older equipment such as catering or construction equipment, the lender may request the applicant pay a greater deposit to reduce the overall loan amount, while still offering a low interest rate. - While the applicant still achieves a low interest rate loan, using cash reserves to pay a greater deposit may pose a challenge. Another lender may not request that extra deposit but the finance offer may be at a higher interest rate. - The loan term being requested by the applicant may not meet the guidelines of individual lenders. Their offer may be for a shorter term but at an attractive interest rate. Another lender may meet the business’ term request but at a higher interest rate. - Equipment finance products – [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance equipment for your business with a chattel mortgage"), Leasing, CHP, Rent to Own – include an option for a balloon or residual. The amount of that balloon/residual has an effect on the repayment level. Some lenders will have limits around the amount they will permit which may be based on aspects of the specific equipment. When sourcing finance offers, our consultants strive to achieve not only the cheapest interest rates, but the right balance with the other elements of the finance deal. Ensuring that the loan term, repayment level and any balloon or residual also meet the individual requirements of our customers. ## **Sourcing Cheap Interest Rate Equipment Finance** At Jade Equipment Finance we negotiate with lenders on behalf of our customers to achieve genuine [cheap interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check our our interest rates for equipment finance") on every deal, regardless of the type of equipment being purchased. No ‘teaser rates’ that are only low for a short time but rates that are cheap and fixed for the entire loan term. We are accredited with many lenders that specialise in equipment finance, deal only through brokers and are more flexible in negotiating on interest rates than many banks. A factor that gives Jade an edge when it comes to achieving a low interest rate for your equipment finance deal. **For a no-obligation quote for cheap interest rate equipment finance, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: INFORMATION, DATA AND DETAILS OF GOODS, POLICIES AND PROGRAMS THAT IS PRESENTED IN THE ARTICLE IS INTENDED SOLELY FOR THE PROVISION OF GENERAL INFORMATION. UNDER NO CIRCUMSTANCE IS THIS INFORMATION INTENDED AS THE PROVISION OF FINANCIAL ADVICE FOR ANY INDIVIDUAL AND/OR FOR THE PURPOSE OF MAKING SPECIFIC INDIVIDUAL FINANCIAL DECISIONS. FOR ADVICE ON INDIVIDUAL CIRCUMSTANCES, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPT FOR ERRORS, INCORRECT DETAILS OR INCORRECT PRESENTATION OF DETAILS OF GOODS, PROGRAMS, SERVICES, ETC AS PRESENTED. THE INFORMATION HAS BEEN SOURCED IN GOOD FAITH AS GENERAL INTEREST AND INFORMATION FROM MANUFACTURER, SUPPLIER AND GOVERNMENT WEBSITES.* **Categories:** Finance --- ### [PM Announces Support for Key Manufacturing Industries](https://www.jadeequipmentfinance.com.au/blog/pm-announces-support-for-key-manufacturing-industries) **Published:** October 6, 2020 **Author:** Publisher **Content:** Days out from the 2020/21 Federal Budget announcement, the Prime Minister Scott Morrison delivered the traditional pre-budget address at the [National Press Club](https://iview.abc.net.au/show/national-press-club-address "National Press Club Address") on Thursday 1 October 2020. The Federal Budget is usually brought down in May each year but due to coronavirus, it was deferred from May to October so it could better address the economic fall-out caused by the pandemic. The PM’s address focussed on the announcement of a $1.5 billion package over 4 years to support key areas of the manufacturing sector. In his speech, the Prime Minister said the package was structured to strengthen supply chains, build global scale and ensure Australia was better prepared in the future. Support has been flagged for 6 priority areas in the manufacturing sector with the objective to create sovereignty and of course jobs. These priority areas are Mining and Resources, Food and Beverage, Medical, Clean Energy and Recycling, Defence and Space. Sovereignty in manufacture was raised during the peak of the coronavirus pandemic when PPE and ventilators were needed to be sourced from overseas suppliers. This prompted intense scrutiny of Australia’s manufacturing capacity and motivated many companies to pivot their operations to produce the necessary medical equipment and other goods. This situation also highlighted issues with some supply chains. This new support package, which is yet to be presented in full detail, is part of the Government’s overall Modern Manufacturing Strategy. This strategy has three components:- - Modern Manufacturing Initiative and National Manufacturing Priorities - Supply Chain Resilience Initiative - Round 2, Manufacturing Modernisation Fund In presenting the plan, the government estimates it could create as many as 80,000 jobs directly and an additional 300,000 indirectly. ## **Modern Manufacturing Plan: Detail** While the specific details of the plan are yet to be developed, the Prime Minister outlined the support would be, in part, by way of grants for manufacturers to shore up jobs for the future as the plan falls under the wider JobMaker banner which was announced some months prior. Key points in the PM’s speech included:- - Plan is driven by technology and he emphasised the role of technology in manufacturing. - Technology not only in the actual production phase, but in the laboratories carrying out R&D, designing of products, robotics in production and tech in the sales and marketing process. - Actions to open international markets for Australian exporters. - Create a business environment where businesses can be competitive. - Align resources and provide cheaper energy amongst other aspects. - Designed to secure sovereign capabilities in areas of national interest. - Overcoming the barriers to scale through collaboration, translation and integration. - The Translation Stream will focus on assisting manufacturers to transform ideas into commercial outcomes. The Prime Minister said that in addition to tax incentives and other support, grants of $100,000 to $1 million would be available in the next round of the [Manufacturing Modernisation Fund](https://www.business.gov.au/Grants-and-Programs/Manufacturing-Modernisation-Fund "Funding for manufacturers to modernise and reskill"). He said the next phase of the overall plan is to co-design an industry-led roadmap to guide future investment and alignment. Funding applications are due to open in early 2021. He went on to say that manufacturing will play a key role in the country’s COVID-19 recovery. ## **Supply Chain Resilience Initiative** This initiative is part of the whole of Government approach to supporting [manufacturing equipment](https://www.jadeequipmentfinance.com.au/manufacturing-equipment-loans "Discover how we can help you and your business finance your next manufacturing equipment purchases") and designed to put Australia on the front foot when facing future supply chain disruption. The Government will be working with industry to identify essential goods and services, map supply chains and evaluate supply chain resilience. According to the Government website, from 1 July 2021, eligible businesses will be able to access support to either establish or to scale capabilities identified to address a vulnerability in the supply chain. The eligibility criteria have been published and you can review if your business may be eligible for support with initial information [here](https://www.industry.gov.au/news-media/meeting-our-needs-in-times-of-crisis "Meeting our needs in times of crisis"). Further detail on eligibility is due for release in early 2021. ## **Moving Forward** Manufacturers operating in the 6 priority areas and businesses in their supply chains will no doubt welcome this announcement. However, the budget first has to pass through both houses of the Federal Parliament, then the details of these packages finalised before funding applications are open. If you don’t want to wait till next year to secure finance to purchase equipment for your business or you are not eligible for a grant under this scheme, Jade Equipment Finance can provide assistance right now. As your finance company, we can source you quotes on finance for a wide range of equipment, at the [cheapest interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Explore out cheap interest rates at Jade Equipment Finance") from across our vast range lending panel. We approach every request for equipment finance on an individual basis, negotiating for the cheapest interest rates and working with our lenders to structure loan packages which best meet the financial objectives of our customers. That means getting repayments to a level that will work with your cash flow and loan terms that will work with your long-term contracts and goals. Jade Equipment Finance can provide services and finance that complement, supplement and enhance any possible support you may be granted under Government schemes. **To discuss how we can assist your manufacturing business, [talk to us at Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us of get a quote free of charge for your next equipment purchase") on 1300 000 003** *DISCLAIMER: DATA, DETAILS AND INFORMATION IN REGARD TO POLICIES, GOVERNMENT PROGRAMS, PROPOSALS AND GOODS AND SERVICES* ARE PRESENTED IN THIS ARTICLE FOR GENERAL INFORMATION PURPOSES ONLY. THIS INFORMATION IS, UNDER NO CIRCUMSTANCES, INTENDED AS THE SOLE SOURCE FOR MAKING FINANCIAL DECISIONS OR IS IT INTENDED AS FINANCIAL ADVICE. INDIVIDUALS SHOULD SEEK INDEPENDENT ADVICE IN REGARD TO THEIR PERSONAL FINANCIAL SITUATION. ALL INFORMATION HAS BEEN OBTAINED FROM REPUTABLE SOURCES AND IS PRESENTED AS GENERAL INFORMATION AND INTEREST. NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATION OF INFORMATION AND DETAILS OF GOODS ETC. *AS PRESENTED.* **Categories:** Finance --- ### [New CAT Equipment and Loaders](https://www.jadeequipmentfinance.com.au/blog/cat-product-news) **Published:** October 9, 2020 **Author:** Publisher **Content:** Infrastructure is currently the big ticket spend for both state and territory and the Federal government. Investing in major products is seen by many as a great way to boost the economy at any time, let alone after a pandemic. This strategy is also considered as a move to create jobs and in the current economic conditions that is critical to the country’s post-COVID recovery. Another big announcement by the Federal Government recently has been expanding the [first home buyer scheme](https://www.firsthome.gov.au/ "First Home Owner Grant") for those buying new homes. A strategy to boost construction in the housing market. A strategy to put boots ‘n utes on the ground – a phrase borrowed from a recent government announcement speech. For businesses in construction at all levels, in civil works, excavation and associated trades, these government actions are sure to be welcomed with the prospect of new contracts and a good flow of work in the pipeline. But to ensure your business is equipped to take on new work, you might be needing to invest in new equipment. In this sector [Caterpillar is a leading brand with CAT machinery](https://www.cat.com/en_AU.html "Australia, New Zealand, Pacific | CAT | Caterpillar") seen on just about every large work site and infrastructure project across the country. So we referred to CAT resources to find out what’s happening with their products. What’s the latest news from this leading manufacturing that we can share with our customers? ## **CAT 963 Track Loader News** We know our customers want a top return on their investment in equipment and CAT delivers versatility in addition to fuel and productivity improvements with the [963 Track Loader](https://www.cat.com/en_GB/products/new/equipment/track-loaders/track-loaders/117641.html "963 Track Loader | Cat | Caterpillar"). According to a media release from CAT, this machine allows a single operator to load, dig, carry, fill and other tasks with the one machine. That’s versatility and may represent savings in not having to purchase multiple machines as well as time and costs of transporting different machines to/from site. According to CAT the new 963 also delivers up to 10% greater fuel efficiency. The cab has also been updated with adjustable armrests and a suspension seat. The easy-to-use touchscreen dash assists the operator especially with the inclusion of Slope Indicate. The option of a joystick control means the controls are similar to those that those used to operating skid steers and compact track loaders are familiar with. So where are the savings and where will you get that great investment return? Apparently the C7.1 engine produces 15% more peak torque plus the possible 10% fuel consumption reduction. Increased productivity matched with lower fuel costs do add up to more profit. Read more about the new CAT 963 and head to our calculator page to work out rough repayment estimates to assist with your purchase decision. ## **Lower Operating Costs – New CAT D9 Loader** Who doesn’t want lower costs, especially in the highly competitive construction sector? So this [new D9](https://www.cat.com/en_AU/products/new/equipment/dozers/large-dozers/104260.html "D9 Dozer | Cat | Caterpillar") which replaced the D9T, is purported to facilitate a 3% decrease in costs per unit of material moved. A new torque converter delivers efficiency gains and according to CAT as much as 5% reduced fuel consumption as well as reducing maintenance and repair expenses. This machine has differential steering and can maintain ground speed during the turning process which maintains productivity. As you would expect from this world-leading manufacturer, they offer the D9 with the versatility to adapt to multiple attachments and blades. So you can work across a range of applications and the D9 suits many operations in quarrying, heavy construction, materials handling, forestry and many others. ## **Reduce Maintenance Time with New Shroud System** In a media release on 28 September 2020, Caterpillar announced the development of a new lip shroud system for the use with underground loader buckets which allows quicker installation and when fully integrated with the bucket, reduced maintenance time. This new Durilock system is suited to the [R1700](https://www.cat.com/en_AU/products/new/equipment/underground-hard-rock/underground-mining-load-haul-dump-lhd-loaders/730743084457382.html "R1700 Underground Mining Load Haul Dump (LHD) Loaders | Cat | Caterpillar") through R3000 loaders and for most 5-10 cubic metre buckets. ## **Low Finance Costs for New Caterpillar Equipment** If these new products are of interest to you, acquiring them with the [cheapest equipment finance deal](https://www.jadeequipmentfinance.com.au/ "Equipment Finance & Machinery Loans | Jade") available will further add to the cost savings and productivity increases offered by the machines themselves. Jade Equipment Finance can deliver cheap CAT equipment finance because we structure all our loans on our cheap interest rates. With access to multiple lenders including non-bank lenders that specialise in equipment finance, we have the capability to cover off on many offers from different sources. Your Jade consultant saves you time, adding to your efficiency and productivity, by handling not only the finance sourcing phase but negotiating on interest rates and terms and handling the paperwork. If you’re thinking of taking advantage of the [Government’s Instant Asset Write-Off scheme](https://www.jadeequipmentfinance.com.au/blog/are-low-docs-loans-eligible-for-iawo-and-bbi "Are Low Docs Loans eligible for IAWO and BBI? | Jade Equipment Loans") for your CAT equipment purchase, then you’d better move fast. The 31 December deadline is fast approaching! While interest rates are currently at historic low levels, we don’t have deadlines on achieving cheap interest rates on equipment finance. **For a no-obligation quote on [finance for new Caterpillar equipment](https://www.jadeequipmentfinance.com.au/cat-caterpillar-equipment "We offer CAT machinery finance solutions at Jade Equipment FInance"), contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: DATA, DETAILS AND INFORMATION IN REGARD TO POLICIES, GOVERNMENT PROGRAMS, PROPOSALS AND GOODS AND SERVICES* ARE PRESENTED IN THIS ARTICLE FOR GENERAL INFORMATION PURPOSES ONLY. THIS INFORMATION IS, UNDER NO CIRCUMSTANCES, INTENDED AS THE SOLE SOURCE FOR MAKING FINANCIAL DECISIONS OR IS IT INTENDED AS FINANCIAL ADVICE. INDIVIDUALS SHOULD SEEK INDEPENDENT ADVICE IN REGARD TO THEIR PERSONAL FINANCIAL SITUATION. ALL INFORMATION HAS BEEN OBTAINED FROM REPUTABLE SOURCES AND IS PRESENTED AS GENERAL INFORMATION AND INTEREST. NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATION OF INFORMATION AND DETAILS OF GOODS ETC. *AS PRESENTED.* **Categories:** Finance --- ### [Business Support: Federal Budget Measures](https://www.jadeequipmentfinance.com.au/blog/business-support-federal-budget-measures) **Published:** October 12, 2020 **Author:** Publisher **Content:** Against the backdrop of a global pandemic and recession, the 2020/21 Federal Budget was seen as the most significant in decades if not in 100 years. The highly anticipated Budget Bill was presented to Parliament on 6 October by Treasurer Josh Frydenberg with the clear objectives of jobs creation through private sector driven initiatives. Usually presented in May each so the programs and policies can be put in place by the start of the new financial year on 1 July, the Federal Budget was deferred to October. This decision was made back in March when coronavirus was only just starting to have an impact on the economy. The delayed date meant that the Government could better shape the budget to meet the economic conditions post-COVID rather than trying to anticipate, in April-May, what could or might be the scenario beyond July 2020 and into 2021. Many of the budget measures were pre-empted in several pre-budget announcements and speeches by both the Treasurer and the Prime Minister, Scott Morrison. Both were clear in stating that they were looking at a business-led recovery and the budget includes many business supports but also the much-welcomed personal income tax cuts. Usually the Budget Bill takes time to be passed through both Parliament, especially getting the Senate where the Government does not hold the balance of power. However, the opposition quickly acknowledged the importance of getting these measures, especially the tax cuts passed, and immediately signalled their agreement to pass the bill. The Budget Bill was fast-tracked through the Senate by outgoing Finance Minister, [Mathias Cormann](https://www.aph.gov.au/Senators_and_Members/Parliamentarian?MPID=HDA "Former Senator the Hon Mathias Cormann") and was passed on Friday 9 October. So the measures are, as the Prime Minister said, law. We’ve reviewed the budget from our perspective at Jade Equipment Finance and our key areas of interest to provide our customers with this overview. As specific details on individual measures are released by the ATO and Treasury, we intend to further explore and expand on how we can assist businesses capitalise on the opportunities presented with [business equipment financing](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Get the best finance on equipment from us with a free quote"). The business support in the budget includes generic items which are relevant to all businesses, subject to eligibility criteria and more sector specific programs. In this article we’re focussing on the general measures. ## **Investment and Business Tax Opportunities** Of special relevance to our sector is the extension of the [Instant Asset Write-Off (IAWO) scheme](https://www.jadeequipmentfinance.com.au/blog/are-low-docs-loans-eligible-for-iawo-and-bbi "Are Low Docs Loans eligible for IAWO and BBI?") and the expanded Investment Allowance package. Most business operators will be across IAWO as it was introduced in March, has had the deadline extended from 30 June to 31 December 2020 and has been well-promoted to customers by ourselves and by lenders and equipment manufacturers. The budget announcements in regard to investment allowances include:- - IAWO in its current form, i.e. for businesses with $500m or less turnover and for eligible assets up to $150,000 is extended to 30 June 2021. The assets can be fully written off in this tax year if purchased and in operation by the deadline. - For the same category of businesses, $500m or less turnover, second-hand assets are subject to temporary full-expensing - Larger businesses (turnover up to $5 billion) get a temporary investment incentive with the deadline of 30 June 2022 to fully deduct eligible assets, in the relevant tax year, that are acquired and in operation in a business after 6 October 2021 (budget announcement) and 30 June 2022. - Second-hand assets acquired by ‘$50m-$500m turnover’ category businesses by 31 December 2020 fall under the IAWO scheme and the tax benefit realised in the 20/21 tax year. Equipment acquisitions across many industries will be fall under these schemes and the intention is that businesses will invest to expand and create jobs. ## **Wage Support Schemes** Wage support has been a key element of the Australian Government’s COVID-19 response and as the JobKeeper scheme winds down towards end of March 2021, the budget includes new wage subsidies. For a limited time, 12 months, eligible businesses can receive $100-$200 per week towards wages for new employees in certain categories. Specifically younger employees and apprentices/trainees. The employees need to be newly hired and safeguards are flagged. Check the eligibility criteria at [here](http://www.ato.gov.au "Australian Taxation Office"). ## **Carry-Back Business Losses** Under the existing business tax rulings, if a business makes a loss in a tax year they can only ‘carry the losses’ forward. That is, claim them against profits in future years. But as it is foreseen that many businesses will face losses as a result of COVID-19 in 2019/20 and 2020/21, the budget allows for eligible businesses (turnover under $5b) to carry back those losses for a limited time. Losses recorded for 19/20, 20/21 and 21/22 financial years can be offset against any profits that were recorded in the 2018/19 tax year and later years. So businesses don’t have to wait into the future to realise the tax benefits of losses and can realise a benefit to cash flow. ## **Realising the Budget Benefits** The investment allowances are of most relevance to us at Jade Equipment Finance. [Our consultants](https://www.jadeequipmentfinance.com.au/broker "Speak with our Jade finance brokers about financing your equipment purchases") are on hand to assist businesses with quotes on finance for new equipment acquisition so you can take full advantage of the tax benefits outlined in the budget. The choice of the appropriate finance product is critical to being in a position to realise the depreciation tax benefits. With [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Learn about how we can help you finance your equipment with a chattel mortgage") the asset is on the business balance sheet and can be depreciated while leasing and rent to own are off balance sheet products. But other tax and financial benefits can be realised by off balance sheet finance and we recommend you discuss the selection of finance product with your accountant. Look out for our future articles where we dissect and explainer the Federal Budget in greater detail. **To get started now on acquiring new assets contact Jade Equipment Finance on 1300 000 003 to discuss finance.** *DISCLAIMER: THE DETAILS, INFORMATION, DATA AND MATERIAL PRESENTED IN THIS ARTICLE HAS BEEN SOURCED, IN FOOD FAITH, FROM REPUTABLE SOURCES IN THE PUBLIC DOMAIN. INFORMATION IN RESPECT OF GOVERNMENT ANNOUNCEMENTS, POLICIES, PROGRAMS, MANUFACTURER’S GOODS AND SERVICES AND OTHER SUBJECT MATTER IS OFFERED FOR GENERAL INFORMATIVE PURPOSES ONLY AND NOT IN ANY WAY INTENDED AS A SOLE SOURCE FOR THE PURPOSE OF MAKING FINANCIAL DECISIONS. NO LIABILITY IS ACCEPTABLE FOR ANY ERRORS OR MIS-INTERPRETATION OF FACTS AND MATERIAL. IF A PERSON CONSIDERS THEY REQUIRE FINANCIAL ADVICE IN REGARD TO THEIR SPECIFIC AND INDIVIDUAL CIRCUMSTANCES, THEY SHOULD SEEK INDEPENDENT ADVICE FROM A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Capturing Opportunities: Federal Budget Analysis](https://www.jadeequipmentfinance.com.au/blog/capturing-opportunities-federal-budget-analysis) **Published:** October 16, 2020 **Author:** Publisher **Content:** In bringing down the 2020/21 Federal Budget, Treasurer Josh Frydenberg introduced a raft of measures to support businesses both in general across the board and targeted schemes for specific sectors. As emphasised by the Treasurer, the Prime Minister and the Minister for Finance, this budget is very much framed for a business-led recovery out of the COVID-19 recession/crisis and focussed on creating jobs. The general business support measures include, but are not necessarily limited to and subject to eligibility:- - [Instant Asset Write-Off extended](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps") - Investment Allowance Package - Wage subsidies - Losses Carry-Back Personal income tax cuts as part of Stage 2 of the tax scheme introduced in the 2018 Budget have been brought forward and form a significant component of the 2020/21 Federal Budget. While not presenting a direct benefit to business per se and not of direct relevance to our services at Jade Equipment Finance, it is significant. Your employees will have more in their pay packet (in some tax brackets) and so will millions of other tax payers. Tax payers which may well be your end consumers. Whether you sell directly or your products are part of the supply chain for consumer products, the tax cuts are designed to drive spending. But more relevant and of greater interest to our Jade customers is the support to key industries which represent significant equipment purchases. ## **Housing Sector Support** For businesses operating in building and construction, specifically new residential housing, the budget included specific measures to boost the sector. The first home buyers grant was extended/expanded for new home purchases. For many tradies, excavation contractors, concreting businesses, building materials suppliers and many other building-related businesses this may be the incentive to upgrade your existing equipment. Add to the budget measure incentives of the asset write-off schemes and the historic low interest rates and an equipment purchase at this time may be a very attractive proposition. If you’d like to do some ‘behind-the-scenes’ calculations, head to our [Equipment Finance](https://www.jadeequipmentfinance.com.au/calculator.php "Use our calculator to determine your repayments")[ ](/calculator)[calculator](https://www.jadeequipmentfinance.com.au/calculator) to work out rough estimates on possible repayments for various equipment. ## **Infrastructure Spending** Both Federal and state and territory governments have been pushing hard on infrastructure as a big driver for the economy – both in good and in not so good times. The 2020/21 Federal Budget continued that theme with major investment in projects across the country. The formal budget announcement was in some ways overshadowed by pre-budget announcements which included the latest rounds of grants to local councils under the existing Bridges Renewal Program and the Heavy Vehicle Safety and Productivity Program. But there is $10 billion in the budget for bridges, rail and road projects in the federal infrastructure plan which covers 10 years. Depending on your particular state and business activity, there are shovel-ready projects which are facilitated through an additional $2 billion in the budget. What could this mean for you? More work and the need to upgrade equipment? Excavation equipment, road rollers, water trucks, general trade equipment, [engineering equipment](https://www.jadeequipmentfinance.com.au/engineering-equipment-loans "Finance your next engineering equipment purchase with Jade Equipment Finance"), tunnelling machinery amongst other machinery will need to be called into service to make these projects a reality. With the investment allowances and our track record in delivering cheap equipment finance interest rates, Jade Equipment Finance may put you in the box seat with a great finance offer to acquire the assets you require. The finance deal you secure is critical to your cash flow and may determine how competitive you will be when competing in the project tender/quoting process. Before making concrete decisions on equipment purchases, you are welcome to have an obligation-free discussion with a Jade Equipment Finance consultant about your options and source a quick quote. ## **Prioritising Manufacturing** In a major speech to the [National Press Club](https://www.npc.org.au/ "National Press Club") in the week prior to the budget announcement, the Prime Minister, Scott Morrison, outlined the Government’s plan for major support for key areas of the manufacturing. The plan has six key priority areas: mining and resources, medical, clean energy and recycling, defence, space and food and beverage. We covered the detail of this budget program in another article which you can access in our news and articles library. This program covers many businesses both directly and indirectly through supply chains. If this budget initiative sparks your interest in investing in plant, machinery and equipment, your Jade consultant will assist by structuring a cost-effective finance package. We are accredited with many banks and lenders including specialist equipment lenders. These specialists are usually better placed and better structured to offer greater flexibility on finance interest rates and terms as they have a greater understanding of equipment acquisitions. ### **Capture the Opportunities** Jade Equipment Finance is well placed to assist businesses capture the specific industry opportunities presented by the Federal Budget. We have experience and expertise in [sourcing cheap equipment finance](https://www.jadeequipmentfinance.com.au/) across many industries and for all types of businesses – sole traders, large corporations, SMEs, partnerships and family enterprises. **To discuss how we can assist you capture the opportunities presented in the Federal Budget, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE DETAILS, INFORMATION, DATA AND MATERIAL PRESENTED IN THIS ARTICLE HAS BEEN SOURCED, IN FOOD FAITH, FROM REPUTABLE SOURCES IN THE PUBLIC DOMAIN. INFORMATION IN RESPECT OF GOVERNMENT ANNOUNCEMENTS, POLICIES, PROGRAMS, MANUFACTURER’S GOODS AND SERVICES AND OTHER SUBJECT MATTER IS OFFERED FOR GENERAL INFORMATIVE PURPOSES ONLY AND NOT IN ANY WAY INTENDED AS A SOLE SOURCE FOR THE PURPOSE OF MAKING FINANCIAL DECISIONS. NO LIABILITY IS ACCEPTABLE FOR ANY ERRORS OR MIS-INTERPRETATION OF FACTS AND MATERIAL. IF A PERSON CONSIDERS THEY REQUIRE FINANCIAL ADVICE IN REGARD TO THEIR SPECIFIC AND INDIVIDUAL CIRCUMSTANCES, THEY SHOULD SEEK INDEPENDENT ADVICE FROM A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Budget Explainer: Temporary Full Expensing](https://www.jadeequipmentfinance.com.au/blog/budget-explainer-temporary-full-expensing) **Published:** October 20, 2020 **Author:** Publisher **Content:** The Federal Treasurer brought down the Federal Budget on 6 October. After passing the House of Reps the Budget Bill was accelerated through the Senate on 9 October. So now the measures are in law, businesses can start taking advantage of their individual operations. One of the key measures relevant to equipment acquisitions is temporary full expensing. Our Jade Equipment Finance customers will likely be most interested in the changes to the [Instant Asset Write-Off scheme](https://www.jadeequipmentfinance.com.au/blog/are-low-docs-loans-eligible-for-iawo-and-bbi "Are Low Docs Loans eligible for IAWO and BBI?") (IAWO) and temporary full expensing. Many have upskilled their accounting knowledge over the past 6+ months in regard to IAWO after it was introduced back in March. Now it’s time to get your head around the definition, criteria and rulings in regard to temporary full expensing. Knowing what it is, which companies and assets it applies to and how it differs from IAWO may help you in deciding how you approach your equipment purchases. While we always advise that customers refer to their accountant in regard to choice of finance product and other financial advice, it’s can be helpful to have your own knowledge bank well-stocked. We’re providing this explainer to assist you and don’t worry, we’re keeping it as simple and straight-forward as possible. ## **Definition** Full-expensing is essentially the same as IAWO as a form of accelerated asset depreciation. Inclusion of ‘temporary’ refers to this having a timeframe. It’s not a permanent change to the [ATO guidelines around asset depreciation](https://www.ato.gov.au/Forms/Guide-to-depreciating-assets-2020/ "Guide to depreciating assets 2020"). Under the existing/normal ATO rules, assets are depreciated at a set percentage over several years. The full cost of purchase cannot be claimed in the year the asset was acquired. Temporary full-expensing means the full cost of the asset can be claimed as a tax deduction in the year of purchase. Qualifier – eligible assets and eligible companies and for limited time as we explain below. The concept essentially is that by increasing tax deductions in a year, the taxable income of the business is reduced, this boosting cash flow. The business won’t have to find as much to pay their company tax and therefore will have more funds to spend and hence boost the economy. The stimulus side of the measure is to motivate, entice and inspire businesses to make investments by [financing business equipment](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "You can finance your business equipment with us at Jade Equipment Finance") and assets. By making purchases they are in turn stimulating the business of the seller. And so the cycle goes on. ## **Differentiation** To get a clear and simple differentiation between temporary full expensing and IAWO, we went to the source – the ATO. Not surprisingly, others had asked the same question and the ATO had provided a response in the community forum feed which we are sharing. The differences relate to the size of the business, in terms of turnover, that can take advantage of the measures, the cost of the assets and the timeframe. - IAWO has a maximum value of assets of $150,000. - Temporary full expensing does not have a limit on the cost of assets. - Businesses with turnover (aggregated) under $500 million are included in the IAWO. This was first introduced in March with 30 June deadline which was further extended to 31 December 2020. That deadline has been pushed out in the Budget to 30 June 2021. - Businesses with aggregated turnover under $5 billion can utilise temporary full-expensing. - The timeframe for temporary full expensing is for eligible assets purchased after the Budget was officially brought down, that is 7.30pm 6 October 2020 AEDT. The assets must be purchased, installed, commissioned and operating in the business by 30 June 2022. ## **Determination** There is one more determination and that is in regard to the assets, or equipment that you intend to purchase. Differing treatments appear to be included for new and used equipment. - New assets appear to be included in temporary full expensing measure. - For businesses with $50 million max turnover, used equipment also appears to be included. - Operators with turnover between $50 million and $500 million, it appears that the eligible assets includes used equipment with cost below $150,000. Purchase must be before 31 December 2020 with the equipment operational by 30 June 2021 ## **Decisions** The final element to consider in acquiring assets under these Budget measures is the option of the finance product. Jade Equipment Finance offer the full range of commercial finance facilities for the acquisition of equipment: Chattel Mortgage, Leasing, [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Learn more about Commercial Hire Purchase finance solutions for your business equipment") and Rent to Own. In order to depreciate your equipment as an asset and claim the tax deduction, the equipment needs to be entered on the business’ books. On the balance sheet as an asset/liability. Both Rent to Own and Leasing are off-balance sheet finance facilities. If you purchase equipment with these loan products, that equipment remains on the balance sheet of the finance company. It is only transferred to your balance sheet when the loan is completely finalised. Chattel Mortgage on the other hand is an ‘on balance sheet’ loan. When your acquire equipment with a Chattel Mortgage, you take ownership from the time of purchase. The equipment appears on your balance as an asset/liability and therefore can be depreciated via IAWO or temporary full expensing or as per other rulings. Hopefully this information has assisted with your understanding of what benefits your business may realise from some of the budget measures, in relation to equipment purchases. Refer to your accountant to check which way is best for you to go and [contact us for quote on your finance](https://www.jadeequipmentfinance.com.au/ "Get in contact with us at Jade Equipment finance for your next equipment purchase"). **Contact Jade Equipment Finance on 1300 000 003 to discuss finance.** *DISCLAIMER: INFORMATION, DETAILS, SPECIFICS, GENERAL COMMENTS, MATERIAL AND DATA THAT IS POSTED IN THE ARTICLE HAS BEN ACQUIRED THROUGH PUBLICLY ACCESSIBLE SOURCES INCLUDING OFFICIAL WEBSITES AND ANNOUNCEMENTS. THE INFORMATION IN REGARD TO GOVERNMENT POLICIES, THE BUDGET, SCHEMES, MEASURES, MANUFACTUER GOODS AND SERVICES AND OTHER TOPICS IS PROVIDED FOR GENERAL INFORMATION AND NO LIABILITY ACCEPETD FOR ERRORS OR MISREPRESENTATION. INDIVIDUALS ARE DIRECTED TO THEIR OWN FINANCIAL ADVISORS FOR SPECIFIC FINANCIAL ADVICE. THIS ARTICLE IS NOT DESIGNED AS THE SOLE SOURCE FOR MAKING FINANCIAL DECISIONS.* **Categories:** Finance --- ### [Chattel Mortgage for Temporary Full Expensing & IAWO](https://www.jadeequipmentfinance.com.au/blog/chattel-mortgage-for-temporary-full-expensing-iawo) **Published:** October 24, 2020 **Author:** Publisher **Content:** After months of mentions in the financial news, several deadline changes and constant reminders from lenders (including Jade Equipment Finance), equipment manufacturers and sellers, Instant Asset Write-Off (IAWO) has been well-promoted to businesses. With temporary full expensing announced in the Federal Budget, investment allowance measures have been expanded to be available for more businesses and for an extended period than IAWO. Many businesses are keen to realise the tax deductible benefits of these Budget investment allowances with interest focused on selecting the appropriate type of finance. Jade Equipment Finance provides [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Learn more about Chattel Mortgage financing by clicking here") as a finance facility to utilise these depreciation-related measures. As one of the most commonly used types of finance for many businesses for equipment purchases, there are still those looking to get their head around the detail. We oblige with this simple explanation. ## **Balance Sheet Issues** Both IAWO and temporary full-expensing are measures to ‘write-off’ or fully claim tax deductions on assets in the year of purchase. In order to do that, the equipment assets must be owned by the business. That is, not just in terms of you having full use of the equipment but the equipment must be entered in the business balance sheet. If you don’t own it, you can’t depreciate it! [Equipment Leasing](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Lease equipment for your business with us at Jade Equipment Finance") and [Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Lease equipment for your business with us at Jade Equipment Finance") are known as off balance loans because the equipment is purchased by the lender and leased/rented back to the borrower. The equipment is not entered in the purchaser’s balance sheet. Therefore, these are not suitable finance products for depreciation measures. But they do offer other tax benefits. In comparison, with a Chattel Mortgage loan the business actually buys the equipment and the finance lender takes a mortgage over the loan, using the equipment as security. So the equipment is listed as an asset/liability by the buyer and can be depreciated. This is a simple comparison for the purpose of highlighting the balance sheet implications and suitability of finance types for investment allowance measures. All finance facilities have tax deductibility in some form. Businesses should always consult with their financial advisor or accountant on their specific circumstances. ## **Chattel Mortgage Detail** While the name may cause some confusion, Chattel Mortgage has quite a straightforward loan structure. ‘Mortgage’ can be the source of any misunderstandings as this term is more commonly associated with home loans. To clarify, some lenders including the CBA refer to Chattel Mortgage simply as an Equipment Loan. The structure is quite straightforward:- - Lender extends finance and uses equipment as security against the loan. - Borrower repays loan in monthly repayments over the loan term. - A balloon is optional. This is a percentage of the loan (which may be the total purchase price of the equipment) which is not included in the repayment instalments but due for payment at the end of the loan term. Once the finance contract is settled and equipment purchase finalised, the buyer takes ownership and full use of the equipment. ## **Taxation Treatment** The way tax is approached differs with different loan types and this is where the suitability of finance product and investment allowance measures comes into play. First the GST. With a Chattel Mortgage loan, because the buyer is taking ownership of the equipment, they can claim the GST in full on the equipment purchase price immediately. That is, on the BAS return after purchase. With all the GST claimed upfront, no further GST is applicable to the repayments or balloon. This is in contrast to Leasing where GST is applicable to the monthly lease payments. Now for the all-important tax deductibility. With Chattel Mortgage, only the interest is tax deductible in regard to the repayments and balloon. Under normal ATO rulings, the borrower receives the tax benefit in depreciating the equipment as an asset at the end of each financial year. Usually, an asset is depreciated by a certain percentage each year over a number of years. These amounts are set by the ATO and this is handled by your accountant in preparing your annual company accounts. Under the IAWO and temporary full expensing rulings, the borrowing business can bring forward that depreciation to claim the full purchase price as a tax deduction in the year of purchase. Subject to all the eligibility criteria. Chattel Mortgage works with the cash accounting method which is used by many Australian businesses. ## **Jade Equipment Finance Benefits** In sourcing and structuring your Chattel Mortgage equipment finance, your Jade consultant will source the cheapest deal from across our vast lending panel. This is especially pertinent to securing the [cheapest equipment loans interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check out our cheap finance interest rates"). Our Chattel Mortgage deals include fixed elements to provide certainty to business moving forward:- - Cheap interest rates, fixed for the entire loan term. - Loan term fixed with terms negotiated. - Fixed monthly repayments and balloon. If you are interested in purchasing new equipment to take advantage of the budget investment allowance measures, have a chat to your accountant to run through the benefits for your business then speak with Jade about a great finance deal. **For a Chattel Mortgage quote, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: INFORMATION, DETAILS, SPECIFICS, GENERAL COMMENTS, MATERIAL AND DATA THAT IS POSTED IN THE ARTICLE HAS BEN ACQUIRED THROUGH PUBLICLY ACCESSIBLE SOURCES INCLUDING OFFICIAL WEBSITES AND ANNOUNCEMENTS. THE INFORMATION IN REGARD TO GOVERNMENT POLICIES, THE BUDGET, SCHEMES, MEASURES, MANUFACTUER GOODS AND SERVICES AND OTHER TOPICS IS PROVIDED FOR GENERAL INFORMATION AND NO LIABILITY ACCEPETD FOR ERRORS OR MISREPRESENTATION. INDIVIDUALS ARE DIRECTED TO THEIR OWN FINANCIAL ADVISORS FOR SPECIFIC FINANCIAL ADVICE. THIS ARTICLE IS NOT DESIGNED AS THE SOLE SOURCE FOR MAKING FINANCIAL DECISIONS.* **Categories:** Finance --- ### [ICYMI: Civil Construction Equipment News](https://www.jadeequipmentfinance.com.au/blog/icymi-civil-construction-equipment-news) **Published:** October 27, 2020 **Author:** Publisher **Content:** Infrastructure projects and construction in general are at the heart of COVID-19 recovery plans. State and Federal Governments as well as local councils are on a continual rolling announcement cycle of new projects, tenders and funds allocation. Businesses need to stay across many channels to ensure they don’t miss a potential opportunity. We’re doing a quick whip around project and product announcements – in case you missed it! ## **Field Days and Shows** Many will be keen to get their hands on the latest equipment to increase productivity, profitability and competitiveness in tendering for the work on offer. But with many expos, field days and major industry events cancelled for 2020, the opportunities to see new equipment in person have been limited. So it’s great news to read plans coming together for 2021. In particular the announcement that the Civil Construction Field Days will be held in conjunction with the [Brisbane Truck Show](https://www.brisbanetruckshow.com.au/ "Brisbane Truck Show") 13-15 May 2021. This is a result of a collaboration between the Civil Contractors Federation of Queensland and the Heavy Vehicle Industry Australia and highlights the close links between the equipment and truck sectors. Tip: before heading to an equipment field day, contact Jade Equipment Finance to arrange pre-approved finance for the equipment you’re interest in. You’ll be in a better position to seal a deal on the day and take advantage of any show specials. And have our [equipment repayments calculator](https://www.jadeequipmentfinance.com.au/calculator "Click here to use our calculator to find out how much you have to repay") handy on your phone to calculate rough repayment estimates on machinery as you do the rounds of the field day. ## **Quick Whip around – Project Announcements** Current major projects in Queensland include upgrades to the M1 and Bruce Highway, Brisbane Metro and Cross River Rail. In South Australia, the Government recently announced that $100m would be allocated to road maintenance and upgrade works. Projects earmarked include at Fullarton Road, Port Road, Greenhill Road, Anzac Highway and Marion Road. In NSW, amongst many projects at various stages is the Melbourne to Brisbane Inland Rail. Approval was recently given for the Narrabri to North Star Environmental Impact Statement so the next stage of the rail project can proceed. If you need new equipment in order to compete on tenders or complete work on major infrastructure, contact us for a quote on finance. ### **New Products from Case** CASE Construction Equipment recently launched its B Series compact track loaders and skid steers. According to the media statement, these new machines deliver an intuitive operating experience to simplify operation while withstanding the effect of the use of heavy earthmoving and attachment. The operator interface has been redesigned and contractors are offered the choice of controls: the standard mechanical, electro-hydraulic or mechanical hand and foot. The display provides an 8” LCD command centre with multi-functionality including visibility of the backup camera. The B Series has many new features including creep speed capability; new operator profiles; economy mode; engine protection settings and many others. Worth checking out at CASE Construction Equipment website or your nearest dealer, and to check out finance options for that equipment, [give us a call](https://www.jadeequipmentfinance.com.au/construction-equipment-financing "Contact us about financing construction equipment and machinery for your business"). ## **Investment Allowances: Budget Benefits** A very big ICYMI, the Instant Asset Write Out scheme has been extended through to 30 June 2021 and a new measure, temporary full expensing, were announced in the Federal Budget in early October and are now available. Essentially, the full purchase price of new depreciable asset purchases such as civil construction equipment, can be claimed as tax deduction in the financial year of purchase. All of course subject to eligibility criteria based on the size of the business as we’ve covered in previous articles. Details are available at the ATO website. We continue to remind customers that in order to be a depreciable asset, the equipment must be financed by an appropriate loan type. Specifically Chattel Mortgage. This type of finance is suitable for businesses that use a cash accounting method. A method popularly used by businesses in Australia. Chattel Mortgage is also referred to as a [Heavy Equipment Loan](https://www.jadeequipmentfinance.com.au/heavy-machinery-loans "Get a loan or financing for you next equipment purchase") by some banks. It has a straightforward format: - The equipment is used as security against the loan. - The borrower receives ownership and has full use and responsibility for the equipment once the purchase and finance contracts are settled. - In establishing your Chattel Mortage, your Jade consultant negotiates the cheapest interest rate and best deal from our lending panel. This rate is then fixed for the term of the loan. - A balloon is optional so a percentage of the purchase price may be excluded from the monthly repayments and deferred for payment at the conclusion of the loan term. - The loan term and the repayments are fixed so you can plan your cash flow. Your Jade consultant will structure the loan terms to your specifications. As you have ownership of the equipment, it’s on your books, so you can depreciate the asset. Usually that means a small percentage depreciation over the life of the asset as established by ATO rulings. This ‘depreciation’ is your tax deduction as the monthly repayments are not fully tax deductible, only the interest portion. Under the IAWO and full expensing, you won’t have to wait years to realise the full deduction on your equipment purchase. It can be claimed in this financial year. At the EOFY when you prepare your income tax return. If you’re currently considering an equipment purchase, this could be suitable for your business. So that’s a quick ICYMI and we’ll keep an eye on further updates in the sector FYI. **To [discuss a quote on equipment finance](https://www.jadeequipmentfinance.com.au/ "Contact us about getting equipment financed for your business"), contact Jade Equipment Finance on 1300 000 003 to discuss finance.** *DISCLAIMER: THIS ARTICLE INCLUDES INFORMATION, DATA, SPECS, DETAILS AND MATERIALS SOURCED FROM EXTERNAL SOURCES SUCH AS MANUFACTURERS, SUPPLIERS, GOVERNMENT DEPARTMENTS AND OTHER ORGANISATIONS AND NO LIABILITY IS ACCEPTED FOR ERRORS IN THE REPRESENTATION OR PRESENTATION OF SUCH INFORMATION. THE ARTICLE IS PRESENTED AS GENERAL INFORMATION ONLY AND IS NOT INTENDED AS SPECIFIC FINANCIAL ADVICE FOR INDIVIDUALS AND BUSINESSES. THOSE REQUIRING ADVICE IN REGARD TO THEIR INDIVIDUAL CIRCUMSTANCES ARE DIRECTED TO SEEK INDEPENDENT ADVICE FROM THEIR FINANCIAL ADVISOR OR CONSULTANT.* **Categories:** Finance --- ### [John Deere Updates and News](https://www.jadeequipmentfinance.com.au/blog/john-deere-updates-and-news) **Published:** October 29, 2020 **Author:** Publisher **Content:** With a forecast good harvest in many agricultural areas on the horizon, the trusty [John Deere](https://www.deere.com.au/en/index.html "John Deere Official Website") fleet will no doubt be doing double time across the country. One of, if not, the, most popular brand of machinery in agri business, John Deere has made some significant announcements over the past few months which same may have missed amidst the COVID-19 scenario. We catch you up with a number of new product releases. ## **Get in Ahead for New Headers** In August the company update the header line-up with the [new HDR Rigid Cutterbar Drapers](https://www.deere.com/en/harvesting/draper-and-platform-product-list/hdr-rigid-cutterbar-drapers-list/ "John Deere HDR Rigid Cutterbar Drapers"), [A BP15 Belt Pickup](https://www.deere.com.au/en/harvesting/combine-harvesters/draper-platforms/bp15-belt-pickup-platform/), RDF Hydraflex Drapers and CR and CF Corn Heads. While orders for the new headers opened in August 2020, deliver is scheduled for 2021 harvest time. These new machines are compatible with the majority of S and T Series Combine Harvesters and X Series from John Deere. For small grain growers looking to maximise hectares per hour from their harvester, the Rigid Cutterbar is ideal. Use in changing conditions, across a range of crops and irregular terrain and capture more grain. The drapers recover more crop by picking up and sweeping it across the cutter bar. According to the company’s media statement, the draper belts can assist in reducing canola cutter bar loss by 25%. For canola and small grain growers needing increased hectares-per-hour from the X, S and T Series, the company offers the BP15 Belt Pickup. This new belt reportedly delivers a 20% faster rate of feed than the 615P. A new line of corn heads has also been released which offers significant benefits in pulling more ears into the head and can reduce the costs of acquiring additional machinery. To get your order in, discuss finance options with your [Jade Equipment Finance consultant.](https://www.jadeequipmentfinance.com.au/broker "Talk to our brokers about equipment financing options for your business") ## **Delivering Efficiency** In October, John Deere followed up with yet another launch, this time the new [R310R Mower Conditioner](https://www.deere.com.au/en/hay-forage/mowing/mower-conditioners/r310r/ "John Deere Mower Conditioners"), known as the MoCo. This machine delivers efficiency through mowing and conditioning a greater number of hectares at greater speed and producing enhanced hay quality. The specs: 3.1 metre with a vertical fold and rear-mounted, suited for paddocks which handle 100 hp tractors. According to the launch release, the MoCo deliver a better quality of forage at less cost. Which of course is music to any operator as that means profitability and better chance to compete. This is a highly manoeuvrable machine so it is ideal for small paddocks and narrow access. A key feature of MoCo is quick change knives. This can minimise downtime to provide a greater number of hay-cutting hours per day. If the R310R sounds like a machine that will deliver benefits to your operation, check out the details at your John Deere dealer or online and talk to us about a cheap finance deal. ## **Construction Equipment Solutions** John Deere offers a large range of equipment for the construction and forestry sectors including excavators, wheel loads, dump trucks, [harvester equipment](https://www.jadeequipmentfinance.com.au/harvester-loans "Explore finance solutions for harvester or agriculture machinery with us"), crawler dozers, backhoe loaders, skid steers, motor graders and a load more. They are constantly working on technology solutions to assist business owners and operators to achieve more in more efficient ways. There tech solutions maximise productivity and decrease operating costs Solutions you may have not yet considered: SmartGrade and JD Link. SmartGrade is a mast-less, 3D integrated grade control which is ready to work when it arrives on site. No external cables or masts are required. JDLink is a tracking system which enables you to check on the performance of your John Deere machines remotely. Access diagnostics to ensure they are delivering performance and productivity and allows you to act quickly to alerts. John Deere definitely has their eye on the keys to your business success – productivity and profitability! ## **John Deere Finance** Jade Equipment Finance provides a comprehensive selection of finance products to finance your John Deere machinery acquisitions. The different loan types – [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Lease equipment with us at Jade Equipment FInance"), rent to own, Chattel Mortgage and CHP – suit different business set-ups and the choice requires consideration of a number of factors. Determining factors include the accounting method your business uses, requirements in regard to GST and tax deductions, balance sheet strategy and your overall financial objectives. This is best done in consultation with your accountant. Our finance lender services are available to all types of business operations:- - Family businesses - Owner-operators - SMEs - Corporates - Partnerships - Sole traders - ABN If you’re eyeing off the investment allowance measures announced in the Federal Budget, then you’ll want to be considering cheap equipment finance for your JD purchase. For Instant Asset Write-Off and temporary full expensing, check the eligibility of your business and the equipment against the criteria as advised by the ATO. We’ve covered these measures in great detail in a number of articles for your convenience. You can access our explainers in our news and article library. Staying across updates and new product releases from major equipment manufacturers is important to continually improve your business productivity and increase that all essential bottom line. We’ll bring you further information so stay tuned and regularly check in with our resources. **For a [finance quote on a Mower](https://www.jadeequipmentfinance.com.au/riding-mower-financing "Get finance solutions from Jade Equipment Finance for a range of mowers") or harvester from John Deere, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THIS ARTICLE INCLUDES INFORMATION, DATA, SPECS, DETAILS AND MATERIALS SOURCED FROM EXTERNAL SOURCES SUCH AS MANUFACTURERS, SUPPLIERS, GOVERNMENT DEPARTMENTS AND OTHER ORGANISATIONS AND NO LIABILITY IS ACCEPTED FOR ERRORS IN THE REPRESENTATION OR PRESENTATION OF SUCH INFORMATION. THE ARTICLE IS PRESENTED AS GENERAL INFORMATION ONLY AND IS NOT INTENDED AS SPECIFIC FINANCIAL ADVICE FOR INDIVIDUALS AND BUSINESSES. THOSE REQUIRING ADVICE IN REGARD TO THEIR INDIVIDUAL CIRCUMSTANCES ARE DIRECTED TO SEEK INDEPENDENT ADVICE FROM THEIR FINANCIAL ADVISOR OR CONSULTANT.* **Categories:** Finance --- ### [Carry Back to Move Forward](https://www.jadeequipmentfinance.com.au/blog/carry-back-to-move-forward) **Published:** November 3, 2020 **Author:** Publisher **Content:** One measure announced in the Federal Budget which is raising a lot of interest by many business owners is [Loss Carry Back](https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-businesses/Loss-carry-back/ "JobMaker Plan – temporary loss carry back to support cashflow"). Not surprising that it should attract attention as it is not a commonly used measure or one which is completely understood. There was a loss carry back measure introduced in 2012/13 but it was short-lived and capped. At Jade Equipment Finance we fully appreciate that not every business owner is or wants to be an accounting specialist. But we also understand that most do want to be across all the options available to them to improve their bottom line. With that objective in mind, we provide as simple as a possible explainer of loss carry back with our input on how it may benefit your [equipment finance deals](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Have a look at our low equipment finance interest rates"). ## **Loss Carry Back: Explainer** ‘Loss’ relates to losses made by a business in a tax year. Loss carry-back is a form of realising a refund on business losses against profits made in earlier years. Subject to ATO rulings, under normal business accounting tax rulings, a business can claim losses made in a tax year against profits made in future years. That is, losses are usually carried forward. So if you make a loss this year and a profit next year, you can claim the losses against the profit to reduce taxable income. This may mean a refund of the whole or in part of the tax value of the loss. The loss carry-back regime announced in 2020/21 Federal Budget is aimed at supporting businesses by encouraging new investment. Your business must meet the eligibility criteria which is a turnover of under $5 billion for the relevant period. We referred to the ATO for specific details of this regime. The ATO advises that businesses that have paid income taxes in 2018/19, 2019/20 and 2020/21 can carry back losses made in 2019/20, 2020/21 and 2021/22. That means if perhaps your business is impacted by COVID-19 or other issues and you have losses in the relevant years, instead of having to wait to claim the tax offset against years ahead when you (hopefully) make a profit, you can offset the losses against previous profits in the years as stipulated. This allows eligible businesses to claim a refundable tax offset in the short term rather than wait for longer-term benefits. When coupled with the tax write-off benefits of IAWO and temporary full expensing, the losses made can be carried back for a cash refund on income tax. There is a limit based on liabilities and there are losses that are not eligible: capital losses, transfers between businesses in a group and others to consider. We refer you to the ATO for specific details and no doubt, you will want to discuss all the implications and benefits for your business with your accountant. The decision as to whether a business chooses loss carry-back or to carry those losses forward needs to be made at the time the income tax return is lodged. ## **Impact on Equipment Acquisitions** The intention and general outcome of loss carry-back are to generate a cash refund for the business at the time the business income tax return is lodged. For some businesses that could be as early as 30 June 2021. Any measure that can generate a cash refund or a reduction in tax owed is potentially a positive impact to cash flow. The magic term when it comes to asset acquisitions. Add to that, a loss carry back may actually generate a refund that means cash back into your account, not just an accounting entry. The measure was welcomed by many sectors as it represents a cash flow benefit to businesses that may have been facing a tax bill but now may receive a tax refund. It can get complicated to get your head around the bigger picture but loss carry back in concert with asset investments made with [IAWO](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps") or temporary full expensing can further improve the scenario. You acquire assets, depreciate the cost under IAWO which in turn creates a loss for the business which can then be claimed against profits made in the previous year which results in a tax refund. Well that’s a simplistic interpretation but hopefully one that you can follow. ## **Finance Impacts** So how might all this have an effect on securing finance to facilitate your asset acquisitions? Each application for equipment finance is handled on an individual basis by Jade Equipment Finance and the impacts may vary from business to business. In general, an improvement to the business accounts may enhance the finance application and result in achieving a better interest rate. The boost to cash flow may put your business in a better position to service an [equipment lease](https://www.jadeequipmentfinance.com.au/asset-lease "Get your equipment or machinery with equipment leasing with us") or loan. For business seeking to take advantage of IAWO or temporary full expensing in relation to loss carry back will need to consider Chattel Mortgage for their equipment purchase. Jade Equipment Finance offers Chattel Mortgage equipment finance at [cheap interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Have a look at our low interest rates at Jade Equipment Finance") and with fixed repayments and loan terms. The Federal Budget certainly presents many investment considerations for businesses. If this measure is the motivator you need to purchase new equipment, contact us to discuss a great equipment finance deal. **To Check out our low interest rates and [Chattel Mortgage Finance](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Have a look at our low interest rates at Jade Equipment Finance"), contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THIS ARTICLE INCLUDES DATA, SPECIFICATIONS, INFORMATION AND OTHER MATERIAL WHICH HAS BEEN ACQUIRED VIA VARIOUS SOURCES, GENERALLY AVAILABLE IN THE PUBLIC DOMAIN FROM MANUFACTURERS, GOVERNMENT ORGANISATIONS AND SUPPLIERS. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION AND INTERPRETATION OF THIS INFORMATION. THE ARTICLE IS PROVIDED FOR GENERAL INFORMATIVE PURPOSES AND NOT AS THE SOLE BASIS FOR MAKING FINANCIAL DECISIONS. IF ADVICE ON INDIVIDUAL FINANCES IS REQUIRED, IT IS RECOMMENDED THAT READERS REFER TO A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Volvo Construction Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/volvo-construction-equipment-finance) **Published:** November 7, 2020 **Author:** Publisher **Content:** [Volvo Trucks](https://www.volvotrucks.com.au/ "CDJ Equipment Official Website") are a common sight on Australian highways. Built in Australia since 1972, the brand is synonymous with high quality prime movers which are ideal for long haul transport applications as road trains, general haulage, livestock transport and many other businesses. But Volvo is also a manufacturer of a range of high quality construction equipment and machinery. The range is available in Australia through a 20+ year partnership with [CJD Equipment](https://www.cjd.com.au/ "CDJ Equipment Official Website"). The Volvo brand is known for innovation and technological development and this is clearly evident in the construction machinery range. ## **GPPE Tracked Excavators** The range of [tracked excavators](https://www.cjd.com.au/products/construction-equipment/volvo-construction/gppe-tracked-excavators/ "CDJ Equipment Tracked Excavator Catalog") includes up to 24 different models so buyers can select the machine which is specific for their requirements. The range includes variations in specs from 0.66 cubic metres through to a huge 5.2 cubic metres, 15,790 to 91,402 kg and 69 to 443 kW. ## **GPPE Wheeled Excavators** The [wheeled excavator range from Volvo](https://www.cjd.com.au/products/construction-equipment/volvo-construction/gppe-wheeled-excavators/ "CDJ Equipment Wheeled Excavator Catalog") has been innovated in its design to compete with tracked excavators in the lifting and digging capability stakes. The wheeled machines allow transportation from site to site without the need for an additional vehicle which can be a massive benefit in terms of cost, hassle and time. Similar benefits to what you’ll receive from using Jade Equipment Finance to arrange your equipment loan! The range offers a number of options with booms in addition to attachments so users can optimise the equipment across a number of application. [Take advantage of that with an excavator finance](https://www.jadeequipmentfinance.com.au/excavator-loans "Explore our finance solutions for your next excavator purchase with Jade Equipment Finance"). ## **Compact and Mini Excavators** Getting in and around tight construction sites requires an excavator that is small in size but can deliver on performance. The Volvo range meets those demands and has become a market leader in Europe. These are multi-purpose machines that have the power to perform and the versatility to be suited to many mining, construction, infrastructure, swimming pool and residential building applications. ## **GPPE Wheel Loaders** The [wheel loader range](https://www.cjd.com.au/products/construction-equipment/volvo-construction/gppe-wheel-loaders/ "CDJ Equipment Wheel Loader Range") offers quite a number of models with variations in specs from 2.1 cubic metres to 6.9 cubic metres and 11,840 kg to 50.930 kg capacity. Top of the range in regard to capacity is the Volvo L350H which is powered by a Volvo D16E engine with a rated output at 1700 rpm. An ideal machine for quarrying, mining and infrastructure the L350H includes Volvo’s load sensing hydraulics which enhance performance and operation. ## **Compact Wheel Loaders** For smaller applications and sites including agricultural applications as well as construction, the [Volvo compact wheel loaders](https://www.cjd.com.au/products/construction-equipment/volvo-construction/compact-wheel-loaders/ "CDJ Equipment Volvo Compact Wheel Loaders") offer an affordable and attractive option. The smallest model is the L20F which has the D3.1A engine, a bucket capacity of 1 cubic metre and operating weight of 4340 kgs. The Volvo Construction Equipment range represents options for both large equipment fleet operators and sole trader owner/operator contractors across many construction project environments. ## **Volvo CE Finance Options** The suitability of the Volvo range of construction equipment to numerous sites and working environments and different owners and operators is matched by versatility in finance options offered by Jade Equipment Finance. We offer a range of finance products so businesses have an option that works with their accounting method, their preferred treatment of GST and tax deductions and their balance sheet strategy. Finance includes: - Equipment Leasing - [Equipment Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Explore how you can rent to own equipment with Jade Equipment Finance") - Equipment Chattel Mortgage - [Equipment Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Consider Commercial Hire Purchase Finance to fund your next equipment purchase") Leasing and Rent to Own are both off-balance sheet loans and suited to the accruals accounting method. The lender retains ownership of the Volvo equipment over the loan term but the borrower has full use of the machinery and excavator financing. This type of finance is considered a way of improving the appearance of a business balance sheet. An attribute that may be attractive to some businesses, especially those starting out. With Chattel Mortgage, the Volvo equipment is entered on the business balance sheet and as such depreciated in accordance with ATO rulings. With the current [Instant Asset Write Off](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps") and temporary full expensing budget measures, Chattel Mortgage is the most suitable form of finance for businesses looking to realise tax benefits under these measures. These types of loans differ with the treatment of GST – at what point in the equipment purchase and finance payment stage the GST is payable and claimable, and in relation to what elements are tax-deductible. While there are differences across loan types, Jade Equipment Finance provides the same level of quality lender services for all finance deals and structures loans with:- - Our cheap interest rate equipment finance which is fixed for the loan term - Fixed loan repayments - Fixed loan terms - Residual or balloon options For operators seeking no docs and [low docs finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "See how you can finance your equipment with no or low documents for your business") options, we have accreditation with non-bank lenders that tend to be more open to negotiating special loan terms and offer greater flexibility for many businesses. Your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Talk to a professional Jade Finance Broker on how you can finance your next equipment purchase") will make representation to the lenders on your behalf to save you time and hassle and deliver a cost-effective workable finance option where possible **For a finance quote on Volvo construction equipment contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THIS ARTICLE INCLUDES DATA, SPECIFICATIONS, INFORMATION AND OTHER MATERIAL WHICH HAS BEEN ACQUIRED VIA VARIOUS SOURCES, GENERALLY AVAILABLE IN THE PUBLIC DOMAIN FROM MANUFACTURERS, GOVERNMENT ORGANISATIONS AND SUPPLIERS. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN THE PRESENTATION AND INTERPRETATION OF THIS INFORMATION. THE ARTICLE IS PROVIDED FOR GENERAL INFORMATIVE PURPOSES AND NOT AS THE SOLE BASIS FOR MAKING FINANCIAL DECISIONS. IF ADVICE ON INDIVIDUAL FINANCES IS REQUIRED, IT IS RECOMMENDED THAT READERS REFER TO A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Interest Rate Cuts: React? Review? Refinance? Relax?](https://www.jadeequipmentfinance.com.au/blog/interest-rate-cuts-react-review-refinance-relax) **Published:** November 10, 2020 **Author:** Publisher **Content:** The economic impacts of the COVID-19 pandemic have led to a raft of measures being implemented by the Federal Government in particular and other authorities and bodies. Authorities have been attempting to use all the levers available to them (as the finance media refer to measures) to stimulate the economy and in turn create jobs. While the Government focuses on fiscal policy the [Reserve Bank of Australia (RBA)](https://www.rba.gov.au/ "Reserve Bank of Australia Official Website") has also been utilising it’s ‘levers’ with monetary policy initiatives. Early on in the pandemic, the RBA cut the official interest rate to 0.25%. A move that was much-welcomed. But as ‘more needs to be done’ the RBA has again moved on interest rates. The board of the RBA meet on the first Tuesday of most months and the financial community await the ensuing announcement with keen anticipation. Prior to these meetings, analysts often state their prediction as to whether or not rates will be changed. Some tipped the RBA to change rates back in October but others thought that wouldn’t happen due to the Federal Treasurer bringing down the budget in early October. That prediction played out and at their November meeting, while many Australians were picking their runner in the Melbourne Cup and the US was heading to the polls, the [RBA cut the official cash rate by 15 basis points to a new historic low of 0.1%.](https://www.abc.net.au/news/2020-11-03/rba-cuts-interest-rates-record-low-coronavirus-pandemic/12838760 "Reserve Bank cuts interest rates to record low of 0.1 per cent during COVID-19 recession") At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us about your next equipment purchase or get a free quote") we’re unpacking the implications of the rate cut in relation to both existing and future equipment finance deals so you can assess whether to review, react, refinance or just relax and keep operating as usual. ## **Overview** The RBA’s decision to reduce the cash rate means that banks can source their funds at a cheaper rate. The thinking being that they will pass on the benefit to customers in reduced lending costs and that in turn will motivate business to invest and that will create jobs. The cash rate is not the interest rate that businesses can expect on equipment finance loans but the basis from which the interest rate that lenders such as Jade can be built for our customers. Some banks immediately announced plans to pass on the cuts to some of the borrowers and other lenders followed with a range of plans. The immediate effect from an official interest rate cut is potentially and usually to home loan customers. As you might be aware, home mortgages are structured differently from loans such as [low rate equipment finance](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Explore our low equipment finance rates at Jade Equipment Finance"). Businesses with existing equipment finance contract at fixed interest rates will not see a reduction in their loan. The reports were that some lenders were passing on the cuts to ‘some business loans’ but that is unlikely to include the asset acquisition loans. The rate cuts should flow through to our area of concern, equipment finance, and those applying for new equipment finance may be offered a lower rate. However, it must be noted that Jade Equipment Finance is totally focused on always achieving the cheapest interest rates. Any reductions offered by our lending panel will be reflected in the rates we achieve. ## **Action Options** How you respond to the interest rate cuts will depend on your individual business circumstances. If you have existing finance deals which were arranged some time ago on a much higher interest rate, then reviewing your situation with a view to possibly refinancing is an option. Refinancing involves establishing new finance contracts to replace existing arrangements. It will involve costs incurred in paying out existing contracts early and in establishing new loan deals. That should all be considered, preferably in consultation with your accountant and your Jade consultant. If an equipment acquisition is in your short to medium term plans, then the rate cut may be the deciding factor to move on those plans. Your Jade consultant can provide you with a quick quote or you can use our calculator for a rough estimate on repayments. The calculator can be also be useful to see the variation in possible repayments when different interest rates are applied. Jade Equipment Finance provides cheap loans on a wide range of equipment and provides customers with a choice of:- - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Get your equipment or machinery with equipment leasing with us") - Rent to Own - Commercial Hire Purchase - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance") The choice of which type of finance facility is best suited to your business should be made in consultation with your accountant. ## **The Long View** The RBA has signalled that this new historic low interest rate may be in place for up to 3 years. Good news for those considering equipment acquisitions in the medium term. We stay across the big picture and encourage customers to review the current interest rate cuts in context and in conjunction with other measures and initiatives available through Government stimulus plans. Specifically, the [Instant Asset Write-Off](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps"), temporary full expensing and loss carry back. All these have time limits so businesses need to act within the financial years specified to be eligible. To calculate your repayments, try our [equipment finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Check your monthly repayments for your current or future equipment finances") and to find out how Jade can work with your business to achieve cost-effective asset investments, please contact us for an obligation-free discussion. **To discuss equipment finance options, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION, OPINIONS, DATA, POLICIES, PRODUCT SPECIFICATIONS AND OTHER CONTENT CONTAINED AND EXPRESSED IN THIS ARTICLE HAS BEEN OBTAINED THROUGH RECOGNISED REPUTABLE SOURCES, PRIMARILY IN THE PUBLIC DOMAIN. LIABILITY IS NOT ACCEPTED FOR ANY ERRORS OR MISINTERPRETATION OF SAID CONTENT. THIS CONTENT IS NOT INTENDED OR PROVIDED AS THE SOLE SOURCE OF INFORMATION OR AS SPECIFIC FINANCIAL ADVICE IN REGARD TO MAKING DECISIONS BY INDIVIDUALS OR BUSINESSES. THOSE THAT CONSIDER THAT THEY NEED PROFESSIONAL ADVICE SHOULD REFER TO A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Machining Equipment Finance Options](https://www.jadeequipmentfinance.com.au/blog/machining-equipment-finance-options) **Published:** November 14, 2020 **Author:** Publisher **Content:** One of the key priorities areas that [the Prime Minister, Scott Morrison](https://www.aph.gov.au/Senators_and_Members/Parliamentarian?MPID=E3L "Hon Scott Morrison") has flagged for economic recovery is manufacturing. A priority being to achieve sovereign capability across a number of specific sectors. While a significant amount of funding is on the table for companies to participate in the initiative, at Jade Equipment Finance we see opportunities for businesses at various stages in the supply chain. Specifically for engineering and machining workshops. For businesses to make the necessary pivots and other moves to manufacturing to meet the objectives as set by the Government, it is highly likely that new equipment and machinery will be required. While some of these machines will be acquired as complete units, in many cases, workshops may be called upon to create the necessary customised components and mechanisms to adapt existing equipment for new lines of production. Workshops may be seeking to invest in their own machining equipment in order to meet demand. Jade Equipment Finance can assist by working with your business to source cost-effective and workable finance options for the acquisition of new machining equipment. ## **Types of Machinery Financed** We source finance solutions for a wide range of machining equipment across multiple industry sectors. The type of machinery includes, but may not be limited to:- - Lathes including metal lathe machine financing - Boring bills - Milling machine finance - Plasma cutters financing - Presses - [Wood Chipper finance](https://www.jadeequipmentfinance.com.au/chipper-loans "Contact us about financing wood chippers for you and your business") - Grinding machine loan - Drilling machine loans - Power saws of all sizes and applications - Financing for machines with multi-tasking capabilities - Welding equipment across a range of applications - [CNC machine financing](https://www.jadeequipmentfinance.com.au/cnc-machinery-finance "Need a CNC machine for your business? Contact us for equipment finance solutions") - Inspection and testing equipment finance Both new and used equipment can be financed, subject to individual lender guidelines. Guidelines may apply to minimum and maximum loan amounts and conditions in relation to the age and working life of second hand equipment. ## **Eligible Businesses** Jade Equipment Finance works with customers in many locations across Australia and we’re well aware that engineering, metal-working and general machining workshops exist in many business structures. We provide finance options for the full range of business types and company structures: sole traders, small businesses, partnerships, SMEs, family businesses and large corporate concerns. As your finance lender, our services are designed to source you cheap finance and in doing so, ease the time pressures usually associated when business operators seek to arrange their own finance. We save you the time that you don’t really have in the first place! Your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Talk to our professional financial consultants about your equipment purchases") can become an essential component in your business planning team, providing access to exclusive industry-only lenders and expertise in structuring your finance deals. We’re accredited with multiple banks and lenders to provide you with greater scope in sourcing finance that genuinely meets your objectives. ## **Loan Types Available** Depending on your financial objectives and accounting issues, you can select from our full range of commercial finance facilities for equipment finance:- - Equipment Leasing - [Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance) - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase) - Chattel Mortgage These finance products offers its own individual features in regard to the treatment of GST, tax deduction benefits, balance sheet entry and suitability to either the cash or accruals method of business accounting. Due to interplay between finance type and business accounting, it is best to refer to your accountant for advice on choosing which will deliver the best outcome for your business. ## **Special Finance Considerations** For operators who are just starting up a new business, possibly branching out on your own, choosing to work as a sole trader and for other reasons, sourcing finance through the traditional banking sector can pose a challenge. Not all will meet the strict guidelines and have all the documentation required by the banks. For businesses that do not meet those guidelines, Jade Equipment Finance does offer no docs and [low doc equipment finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance). This specialised type of finance is for businesses that do not have all the complete financial accounts required by some lenders. Being offered a no docs or low docs loan is subject to individual lenders, but Jade does have accreditation with non-bank lenders that have proven on many occasions to be more flexible in granting cost-effective no docs finance deals. In order to be eligible for this type of finance you will need a minimum of a current ABN and proof of identity and preferably be registered for GST and the ability to provide at least basic details of business income/expenditure. This type of loan does attract a higher interest rate but your Jade consultant will be working towards achieving the [cheapest rate equipment loan](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Explore our low finance interest rates for all kinds of equipment and machinery") and a workable solution for your business. ## **Capitalising on Government Initiatives** As part of the COVID-19 stimulus efforts, the Federal government has introduced a raft of measures which can potentially deliver an enhanced tax benefit for businesses in regard to investment in assets such as machining equipment. These include the [Instant Asset Write-Off](https://www.jadeequipmentfinance.com.au/blog/chattel-mortgage-for-temporary-full-expensing-iawo "Chattel Mortgage for Temporary Full Expensing & IAWO") and temporary full expensing. These do have timeframes and eligibility criteria but should be noted as possibly significant in bringing forward your machining equipment purchases. **To discuss the options available to you in regard to machining equipment finance, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION, OPINIONS, DATA, POLICIES, PRODUCT SPECIFICATIONS AND OTHER CONTENT CONTAINED AND EXPRESSED IN THIS ARTICLE HAS BEEN OBTAINED THROUGH RECOGNISED REPUTABLE SOURCES, PRIMARILY IN THE PUBLIC DOMAIN. LIABILITY IS NOT ACCEPTED FOR ANY ERRORS OR MISINTERPRETATION OF SAID CONTENT. THIS CONTENT IS NOT INTENDED OR PROVIDED AS THE SOLE SOURCE OF INFORMATION OR AS SPECIFIC FINANCIAL ADVICE IN REGARD TO MAKING DECISIONS BY INDIVIDUALS OR BUSINESSES. THOSE THAT CONSIDER THAT THEY NEED PROFESSIONAL ADVICE SHOULD REFER TO A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [State of Play: State Budget News](https://www.jadeequipmentfinance.com.au/blog/state-of-play-state-budget-news) **Published:** November 17, 2020 **Author:** Publisher **Content:** The states and territories would normally announce their annual budgets around May each year. But just as the Federal Government did, the states have also postponed the release of their [2020-21 budgets](https://archive.budget.gov.au/index.htm "Budget Archive") with November now the timing. But prior to bringing down the full budget, several jurisdictions have been doing the usual pre-budget announcements and we’ve flagged a number of good news pieces to pass on to our customers. At this stage, we’re doing a quick whip around the states in a preview to full budget which we will report on at a later date. In general and in line with the Federal Budget approach, the theme is creating jobs through investment in major projects and providing business with a raft of cuts and relief to a range of fees, taxes and charges. For business, any cut to existing and expected expenses is good news as it frees up cash flow for investment in equipment to grow their operation. ## **NSW State Budget Preview** The NSW Treasurer, Dominic Perrottet will bring down the state’s budget on 17 November after deferring from the usual March timing. In a September statement, Mr Perrottet said the focus of the budget would be on jobs creation for the 2020-21 budget. Pre-budget releases include:- - Trade and industry the cornerstone of the budget. - On the ground assistance for key international markets with an increase in the number of NSW offices in global trade centres. - Extending the [Going Global Program](https://www.investment.nsw.gov.au/living-working-and-business/nsw-going-global-export-program/ "NSW Going Global Export Program - Investment NSW") which involves export coaching and expert services for businesses looking to expand their export business. - Advanced Manufacturing Strategy valued at $17.5m - $300m over 2 years for a Regional Growth Fund. - $75m Resources for Regions for infrastructure to support mining towns and communities. - $1.8m for continuing small business rebate program. The money can be used for equipment to improve workplace health and safety. - Major upgrades to 5 train stations to create jobs and improve the public transport system. - Relief for payroll tax for eligible businesses. - Commitment to support women and mature aged workers to take up trades through Trades Skills Pathways Centre. - Major digital investment initiatives which include cyber security, e-planning and other areas. - Major roads projects for several of the state’s worst crash spots including the duplication of Heathcote Road and Picton Road. These pre-budget announcements are in addition to other major investment already undertaken and planned by the NSW Government. Deserving of mention is the Electricity Infrastructure Roadmap which is set to modernise the infrastructure through speeding up approvals for transmission infrastructure in key Renewable Energy Zones and creating long term investments in these zones. Further detail will be reported when the full budget papers are available following the formal announcement. ## **South Australia Budget** The SA Treasurer Rob Lucas has brought down the state’s budget and it addresses the impacts of COVID-19 and bush fires on the state’s economy and focuses on creating jobs and backing business. All good indicators for our [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote on equipment finance & machinery loans") customers The package includes $592m in tax and fee relief and $354m for economic and business growth and significant investment in infrastructure projects. To see how your particular sector and your individual business may benefit, review the [complete budget document](https://www.statebudget.sa.gov.au/ "South Australia State Budget"). ## **Northern Territory Budget Announced** The NT Chief Minister who is also the [NT Treasurer, Michael Gunner](https://parliament.nt.gov.au/members/previous-assemblies "Previous Assemblies – Northern Territory Government – Legislative Assembly"), brought down the territory’s budget on 10 November with a raft of jobs creation and investment measures. For employers, the budget includes an extension of the Federal Government’s JobMaker program with additional wage subsidies for eligible workers. Payroll tax relief measures are also included. Read the [full detail](https://budget.nt.gov.au/budget-papers "Budget Papers | NT") and what’s in it for you. ## **What it means for equipment finance** Government media announcements and hi-vis press conferences in news bulletins may get overlooked amidst the demands of operating your business so you may not immediately realise ‘what’s in it for me?’ While we’re not in a position to draw finite conclusions on possible outcomes for every industry in which we operate we can provide some ideas on how you may take advantage of your state government budget inclusions. While the Federal Government budget and regulations cover the wider area of taxation which represents key cash flow gains for business, the budget initiatives by the states and territories may represent opportunities for new [business equipment financing](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Finance your equipment for your business whether big or small"). The investments in infrastructure should mean many more tenders on offer and if that’s your area of concern, it may be time to increase your equipment fleet. Relief in payroll tax across many states may free up cash flow which could be put to better use in servicing an equipment loan. Many of the packages announced by state governments need to be followed up by business operators in a proactive approach. If you see opportunities for growth in your state budget and are keen to invest in new equipment, have a discussion with Jade about how we can support you with [cheap interest rate equipment loan](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") deals. **To discuss equipment finance options, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THIS ARTICLE INCLUDES SPECS, DETAILS, DATA, POLICIES AND MATERIAL WHICH HAS IN THE MOST PART, BEEN SOURCED FROM THIRD PARTY SOURCES. NO LIABILITY IS ACCEPTED FOR ANY MISINTERPRETATION OF THAT MATERIAL OR ERRORS IN PRESENTATION. THE ARTICLE IS PROVIDED AS GENERAL INFORMATION FOR READERS AND IS NOT PROVIDED WITH ANY INTENTION THAT IT BE USED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. IT IS NOT OFFERED AS FINANCIAL ADVICE AND IS NO WAY INTENDED AS SUCH. THOSE THAT REQUIRE ADVICE AROUND THEIR INDIVIDUAL FINANCIAL SITUATION SHOULD SEEK CONSULTATION WITH A FINANCIAL ADVISOR* **Categories:** Finance --- ### [Equipment Finance: The Donut Index](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-the-donut-index) **Published:** November 24, 2020 **Author:** Publisher **Content:** Donuts or more specifically, double donuts, have moved into general conversation and represent positive news on many fronts. If you’re watching your waist line, then they’re not so good news. At the higher echelons of tennis, to have a double donut, or bagel as they tend to refer to them, against your name in a game can be crushing. But when a state is reporting the [daily COVID-19 statistics](https://covidlive.com.au/ "COVID-19 Tracking"), a double donut day, stats news become ecstatic news. That’s no new locally acquired cases of coronavirus and no deaths from coronavirus in that reporting period. It’s a record that countries around the world aspire to and Australia has achieved. From a business and economic perspective, we going to give it the moniker of The Donut Index because it also signals an easing of restrictions which have been holding back many businesses and the reopening of economies. All great signs for business to bring forward and action their equipment investment plans. At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or send an enquiry form to our team at Jade Equipment Finance"), we have customers across many industry sectors as we provide loans to construction and mining, medical and health, civil and civic works, manufacturing and engineering, general business, retail, hospitality, agriculture and farming, transport and many more. So we can’t be too specific in what the Donut Index may mean to you, but in general terms, it appears a positive indicator especially when considered in conjunction with other figures. ## **General Business Overview** Looking back, it’s hard to comprehend what 2020 threw at us all with the coronavirus pandemic and the reality is, for many businesses, when the clock ticks to 2021, it doesn’t mean it’s all over. The impacts will be felt for some time as Australia continues to be impacted by what is happening on a global basis. With the situation critical in the USA, UK and Europe, it is not looking like international travel will be back to pre-COVID levels for some time to come. But the tourism sector is seeing a positive impact from the domestic travel now that borders are being lifted and locals discover what’s on offer in their own backyard. On the domestic front, in October the consumer confidence bounced back to higher levels than pre-COVID which surprised many economic analysts. This is the figure that research groups calculate as the ‘mood’ of consumers towards the future. It can be used by businesses as an indicator of whether the time is right or not to invest and grow their business. Another big news item was the announcement by the Prime Minister Scott Morrison and [Trade Minister Simon Birmingham](https://www.trademinister.gov.au/minister/simon-birmingham "Regional Comprehensive Economic Partnership Agreement (RCEP)") of the RECP – a Regional Comprehensive Economic Partnership Agreement. This is [trade deal with Australia and 14 other countries in the Indo-Pacific region](https://www.dfat.gov.au/trade/agreements/not-yet-in-force/rcep "Regional Comprehensive Economic Partnership Agreement (RCEP)"). Touted as a potential major boost for exporters and particularly for the farming sector, this may be especially significant for your business. RECP could be the catalyst for you to invest your business operations with new export or [farm equipment finance](https://www.jadeequipmentfinance.com.au/farm-machinery-and-agricultural-equipment-loans "Finance farm and agricultural machinery with us"). Development of a COVID-19 vaccine is also impacting various areas of the economy. The US stock market, which flows through to the Australian scene, has been reacting in various ways as different pharmaceutical companies update their progress to the market. All part of keeping an eye on the Donut Index because a vaccine appears to be key to moving forward at full pace. ## **Interest Rates** As we reported previously, the RBA cut the official cash rate at the start of November and the new historic low rate is expected to be in place for some time. Jade has established our business based on an assurance of better interest rates and any shift downwards in the official rate should flow through our lending panel and allow us to offer even lower rate equipment finance. Consider the interest rate cut in conjunction with [Instant Asset Write-Off](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps") and temporary full expensing measures announced in the Federal Budget and the scenario for equipment acquisition becomes even more favourable. ## **Equipment Finance Update** Jade Equipment Finance continues to provide [cheap interest rate equip](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Learn about our low equipment finance interest rates and save")[m](/equipment-finance-interest-rates)ent finance for the purchase of many types of equipment. Our lenders include banks and many non-bank lenders that specialise in equipment finance and can offer extremely favourable loan deals because they have a better understanding of your industry. While we offer the full portfolio of business finance products, for those wanting to realise the taxation benefits of full expensing or IAWO, [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore how a chattel mortgage works the best for your equipment financing") is the most suitable type of loan. It is often named as an Equipment Loan by some banks, so don’t get confused, it is the same product. Chattel Mortgage is a relatively straightforward way to finance a wide range of equipment. The borrower purchases the equipment and has full use from day one while the lender takes a mortgage by using the equipment as security against the loan. This type of finance suits businesses that implement the cash accounting method. With this method, the asset is entered on the balance sheet and the tax benefit realised with depreciation of the asset over time and under the ATO rulings. Under full expensing and IAWO, eligible businesses can appreciate full depreciation of eligible assets in the year of purchase, subject to criteria and time frames. So if the Donut Index is the sign you’ve been waiting for to make those equipment investment moves, give us a call to discuss your options. **To discuss the equipment finance options contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THIS ARTICLE INCLUDES SPECS, DETAILS, DATA, POLICIES AND MATERIAL WHICH HAS IN THE MOST PART, BEEN SOURCED FROM THIRD PARTY SOURCES. NO LIABILITY IS ACCEPTED FOR ANY MISINTERPRETATION OF THAT MATERIAL OR ERRORS IN PRESENTATION. THE ARTICLE IS PROVIDED AS GENERAL INFORMATION FOR READERS AND IS NOT PROVIDED WITH ANY INTENTION THAT IT BE USED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. IT IS NOT OFFERED AS FINANCIAL ADVICE AND IS NO WAY INTENDED AS SUCH. THOSE THAT REQUIRE ADVICE AROUND THEIR INDIVIDUAL FINANCIAL SITUATION SHOULD SEEK CONSULTATION WITH A FINANCIAL ADVISOR* **Categories:** Finance --- ### [Bring it In: Making the connections with cuts and budget measures](https://www.jadeequipmentfinance.com.au/blog/bring-it-in-making-the-connections-with-cuts-and-budget-measures) **Published:** November 26, 2020 **Author:** Publisher **Content:** Business has certainly been deluged with offers, options and opportunities of support throughout the coronavirus pandemic. First it was the stimulus measures in March/April, then there were the recovery plans, then came the Federal Budget in October followed closely by the November [RBA rate cuts](https://www.rba.gov.au/statistics/cash-rate/ "Cash Rate Target | RBA") and the State and Territory budgets to round out a very busy year. Having the time and capacity to make the most of what’s available to you and how you can make it all work for you in acquiring new equipment can be a challenge. Identifying what comes to you automatically as a business, knowing what you have to apply for in order to receive and what you have to use your own initiative to benefit from. At Jade we’ve stayed across the situation and brought you resources and assistance in explaining individual measures and announcements. Now we’re bringing it in, make the connections between what’s on offer and how you can make it work with your [equipment finance](https://www.jadeequipmentfinance.com.au/ "Send an enquiry or contact us about financing equipment for you or your business") deals to achieve benefits for your business. ## **Overview** - The Federal Government controls issues in relation to taxation policy which include the accelerated depreciation measures such as [Instant Asset Write-Off](https://www.jadeequipmentfinance.com.au/blog/dont-write-off-your-instant-asset-write-off-opps "Don’t Write-off Your Instant Asset Write Off Opps | Jade Equipment Loans") and [temporary full expensing](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Temporary-full-expensing/ "Don’t Write-off Your Instant Asset Write Off Opps | Jade Equipment Loans") and policies including temporary loss carry back. These you have to use your own initiative and action to derive a benefit. - The Feds are also introducing significant support for their 6 priority sectors as we covered in earlier articles. Most of these measures involve grants to business which you need to apply for. - The [wage subsidy scheme](https://business.gov.au/Grants-and-Programs/Wage-Subsidy-Scheme "Wage Subsidy Scheme | business.gov.au") was also introduced and this would require paperwork to apply for while the individual personal income tax cuts happen automatically when you implement the new tax schedules. - The states and territories focussed on business support by way of payroll tax relief which is in their domain. The waivers and deferrals will come into play when you submit your next payroll tax return. If eligible, this can result in less costs for your business and therefore, greater capacity to invest in new equipment. - The states and territories are also spending their own money on major infrastructure and other projects which may present business opportunities for you. These you will need to seek out, usually through the government tender scheme or via your existing customers. There may also be flow-on effects to your operation. - Several states are also offering small business grants which you would need to apply for. Some are sector-specific, some more general. Details of these should be available on the state treasury or business website. - Some states, notably WA, TAS and NSW are offering vouchers to consumers to spend on dining, entertainment and some travel. Businesses that wish to accept these vouchers and receive the boost to income would need to register with the relevant state authority. More income means improved cash flow which can free up funds for investing in new equipment. ## **Rate Cut Impacts** The RBA’s cut to the official cash rate essentially means interest rate cuts. The banks and other lenders can pay less to access their funds so they can charge you less to borrow it. This cut will not impact existing Jade deals which we have arranged on fixed interest rates. If you have existing loans that were established several years ago at much higher rates, speak with Jade about the options around refinancing at the current lower rates. This may also involve restructuring your finance deals by rolling several loans into one package to relieve pressure on cash flow in this more difficult economic climate. Jade Equipment Finance always sources the [cheapest interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") for our customers and this should result in cheaper rates for our equipment finance deals. As we are accredited with many lenders, we have the connections to source which lenders are offering the best deals for your specific sector. ## **Securing Cheap Interest Rate Equipment Finance** Many businesses are keen to take advantage of what’s on offer, especially in regard to IAWO and temporary full expensing, to upgrade and replace their existing equipment fleet. These measures require using a finance product where the asset is listed on the business balance sheet so it can be depreciated or written-off or fully expended. Jade provides [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Interested in financing equipment for your business? Contact us at Jade Equipment FInance ") as the most appropriate loan for this purpose. Despite the sometimes confusing name, this loan is relatively straight forward in structure. Jade arranges the finance at a fixed cheap interest rate, over a fixed term, with fixed repayments and the option of a balloon. The borrower business has full use and ownership of the equipment from day 1 and the lender takes a mortgage over the asset. Mortgage meaning, the equipment is used as security against the loan. Banks are tending to refer to this type of finance more simply as Equipment Loan. We have lenders that specialise exclusively in equipment finance and their deeper understanding of key industry sectors tends to make them more flexible and versatile when offering loan deals. That combined with Jade’s expertise in negotiating on interest rates and loan conditions can result in cheaper finance for our customers. So that’s a brief ‘bringing it all’ in snapshot of some of the measures, policies and programs currently on offer to business. Speak with our Jade [finance consultants](https://www.jadeequipmentfinance.com.au/broker "Learn how our brokers can help you with financing equipment for your business") about how we can make it all work for your business with the purchase of new equipment. **To discuss equipment finance options, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: ALL INFORMATION PROVIDED IN THIS ARTICLE IS INTENDED AS GENERAL INFORMATION PURPOSES AND NOT AS AN EXCLUSIVE OR SOLE SOURCE FOR MAKING FINANCIAL DECISIONS. INDIVIDUALS SHOULD SOURCE INDEPENDENT ADVICE FROM A FINANCIAL ADVISOR IF THEY REQUIRE SPECIFIC DIRECTION IN RELATION TO THEIR CIRCUMSTANCES. CONTENT MATERIAL, DATA, SPECIFICS, PRODUCT FEATURES AND OTHER INFORMATION IS SOURCED FROM A RANGE OF SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS OF SUCH DATA.* **Categories:** Finance --- ### [No Deposit Equipment Finance - Special or Standard?](https://www.jadeequipmentfinance.com.au/blog/no-deposit-equipment-finance-special-or-standard) **Published:** November 28, 2020 **Author:** Publisher **Content:** The lending sector is vast and highly competitive in some areas, with multiple lenders vying for a share of the business on offer. In addition to the traditional sources of banks, finance companies and finance brokers, there are other types of businesses offering loans for all sorts of consumer and business acquisitions. Dealers, manufacturers and other sellers are now in the game through, usually, arrangements with finance companies. Having the opportunity to sign up for a loan at the same point of purchase can be seen as a convenience for many buyers. Convenience but not necessarily cheaper. At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote at Jade Equipment Finance about your next equipment purchase") we make it very convenient and smooth to source finance – but more on that later. This expansion of the lending sector and competition for business, naturally results in an advertising overload. One of the popularly seen slogans is ‘no deposit finance’. You’ve probably seen it over and over again. Sounds great, especially if you’re planning the purchase of a piece of equipment with a pretty hefty price tag or financing it with [interest](https://www.rba.gov.au/ "Reserve Bank of Australia Official Website"). Finding the ready cash to fork out for a deposit can put pressure on cash flow. Not everyone has that sort of money sitting around doing nothing. Most businesses run on pretty tight margins. So not having to find a deposit sound very appealing. But is this really a special offer or is it standard operating practice by most lenders? Yes and No. But we explain. ## **Definitions and Differences** By simple definition, no deposit finance essentially means borrowing 100% of the purchase price of the equipment. But it is who is making this offer that determines any differences or variations in what is actually on offer. A deposit may be requested by any seller in order to hold the equipment out of the market while the buyer gets their payment sorted. A deposit is made to confirm the purchase. In the case of custom equipment or machinery that requires commissioning or other pre-purchase processes, a deposit may be requested so the seller can cover their costs involved and as confirmation that the buyer won’t change their mind. When the buyer then sources finance for that equipment, they can include any deposit they have paid to the seller in the total loan amount being requested. When the lender pays the seller at settlement, the seller can refund the deposit back to the buyer. It is a holding deposit. That would need to be agreed to between buyer and seller. So the lender in this example is not requesting a deposit, they are extending the full purchase price in the loan deal. Special or standard? Read on. ## **Standard Jade Equipment Finance Deals** At Jade, we approach every customer’s finance application on an individual basis with each one personally sourced and negotiated to achieve a tailored finance solution. Not as a standard cookie-cutter equipment loan. However, there are standard or consistent features across most equipment loans and that includes no deposit. Essentially, for businesses with good credit that meet lender requirements, the lender will not request the borrower pay a deposit on the finance. On commercial finance deals, the first’s monthly repayment is often due at the time of signing the contract. But that is standard practice in many cases. For most equipment finance deals, Jade will be seeking 100% of the purchase price in the finance deal for the customer. That is, no deposit finance and that is standard not special. It is applicable for Leasing, [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore financing your equipment with Commercial Hire Purchase"), Rent to Own and [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Explore financing your equipment with Commercial Hire Purchase"). ## **Exceptions to the Standard** As loan applications are addressed and assessed individually and individual lenders will have their own requirements, exceptions will occur. In some cases, the lender will request the borrower reduce the total loan amount being requested. This can be achieved by paying a non-refundable deposit to the seller to reduce what is owed on the purchase price. So the lender is not actually asking for a deposit be paid they are saying they are not prepared to offer that business that total amount in a loan for that particular piece of equipment. This may occur in a few scenarios:- - Used equipment purchases. The lender will include the value and life of equipment when assessing the overall risk associated with a loan deal. If they consider the total loan amount exceeds the value or perceived value over time, they may request a lesser loan amount be requested. Effectively meaning no deposit finance is not available. - No Docs or [Low Docs Equipment Loans](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Low or No docs? Click here to learn about equipment financing with us"). In many of these cases, the borrower can expect to be asked to pay some form of deposit on the equipment to reduce the ratio of loan to value of the equipment. This condition would be made on an individual basis. This may apply to the purchase of both new and used equipment. If offered ‘no deposit finance’ in either of the above scenarios when possibly your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Talk to our professional finance brokers for your equipment finances") has sourced you a deal where a deposit is requested, look at the detail! Any big claim finance deals can conceal higher interest rates or charges. Jade Equipment Finance is a licensed finance broker and credit provider and abides by the Code of Conduct of the industry association and ASIC regulations. We always source the cheapest offers that meet our customer requirements. Every deal is special and in most cases, no deposit is standard. **To discuss equipment finance options contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: ALL INFORMATION PROVIDED IN THIS ARTICLE IS INTENDED AS GENERAL INFORMATION PURPOSES AND NOT AS AN EXCLUSIVE OR SOLE SOURCE FOR MAKING FINANCIAL DECISIONS. INDIVIDUALS SHOULD SOURCE INDEPENDENT ADVICE FROM A FINANCIAL ADVISOR IF THEY REQUIRE SPECIFIC DIRECTION IN RELATION TO THEIR CIRCUMSTANCES. CONTENT MATERIAL, DATA, SPECIFICS, PRODUCT FEATURES AND OTHER INFORMATION IS SOURCED FROM A RANGE OF SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS OF SUCH DATA.* **Categories:** Finance --- ### [Extension to HomeBuilder Grant Scheme](https://www.jadeequipmentfinance.com.au/blog/extension-to-homebuilder-grant-scheme) **Published:** December 2, 2020 **Author:** Publisher **Content:** Staying across the news and keeping up with all government announcements in regard to business support has been a massive task throughout the [COVID-19 pandemic](https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/coronavirus-covid-19-current-situation-and-case-numbers "COVID-19 reporting"). We know, our team has been attempting to stay up to date to bring the information to the attention of our customers. While the support is greatly appreciated and in many cases desperately needed, being in a position to know what is available, how it may benefit you and what you need to about it, can involve time that you just don’t have. No problems as we have members of our team following the government press conferences, scouring media releases and analysing the announcements to see what is relevant to our finance lending sector. At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Send us an enquiry about financing your personal or business equipment") we’re not just committed to cheap finance deals. We are also intent on bringing information forward which may present benefits and opportunities which can work in with or are complementary to our customers’ equipment acquisitions. That all said, the significance of one announcement which we noted in the news on [Sunday 29 November when much of the country was sweltering through a record-breaking heatwave](https://www.theguardian.com/australia-news/2020/dec/01/australia-endures-hottest-spring-ever-with-average-temperatures-more-than-2c-above-average "Australia endures hottest spring ever, with temperatures more than 2C above average"), may have slipped passed you. Our team have it covered and we bring you news of changes to the [Federal Government’s HomeBuilder Grants Scheme](https://treasury.gov.au/coronavirus/homebuilder "Australia endures hottest spring ever, with temperatures more than 2C above average") and what that may mean to your business. ## **HomeBuilder Stimulus Measure** - The HomeBuilder Grants Scheme was originally announced in June as part of a much larger business support program by the Federal Government to stimulate the economy out of the COVID recession. - This scheme was specifically targeted to the home building industry with the intention to create jobs and get tradies back to work. - The scheme offers cash grants to eligible people of $25,000 towards building/buying a brand new home or making renovations to their existing dwelling. - The timeframe was from time of announcement through to 31 December 2020. - The states and territories signed onto the scheme as some of the aspects impacted their legislative areas of control. - Issues arose with people trying to get both their building plans and their grant applications processed and approved and ready to go facing delays which posed a risk to them being able to participate. - It is understood, that the building industry and other interested groups lobbied to have the expiration date extended. ## **Changes to the Scheme** On Sunday 29 November, [Treasurer Josh Frydenberg](https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018 "The Hon Josh Frydenberg MP") announced changes to the scheme:- - Deadline extended from 31 December to 31 March 2021. - The amount of the grants reduced from $25,000 to $15,000 - The lower amount applies to contracts which are signed from 1 January 2021 to 31 March 2021. - An increase in the time to start construction has been allowed. - In conjunction with the changes, several states have increased their price caps on new home builds: Victoria has lifted its cap to $850,000 and NSW has lifted its to $950,000. ## **Potential Opportunities Presented** While the scheme targeted on getting tradies back onto their tools, the wider building and construction sector has the potential to benefit from the HomeBuilder Scheme. An increase in new home builds and renovations, presents potential increases in work and sales to materials producers and suppliers as well as to all trades involved in the hands-on building process requiring businesses to [finance construction equipment](https://www.jadeequipmentfinance.com.au/construction-equipment-financing "Explore our construction equipment finance solutions"). Architects, planners, excavators, builders, brickies, concreters, sparkies, plumbers, tilers, painters, plasterers, landscaper to name just a few. Move out further in the sphere and producers of building materials including fixtures and fittings such as windows, kitchens, bathrooms and many others stand to benefit. ## **Equipment Investment Options** If you’re in the building and construction industry, this announcement could be the sign you’ve been waiting for to make that new equipment purchase. Excavation equipment, backhoes, scaffolding, manufacturing and production machinery, [engineering machinery](https://www.jadeequipmentfinance.com.au/engineering-equipment-loans "Click here for finance solutions for your next engineering equipment purchase") – whatever you need to take advantage of an increase in work. The timing is ripe and right for equipment acquisition with interest rates at record lows and several other Government measures coming into play around asset investments. In particular, the [Instant Asset Write-Off scheme](https://www.jadeequipmentfinance.com.au/blog/chattel-mortgage-for-temporary-full-expensing-iawo "Chattel Mortgage for Temporary Full Expensing & IAWO") which we’re sure you’ve heard plenty about already. This allows eligible businesses to depreciate the full purchase price of the equipment in the year of purchase (limited to 30 June 2021) rather than having to depreciate the asset incrementally over several financial years. To purchase equipment and receive the benefits of IAWO, Chattel Mortgage is the most suitable finance product. Jade Equipment Finance offers great deals on [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance") for a large range of equipment across all industry sectors. Chattel Mortgage is quite a straightforward form of business loan. The borrower purchases the equipment, takes ownership and has full use while the lender holds a mortgage over the equipment until the loan is paid out. This form of finance has the option of a balloon so you can reduce the amount of repayments by varying the balloon, to ensure the repayments will work with your business objectives. Jade is accredited with many lenders, not just banks, and we have special industry-only access to several non-bank lenders that specialise in key industries. This enables our consultants to source [cheaper interest rate](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check our low interest rates for financing equipment and machinery") equipment loan deals for our customers. If the changes to the HomeBuilder Scheme present some great work opportunities for your business, speak with Jade about how we can assist with cheap finance for the equipment you need. **Contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION WHICH HAS BEEN PREPARED AND PRESENTED IN THIS ARTICLE IS INTENDED FOR GENERAL INFORMATIVE PURPOSES ONLY. IT IS NOT IN ANY WAY MEANT TO BE USED AS THE ONLY SOURCE OF INFORMATION OR ADVICE IN REGARD TO FINANCIAL DECISIONS. IF YOU CONSIDER YOU NEED GUIDANCE, WE RECOMMEND YOU SEEK OUT A PROFESSIONAL FINANCIAL ADVISOR. THE DATA, DETAILS, SPECS AND OTHER MATERIAL PRESENTED IS SOURCED FROM VARIOUS SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS AND MISINTERPRETATIONS IN PRESENTING THIS INFORMATION.* **Categories:** Finance --- ### [Finance for the Next Normal](https://www.jadeequipmentfinance.com.au/blog/finance-for-the-next-normal) **Published:** December 5, 2020 **Author:** Publisher **Content:** The coronavirus pandemic has brought many new words, terms and phrases into the everyday conversations. Of interest to the business sphere is the constant mention of having to adapt to COVID-normal or the new normal. Considering the restrictions and regulations have been in a constant state of change since early 2020, business owners can be excused for wondering what normal really is. Astute business operators know that they always have to be agile and flexible and ready to adapt to unexpected changes in their market. Businesses have always needed to be prepared to adopt new processes and practices and COVID-19 has only emphasised that even more. To a massive extent, we admit, but change has always been out there. At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or receive a free quote about your next equipment purchase") we stay across the changes and movements in many industries as much as possible to bring our customers a wealth of information around finance and lending so you are informed and prepared to adapt when needed. We provide support to businesses of all sizes and types – SMEs, [sole traders](https://www.smallbusiness.wa.gov.au/business-advice/business-structure/sole-trader "Business structure"), corporates, partnerships and family businesses – through cost-effective and individually sourced finance for equipment acquisitions. ## **You may be set up for this normal, but are you digital ready for the next normal?** As a result of the COVID-19 pandemic, we’ve seen massive changes to not only how businesses need to operate to meet legislative and compliance obligations, but also changes on the buying side. Whether you’re producing and selling direct to consumers or operating B2B, you’re likely to have experienced a shift in how you are engaging with your customers. Are your ready for your new customers? Investing in technology has been key to business success over the past 10-20 years and being digitally prepared has never been more important. Digital readiness is essential to society and business success. This was highlighted throughout the pandemic with millions of workers working from home and businesses needing to ensure their systems were secure and up to standard to deal with the situation. With many businesses deciding that WFH might be the way for the new and the next normal, addressing your technology equipment requirements could be required. If you need to upgrade your systems speak with Jade Equipment Finance about how we can support and assist you with cost-effective hardware and [software financing](https://www.jadeequipmentfinance.com.au/software-finance "Need financing for software? Contact us at Jade Equipment Finance for our help"). The timing is ideal for investing in business assets with the government’s Instant Asset Write-Off scheme available and interest rates are record lows. While much advertising attention has been focused on IAWO for cars, trucks, machinery and heavy duty equipment, the cost of technology systems may also be eligible for eligible business. In order to acquire assets and realise the taxation benefits of IAWO, a Chattel Mortgage finance product is the most suitable. We’ve covered the details of this type of finance in our web pages and through several articles in our news library, and your Jade consultant can answer any other queries you may have. ## **Wide Range of Equipment Financed** While the federal government has earmarked 6 priority areas for support through their [Modern Manufacturing Strategy](https://www.industry.gov.au/data-and-publications/make-it-happen-the-australian-governments-modern-manufacturing-strategy/our-modern-manufacturing-strategy "Enabling a productive economy, enriched by science and technology, for all Australians") announced in October, Jade provides finance for many types of equipment across multiple industry sectors. [Medical finance](https://www.jadeequipmentfinance.com.au/medical-equipment-loans "Explore financing options for medical equipment with us at Jade Equipment Finance"), construction, mining, gyms, hospitality, building, [general business equipment](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Explore financing options for medical equipment with us at Jade Equipment Finance"), retail, professional services, beauty services businesses, printing and signage businesses, tourism and accommodation are just a few of the businesses and industries that Jade supports with cheap equipment finance. ## **Financial Readiness** Connections are essential to business in every stage of ‘normal’ operations including in regard to your financing requirements. Jade Equipment Finance provides not only one-off requests for equipment loans but establishes ongoing relationships with many businesses. Being connected with Jade can place you in an ideal position to be financially ready to swivel, pivot and adapt when change or necessity give you a shout out. Your business can take advantage of our connections with a large number of lenders that offer finance for the equipment you need, at better interest rates. Our portfolio of finance products covers the full spectrum of business loans including:- - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore chattel mortgage financing for your equipment needs") for Equipment - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Dive into equipment leasing for your business equipment needs") - [Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Learn more about equipment rental finance for your business with us") - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Discover the advantages of Commercial Hire Purchase for your business equipment") for Equipment Our consultants are all fully trained and licensed lenders with exceptional skills in negotiating the best deals and structuring finance contracts to suit even the most high-value equipment and machinery. We deal with businesses of all sizes and equipment and machinery across all cost price ranges. (Subject to lender minimum thresholds). Being ready for the new normal or better still, the next normal, whenever that may occur, requires having the right team on your side to source the finance you need to operate and grow your business. Despite restrictions, regulations and border closures, we have continued to provide our streamlined finance lending service to businesses across Australia throughout the pandemic. Testament to our experience and expertise and our ability to adapt to not just our new normal but more importantly the ‘normal’ that our customers are facing. **To discuss equipment finance options contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION WHICH HAS BEEN PREPARED AND PRESENTED IN THIS ARTICLE IS INTENDED FOR GENERAL INFORMATIVE PURPOSES ONLY. IT IS NOT IN ANY WAY MEANT TO BE USED AS THE ONLY SOURCE OF INFORMATION OR ADVICE IN REGARD TO FINANCIAL DECISIONS. IF YOU CONSIDER YOU NEED GUIDANCE, WE RECOMMEND YOU SEEK OUT A PROFESSIONAL FINANCIAL ADVISOR. THE DATA, DETAILS, SPECS AND OTHER MATERIAL PRESENTED IS SOURCED FROM VARIOUS SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS AND MISINTERPRETATIONS IN PRESENTING THIS INFORMATION.* **Categories:** Finance --- ### [Temporary Full Expensing Update: Asset Improvements](https://www.jadeequipmentfinance.com.au/blog/temporary-full-expensing-update-asset-improvements) **Published:** December 8, 2020 **Author:** Publisher **Content:** As lenders for all types of equipment, heavy vehicles and other assets, [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us directly or get a free quote on the equipment you wish to purchase") stays across developments, news and policy in regard to business lending, equipment investment and asset acquisitions. Due to the economic impacts of COVID-19, we have maintained a constant watch on announcements of stimulus measures and other assistance provided at both federal and state government level. We have covered many of these measures in our articles so our customers can quickly access information on how the measures and policies interact and impact equipment finance. Instant Asset Write-Off has been somewhat the lending story of 2020. Introduced in March as one of the first benefits for businesses and then the deadline was extended to allow more businesses to take advantage of what was on offer. Both buyers and sellers of equipment benefit. The buyers through the tax write-off and sellers in the increased sales the measure stimulated. In the Federal Budget the IAWO measure was further extended and expanded with the addition of the temporary full expensing. These combine to allow even more businesses to take advantage of the tax benefit for the acquisition of a wider range of assets. We’ve covered these topics in great detail in a number of articles, but recently an issue has come to our attention which requires an update. The issue being that the addition of safety enhancements and equipment (subject to eligibility criteria) to existing heavy vehicles appears to be eligible for the IAWO and temporary full expensing measures. ## **Safety Enhancements Eligible for IAWO** In a speech to the [Heavy Vehicle Industry Association](https://hvia.asn.au/ "Heavy Vehicle Industry Australia"), the Hon [Scott Buchholz MP](https://www.aph.gov.au/Senators_and_Members/Parliamentarian?MPID=230531 "Heavy Vehicle Industry Australia"), who is the Assistant Minister for Road Safety and Freight Transport clarified the position in regard to safety enhancements. He stated that if operators upgraded existing trailers with safety enhancements, those enhancements would be covered and eligible under the IAWO and temporary full expensing criteria. (While we trust this source, we do advise checking criteria and eligibility for your business and the particular equipment with your accountant.) This would mean that the cost of the enhancements could be fully depreciated and deducted as a taxable expense in this current financial year, subject to the eligibility criteria. Our source reports that improvements and upgrades not just the acquisition of an asset are included. As with most tax policies, there are exclusions and criteria, but this could be worth you considering. In reporting on the Assistant Minister’s speech, the HVIA related several examples produced by the ATO as to scenarios of where the acquisition of safety enhancements and improvements to existing assets would be eligible for IAWO and full expensing. If interested, check the [www.ato.gov.au](http://www.ato.gov.au "Australian Taxation Office Official Website") website for these and other examples or speak with your accountant. ## **Finance for Equipment Acquisitions** Such safety enhancements as referred to in this speech and HVIA discussion, may represent a significant equipment acquisition for your business and as such require cost-effective finance solutions. Jade Equipment Finance specialises in tailored finance solutions for the acquisition of a wide range of equipment and assets for all types of businesses. We are ideally placed to source [cheap equipment finance interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Have a look at our low interest rates for equipment financing") regardless of business set-up, for large companies, family businesses, sole traders, partnerships and SMEs. Through our accreditation with several key non-bank lenders that operate solely in the equipment finance sector, we have access to lenders that are flexible and negotiable when it comes to structuring equipment loans. While we offer the full range of commercial finance facilities, for eligible businesses seeking to realise the benefits of IAWO or temporary full expensing with the equipment acquisitions, Chattel Mortgage is the most suitable loan type for this purpose. ## **Chattel Mortgage Suitable for IAWO** For those not as familiar with [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore equipment financing with a chattel mortgage at Jade Equipment Finance") as with other loan types such as Leasing and Rent to Own, it is a very straightforward type of finance. Many banks have now dropped the (to some people) unusual title and refer to this type of finance simple as Equipment Loan. - The borrower takes ownership of the equipment while the lender uses the equipment (chattel) as security against the loan (mortgage). - The borrower repays the loan in equal monthly repayments over the fixed loan term. A balloon is optional. - As the borrower has ownership the equipment appears on their balance sheet and as such is depreciated in accordance with the ATO guidelines of the day. - Currently those tax rulings allow eligible businesses to full deduct the purchase price of eligible equipment in the year of purchase that is the current financial year if purchased post Federal Budget. All subject to IAWO and full expensing criteria. - As the deduction is realised through depreciation, the repayments are not full tax deductible only the interest is deductible. - The full GST payable on the equipment can be claimed in the next BAS return. Your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Speak with our Jade Finance Brokers regarding your equipment finances") will consult with you in regard to your financial objectives and source a quote on a Chattel Mortgage for your equipment purchase. For further information on taxation policy and current benefits for business, refer to ATO and keep checking in with our articles as our team continue to update on new policy measures. **For a quote on a cost-effective loan for your equipment purchase, contact Jade Equipment Finance on 1300 000 003** DISCLAIMER: READERS ARE ADVISED THAT THIS INFORMATION AS PRESENTED IN THIS ARTICLE IS INTENDED FOR GENERAL INFORMATION PURPOSES AND NOT AS FINANCIAL ADVICE. PEOPLE NEEDING FINANCIAL ADVICE ARE RECOMMENDED TO CONSULT WITH A FINANCIAL ADVISOR TO ASSIST IN REGARD TO THEIR INDIVIDUAL CIRCUMSTANCES. INFORMATION AND CONTENT IN THIS ARTICLE MAY HAVE BEEN SOURCED FROM A RANGE OF PUBLICATIONS AND INFORMATION RESOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, OR *MISINTERPRETATION OF OTHER ISSUES AROUND THE PRESENTATION.* **Categories:** Finance --- ### [EOY 'Sale Ready' Finance](https://www.jadeequipmentfinance.com.au/blog/eoy-sale-ready-finance) **Published:** December 12, 2020 **Author:** Publisher **Content:** While some businesses have fortunately thrived or at least continued to operate to relatively normal levels throughout the coronavirus pandemic, for many others 2020 has been a shocker! There’s no mincing words when it comes to that fact. Thanks to the [Government stimulus measures](https://treasury.gov.au/coronavirus "Government Stimulus Measures"), many operators have stayed in a good place while others are looking to make the most from the reviving economy as 2020 comes to a close with a sale event. End of year sales are traditionally associated with the retail sector, in particular the infamous Boxing Day sales at major retailers. But these sales events extend well beyond retail or even consumer goods with some equipment manufacturers and dealers getting in on the action with an end of year clearance of stock. Clearance and discounts at any time of year are welcome but in the wake of a recession and a global pandemic, any savings on the purchase of business equipment will no doubt be welcomed. Jade Equipment Finance is essentially always ‘on sale’ as our cheap equipment loans are always available. But when you purchase business equipment at a sale price with a cheap Jade finance deal – that’s double happiness right there. If you’re thinking of taking advantage of end of year sales to upgrade equipment for your business then it’s wise to be prepared and that preparation starts asap by having your finance sorted beforehand. ## **Pre-Approved Equipment Finance** When purchasing equipment in normal times, you may take your time to consider the options in regard to equipment makes and models before arriving at a decision and then contacting Jade to arrange finance. But sale time is different. There can be limited stock of some equipment makes and models, the sale may be for a limited time and the seller may not ‘hold’ items while buyers wandered off to arrange finance. They’re holding a sale to move stock and move stock quickly. Buyers need to share the sentiment and be ready to move quickly themselves. For that purpose, Jade Equipment Finance recommends contacting us ahead of time to arrange your pre-approved finance. This type of finance follows the same application processes as with loans applied for after the purchase decision except the loan is approved for a dollar value rather than based on an invoice from the supplier. The process for applying for pre-approved equipment finance is simple and prompt through Jade:- - Contact Jade via phone or online to request a quote or apply immediately. - Your Jade consultant sources you a quote from across our vast lending panel. Quotes are accessed quickly so we can work to your timeframe. - When you accept our quote, we proceed to process your application to approval stage. - Once approved, you can confidently head to the equipment sale event ready to buy. - When you make your purchase, the supplier may request a deposit to hold the item while the lender finalises payment. Usually, this type of holding deposit can be refunded back to you when our lender finalises the invoice with the seller. ## **Eligible Equipment** Jade Equipment Finance provides loans for a very vast range of business equipment. We cover all industries and many individual types of equipment, subject to lender guidelines. These include:- - Construction, building and mining equipment - health and [medical equipment finance](https://www.jadeequipmentfinance.com.au/medical-equipment-loans "Click here to learn about our finance solutions for your medical equipment") - Beauty services and hairdressing equipment - Fitness and [Gym equipment finance](https://www.jadeequipmentfinance.com.au/gym-equipment-loans "Explore our finance options for gym and fitness equipment") - Trades tools and equipment - General business machinery and equipment such as IT, comms, security equipment - [Manufacturing, processing machinery & industrial finance](https://www.jadeequipmentfinance.com.au/industrial-equipment-finance "We offer finance solutions for equipment from all sorts of industrial fields") - Engineering machinery And many many more! When discussing your equipment and machinery finance with your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Get in contact with our Jade Consultants for your next equipment purchase") don’t forget to discuss including the costs of delivery, installation and commissioning of the equipment. These are added expenses which in some cases can be significant. Having them included in your loan can free up your cash for other purposes. ## **Pre-Approved Loan Types** Pre-approved finance is available across our full selection of business finance, including:- - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance") - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Acquire your business equipment or machinery with equipment leasing at Jade Equipment Finance") - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Consider Commercial Hire Purchase Finance to fund your next equipment purchase") - [Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Explore how you can rent to own equipment with Jade Equipment Finance") For the full details of each of these finance products, head to our specific web pages or give us a call so our consultants can explain each to you. If you are planning to realise the benefits of IAWO or temporary full expensing with your purchase, then Chattel Mortgage is the most appropriate form of finance. The name, Chattel Mortgage, may sound odd but be assured it is a very straightforward form of finance and one of the most commonly used for business equipment acquisitions. Several banks refer to this simply as Equipment Loan. With all Jade Equipment Finance deals, we ensure our [cheap interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check our low equipment finance interest rates") which are negotiated individually for each business. All elements of the loan – loan term, repayments and balloon – are fixed, so you can plan your cash flow through the term of the loan. If you want to head into 2021 with new machinery or equipment – new trade tools, upgraded business set-up, machinery to embark on venturing into new markets – then sale time could be the time to make it all happen. **To discuss pre-approved finance, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: READERS ARE ADVISED THAT THIS INFORMATION AS PRESENTED IN THIS ARTICLE IS INTENDED FOR GENERAL INFORMATION PURPOSES AND NOT AS FINANCIAL ADVICE. PEOPLE NEEDING FINANCIAL ADVICE ARE RECOMMENDED TO CONSULT WITH A FINANCIAL ADVISOR TO ASSIST IN REGARD TO THEIR INDIVIDUAL CIRCUMSTANCES. INFORMATION AND CONTENT IN THIS ARTICLE MAY HAVE BEEN SOURCED FROM A RANGE OF PUBLICATIONS AND INFORMATION RESOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, OR MISINTERPRETATION OF OTHER ISSUES AROUND THE PRESENTATION.* **Categories:** Finance --- ### [Residual, Buyback, Balloon: Same or Different?](https://www.jadeequipmentfinance.com.au/blog/residual-buyback-balloon-same-or-different) **Published:** December 15, 2020 **Author:** Publisher **Content:** Buying new equipment can have its challenges and complications – selecting which particular piece of equipment or machinery to buy, from which brand or manufacturer, sorting a deal with the dealer, working out what options will work best to deliver the outcomes you expect for your business. But we’re not interfering in that process. We have confidence that you know your business and you know your stuff in that space. What you don’t want to confront is confusion and issues around your equipment finance deal. Specifically, understanding the differences between the different loans types and their individual loan elements. The finance industry can appear to have its own dictionary when it comes to terminology. At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Send us an enquiry here about your next equipment purchase"), we are committed to ensuring that our truck loan customers fully understand their loan, what is involved and how to structure it to best meet their requirements. A full understanding means a fully informed decision around your investment decisions. Decisions which can be critical to your business growth. To meet that objective, in this article we’re focussing on the terms residual, balloon and buyback. You will see them mentioned in descriptions of equipment finance with, in some cases, a presumption that everyone will know what they are. We explain what is similar and what is different between these 3 loan elements. ## **Loan Element Definitions** Jade Equipment Finance provides a complete portfolio of commercial finance facilities including Leasing, [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance"), Rent to Own and [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance"). As we have covered and detailed extensively in our web pages and articles, each of these finance types is suited to either cash or accruals accounting methods, individual business structures, approach to the balance sheet, income tax and treatment of GST. So now to balloon, buyback and residual. These terms relate to these different finance facilities but essentially serve the same purpose. - Residual: this term is used for equipment leasing contracts. - Balloon: this term is used in reference to Chattel Mortgage and Commercial Hire Purchase deals. - Buyback: this term relates to equipment Rent to Buy or [Rent to Own finance](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Explore how you can rent to own equipment with Jade Equipment Finance") contracts Different names, but essentially they are the same thing. In general terms, it is the portion of the purchase price of the equipment or the overall loan amount, which is set aside for payment at a later stage. That is, it is not included when calculating the monthly repayments but due for payment at the end of the finance term. ## **The Purpose** The balloon/residual/buyback is usually referred to in terms of a percentage but can also be a fixed dollar figure. The key reason for including this element in an equipment finance contract is to reduce the amount payable each month in repayments. Some people also think of it as paying a deposit at the end rather than at the beginning. Instead of making a significant outlay for a deposit on an equipment investment at time of acquisition, that amount can be set aside or deferred for payment after you’ve made all the other payments. Interest is charged on this element of the loan. It is due for payment after the last repayment is made. Some lenders will have guidelines around how much they will permit in a balloon/residual/buyback but in many instances it is the borrower’s preference as to how much they want it to be or even if they want to include it all. With all Jade Equipment Finance deals, this is an optional element. With many items of equipment and machinery coming with significant price tags, being able to reduce the monthly outgoings in repayments with the inclusion of a balloon/residual/buyback can be the deal-maker or breaker with some purchase decisions. To make this element work to the best outcome for your business, consider cash flow through the life of the finance term and the anticipated value of the equipment when it comes time to pay the balloon/residual/buyback. If the amount you have to pay out is greater than the value that a lender considers the equipment is worth, you may have challenges if looking to refinance that residual. But this element is important to equipment finance and we encourage you to use our [equipment finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Calculate your repayments for your equipment loan here") to see exactly how it can work with your equipment purchase. Vary the balloon amount in the calculator and see how the repayments change. When it comes to arranging your equipment finance deal, your Jade consultant will work with you and possibly your accountant if you wish, to get the balance right between balloon and repayments. ## **Payout it Out** At the end of your finance term comes the time to finalise payment on the balloon/residual/buyback. Depending on the finance type, that will involve negotiations with individual lender such as for rent to own. Your end of contract may involve buying out the agreement to own the equipment or giving up claim to the machinery. With Chattel Mortgage it is more straightforward. The balloon is due to be paid on that set date and the borrower is responsible. It’s advisable to get organised a month or so ahead, call the lender for a final figure so you have the exact amount and start working on your payment. You can consider refinancing the balloon or residual with a lease with a new equipment finance deal with Jade or making the payment via your existing cash funds. We hope that has cleared up the differences and similarities with this terms and if you have any questions at all around equipment financing and our [interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check out our low equipment finance rates here"), please feel free to direct them to use. **For a quote on a cost-effective loan for your equipment purchase, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: YOU ARE ADVISED THAT THE INFORMATION PRESENTED HERE IN THIS BLOG, IS FOR GENERAL INFORMATION AND NOT INTENDED TO REPRESENT FINANCIAL ADVICE IN ANY WAY. IF YOU CONSIDER THAT YOU DO REQUIRE ADVICE IN REGARD TO YOUR FINANCIAL SITUATION, THEN WE RECOMMEND THAT YOU SEEK A CONSULTATION WITH A PROFESSIONAL FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO THE DETAILS OR ANY ERRORS IN THE CONTENT WHICH MAY IN PART HAVE BEEN SOURCED FROM A RANGE OF SOURCES.* **Categories:** Finance --- ### [Stats, Figures and Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/stats-figures-and-equipment-finance) **Published:** December 18, 2020 **Author:** Publisher **Content:** 2020 will be marked and long-remembered for a lot of reasons. Most of them, are unprecedented! But one thing which has emerged through the events surrounding the global pandemic especially, has been a greater interest in statistics and figures and how these impact our private lives and businesses. Following that curve, the [daily reporting of COVID-19 cases](https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/coronavirus-covid-19-current-situation-and-case-numbers "COVID-19 reporting") and sadly deaths in both Australia and around the world became a must-do. Hanging on every word of every press conference for a dollar amount in regard to support packages was critical. The number of unemployed on [JobKeeper](https://www.ato.gov.au/general/jobkeeper-payment/ "JobKeeper Payment") have suddenly increased significantly. The number of weeks, or months in the case of Melbournians, that we would be in lockdown or have our business closed or limited was essential information. We all discovered exactly how far 1.5 metres was and we all knew the square metre space of our business so we could calculate how many people could be allowed in at any one time. For us at [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote about your equipment financing needs") (we’re always focused on those interest rates and other global economic indicators) it was even more about the RBA’s decisions on rates each month. Stats and figures have achieved a new importance and rightly so. There are a lot of stats that many businesses can use to their advantage when they appreciate that they are more than just content for politician press conferences and news reporters. We’re covering off on some of the commonly referred to economic statistics and what they may mean for your equipment investment decisions. ## **GDP: Gross Domestic Product** You will have heard the PM and Treasurer in particular, regularly referring to GDP which is Gross Domestic Product. Even more specifically, they refer to the growth in GDP. A simple definition of GDP is the value of goods and services which a country produces in a certain time period. The growth or fall in GDP is usually represented as a percentage and is the key stat to keep in mind. This is considered the indicator of a country’s economic performance. [Australia’s GDP figures](https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release "Australian National Accounts: National Income, Expenditure and Product") and growth are reported quarterly and sometimes monthly. There are raw figures and seasonally adjusted, but that’s getting too technical. Key here is that technically, when a country records two consecutive quarters of negative growth or negative GDP, it is considered as being in recession. This is what happened in Australia this year, and in many other countries, as a result of the economic effects of coronavirus. In good news, Australia followed up that result with positive GDP figures which technically put us out of recession. To put it in perspective, the latest figures (as of time of writing) from the ABS report GDP growth in the last quarter of 3.3% but through the year the GDP fell by 3.8%. So any growth following the recessive quarters is coming off a lower base. What it means to your business? Increases in GDP general indicate positive economic performance and that may be good signs for your business. ## **Consumer Confidence Figures** Consumer confidence is a key figure to listen out for as this represents, as it implies, the confidence that consumers have in the economy. Essentially their willingness to get out and spend their money. Whether you’re operating in a B2B or B2C market, an increase in consumer confidence can mean a boost for business and catalyst for new [business equipment financing](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Talk to us about financing your business equipment"). ## **The Market** Economic reporters refer to ‘the market’ in the financial updates and reports in the media. The market they’re referring to is the share market. You’ll hear them saying the market was up or down so many percentage points. This can also be an indicator of economic confidence and growth in key sectors as it reveals what companies and industry have the confidence or lack of confidence by investors. ## **Interest Rates** Now to our favourite figures to watch – interest rates! We’ve covered interest rates in a few explainer articles, but as a catch-up, the Reserve Bank of Australia (RBA) set the official cash rate which is the interest rate that banks essentially pay to source funds or some of their funds. The official cash rate then flows on to determine the interest rate that is charged by banks and lenders on borrowings on all types of loans and on earnings for savings accounts. The Board of RBA meet on the first Tuesday of each month and around midday or early afternoon on that day there will be a flurry of news reports as to their decision. The announcement of the RBA holding, cutting or increasing rates is highly anticipated. The figure they announce as the official cash rate is NOT the rate that Jade Equipment Finance or any other lender can achieve on [equipment finance interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") and deals or any other type of borrowing. But a cut in the official rate can flow on into our sector, enabling our [Jade consultants](https://www.jadeequipmentfinance.com.au/broker "Talk to one of our professional Jade brokers about financing your equipment") to secure even cheaper rates. Through 2020 the RBA has cut interest rates and they are at historic low levels. For your equipment investments that means you can lock in an equipment finance deal through Jade at a very low interest rate which will be fixed over the full term of your loan. So even if the official rate increases in 1, 2 or 3 years from now, your equipment finance with a fixed term of say 4,5,6 or more years from now, will remain at the same fixed repayment level based on today’s interest rate. So that’s a few reasons why understanding stats and figures can be significant. Sometimes they may appear like issues way beyond your business interest. But really, it’s a matter of knowing how to crop that big economic picture into your small business frame. To stay across all relevant statistics, [www.abs.gov.au](http://www.abs.gov.au "Australian Bureau of Statistics") **For an equipment finance quote at cheap interest rates, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: YOU ARE ADVISED THAT THE INFORMATION PRESENTED HERE IN THIS BLOG, IS FOR GENERAL INFORMATION AND NOT INTENDED TO REPRESENT FINANCIAL ADVICE IN ANY WAY. IF YOU CONSIDER THAT YOU DO REQUIRE ADVICE IN REGARD TO YOUR FINANCIAL SITUATION, THEN WE RECOMMEND THAT YOU SEEK A CONSULTATION WITH A PROFESSIONAL FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO THE DETAILS OR ANY ERRORS IN THE CONTENT WHICH MAY IN PART HAVE BEEN SOURCED FROM A RANGE OF SOURCES.* **Categories:** Finance --- ### [Quarry Plant and Equipment Finance Options](https://www.jadeequipmentfinance.com.au/blog/quarry-plant-and-equipment-finance-options) **Published:** December 22, 2020 **Author:** Publisher **Content:** If there was one measure that was common across both state and [federal government budgets and stimulus measures in 2020](https://archive.budget.gov.au/2020-21/ "Contact us directly or receive a free quote for your next equipment purchase") it had to be infrastructure spending. As the coronavirus pandemic hit the economy, treasurer and treasurer fronted the media to announce another infrastructure spend to stimulate the economy. Over coming years, Australian governments collectively will spend billions on roads and other infrastructure. The investment in roads, including new and upgrading projects, is of particular interest to us at [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us directly or receive a free quote for your next equipment purchase") as many of our customers operate in the construction sector. For those in the mining and quarrying business, this infrastructure spend may signal a big boost to operations and the need for new or upgraded equipment to cope with the increase. Jade Equipment Finance provides cost-effective and tailored finance solutions for the acquisition of the mining and quarrying equipment. ## **Wide Range of Equipment Financed** We appreciate that many different and highly specialised processes are involved in the quarrying sector which require a wide range of plant and machinery. Jade provides finance for this wide range of equipment, whether it a turnkey plant installation, plant upgrades or the acquisition of individual plant and machinery. - Bulk material handling equipment and systems: loaders, stackers, conveyor systems. - Classifying and washing equipment: log washers, blade mills, tanks, fine material washers. - Screening machines: horizontal, incline, high frequency and combo equipment. - Crushing equipment: cones, jaws and impactors. - Conveying systems and machinery: pan, apron and spreader feeders amongst others. - Track plant: cones, jaws, impactors, screening and scalping machines. - Asphalt production plant and machinery - Road profiling machines - Plant vehicles and buggies. - [General business equipment](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Acquire your business equipment or machinery with equipment leasing at Jade Equipment Finance") for operation and storage. Jade Equipment Finance provides loans for both standard equipment from leading manufacturers and suppliers and custom-built [machinery loans](https://www.jadeequipmentfinance.com.au/civil-construction-equipment-finance "Use our Equipment Loan Calculator to determine your repayments"). To start planning your loan or compare different makes and models of specific machines, use our [Equipment Loan Calculator](https://www.jadeequipmentfinance.com.au/calculator "Use our Equipment Loan Calculator to determine your repayments"). This calculator allows you to input as many different values of different machines and receive a rough repayment estimate so you can immediately see how the purchase price converts to the more important repayment amount. Don’t forget to note the results you calculate for comparison purposes as the calculator does not retain the results you’ve calculated. ## **Finance Solution Options** When engaging Jade Equipment Finance to source your quarry equipment finance, you are assigned your own consultant to handle the entire process. Our consultants are highly trained finance professionals with skills and capabilities to source and structure you a cost-effective solution. We provide a highly flexible and comprehensive service which enables our customers to access specialist lenders that understand your industry. Our finance solutions offer the possibility to combine multiple equipment items in the one finance package or tailor separate loans for each machine. It’s your choice. You also have a choice of finance type so you can select the facility that will deliver the best outcomes for your individual business. As a major equipment finance lender, Jade offers the full portfolio of loan products. - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore chattel mortgage financing for your equipment needs") - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Dive into equipment leasing for your business equipment needs") - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Discover the advantages of Commercial Hire Purchase for your business equipment") - Equipment [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Learn more about equipment rental finance for your business with us") Selecting which is the right one for your acquisition should involve a discussion with your accountant. The decision is based on an assessment of:- - Accounting method used by your business: cash or accruals - Balance sheet strategy: do you want an off-balance option or ownership from day one? - Treatment of GST: with Chattel Mortgage the full amount of GST can be claimed on next BAS while with Leasing, GST is applied to and claimed on the monthly payments (for businesses registered for GST) - Tax deductions: with Chattel Mortgage the major tax deduction is realised through depreciation of the asset while with Leasing and Rent-to-Own the repayments are considered an operating expense and tax deductible. ## **Structuring Your Loan** Your Jade consultant will source you a quote from across our extensive selection of lenders. Our lending panel includes both major banks and non-bank lenders. We source you the cheapest quote but if you do want your bank to finance your loan, we can liaise with them on your behalf and handle the entire process. We will negotiate for the cheapest [interest rates equipment finance](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Contact us about financing and leasing equipment for your business") and to achieve the loan term and subsequent repayment amount that best meets your requirements, preference or expectations. All [business finance](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Contact us about financing and leasing equipment for your business") products include the option for a balloon or residual. By varying this amount the monthly repayments change. Your Jade consultant will advise how you can utilise that element of the loan to achieve the outcome you anticipate. ## **Nationwide Service** You may be produce materials primarily for locally-based projects but the equipment and machinery you need is located in other state. You may be located in a remote location close to major mining and infrastructure projects and it’s not easy for you to access major city financiers. Whatever your situation, Jade can assist as we operate on a national basis with our lender services provided via email and phone. **For equip your quarry operation to take on the boom in infrastructure projects, contact Jade Equipment Finance on 1300 000 003 for finance quotes.** *DISCLAIMER: THE DETAILS AND INFORMATION PROVIDED IN THIS ARTICLE ARE NOT INTENDED AS THE SOLE SOURCE OR AS ADVICE IN REGARD TO FINANCIAL INFORMATION BUT FOR GENERAL PURPOSES ONLY. PERSONS REQUIRING ADVICE ON THEIR FINANCIAL SITUATION ARE DIRECTED TO CONSULT WITH THEIR FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS IN THE INFORMATION AS PRESENTED. THE DATA AND DETAILS WHICH MAY HAVE BEEN SOURCED IN PART FROM THIRD PARTY SOURCES.* **Categories:** Finance --- ### [Remote Finance: Options, Possibilities and Realities](https://www.jadeequipmentfinance.com.au/blog/remote-finance-options-possibilities-and-realities) **Published:** December 26, 2020 **Author:** Publisher **Content:** Australia is a massive country with major mining, construction, agriculture, livestock and food processing plants and operations located in some of the more remote locations. Locations that may be remote due to distance from the nearest large town or city, due to lack of efficient and [easily passable transport links or remote](https://dipl.nt.gov.au/strategies/national-remote-and-regional-transport-strategy "National Remote and Regional Transport Strategy") during the wet season. For businesses in remote and regional locations, [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Send us an enquiry about your required equipment and we can help finance it") provides our full service offering in the same manner as we do for our customers located in capital cities. Jade Equipment Finance is a nationwide lender, providing services across Australia. Our customers are located in all states and territories, in capital cities, large towns, regional areas and tiny remote project or mine-based communities. An added benefit of our nationwide coverage is our flexibility in assisting when our customer is one state and the equipment they are acquiring is in other. Our consultants can not only source and arrange the finance but liaise on your behalf with the seller to affect a prompt settlement. If required, we can assist with delivery and other aspects of the purchase. Saving you time and hassle and sometimes, that dreaded time zone differential. We provide finance for machinery and equipment for many industries – mining, [construction equipment](https://www.jadeequipmentfinance.com.au/construction-equipment-financing "Need construction equipment? Click here to get a quote on financing that equipment"), manufacturing, agriculture, food production and processing, medical, health and many others. So don’t hesitate to call for a quote whatever your sector or the size of your business. As long as you have phone access and internet connectivity, you can communicate with and work with Jade Equipment Finance, easily and efficiently to arrange finance. ## **Finance Products** Regardless of your location, all our customers have access to our complete portfolio of commercial finance facilities for their equipment purchase. Our loan products include:- - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Dive into equipment leasing for your business equipment needs") - Equipment [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Learn more about equipment rental finance for your business with us") - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Discover the advantages of Commercial Hire Purchase for your business equipment") - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore chattel mortgage financing for your equipment needs") In addition to these products, Jade also provides specialist lender services for businesses that do not meet all the requirements of many banks and/or do not have all the financial documents as requested by some lenders and most banks. These include:- - [Low Docs Equipment](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Click here to see how you can finance equipment with low or no docs") Loans - No Docs Equipment Loans - ABN only Loans These categories of applicants can access the full selection of finance products, if approved for a loan, and at Jade’s [cheap interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check out low equipment finance interest rates") on equipment finance. These types of loans usually have stricter criteria and conditions applied by individual lenders. Your Jade consultant will handle all the lender negotiations and liaison so there is no need for you to worry about that. Regardless of the finance product you select or your application category (fully documented or low docs/no docs) all Jade customers can expect:- - Jade’s trademark cheap interest rates - Interest rate fixed for the full finance term - Fixed and equal repayment instalments - Fixed finance term, negotiated to meet your expectations - Option of a balloon or residual For full details on the similarities and differences between all the finance products we offer, please head to our individual web pages or contact one of our consultants for an obligation-free discussion. ## **Self-Serve Resources** To assist both our remote and our urban customers, Jade Equipment Finance has loaded our website with an extensive range of finance tools and resources which are self-serve. Use of our self-service resources is completely free of charges and free of any obligation to proceed. And they are accessible whenever you want and from wherever you are located with internet connectivity. - Compare Interest Rates Calculator: this is a relatively new addition to our website but is already proving extremely popular. Customers regular enquire about the different interest rates on different loans. So we’ve made it easy to access this information and calculate how those rates convert to repayments (estimated only). We compiled our major loans into one chart with our current achievable interest rates. You simply enter your loan term and amount and see the estimated repayments. - Loan Calculator: our loan calculator has always been a much-used device on our website. Great for getting your head around how you might structure your finance in regard to balloon/residual, loan tern and if you should/shouldn’t make a deposit to reduce the loan amount. - Articles and Blogs: we have our team working each week to cover finance news, product releases, government announcements and other topics relevant to our sector and develop informative articles. Our blogs cover a wide range of topics and issues and are archived so you can scroll back through to find tips and hints which could assist you. ## **Contactless and Borderless Service** Especially during the COVID-19 lockdowns and iso phase our Jade Equipment Finance contactless and borderless business model punched above its weight. We conduct our complete lending service via phone and email. A massive assist for our customers in remote locations as you can source all our information and even apply for finance online or over the phone. So you don’t have to be a big city business to access first class lender services and achieve cheap equipment finance deals. Pricing on some goods may be impacted by location but that certainly does not include Jade’s lender services. **For an equipment finance quote at cheap interest rates, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE DETAILS AND INFORMATION PROVIDED IN THIS ARTICLE ARE NOT INTENDED AS THE SOLE SOURCE OR AS ADVICE IN REGARD TO FINANCIAL INFORMATION BUT FOR GENERAL PURPOSES ONLY. PERSONS REQUIRING ADVICE ON THEIR FINANCIAL SITUATION ARE DIRECTED TO CONSULT WITH THEIR FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS IN THE INFORMATION AS PRESENTED. THE DATA AND DETAILS WHICH MAY HAVE BEEN SOURCED IN PART FROM THIRD PARTY SOURCES.* **Categories:** Finance --- ### [Selling a Business with Equipment 'Under Finance'](https://www.jadeequipmentfinance.com.au/blog/selling-a-business-with-equipment-under-finance) **Published:** December 28, 2020 **Author:** Publisher **Content:** While the primary role of [Jade Equipment Finance](/) is to source and arrange finance on machinery and equipment, we also consider it our duty as lenders to educate and inform on a range of topics and issues associated with [business finance](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing). In this article we’re addressing a topic which operators may need to deal with at some stage: when you [sell your business](https://business.gov.au/exiting/selling-your-business/sell-your-business "Selling your business") and the sale includes equipment which is ‘under finance’. The term ‘under finance’ means finance was used to purchase the equipment and money is still owed on the loan. The equipment is ‘subject to a finance contract’. When a borrower takes on a finance agreement with any of the products offered through Jade – [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage), Leasing, [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance) or CHP – the lender holds some form of caveat over the equipment. That varies conceptually depending on the type of finance. For example with Chattel Mortgage the equipment is essentially used as security against the loan. If the borrower defaults on payments the lender has a right to repossess the equipment. So what happens when you want to sell your business including any equipment which you still owe money on the loan? What’s the process and what are your options? We cover a few scenarios for you to consider. ## **The Equipment is The Business** There can be multiple scenarios but primarily the equipment itself can essentially be THE business or the major part of the business. That may be say with owner-operators of say one or a few backhoes, excavators or even concreting trucks. Manufacturing operations as well as machining and engineering workshops may also be considered in this scenario. Specialist medical facilities such as x-ray and other radiology services may also be included for a [medical equipment finance](https://www.jadeequipmentfinance.com.au/medical-equipment-loans). Essentially without the equipment there is very little to the business except goodwill and customer contracts and contacts. In these scenarios the equipment will likely be bundled in the price of purchasing the business. ## **The Equipment is Integral to the Business** Another scenario is where the equipment is integral but not essential to the business. This may include restaurants, cafes and other hospitality operations as well as retail. The equipment might be individually kitchen equipment, fixtures, furniture and fittings etc. In these instances, the purchase price of a business may be a price plus the equipment and other stock which is priced or negotiated separately. Sometimes the buyer wants the entire package and sometimes they may want to do their own new fit out and upgrade equipment and not want yours. These examples may involve separate negotiations on each piece of equipment and in some instances the business seller may be left with equipment that the buyer does not want. They will have to dispose of those machines themselves. ## **Finance is attached to the Borrower** The key issue is that the finance is attached to the borrower not the business. When [establishing your finance contract](https://www.jadeequipmentfinance.com.au/blog/finance-for-the-next-normal "Finance for the Next Normal"), your Jade consultant will arrange it in your name or in the name of your business. That contract is not automatically transferable with the sale of the business. The borrower will need to finalise the loan on any equipment prior to completing the business sale. If you’re working with a business selling agent (essentially a real estate agent for business sales) they will likely advise you, in conjunction with your accountant, on how best to price the sale and what to include. The payout cost may then be included in the purchase price of the business. This would allow the borrower (business seller) to have the funds to payout the loan on settling the business sale. Your business buyer will likely require all financial encumbrances be finalised before they settle the purchase of the business. This means you may have to payout the finance contract prior to receiving funds from the sale. If you are continuing into another business or have other assets to use as loan security, Jade may be able to assist with short-term finance options. Your responsibility as the borrower is to finalise the loan. The ownership of the equipment will then be passed from the lender to you and you can pass it on to your buyer with the business sale. Depending on the loan type, security over equipment is released by the lender when the final payment including any balloon or residual is made. ## **Finalising an Equipment Finance Contract** To finalise an equipment finance contract prior to the end of the loan term, you will need to contact the lender for a payout figure. You will need to either pay that from existing funds or if you are relying on funds from the sale of the business to make the payment, enter some form of arrangement with your business buyer. ## **Planning Ahead** There are costs and charges involved in setting up a loan and in finalising a loan before the end of the contract. If you do intend to sell your business including the equipment at some time then take that into consideration when establishing your finance with Jade so you avoid paying extra costs. [Jade Equipment Finance consultants](https://www.jadeequipmentfinance.com.au/broker "Speak with our professional finance brokers about your equipment purchases") are highly skilled finance professionals and will work with you to structure your loan to best meet your requirements. If selling your business is in your mind when you take out a new equipment loan, discuss this with your Jade consultant so we can negotiate the appropriate loan term for you. **For equipment finance quotes and information on topics related to loans, discuss your individual requirements with one of our Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION AND THE DETAILS WHICH HAVE BEEN INCLUDED IN THE ARTICLE IS PROVIDED AS GENERAL INFORMATION ONLY. THERE IS NO INTENTION THAT THIS BE THE ONLY SOURCE OF FINANCIAL INFORMATION FOR THE READER. IT IS INTENDED AS GENERAL IN NATURE. IF A READER CONSIDER THEY REQUIRE FINANCIAL ADVICE AROUND THEIR OWN PERSONAL FINANCES, THEY ARE DIRECTED TO CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS OR MISREPRESENTATIONS OF DATA, FIGURES, FEATURES AND INFORMATION AS SOURCED FROM OTHER SOURCES SUCH AS MANUFACTURERS OR GOVERNMENT DEPARTMENTS AND AUTHORITIES.* **Categories:** Finance --- ### [Finely Tuned Equipment Finance Solutions](https://www.jadeequipmentfinance.com.au/blog/finely-tuned-equipment-finance-solutions) **Published:** January 2, 2021 **Author:** Publisher **Content:** Engineering, machining and tooling workshops, computerised manufacturing facilities, medical and research centres and many other businesses operate with precision and exacting machinery and equipment. The work involves finely tuned devices and precise, exacting and detailed processes. You and your customers expect that from your products and services. So it is only natural that you would expect the same finely tuned outcomes when you source services – in particular finance for new machinery and equipment. A general, cookie-cutter approach to loans just doesn’t and shouldn’t meet your exacting specifications and expectations. At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Send us an enquiry about your next commercial equipment purchase") we share your attitude and ensure that every equipment finance contract we arrange is finely tuned to our customer requirements. ## **The Jade Approach** While some banks and lenders will have an ultimatum approach to equipment loans – meet our guidelines or no loan – Jade operates from a different perspective. We work to sourcing and tailoring the loan to suit the borrower. One of the keys to our business model is being accredited with multiple lenders. Our lending panel includes the major banks, some smaller banks and raft of non-bank lenders. Many of our non-bank lenders are actually specialists in the equipment finance sphere. They exclusively offer [machinery finance](https://www.jadeequipmentfinance.com.au/civil-construction-equipment-finance "Find the perfect finance solution for equipment and machinery with us") and equipment and as such have extensive knowledge of many industries. Many work only through lenders such as Jade and finance brokers. Jade provides you with access to not only a large number of choices of lenders but also opens the doors to this industry-only sector. More choices means more options and more opportunities to source the cheapest finance and tailor that finance to suit you. Compare that to say yourself approaching just your bank or what the equipment dealer or manufacturer may offer you in regard to finance. Both scenarios most likely will only be offering you the one choice of lender. How can you be assured that this is the cheapest deal in town? Is the deal tailored to your specifications or is it the same deal they offer to every buyer? What if you want a different loan term to what they are prepared to offer? Jade consultants negotiate every deal individually, representing our customers to our lenders and utilising our strong bargaining power in the equipment finance market to get the best outcome for your customers. ## **Tailored Finance for All Businesses** A key point of difference across the Australian business landscape is the many different business structures. Sole trader, [proprietary limited companies](https://asic.gov.au/for-business/small-business/starting-a-company/ "Starting a small business company"), SMEs, partnerships, family businesses and other operating structures call for different approaches to finance. Each business is not only an individual but also may have varying objectives in regard to their financial objectives. The different corporate structures approach tax and GST slightly differently, they may vary with the accounting method they implement and approach their balance sheet differently. To meet the needs of the many different operational structures, Jade provides the full portfolio of commercial finance products:- - [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Rent to own your equipment with us at Jade Equipment Finance") for Equipment and Machinery - Equipment [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore chattel mortgage options with Jade Finance") - Machinery and [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "See how equipment leasing financing can benefit you and your business with us") - Equipment [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Explore commercial hire purchase financing for you equipment with us") Jade customers have choice. Choice of finance type and choice of lender. Choices that enable our consultants to tailor individual equipment finance contracts specifically to individual requirements. Our finely tuned deals are not only achieved at the [cheapest equipment interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") but include the loan term, balloon/residual and repayment level that work with our customers’ cash flow to deliver that all-essential better bottom line. In selecting which finance product is best suited we refer you to your accountant for advice and we have provided detailed information around the features and benefits of each on our web pages. You can swot up on the detail so you are confident of making a fully-informed decision. Your Jade consultant will then source you the cheapest quote and tailor the package for you. ## **Specialist Lender Services** At Jade, finely-tuned finance means not only tailoring loan deals but structuring our own service offerings to cater for businesses in a range of circumstances. To that end, we have provide a range of specialist lender services which are not always accessible to all businesses. For businesses starting up, access to finance can be a major challenge. For those that are experiencing [credit issues](https://moneysmart.gov.au/managing-debt/credit-repair "Credit repair") it can often feel like an impossibility. Jade assists businesses facing this prospect through our range of specialist lender services. ABN, No Docs and [Low Docs Equipment Finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Discover loc or no doc finance solutions with us at Jade Equipment Finance") may be an option for businesses which are relatively new in business or just starting out. We have access to non-bank lenders that are open to extending finance to applicants that do not possess the extensive financial information and records usually requested by banks. For customers with credit issues, Jade consultants work towards achieving an equipment finance solution. It is not always possible, but we work hard to achieve a workable outcome. So if you operate in an exacting environment and expect finely tuned finance solutions, contact Jade for your equipment finance. **For finely tuned equipment finance, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION AND THE DETAILS WHICH HAVE BEEN INCLUDED IN THE ARTICLE IS PROVIDED AS GENERAL INFORMATION ONLY. THERE IS NO INTENTION THAT THIS BE THE ONLY SOURCE OF FINANCIAL INFORMATION FOR THE READER. IT IS INTENDED AS GENERAL IN NATURE. IF A READER CONSIDER THEY REQUIRE FINANCIAL ADVICE AROUND THEIR OWN PERSONAL FINANCES, THEY ARE DIRECTED TO CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS OR MISREPRESENTATIONS OF DATA, FIGURES, FEATURES AND INFORMATION AS SOURCED FROM OTHER SOURCES SUCH AS MANUFACTURERS OR GOVERNMENT DEPARTMENTS AND AUTHORITIES.* **Categories:** Finance --- ### [New Holland for a New Year?](https://www.jadeequipmentfinance.com.au/blog/new-holland-for-a-new-year) **Published:** January 4, 2021 **Author:** Publisher **Content:** The new year may be your sign for a change, an upgrade, an investment in new equipment and machinery to take on the challenges and capture the opportunities of 2021. Interest rates enter the new year at historic low rates and several budget measures are still in play around accelerated depreciation on asset acquisitions. Despite the ongoing issues that businesses in locations across Australia are dealing with in response to the [coronavirus outbreaks](https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/coronavirus-covid-19-current-situation-and-case-numbers "COVID-19 reporting"), many have adapted and adjusted and looking to make up for lost time in 2020. If new equipment is on your radar then perhaps a [New Holland](https://www.newholland.com/Pages/index.html "New Holland Official Website") is in your sights for this new year and why not. The range of New Holland equipment is extensive and much of the machinery is versatile with applications across many industries and for individual businesses. The company is a highly recognisable name with a proud heritage especially in the agricultural sector. But their machinery range extends beyond ag and is applicable in landscaping, residential and non-residential construction and infrastructure projects such roads and bridges. For contractors working across different sectors, a versatile New Holland machine may be a solution to handle multiple jobs for multiple customers. For specialist operators, the company offers specialist solutions designed for specific industries and purposes. We take a brief overview at what’s available from New Holland and how [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or receive a free quote with your next equipment purchase") can assist with making your new machinery purchase a cost-effective investment in your business. ## **New Holland Equipment Range** - Landscaping Equipment: If you’re an independent contractor or running a large landscaping business, the [New Holland landscaping machinery collection](https://construction.newholland.com/apac/en-anz/Pages/Homepage.aspx "New Hollnand Construction Official Website") could be a solution to your job requirements. Their compact machines are efficient and several models are especially designed to access and work in small areas. Getting machinery to the back of a house via a narrow driveway can be a daily challenge in the landscaper’s world. Check out the backhoes, skid steers and the compact range of excavators, wheel loaders and track loaders the company has available. - Agricultural and [Farm Equipment](https://www.jadeequipmentfinance.com.au/farm-machinery-and-agricultural-equipment-loans "In need of financing for farming equipment? Contact us at Jade Equipment Finance"): A household name in agriculture, [New Holland tractors and backhoes](https://agriculture.newholland.com/apac/en-au "New Holland Agriculture Equipment and Machinery") are a much-seen machinery brand across rural and regional areas. The choice of machinery might be the solution to your equipment requirements for 2021. - Construction Equipment: Courtesy of government stimulus measures, many construction contractors are preparing for a busy 2021 and the New Holland range is built to make efficient and precise work in preparing sites and with grading and foundation works. - Roads and Bridge Building Equipment: Both state and territory governments and the federal government are on what one analyst tagged an ‘infrastructure binge’ to stimulate the economy out of a COVID-19 depression. Gearing up with New Holland equipment might be the stimulus your operation needs to take on and win those profitable tenders. Their rugged loaders, excavators and backhoes have the durability and performance to deliver the productivity you need for success in 2021. While browsing the New Holland range and comparing against other makes and models in your sector, don’t forget to have our [equipment loan calculator](https://www.jadeequipmentfinance.com.au/calculator "Check how much you'll be repaying with our equipment loan calculator") open to derive rough repayment estimates on the different advertised prices. The calculator is free to use, there’s no obligation involved and it is an extremely useful in the decision making process when pricing and finance is a deciding factor. ## **New Equipment? Sort Your Finance First** When approaching a new machinery or equipment purchase, whether from New Holland, Case, [John Deere](https://www.deere.com.au/en/index.html "John Deere Official Website"), Caterpillar or any other manufacturer, it is tempting to do all your product and pricing research first. Most people source the machine and then source the finance. As expert lenders we know there are significant benefits to be realised by sorting your finance first. Jade Equipment Finance offers a pre-approved loan service for businesses seeking to ensure they have the finance sorted before entering a purchasing agreement. Pre-approved finance not only gives you confidence in the knowledge that you can commit, it gives you a lot more. By speaking with our consultants without the pressure of having to meet a purchase commitment, you may have more time and be in a better situation to discuss more wide-ranging options. You may have time to consider loan products you may not have considered previously and can discuss with your accountant how that loan type can benefit your business set-up. Pre-approved loans are available across our service offering:- - Chattel Mortgage - Equipment Leasing - Rent-to-Own - Commercial Hire Purchase - [Low Docs and No Docs Loans](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Talk to us about Low doc and no doc equipment loans") - [No deposit finance](https://www.jadeequipmentfinance.com.au/no-deposit-equipment-loan "Speak with us about financing equipment with no deposit") And all at our cheap interest rates. We’ll structure a deal that meets your requirements and is sourced from our vast lending panel. We’re not limited to just one lender as some dealer or manufacturer finance deals offer. **For an equipment finance quote on a New Holland machine discuss your individual requirements with one of our Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THIS INFORMATION HAS BEEN PREPARED FOR THE PURPOSE OF GENERAL INFORMATION AND IS NOT INTENDED AS FINANCIAL ADVICE OR THE ONLY SOURCE FOR THE PURPOSE OF MAKING INDIVIDUAL FINANCIAL DECISIONS. IF A READER CONSIDERS THAT THEY REQUIRE ADVICE ON THEIR FINANCIAL SITUATION, PROFESSIONAL ASSISTANCE AND ADVICE SHOULD BE SOUGHT FROM A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISINTERPRETATIONS OR ERRORS IN DATA, CONTENT AND INFORMATION AS SOURCED FROM OTHER PARTIES. THE INFORMATION PRESENTED IS FOR GENERAL INFORMATIVE PURPOSES AND READERS ARE ADVISED TO FOLLOW UP INDEPENDENTLY.* **Categories:** Finance --- ### [Planning just another ONE of THOSE years or for 202WON?](https://www.jadeequipmentfinance.com.au/blog/planning-just-another-one-of-those-years-or-for-202won) **Published:** January 8, 2021 **Author:** Publisher **Content:** We were constantly told that 2020 was ONE year like no other and most Australians and in fact individuals and businesses across the world, looked optimistically forward to 2021. But now it’s here and for your approach and attitude to your business what has changed? What upgrades and improvements have you planned? What adaptations have you implemented for the changed business environment? Are you planning for just another ONE of those years where you react to what happens? Or are you intending to have a 202WON? The difference between ONE and WON may be your approach to [equipment finance](https://www.jadeequipmentfinance.com.au/ "Get a quote or contact us about financing your next business equipment purchase"). Is the way you’ve always done it really working for you? Do you need to urgently set refresh and reset and see if it clears the issues? To put the WON into your 2021, take a fresh look at approach of Jade Equipment Finance and the ways in which we consistently and constantly deliver winning financial solutions to our customers. ## **Change Your Approach to Finance** It is traditional for businesses to contact the bank when they need a loan for a business purpose or to acquire new machinery and equipment. That’s where you hold your transaction account you may know the customer service staff at your branch so you keep to the same loan routine over and over. So why not consider a change in approach. Consider using a broker-style lender such as Jade. For a start, you are under no obligation to proceed by having a discussion with us or by requesting a quote. What you do have to gain however, is a significantly more comprehensive selection of equipment finance options than your bank may offer. Our business model is not limited by the same type of guidelines and restrictions as a major bank. We are free to explore multiple finance channels on your behalf and through every stage of the loan process our only interest is YOU. Achieving the [cheapest interest rate](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") equipment finance for your business. ## **Consider More Lenders without More Effort** In working with Jade you won’t be turning your back on your bank. Not entirely. Jade is accredited with multiple lenders including the major Australian banks. But that’s only the start. Our accreditation extends to a swathe of non-bank lenders including several that specialise in equipment finance and those that work only through our [Jade brokers](https://www.jadeequipmentfinance.com.au/broker "Get in contact with our professional Jade Finance Consultants about your equipment purchases") and lenders such as Jade. We can open up access for you to our industry-only channels to better finance deals without you having to exert any additional effort. In fact, working through Jade will require far less time and effort on your behalf than when you handle your finance with the bank yourself. If you do have a specific reason for wanting your transactional bank to handle your equipment loan, that’s not a problem. We can handle the negotiations, quoting, paperwork and settlement your bank on your behalf. ## **Utilise the Resources Readily Available to You** Do you just organise what equipment you want and then make the call to the bank to be told what your loan will entail? Then perhaps your new approach should involve utilising the finance planning resources which are readily available for your use. We have loaded up our website with a wealth of finance planning tools and resources so our customers can prepare and compare before making any commitments. Our loan comparison calculator lists the interest rates we offer across all the loans in our portfolio. And our portfolio includes all and more of what most banks offer by way of equipment finance. You can easily see which loan offers you the better option and on the spot calculate repayment estimates. Another tool is our loan calculator. An online device that allows you to plan how you would like your loan structured. Vary the loan term, the balloon/residual and/or total loan amount to finally arrive at a repayment level that is in your ballpark. Then you will be ready to talk equipment and talk finance. Knowing ahead of time how that price tag the dealer is quoting you may convert to a repayment can be a major assistance when tossing up between different makes and models. ## **Save Yourself Time** If the [shutdowns and lockdowns of](https://www.theguardian.com/australia-news/2021/jan/11/australia-covid-19-lockdown-rules-coronavirus-restrictions-by-state-nsw-victoria-vic-queensland-qld-western-south-australia-wa-sa-nt-act-travel-border-social-distancing-masks)[ ](https://www.theguardian.com/australia-news/2021/jan/11/australia-covid-19-lockdown-rules-coronavirus-restrictions-by-state-nsw-victoria-vic-queensland-qld-western-south-australia-wa-sa-nt-act-travel-border-social-distancing-masks "Australia’s state by state Covid restrictions and coronavirus lockdown rules explained")[2020](https://www.theguardian.com/australia-news/2021/jan/11/australia-covid-19-lockdown-rules-coronavirus-restrictions-by-state-nsw-victoria-vic-queensland-qld-western-south-australia-wa-sa-nt-act-travel-border-social-distancing-masks) has taught us anything it’s that time is very real and can’t be recouped. Saving time on non-essential tasks can give you time to invest on the things that really matter. In business, it can be the aspects that actually generate income like talking to your customers to get more work, out on site actually doing the work or supervising your own team to get their work done. By engaging Jade as your lender, you save valuable time you may usually spend on sourcing your finance. Do the maths as they say. It makes financial sense. ## **Avoid Finance Traps** Having a professional lender such as Jade to arrange your finance and answer all your queries can go a long way to guiding you away from some of the financial traps that many business owners fall into. Some include those 0% interest rate deals which are often promoted by equipment sellers. These can hide inflated costs and the zero period may be short-lived and then a much higher rate kicks in. There are many others and we recommend you read some of our articles with tips and hints on achieving the best outcomes for equipment finance. So what’s it to be? Another ONE or 202WON? **For your new finance approach for 2021, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THIS INFORMATION HAS BEEN PREPARED FOR THE PURPOSE OF GENERAL INFORMATION AND IS NOT INTENDED AS FINANCIAL ADVICE OR THE ONLY SOURCE FOR THE PURPOSE OF MAKING INDIVIDUAL FINANCIAL DECISIONS. IF A READER CONSIDERS THAT THEY REQUIRE ADVICE ON THEIR FINANCIAL SITUATION, PROFESSIONAL ASSISTANCE AND ADVICE SHOULD BE SOUGHT FROM A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISINTERPRETATIONS OR ERRORS IN DATA, CONTENT AND INFORMATION AS SOURCED FROM OTHER PARTIES. THE INFORMATION PRESENTED IS FOR GENERAL INFORMATIVE PURPOSES AND READERS ARE ADVISED TO FOLLOW UP INDEPENDENTLY.* **Categories:** Finance --- ### [Essential Jade Equipment 2021 Finance Guide](https://www.jadeequipmentfinance.com.au/blog/essential-jade-equipment-2021-finance-guide) **Published:** January 12, 2021 **Author:** Publisher **Content:** If 2020 was the year of IAWO what will 2021 hold? From the amount of hi-vis clad ministerial press conferences it could be a massive year for infrastructure projects for a start. Several government measures are also in place to boost the [home building sector](https://www.abs.gov.au/statistics/industry/building-and-construction/building-activity-australia/sep-2020 "Building Activity, Australia"). For businesses in construction, earth-moving, mining, general building and trades, manufacturers and processes of building materials, sand and gravel and others with involvement in large-scale projects it could be the year to invest in new equipment. As a quick reference guide and our own ‘assistance package’ we present this overview of equipment finance – what offers are in place, what loan products are available, what resources Jade Equipment Finance provides and reminders and updates for your diary. ## **Equipment and Asset Finance Interest Rates** The first thing most equipment buyers want to know is the interest rate on their finance. We are driven by [achieving better interest rates on your equipment loans](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Australian recession confirmed as COVID-19 triggers biggest economic plunge on record") at all times and 2020 made that even better. In response to the [downturn in the Australian economy](https://www.abc.net.au/news/2020-09-02/australian-recession-confirmed-as-economy-shrinks-in-june-qtr/12619950 "Australian recession confirmed as COVID-19 triggers biggest economic plunge on record") caused by the coronavirus pandemic, the RBA cut the cash rate a number of times plus introduced additional monetary policy measures. 2020 ended with interest rates at historic lows and the broader financial sector has an expectation that rates will remain low through 2021. But the RBA will be taking into account the unemployment figures and GDP figures at their monthly board meetings when they consider any rate changes. A point to note is around fixed interest rates and particularly in regard to [Jade equipment loans](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote for your next equipment purchase"). We arrange our loans for customers at a fixed interest rate on all our equipment finance products. That rate is established when the loan is initially negotiated by your consultant and remains the same through the entire finance term. So if the RBA does alter the cash rate, your existing equipment finance contract and repayments will not change. If you have a loan through another lender at a much higher interest rate than is currently available, you may like to talk to us about refinancing. ## **Equipment Finance Products** Our portfolio of equipment finance products is the same for 2021 with [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore chattel mortgage financing for your equipment purchase"), CHP, Leasing and [Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Discover rent to own financing with us at Jade Equipment Finance") all available. To compare the interest rates we offer on each type of finance refer to our Loan Comparison chart. The decision as to which finance product you should select is a discussion you should have with your accountant as it depends on aspects of your specific operation and financial targets. But if you do want to take advantage of accelerated depreciation measures then Chattel Mortgage is the most appropriate. ## **Tax Deductions and Government Measures** The [Instant Asset Write-Off scheme](https://www.jadeequipmentfinance.com.au/blog/chattel-mortgage-for-temporary-full-expensing-iawo "Chattel Mortgage for Temporary Full Expensing & IAWO") dominated the business lending area in 2020 and for eligible businesses acquiring eligible assets, accelerated depreciation measures continue through to June 2022. Temporary full expensing is available and you can check the criteria and other information at [www.ato.gov.au](http://www.ato.gov.au "Chattel Mortgage for Temporary Full Expensing & IAWO") or chat to your accountant. State governments have introduced grants programs for specific industries and specific businesses so it is worth regularly checking in at your state government COVID-19 support or business support webpage for the latest offers. Grants are also available through Austrade to cover part of the costs for buyers and exhibitors to attend the Business Truck Show and many other [construction equipment](https://www.jadeequipmentfinance.com.au/construction-equipment-financing "Finance construction equipment and machinery with us at Jade Equipment Finance") field days. This could be handy if you are attending a show in 2021. Check the full list of eligible business events at [https://www.austrade.gov.au/](https://www.austrade.gov.au "Do business with the world") ## **Updated Loan Resources** Jade has always operated a streamlined and convenient loan service with our online and phone based finance services. Through 2020 we expanded our resources for customers with new articles on equipment manufacturers, new products and news on developments in lending and financing regularly posted to our online library for your reference. Our [Equipment Finance Calculator](https://www.jadeequipmentfinance.com.au/calculator "Use our finance calculator to determine your repayments") also now has a work mate with the introduction of our Loan Comparison calculator. These finance tools can be used separately or in conjunction with each other to assist you in planning your finance. ## **Planning Calendar – Essential Dates** - In late 2020 reports appeared in the media of the large number of drivers being fined for driving on an expired licence and driving an unregistered vehicle. Right here and now, place the dates for your essential renewals into a phone alert system! If your equipment requires rego or insurance, you need to ensure it is current. Ditto for any trade licences you may hold. - [JobKeeper ends in March 2021](https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-key-dates/ "JobKeeper Payment") - The Federal Budget and other state budgets are traditionally brought down in May. Stay tuned for what measures the Treasurer may announce to support your business. - Field days and expos are hopefully back on the agenda in 2021 after most events were cancelled in 2020 due to COVID-19. Keep an eye on your industry publications for dates and if you plan to buy new equipment at a field day, speak with us first about pre-approved equipment finance. - June is EOFY and not only tax time but EOFY sale time – watch for big discounts on equipment. Our team will be staying across news and developments in the financial sector and bringing you updates through our blog articles. **To discuss your equipment finance requirements for 2021, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE CONTENT IN THIS ARTICLE IS PREPARED SOLELY FOR GENERAL INFORMATIONAL PURPOSES. THIS CONTENT IS NOT PROVIDED AS FINANCIAL ADVICE. IF YOU REQUIRE ADVICE AROUND YOUR PERSONAL FINANCIAL SITUATION IT IS RECOMMENDED THAT YOU CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO ERRORS OR MISREPRESENTATION OF CONTENT AS IT PERTAINS TO GOVERNMENT MEASURES AND POLICIES, PRODUCTS SPECS AND DETAILS AND OTHER DATA AS SOURCE VIA THIRD PARTIES.* **Categories:** Finance --- ### [Investing in Atlas Copco equipment?](https://www.jadeequipmentfinance.com.au/blog/investing-in-atlas-copco-equipment) **Published:** January 16, 2021 **Author:** Publisher **Content:** If upgrading your compressors and compaction equipment and considering the range available through [Atlas Copco](https://www.atlascopco.com/en-au "Atlas Copco Official Website"), then talk to Jade about cheap equipment finance to realise a better ROI. While the price you negotiate on your equipment might be good, the productivity and profitability gains you anticipate can be eroded if you purchase with a less than ideal finance deal. [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Explore funding options with us at Jade Equipment Finance") provides loans for Atlas Copco equipment. A provider of a wide range of industrial equipment, Atlas Copco is a particularly well-recognised brand in generators and portable compressors. Their compaction equipment, gas equipment, compressed air gear, generators and light towers is seen on construction sites across Australia. ## **Atlas Copco Range** Atlas Copco produce a vast range of equipment, but we’ve selected a few of the more commonly required categories to mention. - With major projects often having to work to an ‘out of hours’ schedule to either meet construction deadlines or to minimise the disruption to local communities, lighting towers are essential equipment for most sites. The [Atlas Copco range of HiLight towers](https://www.atlascopco.com/en-au/construction-equipment/news/light-tower-hilight-new-range "The HiLight range from Atlas Copco, breaks new ground in light tower segment") offers a range to suit many different sites and applications. The range includes LED, metal halide, electric and battery operated light towers. The range suits construction sites and events with features to deliver low or zero noise and fuel efficiency in even the most rugged environments. - The company’s range of mobile compressors offer a number of mobiles which are light and easy to manoeuvre when space and access is at a premium. The range includes electric models, the ready to go range, the versatile range and the productivity partner range. The company allows customers to customise the compressor to their specific needs. - The [range of power equipment include diesel generators](https://www.atlascopco.com/en-au/construction-equipment/products/power-diesel-generators/mobile-diesel-generators "Atlas Copco Diesel Generators"). The models cover mobile diesel generators, large units, industrial generators with up to 2250 kVa, portable generators up to 12 kVa and the new range of energy storage systems. The energy storage systems, ZenergiZe, offer clean energy with zero fuel and carbon emissions. They are light and compact in comparison with many traditional units and according to the company require virtually no maintenance. These are a battery energy storage system and with the global trend toward greener technology and reduced emissions. With [generator financing](https://www.jadeequipmentfinance.com.au/generator-financing "Atlas Copco Diesel Generators") from us at Jade Equipment Finance, this could be a solution for your business. - Dewatering pumps are also included in the Atlas Copco range with models including [small portable pumps](https://www.atlascopco.com/en-au/construction-equipment/products/dewatering-pumps/small-portable-pumps "Atlas Copco Electric submersible pumps"), [electric submersible pumps](https://www.atlascopco.com/en-au/construction-equipment/products/dewatering-pumps/electric-submersible-dewatering-pumps "Atlas Copco Electric submersible pumps"), centrifugal pumps for drainage jobs, high head pumps and wellpoint surface pumps. Used in many applications and across many sites, the range is efficient, versatile, compact and highly durable. - While the stock standard range from Atlas Copco is extensive and will suit many applications, the company also offers a custom service to produce specific solutions for specific jobs and sites. ## **Selecting Your Equipment** When selecting say a compressor, what guidelines should you consider? It’s important to consider the applications. If you’re a contractor that covers a range of job sites, buying one unit that has the versatility to cover a lot of different applications may offer better ROI than buying multiple units to handle specific tasks. Ease of operation is important if you are not the only person that will be operating the equipment. If you’re delegating the operation to staff, yes you will go through the training and instruction, but having an easy to operate machine will make that process easier also. Consider a digital compressor which can transmit operating information to other parties through a cloud connection to allow clients, supervisors or others check on performance remotely. Future-proof your business by opting for more fuel efficient and low emissions equipment now. ## **Finance for Your Atlas Copco Fleet** Whether you’re purchasing one or multiple units from Atlas Copco, Jade can assist with the finance deal. If purchased at the same time, your Jade consultant can source a finance offer with multiple units in the one deal. Providing you with just the one loan repayment rather than multiple to meet each month. To finance your compressors, light towers, dewatering pumps, generators and other equipment, we provide you with the choice of the full range of commercial finance facilities. - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore chattel mortgage options with Jade Finance") - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "See how equipment leasing financing can benefit you and your business with us") - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Explore commercial hire purchase financing for you equipment with us") - Equipment [Rent to Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Rent to own your equipment with us at Jade Equipment Finance") You can review the full features and benefits of each of these loan types on our websites. To check the current interest rates we are achieving on each loan, refer to our Loan Comparison chart. It displays the interest rate for our full portfolio of loans. While it may appear a ‘no brainer’ to just choose the finance type with the lowest interest rate, there are other factors to consider which are best discussed with your accountant. The benefits derived from a certain loan type may deliver your specific business a better outcome than other loans despite the interest rate variation. For a quick quote on the Atlas Copco gear you intend to purchase or to get straight into a finance application, give us a call or apply via our online portal. **For your Atlas Copco finance, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE CONTENT IN THIS ARTICLE IS PREPARED SOLELY FOR GENERAL INFORMATIONAL PURPOSES. THIS CONTENT IS NOT PROVIDED AS FINANCIAL ADVICE. IF YOU REQUIRE ADVICE AROUND YOUR PERSONAL FINANCIAL SITUATION IT IS RECOMMENDED THAT YOU CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO ERRORS OR MISREPRESENTATION OF CONTENT AS IT PERTAINS TO GOVERNMENT MEASURES AND POLICIES, PRODUCTS SPECS AND DETAILS AND OTHER DATA AS SOURCE VIA THIRD PARTIES.* **Categories:** Finance --- ### [NEW: Interest Rate Comparison Tool Assists Buyers](https://www.jadeequipmentfinance.com.au/blog/new-interest-rate-comparison-tool-assists-buyers) **Published:** January 18, 2021 **Author:** Publisher **Content:** With infrastructure projects a dominant feature of government policy across the country for this year and the [Home Builder Grant scheme](https://treasury.gov.au/coronavirus/homebuilder "Primary industries | Western Australia Government") reportedly exceeding demand expectations amongst other indicators, 2021 could be a significant year for construction, engineering, earthmoving and related businesses. The Federal Government Roads Safety Program is well underway with road upgrade projects happening in multiple states. In Queensland the focus is on regional roads especially around Rockhampton and in WA the entire Kimberley to [Great Southern has projects happening](https://www.wa.gov.au/service/primary-industries "Primary industries | Western Australia Government"). In the Northern Territory the first tranche of funding is covering 43 projects which includes upgrades to 150 KMs of roads. For contactors, the decision may be approaching to invest in new equipment to be well organised and equipped to take on the big-earning projects. But one of the challenges to the overall equipment purchasing processes is sorting finance. Not necessarily getting specific loan quotes but doing your own behind-the-scenes planning. Getting some idea of possible finance repayments on different brands and models without going through a formal application and quote request. Seeing what interest rates apply to different types of loans and how they play out for repayments for your acquisition. For many or most operators, time is a commodity and you don’t want to spend yours in unproductive tasks constantly on the phone to lenders and brokers asking questions. At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote for your next equipment purchase") we fully understand our customers’ way of thinking and their requirements and we have built up our self-serve finance resources to specifically meet those needs. First it was our [equipment finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Determine your loan repayments with our online calculator"), then our valuable and informative news and tips articles and now we have launched our new [equipment finance Interest Rate](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Contact us or get a free quote for your next equipment purchase") Comparison Tool and Calculator. A valuable and extremely useful resource available right here on our website. ## **Interest Rate Comparison Tool** While you may know us for our equipment finance products, Jade is a significant lender across multiple sectors and we have a large portfolio of business finance products. In our new interest rate tool we have listed both our equipment loan types and a number of other of our business finance products. We’ve placed this reference resource on our home page and several other web pages for easy access by all our website visitors. It shows the interest rate we are currently achieving for:- - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Explore chattel mortgage options with Jade Finance") - Operating Leases - Rent to Own - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Explore commercial hire purchase financing for you equipment with us") - New Equipment Loans - Used Older Secured Equipment Loan - [Unsecured Business Loans](https://www.jadeequipmentfinance.com.au/unsecured-business-loans "Contact us about unsecured business loans for your next equipment purchase") - Secured Business Loans - Non-Bank Overdraft You can see at a glance the different interest rates for each finance product and then take it to the next level and this reference becomes a loan calculator. ## **Using the Interest Rate Comparison Calculator** You will notice at the top of the chart there are two fields or boxes – Loan Amount and Loan Term. Simply enter the amount of your equipment loan and the term you would like to repay the loan and the repayments auto-calculate across all the listed loan types. As we offer [no deposit equipment finance](https://www.jadeequipmentfinance.com.au/no-deposit-equipment-loan "Talk to us about No Deposit Equipment Finance for your business") the loan amount can include the full purchase price of the equipment plus some commissioning and installation costs which we may be able to include in your loan. As this is a generic calculation device there are of course limitations to its capacity and we direct you to the disclaimer for full details. - This calculator is free to use and there is no obligation to proceed with a loan enquiry, quote request or further contact if you choose. - As an online device it is accessible from any device where you have internet connectivity. - Open all hours! As a self-service tool, you are welcome to use our calculator whenever it suits you 24/7. Used correctly and as intended, this calculator can be of great assistance for equipment buyers to start planning finance for their acquisitions prior to entering discussions with one of our consultants. ## **Loan Calculator v Interest Rate Calculator** As you may already be aware, we also have an Equipment Loan Calculator on our website. So not surprisingly, many might be wondering – why do we need this interest rate calculator? How does it work with or replace the loan calculator? We hear you and answer your questions. - The interest rate calculator shows interest rates for all equipment loan types. It allows users to enter only the loan amount and loan term. - The loan calculator provides similar but different functionality. You can enter the loan term, loan amount and the amount of a balloon/residual you may choose. You can change all these values and the interest rate you enter to structure how you may like your equipment loan to look. - The two devices can work together. Refer to the interest rate chart and use those rates to enter into the loan calculator. We always advise that in deciding which particular loan type is the better option for your business set-up is best discussed with your accountant. The decision requires consideration of factors beyond simply the interest rate. ## **Requesting a Quote and Applying for Finance** The calculators only have the capability to derive estimates. So when you like what you see or you would like clarification with a firm quote, simply call us or request a quote online. If you are ready to just get on with it, apply for a loan online or over the phone with one of our consultants. **For a firm quote after using our calculators, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: NO LIABILITY IS ACCEPTED FOR MISINTERPRETATION, MISREPRESENTATIONS OR ERRORS IN THE INFORMATION AND PRODUCT DETAILS INCLUDED IN THIS ARTICLE AS SOURCED THROUGH OTHER ORGANISATIONS AND MANUFACTURERS. THE INFORMATION PROVIDED IN THIS ARTICLE IS NOT PRESENTED FOR OR INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION IN REGARD TO A FINANCIAL DECISION. IT IS FOR GENERAL INFORMATIVE PURPOSES ONLY. IF A READER CONSIDERS THEY MAY REQUIRE ADVICE RE THEIR INDIVIDUAL CIRCUMSTANCES, IT IS ADVISED THAT THEY CONSULT WITH A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Loan Options for New Operators](https://www.jadeequipmentfinance.com.au/blog/loan-options-for-new-operators) **Published:** January 23, 2021 **Author:** Publisher **Content:** There have been significant changes to the way many people work due to the [impacts of coronavirus in 2020](https://www.abs.gov.au/articles/measuring-impacts-covid-19-mar-may-2020 "Measuring the impacts of COVID-19, Mar-May 2020"). Many have changed careers completely, some have pivoted to new areas and others have taken the opportunity to go it on their own and set-up their own business operation. Of course it doesn’t take a pandemic for new operators to branch out into their own business. Tradespeople achieving their qualifications, the desire to achieve personal goals, changes at a place of employment and general personal preferences are just some of the catalysts for change. Setting up your own operation as say a sub-contractor or contractor in construction, earth-moving, the trades and many other industries can be exciting and rewarding over the long term. But the initial steps and stages can come with challenges that in many cases can be seen more as massive obstacles. Primarily we’re talking access to the [business equipment finance](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Talk to us at Jade Equipment Finance about your business equipment finance and leasing needs") for you. If your business is as an owner-operator of a specific type of equipment say a grader, back hoe, crane or other type, or you’re a tech or tradie and need the right tools to deal with the jobs you’re quoting, being a new business can pose problems when applying for equipment loans. A quick browse of the equipment loan criteria on several major bank websites and you may see ‘in business for 12 months/2 years’ as a minimum requirement. If you’re starting out and need that equipment to carry out the work, it can be a catch 22 scenario. Without the finance you can’t acquire the tools and equipment and without the gear you can’t do the work and without the work – well you don’t have a business. Enough of the negatives, you should realise that at [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Send us an enquiry about financing your equipment for your business") – we get it! And we can get finance for new business set-ups. As a lender with a wide scope of interests, we are accredited with both banks and non-bank lenders. Non-bank lenders are finance companies, many of which are specialists in equipment finance and some deal specifically with brokers and lenders such as Jade, not directly with business. These specialist lenders are more flexible when it comes to loans for new operators and we can provide access to these finance channels for operators that are setting up their own businesses. ## **New Business Equipment Finance** Jade Equipment Finance has access to a network of lenders that provides specialty finance requirements. These we refer to as ‘low docs or no docs’ loans. Docs refer to the documents or financial documentation which banks and some other lenders require for an equipment loan. Most new businesses won’t have extensive documentation and accounts records so they will need a low docs loan. This category of finance covers a number of specific applicants:- - ABN Only Equipment Finance - [Low Docs Equipment Loans](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "We offer finance solutions for equipment loaning with no or low docs") - No Docs Equipment Loans The basics of each of these three is similar with the main difference being the quantity of documentation the operator can provide to support their application. ## **Loan Criteria** To be eligible for a Low Docs Loan, applicants will require:- - Current ABN - Identification as required with all major financial dealings These (above) are minimum requirements and non-negotiables. - Being registered for GST is not an essential criteria but can be viewed favourably by some lenders. - Having a good credit profile is very important. In addition, the more documents an applicant can produce the stronger the application. Documents may include:- - Financial business accounts such as expenses/income records. These can be prepared by a professional accountant or simple accounts as prepared by the business owner. - [BAS](https://www.ato.gov.au/business/business-activity-statements-(bas)/ "Business activity statements (BAS)") statements if registered for GST. - Bank statements. - Profit/loss statements and assets/liabilities. - [Business income tax returns](https://www.ato.gov.au/Business/Reports-and-returns/Income-tax-return/ "Income tax return"). - Some lenders may request a [Business Plan](https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan "Write your business plan"). - Some lenders may request personal financials for the business owner(s). This may include assets/liabilities records and personal tax returns. Your Jade consultant will advise and assist with your application. Don’t worry if you don’t have all the docs as listed. No Docs Loans by the very name presumes none if very little documentation will be provided to support the application. ## **Loan Conditions and Features** If approved for a low docs/no docs equipment loan, the business can enter a contract for a [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "We offer Chattel Mortgaging as a finance option for your equipment loans"), CHP, Leasing or [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "We offer Chattel Mortgaging as a finance option for your equipment loans"). In many cases the interest rates that are achieved for a fully documented loan can be achieved for a low docs loan BUT additional conditions are usually attached to the loan. Conditions will depend on individual lenders but may include:- - Applicant having a good credit history and profile. - Additional property/assets to put as security against the finance in addition to the equipment being purchased. - Limits on the total loan amount provided. When sourcing your loan, your Jade consultant will be working towards achieving the optimum conditions for you. ## **Applying for a Low Docs Equipment Loan** Low Docs and ABN only loans are achievable for the purchase of a large range of equipment used in many industries. To apply for a loan, simply call us and you will be appointed your own consultant to source you the best offer for your loan. Your consultant handles all the discussions and liaison with the lenders and negotiates on the best interest rates and loan conditions. So if the bank has already rejected your finance application or if you would like to bypass the hassle and opt for a professional, streamlined approach to your loan requirements, just contact us for a no obligation initial discussion. **To discuss the loan options for new business set-ups, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: NO LIABILITY IS ACCEPTED FOR MISINTERPRETATION, MISREPRESENTATIONS OR ERRORS IN THE INFORMATION AND PRODUCT DETAILS INCLUDED IN THIS ARTICLE AS SOURCED THROUGH OTHER ORGANISATIONS AND MANUFACTURERS. THE INFORMATION PROVIDED IN THIS ARTICLE IS NOT PRESENTED FOR OR INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION IN REGARD TO A FINANCIAL DECISION. IT IS FOR GENERAL INFORMATIVE PURPOSES ONLY. IF A READER CONSIDERS THEY MAY REQUIRE ADVICE RE THEIR INDIVIDUAL CIRCUMSTANCES, IT IS ADVISED THAT THEY CONSULT WITH A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Unveils: What's to come in '21](https://www.jadeequipmentfinance.com.au/blog/unveils-whats-to-come-in-21) **Published:** January 25, 2021 **Author:** Publisher **Content:** Equipment acquisitions are significant investments for most businesses and often require extensive planning over a period of time. Planning which particular item and brand to purchase through extensive research, assessing current and forecast projects and possible new tenders on the horizon and taking the time to structure your finance package to meet your business financial goals and objectives. So it’s very useful to the process when manufacturers provide sneak previews, unveils and forward announcements of upcoming product releases. Rarely is a major piece of equipment simply launched into the market without any pre-launch unveils. We’ve captured a number of pre-launch announcements to keep you across what’s to come in 2021 to assist your equipment purchase plans. To assist the budgeting, refer to our interest rate comparison calculator and [equipment finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Check your Loan Repayments with our Equipment Finance Calculator") to generate estimated repayments on as many items of equipment you may be considering. ## **Cat 785 Mining Truck** The mining sector continues to be the major driver of the Australian economy and [Caterpillar](https://www.cat.com/en_AU.html "785D Mining Truck / Haul Truck | Cat | Caterpillar") is right there with operators in providing the equipment to handle the largest jobs. A recent announcement from the company is that production of their [Next Generation CAT 785 Mining Truck](https://www.cat.com/en_AU/products/new/equipment/off-highway-trucks/mining-trucks/18089285.html "785D Mining Truck / Haul Truck | Cat | Caterpillar") will commence in the first few months of this year. You may be familiar with the next generation treatment that CAT has given to its [excavators](https://www.jadeequipmentfinance.com.au/excavator-loans "We offer finance solutions for excavators for your business") and dozers, well now this 150 tonne mining rig is receiving the upgrade treatment. According to the company the 785 will enhance operator performance and safety with more predictable and intuitive operation delivering easier and faster access to data and boosting efficiency and cost-reduction through streamlining maintenance. The 785 is the first of Caterpillar’s mining rigs to receive the next generation upgrade which features optional configurations and a flexible technology platform along with a brand new cab with the latest hi-tech features and many other new inclusions. It is available in several emission configurations to meet the regulations in different global regions. We’ll stay across Caterpillar announcements for further information to bring you in future articles. ## **Hitachi Ultra-Large Excavator** With an expected availability of October, the Hitachi EX2000-7 may be worth putting into your equipment acquisition plans for 2021. This ultra-large mining excavator is based on the existing EX1900-6 but reportedly uses up to 19% less fuel. That is a significant saving. This new machine has a 193 tonne operating weight placing it in the smaller size category of Hitachi’s ultra-large range. Features include new hydraulic circuit to control oil flow for improved fuel efficiency, a new mode selector to optimise productivity and many more exciting new developments. For mining sector operators the new Hitachi could be the machine to suit your requirements. To see if the pricing suits your budgeting, use our equipment interest rate calculator to generate repayment estimates across our loan portfolio. ## **Kramer Telescopic Handlers** Exciting news for agricultural sector with an alliance between Kramer and [John Deere](https://www.deere.com.au/en/index.html "Kramer Online Official Website") resulting in distributor Cervus Equipment offering the Kramer ag-spec telehandlers. [Kramer is a heavy machinery manufacturer from Germany](https://www.kramer-online.com/gateway/ "Kramer Online Official Website") which has a presence in Australia with a range of agricultural equipment. This new partnership will see Cervus offering Kramer’s range of telescopic handlers which includes 11 models with capabilities up to 5.5 tonnes. For those interested in a demo of the Kramer handlers, Cervus suggests you contact your local branch. Prior to that demo, contact [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Equipment Finance & Machinery Loans | Jade") to arrange pre-approved loan so you are ready to place your order on the demo day. ## **BOC Beast Unleashed** For those with welding tasks in medium to heavy engineering and manufacturing environments, take a look at the new welder from BOC, which has been tagged, the Beast. Officially the [BOC Smootharc Advance II Beast 555R MIG Welder](https://www.boc.com.au/shop/en/au/boc-smootharc-advance-ii-555r-mig-welder-advanceii555r-p "BOC Smootharc Advance II BEAST 555R MIG Welder | BOC Gas"), this is the first in the company’s revamped range of Smootharc welding equipment. According to the company, it is the most powerful MIG MAG as yet and is robust, versatile and features simple operation. BOC is set to announce the release of more products throughout the year, so welders, stay tuned. ## **Pre-Approved Finance for Pre-Release Orders** Savvy operators know that if you want to be the first kid on the block with new toys you have to be ready. In the equipment acquisition arena that can mean having your excavator or [earthmoving equipment finance](https://www.jadeequipmentfinance.com.au/earth-moving-equipment-loans "Explore our earthmoving equipment financing options with us") arranged prior to the availability of new products. Jade Equipment Finance make that possible with our pre-approved finance service. You simply get in touch with us before you place your order. Your Jade consultant will source you a quote for finance for your choice of [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Get a chattel mortgage for your equipment finance"), Leasing, [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Talk to us about equipment rent to own financing for your business") or CHP. On acceptance of the quote, we’ll process your application to ‘approved’ so you’re good to go and place that pre-release order. When you finalise the purchase, the loan is finalised to the exact amount on the seller’s invoice. **To discuss your equipment finance requirements, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: INFORMATION, CONTENT, DATA, REFERENCES AND HINTS CONTAINED IN THIS ARTICLE ARE INTENDED PURELY FOR GENERAL INFORMATION AND NO LIABILITY FOR ERRORS OR SIMILAR IS ACCEPTED. THE INFORMATION IS NOT INTENDED TO FORM THE SOLE BASIS FOR FINANCIAL DECISIONS. ANY READER CONSIDERS THAT MAY REQUIRE ADVICE ON THEIR PERSONAL OR BUSINESS FINANCIAL SITUATION, THEY ARE ADVISED TO SEEK THE PROFESSIONAL ASSISTANCE OF A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Snapshot: The Equipment Lending Market](https://www.jadeequipmentfinance.com.au/blog/snapshot-the-equipment-lending-market) **Published:** January 29, 2021 **Author:** Publisher **Content:** The equipment and heavy machinery lending market is quite extensive in some respects but quite specialised in some ways. While there are a lot of banks and lenders that offer general [business finance](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Finance your business with us at Jade Equipment Finance") for the purchase of equipment, when acquiring specific items some business owners require or can benefit from the approach from lenders that focus specifically on equipment finance. While your[ Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Receive a free quote from us about next commercial equipment purchase") consultant will source and handle your loan requirements, it may be worthwhile for you to have a broad understanding of this select area of finance. We’re providing this general overview of the who’s who in equipment finance. ## **Lender Accreditation** Jade Equipment Finance is accredited with many banks and non-bank bank lenders. Generally speaking, the more quality accreditations a broker or lender has, the better their prospects for sourcing customers better, cheaper [low rate equipment finance](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check out our low equipment finance interest rates") deals. To be accredited with a bank or lender means that broker/lender has been given the approval by that bank/lender to work with them to source finance on behalf of their customers. Accreditation is not automatic or can be presumed as soon as say an organisation sets up in business as a [finance broker](https://www.jadeequipmentfinance.com.au/broker "Speak with our Jade Finance Brokers regarding your equipment finances"). Lenders and brokers request accreditation from banks and lenders. Granting of the accreditation is at the discretion of the bank. Jade greatly values our accreditations, without which we would not be in as ideal position to assist our customers with cheaper finance. We have selected, sourced and been granted accreditation with specific banks and non-bank lenders that we see as some of the best in delivering cost-effective, workable financial solutions for our particular customer base. ## **Scope of the Market** In general terms there are two categories of business lenders:- - Banks: financial institutions which have been given banking status by Australian authorities including holding deposits on behalf of customers. - Non-bank lenders: financial businesses that have been given authority by Australian regulators and have the required qualifications to extend loans and finance. This does not include holding deposits and engaging in other aspects as attached to banking status. Within non-bank lenders there are the finance companies that are readily known in the public arena and then there are the lesser known operators that we refer to as the industry-only channels. These are more specialist lenders that choose to operate only via a select network of brokers. They will often specialise in a particular sector of finance or even a particular industry. For example, we are accredited with Morris Finance which is a specialist in [heavy equipment finance](https://www.jadeequipmentfinance.com.au/heavy-machinery-loans "Finance your heavy machinery with us at Jade Equipment Finance"). Access to these specialist channels is via a network of brokers only. As non-bank lenders are not regulated in the same manners as banks with full-banking status, they have greater flexibility in regard to lending guidelines. They must still operate within a certain set of regulations but they can be less rigid in establishing their own lending criteria. With many of our equipment finance deals you could say this is where the real business of negotiating major equipment finance happens. A particular area of interest is with the low docs, no docs and bad credit finance area. With an increasing number of new businesses starting up as contractor and owner-operator, sole trader status becomes de jour, there is a greater demand for finance from business operators who just do not have the extensive documentation and/or trading time as the banks expect. Non-bank lenders are critical to fill this need in the business finance area. Yes, they do have strict criteria and they do attach conditions to ABN only [Low Docs finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Have low or no docs? Find out how you can get a loan for equipment with Jade Equipment Finance"), but they do make it possible for these business to have the opportunity to grow with the finance needed. Banks and non-bank lenders tend to offer the same if not similar range of commercial finance facilities including Commercial Hire Purchase, leasing, Chattel Mortgage and Rent-to-Own but interest rates will vary across the market. ## **Achieving Flexible Lending Solutions** With this greater variety and more choice, Jade has more scope to source the best equipment finance for each customer. In many deals it is the major banks that offer the preferred option. With others it is one of our other lenders. At any one time a particular lender may be more or less inclined to extend loans. This can occur because of general market conditions or their own internal conditions and forecasts. Lending decisions are also influenced by an individual lender’s experience with or exposure to a particular industry or sector. As we are working with these companies on a continuous basis, we have the latest information and data to know who is offering the best deals in what areas. In many cases it may be one of the majors banks that offers the best deal and sometimes it is one of the non-bank lenders. ## **Our Lenders** Jade is accredited with all of the ‘Big 4’ major banks in Australia – the [Commonwealth (CBA)](https://www.commbank.com.au/ "Commbank Official Website"), [Westpac](https://www.westpac.com.au/ "Westpac Official Website"), [ANZ](https://www.anz.com.au/business/ "ANZ Official Website") and [National Australia Bank (NAB)](https://www.nab.com.au/ "NAB Official Website"). We are also accredited with Macquarie Bank, BOQ for some areas of finance and St George Bank. We are accredited with numerous finance companies including, but not limited to, Liberty, Pepper Money, GE Money, RACQ, Latitude and Society One. Our specialist non-bank lenders include Morris Finance, Selfco Leasing, Prospa, Metro Finance and Scottish Pacific Business Finance amongst others. Refer to Our Lenders webpage for more. Our consultants source finance from across our vast lender panel to secure the cheapest deal for our customers. But if customers want their bank or a specific lender to provide their finance, we will work to those requests and handle the finance arrangements. For more information on our lenders, our accreditations or how we operate, please reach out to us for an obligation-free discussion. **To discuss your equipment finance requirements, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: INFORMATION, CONTENT, DATA, REFERENCES AND HINTS CONTAINED IN THIS ARTICLE ARE INTENDED PURELY FOR GENERAL INFORMATION AND NO LIABIILTY FOR ERRORS OR SIMILAR IS ACCEPTED. THE INFORMATION IS NOT INTENDED TO FORM THE SOLE BASIS FOR FINANCIAL DECISIONS. ANY READER CONSIDERS THAT MAY REQUIRE ADVICE ON THEIR PERSONAL OR BUSINESS FINANCIAL SITUATION, THEY ARE ADVISED TO SEEK THE PROFESSIONAL ASSISTANCE OF A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Finance for 2021 Safety and Tech Upgrades](https://www.jadeequipmentfinance.com.au/blog/finance-for-2021-safety-and-tech-upgrades) **Published:** February 1, 2021 **Author:** Publisher **Content:** Workplace safety, productivity and efficiency can be critical to business profitability. But finding the funds to continually update operations with new tech and to meet new regulations and protocols can be a challenge. As many workers return to the office post-COVID, business owners may face additional expenses to ensure their premises meet [COVID-safe rules and regulations](https://www.safeworkaustralia.gov.au/covid-19-information-workplaces "COVID-19 Information for workplaces"). Are you aware that finance is available for a wide range of business equipment? Finance is not limited to only the heavy duty machinery used on building and construction sites or the equipment required in manufacturing, warehousing and other operations. [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Send us an enquiry about your next commercial equipment purchase") provides loans for a wide range of equipment that is required by businesses. For your business that may mean new furniture and fit-outs to create a COVID-safe environment for your team, customers and visitors. It may mean upgrading CCTV systems to provide better security for your premises and inside for your business. It may be that you need to completely upgrade your tech to be digitally enabled to compete with others in your market. That tech may be componentry, devices and systems to improve productivity. Those operating in high risk industries may require finance for major upgrades to better barriers, scaffolding and other equipment. With lending interest rates currently at historic low levels, now could be the ideal time for you to consider investing in the upgrades your business needs to compete in 2021 and beyond. ## **Tech Upgrades on the Land** Tech upgrades are not the exclusive domain of offices. Manufacturers are expanding technical devices to make working on the land more productive also. One example is the [Work Planner which is available for the John Deere Digital Ecosystem](https://www.deere.com.au/en/our-company/news-and-announcements/press-releases/2021/january/2021jan18-game-changing-technology/ "Game-changing technology will take work from office to paddock"). This latest upgrade to their system and assists agricultural operators with automatic synchronisation of equipment, data and their team. Operators can access information and data in the cab of the tractor via the [John Deere Operations Centre online system](https://www.deere.com.au/en/technology-products/precision-ag-technology/data-management/operations-center/ "Game-changing technology will take work from office to paddock"). The company says this is a centralised solution that plans and tracks work that is to be done and enables the team to get on with work on their tractors and other equipment as soon as they get to the field to be worked. It allows farmers to plan and communicate more efficiently by ensuring the whole team is working from the same data and to the same work plan. The equipment operator receives the plan for the field that they are working on direct to the cab so they can set up the specs and data and get to work. Data is then sent back to the central office so the farmer can monitor their operations. This is just one of many tech systems which are available for farmers and agricultural business operators and staying across new systems and devices may assist your business. ## **Financing Your Upgrades** Whatever equipment your business needs to upgrade to better standards in 2021, Jade has a range of solutions to assist with the financing. While some banks may place limitations on what type of equipment they will finance, Jade Equipment Finance is not limited to sourcing finance from just the banks. We are accredited with multiple non-bank lenders so we expand you choices to a wider field of options. You don’t have to stipulate the lender you would like us to source you a quote from. Your Jade consultant handles all that on your behalf. We have close working relationships with the lending sector so we know which lender is offering the best finance deals at any specific time in any specific industry. This gives us the edge in sourcing you the most cost-effective offer for your equipment finance. ## **Equipment Finance Options** Interest rates on equipment will vary depending on the industry and the equipment being acquired. We have recently launched our [Equipment finance Interest Rate Comparison tool](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") which displays the interest rates we are currently achieving on the portfolio of loans that we offer. These will vary depending on the equipment but should provide a useful guide in planning your purchase. You simply enter the data pertaining to your loan in the fields as indicated and you’ll immediately see estimated repayments for the different loan types based on data as entered. To work your planning to the next level, refer to our [equipment loan calculator](https://www.jadeequipmentfinance.com.au/calculator "See how much you will be repaying with your loan using our calculator"). This allows you to enter an amount for a balloon/residual to plan how you may like your finance structured. The commercial finance facilities we offer include:- - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Acquire your business equipment or machinery with equipment leasing at Jade Equipment Finance") - [Commercial Hire ](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Consider Commercial Hire Purchase Finance to fund your next equipment purchase")[P](/commercial-hire-purchase)[urchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase.php) - [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Explore how you can rent to own equipment with Jade Equipment Finance") - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance") All offer tax benefits but have differing sets of loan features and elements. The choice as to which will deliver the best outcomes for your business should be made in consultation with your accountant as accounting measures need to be considered. To fast-track your finance, take advantage of our online application and contact processes. Or go old school and give us a call to request a quick quote or to apply over the phone. **To discuss your equipment finance requirements, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER:THE DATA, POLICIES, INFORMATION, CONTENT AND REFERENCES AS PRESENTED IN THIS ARTICLE IS FOR GENERAL PURPOSES ONLY, IS SOURCED FROM RELIABLE SOURCES BUT NO LIABILITY IS ACCEPTED SHOULD THERE BE ERRORS OR MISREPRESENTATIONS OF DETAILS IN THE CONTENT. THIS INFORMATION IS NOT INTENDED AS THE SOLE PURPOSE OF MAKING FINANCIAL DECISIONS. READERS SHOULD REFER TO A FINANCIAL ADVISOR OR ACCOUNTANT IN THE EVENT THAT THEY REQUIRE PROFESSIONAL GUIDANCE AND CONSULTATION ON THEIR INDIVIDUAL FINANCIAL POSITION.* **Categories:** Finance --- ### [Finance on Your Terms](https://www.jadeequipmentfinance.com.au/blog/finance-on-your-terms) **Published:** February 5, 2021 **Author:** Publisher **Content:** It’s an accepted part of living and [running a business](https://www.business.qld.gov.au/running-business "Running a business") that it is expected that we all live and work to a certain laws, regulations and terms in order to achieve a smooth-running and cooperative society. But when it comes to arranging finance to support and grow your business, to invest in equipment to facilitate improved productivity, to install new systems and processes to increase your bottom line, most business owners want to have input on the terms. You’re looking for a workable financial solution which is negotiated to suit your business, not a cookie-cutter, one size fits all, basic loan. While much of the focus and fixation with finance is around interest rates, many can overlook the significance and importance of the loan term and loan conditions in the overall cost-effectiveness of the finance. As your equipment lender, we certainly do not. While we have our own obsession with achieving the [cheapest interest rates in equipment finance](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Check out the lowest interest rates for equipment finance"), we are not pre-occupied with rates at the expense of the other loan determinants. Our focus is on achieving an overall financial solution which best meets the preferences and requirements of individual customers. We expand and explain on the significance of getting a loan on your own terms! ## **Equipment Loan Term Considerations** The number of years you have to repay a loan is the finance or loan term. It can be represented in months or in years. When taking on equipment finance, business owners have different points of view when it comes to the loan term they want. Some want as long as possible and some want a shorter term so they own the equipment faster. Both can work equally well, it really depends on the financial objectives of the business and in some cases the equipment itself. We cover off on some key considerations in regard to loan terms FYI:- - The longer your loan term the lower the monthly repayments. - The shorter the loan term the higher the monthly repayments. - If you have a target repayment amount you want for your loan, the loan term works in conjunction with the interest rate and the balloon/residual to arrive at the repayment. You can vary the loan term to vary the repayments but you can also [vary the balloon/residual while leaving the term the same](https://www.jadeequipmentfinance.com.au/blog/residual-buyback-balloon-same-or-different "Residual, Buyback, Balloon: Same or Different?") to vary the repayments for the same total loan amount. - The shorter the loan term the sooner you will own the equipment outright and it will be an asset on your balance sheet. If you are considering other loans down the track this may be important, ensuring you have security against future loans. - Some lenders will have guidelines around how many years they will offer on finance. These decision may be based on the age/condition of the equipment or specifics around the applicant. - Banks can have set guidelines around equipment finance terms. Many of our non-bank lenders are more negotiable on terms. If an individual lender does not offer the loan terms you want, your Jade consultant can source quotes from other lenders that may be more open to negotiating on loan terms. - The [forecast value of the equipment](https://www.smallbusiness.wa.gov.au/business-advice/financial-management/budgets-and-forecasts "Financial planning documents") should be a consideration when deciding on a loan term. That is the possible resale value down the track. - If you decide to upgrade and trade-in or sell that equipment before the end of the loan term, most would want to ensure the sale/trade-in they receive will cover the amount outstanding on the equipment. That is that the amount owed is in line with the market value. - The [working life of the equipment](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules---capital-allowances/effective-life-of-an-asset/ "Effective life of an asset") should be a key consideration when deciding on the loan term you would prefer. - Most equipment finance deals, including those arranged through Jade, have a fixed loan term. So once the contract is finalised and settled, that loan period will not change. If you do payout the loan before the end of the loan term, early payout fees may apply from the lender. So getting it right up front when the finance is arranged can have an impact, positive or negative, on your business over the many years of the loan. ## **Getting Your Terms** After all those ‘considerations’ the big question is how DO you get the loan terms that suit your business? If the bank or lender does not offer the loan term you want with their initial loan quote then it will require some negotiation. As we have significant bargaining power in the equipment finance sector, we can use that power to negotiate better finance terms for our customers. [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or receive a quote at no charge about your next equipment purchase") is accredited with industry-only non-bank lenders as well as the major banks. Where a bank may not budge on terms, many of our non-bank lenders are more flexible and will negotiate. Using our [equipment lo](https://www.jadeequipmentfinance.com.au/calculator "Use our calculator to see how much you will be repaying for your loans")[a](/calculator)[n calculator](https://www.jadeequipmentfinance.com.au/calculator "Check your loan repayments with our calculator") is a great way to prepare for your finance. You can easily see how varying the different elements of the loan change the repayments. Play around with entering different loan terms and balloon values to see what terms and values will best work for you. When briefing your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Talk to one of our Jade Finance Brokers about financing your next equipment purchase"), advise us of your preferences so we can work towards achieving that finance solution for your acquisition. **Discuss equipment finance products with Jade Equipment Finance on 1300 000 003** *DISCLAIMER:THE DATA, POLICIES, INFORMATION, CONTENT AND REFERENCES AS PRESENTED IN THIS ARTICLE IS FOR GENERAL PURPOSES ONLY, IS SOURCED FROM RELIABLE SOURCES BUT NO LIABILITY IS ACCEPTED SHOULD THERE BE ERRORS OR MISREPRESENTATIONS OF DETAILS IN THE CONTENT. THIS INFORMATION IS NOT INTENDED AS THE SOLE PURPOSE OF MAKING FINANCIAL DECISIONS. READERS SHOULD REFER TO A FINANCIAL ADVISOR OR ACCOUNTANT IN THE EVENT THAT THEY REQUIRE PROFESSIONAL GUIDANCE AND CONSULTATION ON THEIR INDIVIDUAL FINANCIAL POSITION.* **Categories:** Finance --- ### [What interest rate can I get?](https://www.jadeequipmentfinance.com.au/blog/what-interest-rate-can-i-get) **Published:** February 8, 2021 **Author:** Publisher **Content:** When it comes to any type of loan or finance the first thing most borrowers want to know is ‘what interest rate will I get?’ Like many other lenders, [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Talk to us directly or get a free fast quote at Jade Equipment Finance") clearly displays the interest rates we can achieve across our finance portfolio. It’s quick and easy for you to see what cheap interest rates we can achieve for all the different equipment finance facilities that we offer. You can even use our calculators to input those rates to generate rough repayment estimates to plan your finance. All well and good but you could be thinking, with all the disclaimers, which we must include, am I going to be offered THAT rate or something else? Many ads for equipment may show a ‘from’ interest rate or repayment if it is for a manufacturer or dealer, while many display an asterisk to indicate terms and conditions etc. This is required by us as lenders but we do see how it can be dilemma for borrowers. To clear your mind and ease your dilemma, we’re running through an explainer on interest rates across the equipment finance market so you have a better idea of what interest rate you can get and how you can get the cheapest interest rate. ## **Market Interest Rates** Interest rates are different for different finance and loan products and categories of purchases and assets. Rates also vary from one lender to another in some categories. Individual banks and lenders will set their rate for a sector or loan category based on their confidence in the industry or sector, their activity in loaning to that sector and based on the overall financial environment. To get the [cheapest interest rate for equipment finance](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders"), it can be smart to source a lender that specialises in that type of finance. Key point as to why Jade Equipment Finance can offer cheaper interest rates. We do specialise in the sector and we are accredited with non-bank lenders that also specialise in equipment finance. Together, we have the knowledge and understanding that is a significant contributing factor to our ability to offer lower interest rates than say a bank or other lender that specialises in another area. The [RBA sets the official cash rate](https://www.rba.gov.au/statistics/cash-rate/ "RBA Cash Rate Target") which sets the price that lenders pay to acquire their funds and then all that flows through to the rates they set on their loans. Lenders price their loans according to their costs and other factors. So key take-out is to select a lender that specialises in equipment finance in order to get cheaper interest rates. ## **Rates across Finance Products** Next let’s look at the rates for the different finance facilities available for equipment finance. We’re talking Leasing, [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Get equipment with our rental finance solutions at Jade Equipment Finance"), Chattel Mortgage and [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Get equipment with our rental finance solutions at Jade Equipment Finance"). These have varying formats and structures and attract different interest rates. We’ve made that clear to see with our interest rate comparison chart where we list all our loan products and the current interest rates we are achieving for each one. You’ll notice that CHP and [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Get equipment with our rental finance solutions at Jade Equipment Finance") are similar or the same while Leasing and Rent-to-Own are higher and different. It may seem like the obvious choice to just go with the finance product that offers the cheapest interest rate. After all, the interest rate determines the repayments and the overall cost of the loan. But each finance product has a set of benefits which are realised by different types of businesses. The benefits that your particular business may derive from a higher interest rate product may be more significant than the interest rate. And some [business finance](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Finance and lease equipment for your business with us at Jade Equipment Finance") types may just not suit you. That’s a conversation for you to have with your accountant. The interest rates we display are currently achievable for many applicant with a good credit report and for purchasing new equipment. Some used equipment may attract a different rate. When you engage Jade Equipment Finance to handle your finance deal, your consultant will be doggedly working towards getting you the cheap interest rates we have on offer. Instead of offering a higher rate, our lenders may offer you a finance deal at those rates but with conditions or stricter criteria. This is particularly relevant for those seeking ABN-only, no docs and [low doc equipment finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Talk to us about equipment financing for when you have low or no docs"). Issues around the equipment you’re buying can also impact the loan offer. ## **What interest rate will you get?** Now to the burning question, what rate will you get? In a general forum such as this and with each equipment finance application considered individually, clearly we can’t provide overreaching quotes. But we can state categorically and definitively, that we will be working towards delivering you the cheapest interest rate on your equipment finance deal. For your planning, use the rates we are currently displaying or just call us for a quick quote and then you will definitely know what rate you’ll be offered. There’s no obligation attached to requesting a quote and we won’t waste your time or keep you waiting. We provide a quick quote service so you can source the information you need quickly and easily to get on with securing your equipment. **To discuss your equipment finance requirements, contact Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION PRESENTED IN THIS ARTICLE IS NOT INTENDED AS THE SOLE BASIS FOR INDIVIDUALS TO MAKE FINANCIAL DECISIONS. THOSE THAT REQUIRE ADVICE OR GUIDANCE IN REGARD TO THEIR FINANCIAL DECISIONS SHOULD CONSULT WITH AN ACCOUNTANT OR FINANCIAL ADVISOR. THE INFORMATION AS DETAILED IS BASED ON DATA, SPECS AND REFERENCES AS SOURCED FROM A RANGE OF SOURCES AND LIABILITY IS NOT ACCEPTED FOR MISINTERPRETATIONS, MISREPRESENTATIONS OR ANY ERRORS IN THE CONTENT. THIS ARTICLE IS FOR GENERAL INFORMATIVE PURPOSES ONLY.* **Categories:** Finance --- ### [Finance: How to get it when it's hard to get](https://www.jadeequipmentfinance.com.au/blog/finance-how-to-get-it-when-its-hard-to-get) **Published:** February 12, 2021 **Author:** Publisher **Content:** It’s human nature to want what we can’t have. It can be called aspirational or referred to as goals. It can drive and motivate people to great achievements. But when it comes to business and sourcing finance, being told you can’t have it can be a huge blow and present major difficulties and setbacks. When it comes to sourcing affordable, cost-effective [finance to purchase business equipment](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing "Need business financing and leasing? Contact us at Jade Equipment Finance"), there are a number of reasons why some business owners can find finance hard to get. You may have credit issues, you may not have been operating long enough to meet the bank’s lending criteria, you may not possess the documents and finance accounts that need to accompany a loan application, you might be a small sole trader or you may be [new in business](https://business.gov.au/guide/starting "Guide to starting a business"). So finance is hard to get by way of not meeting loan criteria. Some may not have the understanding of the finance market to know where to go to source equipment finance. So they find finance hard. Or they may find finance hard to get because they’re busy running their operation and can’t spare the time to go through the loan sourcing and application process. If you fit any of these scenarios, then [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Send us an enquiry about our finance solutions on your next equipment purchase") has a solution that turns hard to get finance into a smooth, streamlined and easy process. ## **Getting Finance Quotes** If you’re finding it hard to get equipment finance estimates and quotes due to your busy schedule and lack of time then we have an immediate solution. You don’t have to spend hours on the phone to the bank or wait for those call-backs. When will they call???? In your own time, use our self-serve resources to plan your finance requirements and calculate rough estimates. Our [equipment loan calculator](https://www.jadeequipmentfinance.com.au/calculator "Use our calculator to determine your loan repayments") allows you to enter the loan amount and term with the relevant interest rate for the finance product you want and you’ll automatically see an estimated repayment. Our [interest rate comparison](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") allows you to see, all in the one place, the different interest rates for all our loans. For a firm quote – give us a call or just email and we will respond very promptly. When it comes to knowing where to go for equipment finance, we solve that instantly. We do all that for you. We are accredited with multiple lenders so we source you the cheapest quote from across our lending networks. ## **Understanding Finance Products** Finance for equipment is available with a number of different loan types or products known as commercial finance facilities. It’s completely realistic that not everyone, in fact very few people other than finance professionals, would fully understand and know the details and differences between every finance product. So if you’re finding it hard to get your head around which finance product you should select, we’ve provided explainers in plain-speak on each one:- [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Acquire your business equipment or machinery with equipment leasing at Jade Equipment Finance"), Rent-to-Own, [Equipment Chattel Mortgage](https://www.jadeequipmentfinance.com.au/asset-lease "Acquire your business equipment or machinery with equipment leasing at Jade Equipment Finance") and Equipment Commercial Hire Purchase. The differences relate to different accounting methods, GST treatment, the way a tax deduction can be claimed, balance sheet entry and the ownership of the equipment during the term of the loan. By reviewing the information we provide you should provide acquire a good general knowledge of each product. But we always advise our customers to consult with their financial advisor or accountant on selecting their finance product. ## **Getting Finance when it’s Hard to Get the Docs Needed** One of the major reasons that businesses can find equipment finance hard to get is because they simply don’t have the financial documents that the bank is demanding to be included in the loan application. The criteria for equipment finance with some banks and lenders can include having been in business for a minimum 12-24 months and having a range of financial information and accounts. If you’re starting a new business or you’ve only been operating for a short time, you may not have traded long enough to have income tax returns, BAS statements, profit and loss statements and annual accounts. For you, Jade has a solution to make that hard to get finance a whole lot easier. The solution – our ABN-only, No Docs and [Low doc Equipment Finance](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance "Explore low and no doc equipment finance solutions with us"). We achieve these loans for our customers as we have accreditation with non-bank lenders that are more flexible than the banks in regard to the amount of financial documentation required to achieve a workable loan offer. Head to our web pages to read all the details on these financial solutions. ## **Getting Past the Hard to Meet Loan Criteria** Banks do have strict guidelines when it comes to all types of loans and finance. They are highly regulated and that is the way they need to operate. Cold comfort when it’s your equipment finance application that has just been rejected. If you don’t meet the criteria because you have credit issues, then Jade might just be able to assist you. We have non-bank lenders that have a tendency to be more flexible and do offer [Bad Credit Equipment Finance](https://www.jadeequipmentfinance.com.au/bad-credit-equipment-finance "Have subpar credit? Contact us about how you can get equipment financed") at workable rates and pricing. You won’t have to deal with them yourself, your Jade consultant handles all that for you plus the paperwork and many other aspects of the loan. ## **Turning Hard to Get into Easy to Achieve** If you’re finding equipment finance is just too hard to get, change your approach by engaging Jade to handle it all for you. **Give us a call to discuss how we can assist you acquire those hard to get equipment finance deals. Jade Equipment Finance on 1300 000 003** *DISCLAIMER: THE INFORMATION PRESENTED IN THIS ARTICLE IS NOT INTENDED AS THE SOLE BASIS FOR INDIVIDUALS TO MAKE FINANCIAL DECISIONS. THOSE THAT REQUIRE ADVICE OR GUIDANCE IN REGARD TO THEIR FINANCIAL DECISIONS SHOULD CONSULT WITH AN ACCOUNTANT OR FINANCIAL ADVISOR. THE INFORMATION AS DETAILED IS BASED ON DATA, SPECS AND REFERENCES AS SOURCED FROM A RANGE OF SOURCES AND LIABILITY IS NOT ACCEPTED FOR MISINTERPRETATIONS, MISREPRESENTATIONS OR ANY ERRORS IN THE CONTENT. THIS ARTICLE IS FOR GENERAL INFORMATIVE PURPOSES ONLY.* **Categories:** Finance --- ### [Finance for Drone and UAV Equipment](https://www.jadeequipmentfinance.com.au/blog/finance-for-drone-and-uav-equipment) **Published:** February 15, 2021 **Author:** Publisher **Content:** Drones or unmanned aerial vehicles (UAV) are becoming essential equipment across many industry sectors. Extensively used for several decades in defence applications, developments in technology and affordability have brought these versatile vehicles into the general commercial sector and are being increasingly adopted for general business operations. Providing an eye in the sky for a wide range of applications. In agriculture, drones can be equipped to carry out spraying operations and to monitor crops and livestock. Coverage of live events especially sporting events has been revolutionised with drone camera equipment, both fixed and unfixed. Enterprising businesses are using drones to making deliveries of much-needed medical supplies and much-wanted coffee in difficult to access and remote areas or simply to save delivery times. Drones are widely used for surveillance work of power and other utilities infrastructure and cabling; in professional photography especially for real estate; for monitoring a range of conditions in many terrains; for data and information gathering; for geo-mapping by engineering firms; and for surveying dangerous to access areas for general monitoring, mining and for search and rescue operations. While the smaller drones will be below the minimum loan amount for most Jade lenders, the larger, professional level drones and their associated equipment would meet our lender requirements and be eligible for finance under our Equipment Finance category. Drones can increase efficiency, expand operations and work into otherwise inaccessible areas, improve service offerings and increase safety and may be an investment you are considering. If so, we provide information on purchasing with drone and [technology financing](https://www.jadeequipmentfinance.com.au/technology-equipment-financing "Finance your drone or technology purchase with is at Jade Equipment Purchase"). ## **Types of Finance Available** For the purchase of drones used primarily for business purposes, subject to meeting our lender requirements, Jade offers our comprehensive range of loan types. Loans for drones include:- - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Acquire your business equipment or machinery with equipment leasing at Jade Equipment Finance") - Equipment [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "https://www.jadeequipmentfinance.com.au/commercial-hire-purchase") - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance") - [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Explore how you can rent to own equipment with Jade Equipment Finance") These types of finance facilities vary in regard to the way they treat GST, when and how an income tax deduction benefit is realised, entry as an asset or liability in a company’s balance sheet, suitability to either the cash or accruals method of accounting, the interest rate and some other aspects. The interest rate varies due to differences in how each loan type is structured. To see the interest rates we are currently achieving on equipment finance, please refer to our [Loan Interest Rate Comparison chart](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders"). Deciding which is the most appropriate finance for your specific drone purchase and which is most suited for you individual business set-up, a range of factors need to be considered. To assist you with this decision-making process, we recommend that our customers refer to their accountant or their financial advisor. While our Jade consultants are experts in sourcing and structuring finance, it is not our role as your lender to provide advice on issues pertaining to financial objectives of individual businesses. Simply have the conversation with your accountant then brief your [Jade consultant](https://www.jadeequipmentfinance.com.au/broker "Talk to one of our professional finance brokers about your next equipment purchase") as to which loan type you would like us to source for you. ## **Lender Options** While drone technology has apparently been around for over two decades, it has primarily been used in military and defence applications. The availability of professional and commercial grade drone equipment is relatively new for the business community. As such, not all lenders might embrace and understand your uptake of drone technology and may be reticent to provide you with the appropriate finance. Fortunately [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote about your equipment financing needs") is not limited to just one or only a few lender options. We are accredited with multiple banks and non-bank lenders. So we have plenty of choices to source the lender that will offer you the cheapest and most cost-effective finance quote for your drone purchase. If you’ve never worked with a lender like Jade before, the process is simple and straightforward. Our services are available to all types of businesses – SMEs, sole traders, owner operators, family entities, partnerships and large corporate organisations. You just brief us on details of the drone equipment you are considering buying, provide details around your business financial situation and what loan type you are seeking and we do all the work from there. We source you a quote from across our lender panel, negotiating on interest rates and loan conditions to secure the cheapest and most suitable offer. On your acceptance of that offer, we’ll handle the paperwork to save you time and hassle. ## **Planning Your Finance** If you’re considering a range of different drone makes and models, you are welcome to use our [equipment loan calculators](https://www.jadeequipmentfinance.com.au/calculator "Check what your repayments will be when you finance your next equipment purchase") to get rough repayment estimates to assist with your planning. We provide two calculators which can be used together or separately. The interest rate calculator shows the rates we are offering on different types of loans. You enter your loan amount, which can be 100% of the purchase price, and the loan term you want, to calculate repayment estimates for different loan types. The equipment loan calculator adds another dimension with the inclusion of the balloon/residual. This is part of the loan which is set aside for payment at the end of the loan term. Enter the data around your loan, including the interest rate for the loan type you have selected plus any balloon you may choose and the repayment estimate will be calculated. Alternatively, just get started with your loan application by applying online or giving us a call. **Contact Jade Equipment Finance on 1300 000 003 to discuss your drone equipment finance requirements.** *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.* **Categories:** Finance --- ### [Medical Equipment Finance Update](https://www.jadeequipmentfinance.com.au/blog/medical-equipment-finance-update) **Published:** February 18, 2021 **Author:** Publisher **Content:** With the start of the [COVID-19 vaccine roll-out in Australia](https://www.health.gov.au/initiatives-and-programs/covid-19-vaccines "COVID-19 vaccines"), it’s timely to update on the availability of finance for the acquisition of medical equipment. Contrary to what some may think, Jade Equipment Finance is not solely involved in providing finance for heavy construction equipment, plant and machinery and yellow goods. We provide finance solutions for the full range of business equipment requirements across just about every industry sector. We’re not only involved in the rough and tough stuff but the delicate, sensitive devices and equipment used in the health and medical sector. With the COVID-19 pandemic, the importance of specialist medical equipment has been in sharp focus. Initially with the need for ICU and respirator equipment and now with the requirements of the [Pfizer vaccine](https://www.health.gov.au/initiatives-and-programs/covid-19-vaccines/learn-about-covid-19-vaccines/about-the-pfizerbiontech-covid-19-vaccine "COVID-19 vaccine: Information for consumers and health professionals") for sub-zero temperature storage equipment and the other specialist equipment and facilities required for the Astra Zeneca and other vaccines. If your practice or facility is considering applying to be a provider of a specialist vaccine roll-out and requires new equipment to make that possible, our [Jade consultants](https://www.jadeequipmentfinance.com.au/broker "Get in touch with our professional finance brokers for your next equipment purchase") can work with you regarding finance. Medical practitioners and therapists may have also needed to upgrade their IT capabilities with new equipment in order to provide telehealth services to patients, especially mental health services during lockdowns. With some telehealth services purported to be continuing beyond the pandemic requirements, these needs may be ongoing. IT and computer equipment is also an area that we finance. These are just a few examples of the type of equipment acquisitions that Jade could assist with finance solutions for medical practices and facilities. But our finance services extend to a vast range of equipment required by many practices, providers and medical services facilities. ## **Equipment Options** Jade can provide cost-effective [medical equipment finance](https://www.jadeequipmentfinance.com.au/medical-equipment-loans "Finance your medical equipment with us for low interest rates") for the purchase of much of the equipment required by a medical practice. Not just the specialist equipment required for diagnosis and treatment but also the general office and treatment room equipment. - Surgery furniture - Patient treatment beds and specialist chairs - Specialist carts and storage cabinets and equipment - Diagnostic and scanning equipment - Treatment equipment – optical, dental, physiotherapy, oncology, radiology and others - [Vet Equipment](https://www.jadeequipmentfinance.com.au/veterinary-equipment-loans "Need vet equipment financed? Get in contact with us about financing that equipment") - Rehab equipment - Specialist refrigeration equipment for the safe storage of vaccines and other medicines - IT hardware and [software finance](https://www.jadeequipmentfinance.com.au/software-finance "Make use of our low interest rates to help your business finance its software") - CCTV and security equipment - [Dental equipment](https://www.jadeequipmentfinance.com.au/dental-equipment-loans "Explore finance solutions for dental equipment with us at Jade Equipment Finance") ## **Types of Medical Practices Eligible** All types of medical business structures are welcome to utilise our expert finance services to handle their equipment finance requirements:- - Practices and facilities - GPs surgeries and sole trader therapists - Physiotherapists, chiropractors, osteopaths, psychologists, psychiatrists, dieticians and occupational therapist - Radiology, imaging, oncology, pathology, diagnostic and sample collection facilities. - Vaccine provider facilities - Skin clinics - Audio laboratories - Optometrists and ophthalmologists - Rehabilitation facilities - Pharmacies - Dental surgeries - Veterinary The business structure can be a partnership, sole trader, SME or corporate entity. ## **Loan Types Available** There are four main types of finance facilities available for the purchase of medical equipment. - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance") – a very popular form of finance as it suits many business set-ups that use the cash accounting method. Referred to simply as Equipment Loan by many banks and some lenders. Most suitable form of finance for businesses seeking to take advantage of accelerated asset depreciation tax measures such as Instant Asset Write-Off and temporary full expensing. - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Acquire your business equipment or machinery with equipment leasing at Jade Equipment Finance") – an off-balance sheet finance facility which best suits businesses that use the accruals method of accounting. - [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Explore how you can rent to own equipment with Jade Equipment Finance") – an attractive option for many business set-ups which can be structured to suit key financial objectives. - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Consider Commercial Hire Purchase Finance to fund your next equipment purchase") – not a short term rental/hire, this is a finance facility where the borrower ends up owning the equipment. The differences between these finance facilities relate to the accounting method used, how and when GST and tax deductions are realised, ownership of the equipment over the term of the finance, balance sheet entry and the interest rate. While the variations in interest rates is an important consideration, the overall benefit to individual businesses of specific loan types should be considered. Medical practice operators are advised to refer to their CFO or accountant for advice as to which loan type will best work for their facility. While differences do exist, when arranged through Jade, all these finance products can be secured with a fixed interest rate, fixed loan term, fixed balloon/residual and that all results in a fixed monthly repayment. Fixed finance elements which can provide much-needed certainty over the loan term for medical practices. ## **Working with Jade** Working with [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/) as your lender provides many time-saving and cost-saving benefits to our customers. As we are accredited with multiple lenders, we have more choices to source cheaper and more flexible finance than most individual business operators can easily source on their own. In addition, we have professional level access to specialist lenders that is not readily available directly to businesses. Our specialist lenders can be more flexible when it comes to negotiating interest rates and structuring loan terms and conditions to suit the borrower. **To discuss your medical equipment finance requirements contact Jade Equipment Finance on 1300 000 003 for an obligation-free conversation.** *DISCLAIMER: THIS ARTICLE IS PREPARED AND POSTED WITH THE INTENTION OF PROVIDING GENERAL INFORMATION AND NOT WITH THE INTENTION THAT IT BE THE ONLY SOURCE OF INFORMATIONON WHICH TO MAKE FINANCIAL DECISIONS. THOSE REQUIRING FINANCIAL ADVICE AROUND THEIR INDIVIDUAL SITUATIONS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPT FOR ANY MISREPRESENTATIONS OR ERRORS IN THE CONTACT AS SOURCED, IN GOOD FAITH, FROM A RANGE OF SOURCES.* **Categories:** Finance --- ### [2021 Field Days and Civil Construction Equipment Shows](https://www.jadeequipmentfinance.com.au/blog/2021-field-days-and-civil-construction-equipment-shows) **Published:** February 22, 2021 **Author:** Publisher **Content:** Field days and shows offer great opportunities for an up-close with the latest equipment releases, to talk deals with manufacturers and to network with colleagues and others in the industry. After many industry conferences and events were cancelled in 2020, it’s great to see a calendar of events filling up for 2021. We’ve compiled a calendar of several events in the construction, building, civil works and heavy vehicle sectors for you to earmark and some hints of being prepared when attending a show. - [Perth Autumn Home Show](https://www.perthhomeshow.com.au/ "Perth Home Show"). 26-28 March 2021, Perth Convention and Exhibition Centre - [National Diesel, Dirt and Turf Expo](https://www.dieseldirtandturf.com.au/ "Diesel Dirt and Turf"). 9-11 April 2021. Sydney: Eastern Creek Dragway - [Melbourne Autumn Home Show](https://www.facebook.com/events/melbourne-convention-and-exhibition-centre-mcec/the-melbourne-autumn-home-show-2021/351331865732002/ "Melbourne Autumn Home Show"). 16-18 April 2021. Melbourne Convention and Exhibition Centre. - Master Builders SA Home Show. 30 April – 2 May 2021, Adelaide Showground. - Civil Construction Field Days. 13-15 May 2021. Hamilton Northshore, Qld. - [Brisbane Truck Show](https://www.brisbanetruckshow.com.au/ "Brisbane Truck Show"). 13-16 May 2021. Brisbane Convention and Exhibition Centre. - [CRT Farmfest Agri-Tech Expo](https://acmruralevents.com.au/farmfest/home "ACM Rural Events") 8-10 June 2021. Toowoomba, Qld. - [Perth Tradie Expo](https://www.tradieexpo.com.au/ "Tradie Expo"). 16-18 June 2021. Ascot Racecourse. - [Perth Home Show](https://www.perthhomeshow.com.au/ "Perth Home Show"). 6-8 August 2021. Perth Convention and Exhibition Centre. - [AgQuip Field Day](https://acmruralevents.com.au/agquip/home "AgQuip"). 17-19 August 2021. Gunnedah, NSW. - [Henty Machinery Field Days](https://hmfd.com.au/ "Henty Machinery Field Day"). 21-23 September, 2021. - Elmore Machinery Field Days. 5-7 October 2021. Elmore Events Centre, VIC. - [The Adelaide Home Show](http://www.adelaidehomeshow.com.au/ "Adelaide Home Show"). 15-17 October 2021. Adelaide Showground. - [Australian National Field Days](https://anfd.com.au/ "Australian National Field Days"). 21-23 October 2021. Borenore, NSW. - [Sydney Build Expo](https://www.sydneybuildexpo.com/ "Sydney Build Expo"). 23-24 November 2021. ICC Sydney. As we’ve seen over the past 12 months, issues around the coronavirus can cause events to be changed and state borders closed at short notice. Hopefully, we will see far less of that through 2021 with the vaccine roll-out. But it is advisable to keep up to date with the show of your choosing for regular updates. Most industry events will have a website or webpage or social media presence where you can register for updates. ## **COVID-Safe Show Details** Events of this nature will in most cases, require to operate under an approved COVID-safe plan. These requirements may vary from state to state and depend on the scope and nature of the show. Details to stay across:- - COVID-19 restrictions may apply. These may include the recommended or preferred wearing of masks, physical distancing and limiting attendance. - Pre-booking is available for some shows and may be strongly recommended if numbers are capped resulting from COVID restrictions. - For the CCF (Civil Contractors Federation) Field Days in May, the organisers have noted a range of measures and actions in regard to COVID that they will be implementing. These include operating to a COVID-safe framework as determined by Queensland authorities and providing attendees with a briefing via email prior to the event. ## **Show Preparation: Tips and Hints for Attendees** Many business operators attend field days and show to inspect specific equipment that they are considering purchasing. Shows offer a great opportunity to see [construction equipment](https://www.jadeequipmentfinance.com.au/construction-equipment-financing "Finance construction equipment with us at Jade Equipment Finance") demos and ask the company reps all the questions you want on the spot. Manufacturers often offer show specials with discounts and deals for buyers that order at the event. We’re giving you some tips and hints so you can be prepared to be the first inline on those show specials and/or order at the show, knowing your finance is sorted. - Loan calculator. Our [equipment finance calculator](https://www.jadeequipmentfinance.com.au/calculator "Calculate your repayments with out online calculator") is available on our website which means it is accessible from any device with internet connectivity. Having it ready and quickly accessible while attending an event is a great idea. When discussing equipment pricing with reps or comparing different makes and models, you can easily input the relevant data to get a repayment estimate. - Interest rate comparison chart. Our comparison chart can also be accessed from your smartphone and may also come in handy if a financial offer deal arises during the show. At Jade Equipment Finance we pride ourselves on our [cheaper interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders"). In the likelihood, someone offers you finance, simply reference our interest rates to see how we compare. - Quick loan service. If you’ve decided to buy equipment while attending an event and you need fast finance, just give us a call while you’re there. Our consultants can take your brief and details and get back to you asap with a quote and/or loan approval. - Pre-approved finance. While having our calculators at hand for quick estimates, the must-have accessory for serious show attendees is the pre-approved equipment loan. Get in touch with us in the week or prior to the event and [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us or get a free quote on financing and leasing equipment for your business") will organise your pre-approved loan. That way you will be able to order while there. Pre-approved finance has zero obligation attachment so should you change your mind after seeing the equipment in person, no problem. With current low-interest rates and a surge in infrastructure and general economic activity, 2021 could be THE year for you to invest in new machinery and attending field days is a great way to see what is on the market. **Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance requirements.** *DISCLAIMER: PLEASE NOTE THAT THIS INFORMATION IS PROVIDED PURELY AS A GENERAL INFORMATIVE ARTICLE AND IS NOT INTENDED AS A SINGLE SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADVICE IN REGARD TO THEIR FINANCIAL SITUATION ARE ADVISED TO REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS IN THE DATA, FIGURES, DETAIL AND OTHER INFORMATION AS SOURCED FROM OTHER SOURCES.* **Categories:** Finance --- ### [Securing Cost-Effective Forestry Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/securing-cost-effective-forestry-equipment-finance) **Published:** February 26, 2021 **Author:** Publisher **Content:** As in all industries, businesses and contractors operating in the forestry industry require cost-effective equipment finance in order to achieve productivity and profitability. But additional considerations for this sector may include having the latest equipment to ensure safe operations in even the most challenging terrain and the ease of securing finance. When you spend most of your working time on site and possibly in areas where connectivity is limited, making and waiting for those calls to/from the bank re your loans can be a major challenge. [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Send us an enquiry about financing your next equipment for your business") understands and fully appreciates these issues and provides a service which facilities ease of organising finance and cheap loans to secure the equipment you require to handle the jobs you need to tackle. ## **New Equipment Showcase – John Deere 6 Wheel Skidder** If you’re after a skidder with the features to more safely tackle steep, sloping and wet ground conditions, the new [John Deere 768L-II bogie skidder](https://www.deere.com/en/our-company/news-and-announcements/news-releases/2021/forestry/2021feb17-768l-ii-bogie-skidder/ "Finance logging equipment for your business with us at Jade Equipment FInance") could be for you. According to industry media reports this is a new addition to Deere’s range of [logging equipment](https://www.jadeequipmentfinance.com.au/logging-equipment-finance "Finance logging equipment for your business with us at Jade Equipment FInance") for the forestry industry and provides features to deliver improved productivity when operating in conditions that may be challenging. This skidder has a long wheelbase, six wheels and componentry in the axles to provide both stability and durability along with a new design for the arch. The company claims that the heavy-duty axles have been specifically built to provide stable operation for applications in tough conditions and to reduce fatigue for operators. The company claims that the 768L-II has better tractive capability and other aspects which make this machine able to work in the wet type terrains which could not be easily accessed with a 4 wheel machine. A benefit which they see as extending an operator’s working window to expand their calendar or operations. Quotes in industry media from operators who have used this new machine attest to being able to carry double the loan in wet and steep terrain with less disturbance to the ground. No doubt John Deere will be exhibiting at some of the equipment field days and shows through 2021 which may give you the opportunity to see the new 768L bogie skidder in action. Work also has it that software for the forestry industry is will also soon be released by John Deere. ## **Finance Options** While this new John Deere machine and many other great machines available for forestry operators are designed to deliver improved productivity in operating, if you acquire a machine with an ‘over the odds’ finance package that productivity may be quickly diluted. Jade Equipment Finance specialises in consistent delivery of cost-effective equipment finance because we focus on achieving that all-important [cheap interest rate across our equipment loan portfolio](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders"). The interest rate in conjunction with a flexible finance term determines the true cost-effectiveness of equipment finance as reflected in the repayments. Business owners first need to select which particular finance option is suited for their operation: Jade offers the full range of equipment finance products for you to select from:- - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease) (Finance Lease) - [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance") (Equipment Loan) - [Commercial Hire Purchase](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase "Consider Commercial Hire Purchase Finance to fund your next equipment purchase") (Hire Purchase) - [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance "Explore how you can rent to own equipment with Jade Equipment Finance") All commercial finance facilities are structured to deliver a tax benefit to businesses which is derived in differing ways. It is strongly recommended to consult with your accountant on the selection of equipment finance products. ## **Enabling Easy Access to Lending Services** From our experience working with customers in the forestry industry, one of the impediments to easily securing finance we see is the way in which forestry workers operate. When you are operating in forest environments, not always remote but often with poor phone reception it can no doubt be difficult to engage in the extensive phone or email exchanges with the bank. And forestry operators usually operating long days with little time at the end of a day to engage in finance sourcing. Difficulty in accessing the right channels or even connecting with the right people to source finance quotes can be seen in some instances as adding to the cost of your loan. If you have to take time off, unpaid, from your work, purely to source finance quotes and make all the necessary arrangements, then that cost of the income lost should be included as a cost of that finance deal. Jade fully understands that whole scenario and offers a business model that facilitates ease of access to the right channels to deliver cheap equipment finance. For starters, we provide you with a raft of DIY resources which you can access in your time. Our Interest Rate Comparison allows you to compare interest rates on different types of loans. Our [Equipment Loan Calculator](https://www.jadeequipmentfinance.com.au/calculator "Make use of our equipment calculator to see how much you have to repay") allows you to work up repayments estimates on different makes and models, again, in your own time. When it comes to the big dance, actually sourcing a finance deal, your Jade consultant handles the entire process for you. You can make the initial contact via phone, email or via our online forms. Equipped with your details and brief, your consultant proceeds to source your finance quote and on acceptance, handles the paperwork and settlement. All while you are getting on with your job, in whatever location that may be. We save you on the costs of finance with our cheap interest rates and we save you having to forego deriving an income simply to source your finance. If you operate in the forestry industry, need to secure new machinery such as the Deere 6 wheel skidder and need finance, a quick call or email to Jade will get the process underway. **For a finance quote on forestry equipment contact Jade Equipment Finance on 1300 000 003 or online** *DISCLAIMER: PLEASE NOTE THAT THIS INFORMATION IS PROVIDED PURELY AS A GENERAL INFORMATIVE ARTICLE AND IS NOT INTENDED AS A SINGLE SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADVICE IN REGARD TO THEIR FINANCIAL SITUATION ARE ADVISED TO REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS IN THE DATA, FIGURES, DETAIL AND OTHER INFORMATION AS SOURCED FROM OTHER SOURCES.* **Categories:** Finance --- ### [Economic Outlook and Government Measures Update](https://www.jadeequipmentfinance.com.au/blog/economic-outlook-and-government-measures-update) **Published:** March 2, 2021 **Author:** Publisher **Content:** Despite many industry sectors still on the back foot in regard to COVID-19 recovery and many waiting to see the outcomes of the conclusion of JobKeeper at the end of March, there are many encouraging signs across many sectors of the economy. ## **December Quarter Figures** In late February it was a quite impressed and no doubt relieved Federal Treasurer, Josh Frydenberg, who announced the economic data for the December 2020 quarter. The Treasurer reveals that the economy had grown 3.1% in the quarter and had recovered 85% from the ‘COVID drop’. He said the outcome was much faster than expected and had beaten expectations. He said there were still sectors and regions doing it tough but a strong broad-based recovery was underway. The Treasurer quoted specific figures including 320,000 new jobs added, consumption up 4.3% and business investment up 2.6%. He noted that the investment was very much related to equipment and machinery investment with both business and consumer confidence back to pre-COVID levels. Mr Frydenberg said the country begins 2021 in a strong position, retaining the AAA credit rating and noted that the recovery plan is working, though acknowledging that the job was no done and challenges lay ahead. Overall, the economy has had two consecutive quarters of GDP growth and real GDP is better than forecast. ## **Government Measures Extended** In early March, as part of the Government’s National Economic Recovery Plan, the Prime Minister Scott Morrison announced that the job subsidy scheme would be extended. This targeted measure was introduced in 2020 and provides subsidies to businesses to employ apprentices and traineeships. Many of our Jade Equipment Finance customers rely on apprentices and trainers as an integral part of their businesses and this should be welcome news. This Boosting Apprenticeships program is part of the overall focus of the Government on training, skills and jobs and will now be extend to include new trainees and apprenticeships that are signed on by 30 September 2021. In making the announcement, the Prime Minister acknowledged that although the just released national accounts indicated that the economy was on the comeback, businesses continued to need support and apprentices and trainees needed these types of opportunities. If you’re considering taking advantage of this scheme in taking on new apprentices and trainees in your trade, engineering, construction or machinery business and you require new equipment to cater for the intake, speak with us about finance solutions. An increase in staffing, even at trainee level, may be an opportunity to increase productivity and output if matched with the right equipment acquisitions. ## **Construction Sector Figures** The construction sector activity is reported in part with the Australian Industry Group and [Housing Industry Association monthly reports](https://hia.com.au/business-information/economic-information/economic-publications "Economic Publications"). A recently released report put the apartment showing some expansion following several years of sluggish performance. The Australian PCI, which is the Performance of Construction Index, eased by 0.2 points in February but still show a reading of 57.4. Apparently a reading in excess of 50 indicates activity expansion. The report indicates a bounce back particularly in the apartment sector while growth in the housing area had record highs for the index. All potentially good signs for our customers in the construction sector and with Instant Asset Write-Off still in play for eligible businesses and interest rates remaining low, the right time could be NOW to invest in new construction machinery. To calculate repayment estimates to assist your budget planning, use our equipment loan calculator. Enter the loan amount, which can be 100% of the purchase price, loan term preferred and the correct interest rate for the finance product you’re interested in and the calculator does the rest. For a quick firm quote, give us a call. ## **Breaking News …Support for the Aviation Sector** As we prepare this article, news has broken that the Government is launching a support package to assist the aviation and tourism sectors. Due to the international travel bans, these sectors have been especially hard hit by COVID and many fear for the future of many businesses when JobKeeper expires at the end of March. This new initiative will come into effect from 1 April 2021 and involves a scheme whereby the Government subsidies air travel tickets to boost domestic travel and tourism. Initial reports state this is a $1.2 billion package with a number of elements. We’ll research the detail when the full measure is announced and provide an update of the take-outs. ## **Moving Forward with Equipment Investment** From our point of view, lending rates remain low and we continue in a good position to source [cheap equipment finance](https://www.jadeequipmentfinance.com.au/ "Explore financing solutions or receive a quote for your equipment purchases") with our cheap and [low interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") for a wide range of business, industrial, construction, manufacturing and other equipment across all industry sectors. **Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance requirements.** *DISCLAIMER: THE INFORMATION IN THIS ARTICLE IS PREPARED SOLELY FOR INFORMATION PURPOSES AND IS NOT INTENDED AS FINANCIAL ADVICE OR AS THE SOLE BASIS FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING ADVICE SHOULD CONSULT A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATIONS OF PRODUCTS, POLICIES AND INFORMATION OR ERRORS IN THE CONTENT AS REFERRED FROM OTHER SOURCES.* **Categories:** Finance --- ### [Equipment Cost-Reducers](https://www.jadeequipmentfinance.com.au/blog/equipment-cost-reducers) **Published:** March 5, 2021 **Author:** Publisher **Content:** Reducing operating costs to achieve improved efficiency and increase productivity is a key objective for many operators. Finding ways to cut outgoings without impacting on quality and other aspects of the operations can be challenging. So it’s worth mentioning when a manufacturer launches a new product into the market with energy-efficient credentials as energy efficiency can play out into energy cost savings. [Volvo is the manufacturer under the spotlight](https://www.volvoce.com/australia/en-au/cjd/ "Volvo Construction Equipment") and the new product we have noted is their energy-efficient excavator range – the Eco models of the [EC250E](https://www.volvoce.com/australia/en-au/cjd/products/excavators/ec250e/ "Volvo Construction Equipment") and [EC300E](https://www.volvoce.com/australia/en-au/cjd/products/excavators/ec300e/ "Volvo EC300 Excavator"). ## **Volvo Energy-Efficient Excavators** Volvo CE has released two new energy-efficient excavators into the local market and a third model is expected later in the year. These two models are some of the smaller in the Volvo crawler excavator range but are packed with power and efficiency features as well as intelligent electro-hydraulics and ergonomic design. Volvo EC 250E and EC 300 E have been designed to deliver reduced fuel consumption for operators while increasing productivity. Key features that work to achieve these objectives include:- - Automatic idling system which reduces engine speed during periods of inactive controls to reduce fuel consumption. - G4 work mode added to the integrated system to allow operators to select the most fuel efficient mode for the specific task being undertaken. Modes include Idle, Fine, General, Heavy and Power. - Fuel consumption in monetary terms is indicated by the eco-gauge to track consumption of fuel. - When the machine is not in use, these excavators enact the automatic engine shutdown to reduce operating costs. - ECO mode, a feature unique to Volvo, has the capability of optimising the hydraulic system by reducing flow and pressure loss to deliver improvements in fuel efficiency. - Ergonomic design features which Volvo claim can increase operator productivity. While fuel efficiency is a major feature of these new excavators, apparently accessibility and safety have also been improved with new right-hand side access set-up. If saving fuel costs wherever you can without compromising other aspects of production and performance is of interest to you, then considering investing in these new Volvo excavators may deliver those cost reductions. ## **Reduce Costs with Cheaper Finance** To maximise the overall cost-effectiveness of new Volvo excavators, buyers will be looking to achieve the cheapest finance package for the acquisition. High interest rate finance deals can easily diminish savings realised by equipment efficiency features. You may save in one area only to pay over the odds in another with the net result in negative territory. Not the desired outcome. Jade Equipment Finance focusses on achieving the [cheapest interest rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") on equipment finance offers for our customers and working with each customer to structure a cost-effective overall package. ## **Volvo Excavator Finance Options** Achieving a cost-effective finance deal starts with selecting the loan type that will deliver the optimum benefits to your business. The interest rate varies across the different types of loans available. So it may appear a simple decision to just choose the finance facility with the lowest interest rate. For some businesses that option may well be the most appropriate option. But for others, it may mean overlooking the cumulative benefits realised through the features of each loan type and the suitability of each loan type for the particular business. At [Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/ "Contact us about our extensive equipment finance solutions for your business"), our role as lender is to source, structure and secure our customers the best finance deals based on the briefing we receive. That is why we strongly recommend that businesses seeking finance refer to their own accountant for guidance on selection of finance facility. For the acquisition of these energy-efficient Volvo excavators and all other excavator brands and models, Jade offers the full portfolio of finance facilities. We’ve detailed the features and benefits of each loan type in dedicated web pages, but here’s a quick recap of two of the most popular, Chattel Mortgage and Equipment Leasing. - Chattel Mortgage or Equipment Loan as it is known by some lenders is suited to businesses that use the cash method of accounting. It is a very versatile loan type and used for the purchase of all types of business equipment. The ownership of the equipment is handed to the borrower at the time of purchase and settlement of the finance contract. By holding ownership, the borrower posts the equipment as an asset/liability into their business accounts. In doing so, the asset is eligible to be depreciated by the business in accordance with ATO rulings. The amount of the depreciation is a tax deduction. As this is the way a tax deduction is derived, only the interest portion of the repayments is tax deductible. GST on the purchase price (no GST applies to interest) is claimable on the BAS statement coinciding with the purchase period. So GST is not applied to repayments. - [Equipment Leasing](https://www.jadeequipmentfinance.com.au/asset-lease "Speak to us about equipment leasing for your business with Jade Equipment Finance") is another very popular loan type and suits businesses that implement the accruals method of accounting. The lender retains ownership of the equipment and under the finance contract leases the equipment to the borrower. As the lender has ownership, the asset is posted into their accounts. The borrower does not have the equipment listed as an asset in their books. Under this form of finance, the lease payments are treated as a business operational expense and are tax deductible and GST is applied to the payments, excluding the interest portion. To compare repayments on your equipment purchase for either [Chattel Mortgage](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Finance your equipment purchases with a Chattel Mortgage at Jade Equipment Finance") or Leasing, simply refer to our loan interest rate comparison chart. For a cost-effective solution for your excavator purchase, speak with one of our [Jade consultants](https://www.jadeequipmentfinance.com.au/broker "Contact our professional finance brokers about your equipment purchasing"). **For a finance quote on energy-efficient Volvo excavators, contact Jade Equipment Finance on 1300 000 003 or online** *DISCLAIMER: THE INFORMATION IN THIS ARTICLE IS PREPARED SOLELY FOR INFORMATION PURPOSES AND IS NOT INTENDED AS FINANCIAL ADVICE OR AS THE SOLE BASIS FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING ADVICE SHOULD CONSULT A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATIONS OF PRODUCTS, POLICIES AND INFORMATION OR ERRORS IN THE CONTENT AS REFERRED FROM OTHER SOURCES.* **Categories:** Finance --- ### [Infrastructure Investment, the Economy and Your Business](https://www.jadeequipmentfinance.com.au/blog/infrastructure-investment-the-economy-and-your-business) **Published:** March 8, 2021 **Author:** Publisher **Content:** As Australia enters the vaccine roll-out stage of the COVID-19 pandemic, for many of our equipment finance customers, investment in infrastructure projects continues to be closely watched with the opportunities it represents keenly anticipated. So what’s happening in the economy overall and what opportunities are available for your business? We do a quick whip around some of the key topics in the current conversation for you. [Infrastructure investment](https://investment.infrastructure.gov.au/ "Infrastructure Investment Program") in general is a popular government lever to drive the economy. Why? Especially large scale projects have the potential to create work for many business and create many jobs during all phases of development and construction. Once completed, the objective of many projects is to create further ongoing jobs around operation of the project, such as a hospital, and/or deliver productivity and efficiency improvements to business and the community. Improvements which then flow-through to stimulate spending in other sectors. That’s a basic viewpoint. Based on current economic data, the Australian economy is showing a recovery from COVID-19 beyond the expectations of both government and many analysts. On the back of promising GDP figures for the December 2020 quarter, unemployment continued its downward trajectory, dropping to 5.8% in February. While some sectors still face serious hardship and caution is being taken to see what happens after [JobKeeper](https://www.ato.gov.au/general/jobkeeper-payment/ "JobKeeper Payment | Australian Taxation Office") ends, so far the signs are promising ## **Priority Projects: Infrastructure Australia** To get some idea of what opportunities may lay ahead for your business, you might like to review the [Infrastructure Priority List](https://www.infrastructureaustralia.gov.au/infrastructure-priority-list "Infrastructure Priority List | Infrastructure Australia") which was recently released by Infrastructure Australia. Infrastructure Australia is an independent body which provides advice to government and industry based on research on infrastructure requirements. The 2021 priority list includes 44 projects with the list described as a roadmap for governments to consider as what is seen as needed in different areas. This list focuses on international competitiveness, new energy source; water security; regional projects to drive development and other aspects and digital services in health. A notable point of the relevance of the annual list is that 10 of the projects identified on the 2020 priority list have already moved into the phase of construction. Some of the high priority projects in the 2021 list include Western Sydney new airport and connecting motorway, M80 ring road upgrade in Melbourne and the Brisbane metro network. Support for the list has been acknowledged by the [Civil Contractors Federation in South Australia](https://ccfsa.com.au/ "Civil Contractors Federation SA - Home") with a number of projects in the state on the list. To see the full list and what [opportunities may be available to you](https://www.infrastructureaustralia.gov.au/publications/Infrastructure_Priority_List_2021 "Infrastructure Priority List 2021 | Infrastructure Australia"). ## **AMR Scheme** Related to infrastructure in border areas, is news that legislation for the [AMR Scheme (Automated Mutual Recognition)](https://www.pmc.gov.au/publications/automatic-mutual-recognition-occupational-registration-scheme-jobpass "Automatic Mutual Recognition of Occupational Registration scheme (JobPass) | PM&C") has been introduced to parliament in NSW. This was the ‘tradies without borders’ plan that was approved by National Cabinet in December. It will cut the hassles and red tape for tradespeople that are looking to work in other states but are only licensed in one jurisdiction. The aim of the scheme is to cut red tape and reduce costs of licensing. The scheme is due to start at the start of July and Dominic Perrottet, the NSW Treasurer, said this would be a major advancement for trades working across territories and states. ## **NSW Infrastructure in Focus: Randwick Campus** One of the big infrastructure projects currently underway in NSW topped out in mid-March with much fanfare. The Randwick Campus Redevelopment in the vicinity of the current Prince of Wales Hospital (POS), incorporates a range of buildings which will become a world-class health and innovation precinct. The topping out celebrated the $780m POW Hospital Integrated Acute Services Building reaching its highest construction point. This is a multi-government and multi-agency project with the Acute Services Building due to open in 2022 and other buildings and projects over coming years into 2025. This is a $1.5 billion project with many opportunities for businesses. ## **Tendering Finance Process** NSW Government is asking existing suppliers and those who would like to be a supplier, to submit their input for a review of the state’s procurement process. Tendering for government infrastructure projects can be a complex and costly process. Some contracts can be quite easily quoted and submitted using the in-house resources of a business. While other submissions may require a business to engage professional consultants. If you require cash flow assistance to fund the cost of tendering for large projects, contact us to discuss what financing options we can provide. In addition to providing [cheap equipment finance](/ "Equipment Finance & Machinery Loans | Jade") for machinery acquisitions, Jade Equipment Finance also offers a range of business loans and cash flow support options. ## **Finance for Your Investments** In order to take advantage of the business opportunities presented by infrastructure projects, you may be looking at making your own investment in new equipment. Having the appropriate, high quality machinery in your fleet can be critical to being awarded tenders and to completing the work productively and profitably. We specialise in sourcing the [cost-effective equipment finance at the cheapest interest rates](/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders") to ensure our customers optimises productivity and profitability prospects. **To talk equipment finance to meet the requirements of your upcoming projects, 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.* **Categories:** Finance --- ### [Machinery Updates for Increased Performance and Power](https://www.jadeequipmentfinance.com.au/blog/machinery-updates-for-increased-performance-and-power) **Published:** March 12, 2021 **Author:** Publisher **Content:** Increasing the performance and productivity of your business often relates to the machinery you have in your fleet. Investing in the latest machines can pay off in improved efficiency, less downtime and a better bottom line. Jade Equipment Finance assists businesses to overcome many of the obstacles associated with equipment acquisition by sourcing and structuring cost-effective and [cheapest interest rates equipment loans](/equipment-finance-interest-rates). We do all the hard work in arranging the finance, leaving our customers to concentrate on selecting the right equipment for their business. Several leading machinery manufacturers have recently released upgrades and new models which are designed to deliver better performance and power. These could be worth considering as a solution for your business. ## **Caterpillar Rotary Mixer** In late February, Caterpillar announced the availability of its [RM400](https://www.cat.com/en_US/products/new/equipment/road-reclaimers/road-reclaimer/104320.html) to replace their [RM300 rotary mixer](https://www.petersoncat.com/products/new/road-reclaimers-road-reclaimer/rm300). This new CAT has many new features which improve performance especially in soil stabilisation and full-depth reclamation work. Improvements include better manoeuvrability and operating environment as well as 19% more power. The RM400 has 23,500 kg weight and delivers 2.4 metre cutting width. The C9.3 engine delivers 417 HP while meeting EU Stage 5 standards in emissions. The operating length is 44 cms shorter than the RM300 which contributes to the better manoeuvrability – great for tight sites in commercial and residential work. The operating environment has been enhanced with a sliding cab for side to side viewing, greater operator efficiency and production increases. Side-mounted cameras add to safety while improving vision. Three different rotor speeds are available and hand wheel steering and joystick controls improve operator control and manoeuvring. CAT has simplified the service process too with the daily points accessible and grouped. If the CAT RM400 sounds like a possible solution for your business, head to our [equipment finance calculator or loan comparison calculator to work up repayment estimates](/calculator). We’ve listed the different our selection of loan types along with the current interest rates we are achieving for each finance product. You simply enter your loan amount and term and the system automatically calculates repayment estimates for each loan for your consideration. ## **Liebherr Updates** Another manufacturer releasing updates is [Liebherr](https://www.liebherr.com/en/aus/start/start-page.html). The company has increased the capabilities on both the [L550](https://www.liebherr.com/en/aus/products/construction-machines/earthmoving/wheel-loaders/details/69211.html) and the [L556 XPower wheel loaders](https://www.liebherr.com/en/aus/products/material-handling-equipment/wheel-loaders/details/241922.html). Updates include structural reinforcement to the lift arms as well improving the capabilities of the engine and overhauling the hydraulics. According to reports, these updates have the objective of enhancing operator experience in particular for applications such as waste disposal. The company reports working with landfill and recycling customers that face tough operating conditions and have introduced machinery updates to provide improved versatility and performance. Liebherr-Australia, the Australian arm of the German manufacturer, offers a range of machinery to the local market including tower cranes, crawler cranes, offshore cranes, deep foundation machines amongst others. ## **Finance for Upgraded Machinery** If the new Caterpillar RM400 or the upgrades to the Liebherr wheel loaders are of interest to you, [Jade Equipment Finance can assist you with in sourcing a cost-effective finance package](/). Our range of finance products includes the full selection of commercial finance facilities:- - [Chattel Mortgage or Equipment Loan](/chattel-mortgage) - Commercial Hire Purchase - [Equipment Rental or Rent-to-Own](/equipment-rental-finance) - Equipment Leasing Each finance product includes features and benefits depending on the individual business set-up and financial objectives. Variations in loan types relate to how GST is applied and claimed; when and how a tax deduction is realised; entry into the business balance sheet; suitability to either the cash accounting or accruals method of accounting; and the interest rate. While the interest rate on Chattel Mortgage (Equipment Loan) and CHP are typically lower than Leasing and Rental, customers are advised to consider the entire package in reference to individual requirements and discuss loan selection with their accountant. The similarities across equipment and machinery loans include:- - Jade’s cheap interest rate which is fixed for the full term of the loan - Individually sourced loans from across our vast lender panel - Fixed repayments and loan terms which are individually negotiated to suit customer requirements - [No deposit finance available](/no-deposit-equipment-loan) so customers can include 100% of the machinery purchase, delivery, commissioning and installation into the loan - Options available for Low Docs and [No Docs Equipment Loans](/no-docs-low-docs-equipment-finance) - Australia-wide lending services - Options for SMEs, owner-operators, family businesses, fleet operators, large corporations and sole traders - Pre-approved finance Your Jade consultant will do all the hard work of sourcing you the cheapest loan offer, negotiating on terms and liaising with the lender as well handling the paperwork. With our accreditation with several specialist equipment lenders, we can open special finance channels which can only be accessed through industry/broker organisations. While making your purchase decision or preparing acquisition budgets for approval by superiors, the company board and/or business partners, use our equipment finance calculator. This invaluable resources allows you to quickly and easily work up repayment estimates on any number of makes and models for the purchase of comparisons. To clarify the estimates, contact us for a confirmed quote. **Contact Jade Equipment Finance on 1300 000 003 for a quote on a new CAT RM400 or a Liebherr wheel loader** *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.* **Categories:** Finance --- ### [Shovel-Ready Queensland Infrastructure Projects](https://www.jadeequipmentfinance.com.au/blog/shovel-ready-queensland-infrastructure-projects) **Published:** March 15, 2021 **Author:** Publisher **Content:** A boom in community infrastructure projects in Queensland presents potential work opportunities for a wide range of operators and contractors in the construction, earthmoving, civil works and related fields in the region over the next few years. In a statement issued on 23 March 2021, [Deputy Premier Steven Miles](https://twitter.com/StevenJMiles) said the [SEQCSP (South East Queensland Community Stimulus Program)](https://www.dlgrma.qld.gov.au/local-government/grants/current-programs/south-east-queensland-community-stimulus-program) was part of the Queensland Government’s economic recovery plan. SEQCSP includes $100m in shovel-ready projects for councils over the coming three years. Mr Miles said that the Palaszczuk Government had made an election commitment to deliver an addition $200m over 6 years to the 12 councils in SE Queensland and the $100m being currently announced was the first roll-out of that commitment. So what are the areas, the projects and what business opportunities could this mean for your business? ## **Areas and Projects** The 12 councils specifically mentioned are Brisbane City, Gold Coast City, Ipswich, Lockyer Valley, Moreton Bay, Logan City, Redland City, Noose Shire, Sunshine Coast, Toowoomba, Somerset and Scenic Rim. In making the announcement, Mr Miles noted the many community infrastructure projects which had been progressed as a result of COVID stimulus funding. In Toowoomba, Somerset and Lockyer Valley these included water security upgrades such as at Trunk Water Mains for Meringandan, a new pipeline for Valeview and upgrades to sporting facilities at Fernvale, Lowood and Esk. On the Sunshine Coast a number of projects are currently under construction and in Ipswich upgrades to the Civic Centre, Small Creek were among projects mentioned. With the funding offered, it now appears up to individual councils to announce what projects they will commence and progress. Contractors and operators should be watching council websites for tenders and contracts to bid on. Following the massive rain event which caused significant flooding across areas of SEQ, it would be expected that several councils would be looking at immediate works to repair damaged roads, bridges, causeways and other infrastructure. ## **Scaling-up to Compete** If you already have contractual agreements in place with councils or their main contractors, you may be fortunate to have work orders flow to you automatically. For others, it may be a case of having to tender for work. Depending on your area of business, any tender process can be complex and highly competitive. In order to compete successfully for work on these infrastructure projects, you may be looking to or need to scale-up your equipment fleet or acquire new or specialised machinery to handle the work on offer. Having a well-equipped machinery fleet in good condition can be a very positive inclusion in a tender and an important consideration to those assessing the offers. [Jade Equipment Finance is well-placed to assist you with cheap finance](/) on the full range of earthmoving, civil works, construction, road building and other machinery typically used in infrastructure projects. We finance the full range of yellow goods and wheeled goods including excavators, dozers, skidders, loaders, cranes, rollers, graders, backhoes, trenchers as well as heavy vehicles and fixed equipment such as lighting towers, sheds, mobile project offices and generators. Finance is available for all major brands including [Caterpillar](https://www.cat.com/en_AU.html), CASE, Komatsu, [John Deere](https://www.deere.com.au/en/index.html), Kubota, Bobcat and Volvo. ## **Finance Available** With interest rates at current low levels, the timing could be ideal for your business to upgrade, replace or expand your machinery fleet. We offer a complete portfolio of loan products including:- - [Chattel Mortgage](/chattel-mortgage) - Equipment Leasing - Equipment Rental - [Equipment Commercial Hire Purchase](/commercial-hire-purchase) Commercial loan products have differences and similarities which are designed and structured to suit different accounting methods, taxation and balance sheet approaches, differing financial objectives and the set-up of business operations. While we provide an individual consultant to handle your entire equipment finance loan, we strongly advise our customers to refer to their accountant or financial advisor to decide which particular finance product will best meet their financial objectives. Many businesses are still keen to take advantage of the Instant Asset Write-off and temporary full expensing measures available to eligible businesses for eligible asset acquisitions before the end of this financial year. If that includes you, then Chattel Mortgage would be best suited to realise the benefits of such measures. All our finance products can be achieved with:- - [No deposit finance](/no-deposit-equipment-loan) - Low Docs and No Docs Loans - Pre-approved finance One of the key differences is the interest rate which applies to each type of loan. We refer you to our Loan Comparison Calculator to see our current cheap rates and to calculate rough estimates. If you’re preparing a tender and incorporating an equipment acquisition, our loan calculator can be a valuable tool to assist you. We offer the loan comparison calculator so you can quickly see repayment estimates for each of the loan types and the classic [equipment loan calculator](/calculator). With the latter, you can also include any balloon or residual amount you may choose to include in your finance deal. The results generated by our calculators are estimates only but a great planning tool To receive a firm quote, simply call or contact us online. To get moving quickly, apply for finance online or over the phone. **For a finance quote on equipment to scale-up your fleet to meet new project requirements, 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.* **Categories:** Finance --- ### [When you need equipment finance NOW! Fast service, broker benefits](https://www.jadeequipmentfinance.com.au/blog/when-you-need-equipment-finance-now-fast-service-broker-benefits) **Published:** March 18, 2021 **Author:** Publisher **Content:** There are times when businesses need finance fast to get new equipment purchased and operational NOW! As a result of the flood event which has impacted much of the eastern seaboard many businesses may be facing the urgent need to replace damaged and lost machinery and business equipment and/or scale-up their machinery fleet to assist in the recovery process. At [Jade Equipment Finance](/) we acknowledge the urgent needs of businesses impacted by this disaster and we can offer priority service to process the required equipment finance applications. The damage to roads, bridges, causeways, properties, fences, private and public infrastructure, homes and business premises is extensive and the need to replace assets quickly is essential to getting businesses back up and running. Many businesses will be covered by a level of insurance but it may not cover the full replacement cost of lost or damaged equipment. While insurers are apparently prioritising claims for affected individuals and businesses, it can still be a timely process. To start the process of organising finance to buy new equipment, you don’t necessarily have to wait until your claim has been settled. If your lost equipment was under finance, you will have been required to take out insurance. The policy should have been structured to cover any monies due on the finance contract. This may payout what you currently owe, but may not leave sufficient to buy new equipment. So a new loan would need to be sourced for the new equipment. We also know full well that many people won’t have sufficient insurance coverage and will be needing [finance to purchase new machinery and equipment](/heavy-machinery-loans). When that machinery is essential to your business, your tools of trade, your production process or your entire business operation, we fully appreciate that the need for finance is urgent and critical and we are responding accordingly. ## **Accessing Priority Finance Service** When you need finance NOW and you’re dealing with so many other issues, do you really have the time to call multiple banks and lenders, wait on hold with all the others also calling for assistance, just to get a quote? With Jade that is not necessary. Our lending service handles the entire process for you. When contacting Jade, either online or by phone, you will be assigned a fully-trained consultant who will handle your entire finance request. That provides you with a single point of direct contact and a trusted finance professional to source, structure and settle your equipment finance deal. We are accredited with multiple lenders, many that operate only through a select group of brokers so we can cover off on who is currently offering the [cheapest rates equipment finance](/equipment-finance-interest-rates) and best deals in your sector, quickly and efficiently. We get back to you with a finance quote quickly and on your OK, proceed for a fast approval so you can order that much-needed equipment. While you’re attending to other issues, your consultant will liaise with the equipment dealer for prompt settlement so you can have that equipment working for you asap. Our same cheap interest rates apply to equipment loans whether they require fast or standard loan application processing. ## **Low Docs and No Docs Options** One problem which can occur in flood situations is the loss of paperwork, documents, financial records and computer systems. This can potentially cause delays in sourcing finance. The financial records you required for a loan application may be able to be sourced through your accountant or online through bank and ATO portals. If you cannot access the required documents or you simply don’t have them, Jade offers low docs and [no docs equipment loans](/no-docs-low-docs-equipment-finance). ## **Equipment and Machinery Financed** A wide area of Australia has been impacted by this current flood event and that includes a large and diverse range of businesses in many industries. Agriculture, manufacturing, marine and commercial fishing, retail, rural businesses, construction and quarrying and so it goes on. We provide finance across all industries and for many items of business equipment which you may not have yet considered:- - Restoration and extraction machinery to assist in water extraction and restoring water-damaged properties - Excavators and backhoes to remove debris and clear sites for rebuilding - Replacing lost farm and agricultural machinery and commercial fishing gear - Quarrying and construction equipment - Manufacturing and engineering business equipment - General business equipment including computer systems, security systems, IT and tech, both hardware and software - Retail business fixtures and fittings and POS systems - Hospitality and catering business equipment - Construction equipment to re-equip tradespeople and expand existing resources to take on the mammoth rebuilding tasks - Rubbish removal cranes, trucks and heavy vehicles And many more. If purchasing multiple items of machinery, we can work to grouping several pieces into the one finance deal. So whatever business sector you are operating in, if you need equipment finance NOW, simply contact us to get the process started. - Quick quotes, fast approvals - Cheap interest rate finance - Full range of loan types - All business types catered for: small to large, owner operators, SMEs, family operations **Contact Jade Equipment Finance on 1300 000 003 for finance NOW!** *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.* **Categories:** Finance --- ### [Infrastructure NSW Opportunities](https://www.jadeequipmentfinance.com.au/blog/infrastructure-nsw-opportunities) **Published:** April 6, 2021 **Author:** Publisher **Content:** Infrastructure projects are booming across Australia, with the NSW Government undertaking many projects which could represent work opportunities for your business. Of note, is the [Parramatta Light Rail Project](https://www.nsw.gov.au/projects/parramatta-light-rail) which is currently underway. A $2.4 billion project to connect suburbs in the west and north-west of Sydney. In a media release in late March, it was announced that major construction work would start mid-year on the maintenance and stabling facility at Camelia. This stage of the project follows the completion of the remediation works which were carried out as an important stage of the prep works for the project. The total cost of the remediation works is $86.7m. Impressive contracts have been available for works on this project and continue to be offered through the Transport for NSW contracts process. For operators interested in investigating if work could be available for your business, either directly with TfNSW or through one of the awarded contractors, details are available at ## **Major Railway Station Upgrades** Here’s another heads-up, the NSW Government has also announced it will undertake upgrades to a number of train states in the inner-west. The work, valued at around $40m, is set to start later in 2021 and will be carried out on Erskineville and St Peters stations. Work is scheduled to continue to a completion date in 2024. So now doubt, work is on the table for operators in many trades and services. The upgrades to these stations are part of the even larger Metro City and Southwest projects which will entail changes to the rail lines and services. ## **NSW Infrastructure Pipeline** The NSW Government had already committed to a massive pipeline of infrastructure projects prior to the COVID-19 pandemic. The economic impacts and responding stimulus packages further expanded and sped up the scheduling of some projects to create jobs and work for NSW businesses. The redevelopment of the [Sydney Football Stadium](https://www.johnholland.com.au/our-projects/sydney-football-stadium-redevelopment/) (SFS) is another massive project which is in progress. At the end of March 2021, the Minister for Sport, Geoff Lee, announced the concourse was completed, marking a significant milestone. Redevelopment of the Sydney Fish Markets is another major project for NSW and in October 2020, Multiplex was announced as the builder. This is a $750m project which is due for 2024 completion. Hansen Yuncken was appointed in July 2020 as the managing contractor for stage one of the project. ## **Securing Construction Work with NSW Government** As with all government work, those interested in getting work with the NSW Government should refer to the government procurement processes and procedures. The process for procurement of construction work services differs from the government’s processes for other goods and services. To assist those interested in tendering, the department provides frameworks, templates and other resources. These can be checked out at ## **Getting Equipped for Major Projects** Major infrastructure projects can involve a massive range and number of trades, skills, equipment and specialties throughout the life of the project. Securing work on a major project can representative a lucrative business opportunity over, at times, an extended period. Offering some businesses security of work that is greatly valued and not always achievable for contractors. But securing those contracts can be a highly competitive process. [Jade Equipment Finance](/) can provide assistance through cheap finance to acquire the necessary equipment for a particular project. Some tenders may require applicants to display capabilities with quality machinery and equipment readily available. If you need to upgrade or expand to take on the work that is available through government channels or other sources, acquiring the necessary machinery at the cheapest finance can be critical to achieving your expected profit margins. We assist with competitive [equipment finance interest rates](/equipment-finance-interest-rates) on a wide range of equipment and machinery used in the construction sector. Machinery and equipment financed include yellow goods, wheeled goods, earthmovers, dozers, drilling equipment, levellers, loaders, cranes, specialised vehicles and custom machines and many, many others. ## **Finance Options** Our finance options encompass the full portfolio of commercial finance facilities used for the purchase of construction equipment:- - Equipment Loan or Chattel Mortgage - [Equipment Lease](/asset-lease) - [Equipment Rental](/equipment-rental-finance) or Rent-to-Own - Commercial Hire Purchase We recommend that business owners consult with their accountant or finance personnel in regards to which finance product will deliver the optimum benefits for their particular structure. Our cheap interest rates apply across all our finance options but the rate varies. ## **Calculating Estimates for Tenders and Budgeting** To further assist operators with completing both tenders for contract works and for their own budgeting purposes, we have provided an easy and free-to-use [online equipment finance calculator](/calculator). This device generates repayment estimates which can be used for budgeting and/or comparing different machinery makes and models prior to purchase. As additional support for our equipment finance customers, Jade Equipment Finance assigns a highly-trained and skilled finance professional to each customer. Your consultant will source and negotiate the cheapest finance deal from across our lender panel. Plus provide you with high level insights and expertise in structuring a package designed to work towards achieving your desired outcome. If you’re keen to take advantage of work opportunities in the infrastructure area, speak with Jade as to how we can assist you with cost-effective finance. **Contact 1300 000 003 for quotes on all types of construction machinery and 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.* **Categories:** Finance --- ### [Capturing Australian Maritime Infrastructure Opportunities](https://www.jadeequipmentfinance.com.au/blog/capturing-australian-maritime-infrastructure-opportunities) **Published:** April 9, 2021 **Author:** Publisher **Content:** Infrastructure is being utilised as a major lever by all Australian Governments not only to increase services throughout their state but as a major stimulus to drive the economy as a result of the effects of the coronavirus pandemic. These major construction projects create jobs and a myriad of work opportunities for many businesses. Opportunities for businesses both directly involved with the project and indirectly through the supply chain of goods and services. The income and expenditure generated then flows through the economy to generate further business activity. To assist our customers stay across some of the potential opportunities available to them through government infrastructure projects, we endeavour to stay across announcements and updates. In this article, we bring to your attention a number of projects with maritime connections – the redevelopment of the Macquarie Wharfs in the Port of Hobart and works on the [Australian Maritime Complex in WA](https://www.wa.gov.au/government/publications/australian-marine-complex-amc-strategic-infrastructure-and-land-use-plan-silup). ## **Macquarie Wharf Redevelopment, Port of Hobart** For some people in the northern states unfamiliar with all the apple isle has to offer, Hobart may be primarily noted as the finish line for the annual [Sydney to Hobart Yacht Race](https://www.australia.com/en/events/sports-events/sydney-to-hobart-yacht-race.html). For others including international visitors, it is a highly sought after, must-visit, bucket list travel destination with stunning wilderness areas to discover, amazing coastline to explore and fantastic produce to enjoy. Hobart is all that, but it also has a very prominent position on the international stage. The Port of Hobart is a major gateway to the Southern Ocean for exploration and research teams heading to Antarctica. The planned Tasports redevelopment project of the port will support these initiatives as well as providing potential for growth in trade. Specifically, bulk container ships for forestry exports and to boost tourism by catering for cruise ships. The significance of the Macquarie Wharf Redevelopment on a national basis has been highlighted with its inclusion in the [2021 Priority List](https://www.infrastructureaustralia.gov.au/infrastructure-priority-list) released by Infrastructure Australia. The Master Plan for the redevelopment of the Port was launched in 2018 and covered a 15 year investment and which included the Port of Hobart activities as a priority. The current infrastructure focus is the redevelopment of wharves 4, 5 and 6 which are approaching the end of the lifespan having been built 1969-75. Amongst other works, the scope of the project includes:- - Construction of a new 105 metre quay line and realigning the current 615 metre quay line which will provide a continuous 720 metre quay line. - Construction of associated berthing and fender beam infrastructure - Installation of bollards - Installation of power and upgrades to other services - Strengthening heavy lift areas - Construction of extra facilities for the passenger terminal Once completed, the redevelopment of the wharves is expected to provide an Antarctic Precinct for growth of the science sector; a dedicated terminal for large scale cruise ships; and an expansion of the storage facilities for logs and containers. Clearly, this is a major project representing significant work opportunities for businesses in Tasmania across multiple trades and skills. For businesses interested in tendering when contracts are opened and for those wanting to stay across developments in this space, refer to [www.tasports.com.au](http://www.tasports.com.au) ## **WA Maritime Projects** There are many other significant maritime infrastructure projects in various stages of being awarded and constructed. In Western Australia, in early February, the government issued the first of four infrastructure contracts for works on the Australian Maritime Complex. Georgiou secured that contract which is for the delivery of a vessel transfer path at the complex. The overall project, an $80+ million investment by the WA government, aims to provide facilities to cater for and support larger Navy vessels. Lanskey Constructions has also been successful in receiving the contract for the shipbuilding facility in the precinct. ## **Business Support** Being successful in a highly competitive infrastructure tendering environment can be challenging. The contract and tendering process alone can be complex and arduous, even when bidding for stages of the works through the managing contractors. Meeting the guidelines and requirements can include proof that a business has the skills, expertise and equipment to deliver the work on time and budget. To satisfy tender criteria and/or to commence a contract, many operators may need to invest in an upgrade of machinery and equipment. Ensuring easy access to cost-effective [equipment finance](/) can be pivotal to the process. Whatever the size of your business, large corporate operation or small, sole owner-operator contractor, you can utilise the support provided by Jade Equipment Finance. ### **Our support for businesses across many sectors but particularly in construction and civil works includes:-** - Cost-effective finance options covering the full range of finance facilities including Chattel Mortgage, Leasing, Rental and [Commercial Hire Purchase](/commercial-hire-purchase) - Professional, highly-skilled finance experts to source and structure even the most complex asset acquisition finance deals - [Online equipment finance repayment calculator](/calculator) to generate data required to complete tenders and to assist in the business budgeting process. - Cheap [equipment loan interest rates](/equipment-finance-interest-rates) across our portfolio, sourced from a vast lender panel - Access to industry-only specialist equipment lender channels For support and assistance in acquiring cheap finance to take on major infrastructure contracts or any other level of works, engage in an obligation-free discussion with one of our fully licensed finance professionals. **Contact 1300 000 003 to discuss your lending requirements** *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.* **Categories:** Finance --- ### [Interest Rates Spotlight: April RBA Announcement](https://www.jadeequipmentfinance.com.au/blog/interest-rates-spotlight-april-rba-announcement) **Published:** April 12, 2021 **Author:** Publisher **Content:** The first Tuesday of the month is always a key day for financial markets and those of us in the lending sector. This is the day that the RBA Board meets to consider what they will do in regard to interest rates, or more specifically, the official cash rate. While this is by definition the rate that banks pay on funds for overnight lending, it is the rate that forms the basis from which banks and lenders set their lending rates across all markets. The housing market is the most closely watched as home loans are the largest lending area. But at [Jade Equipment Finance](/), we closely monitor movements in the official cash rate as any changes flow through to our lending rates. The RBA has kept rates on hold since the last cut in November 2020 and the signals given from Governor Philip Lowe in recent times did not lead to an expectation of any change at the April meeting. That expectation was borne out with the announcement coming that the official cash rate would remain at the current rate of 0.1%. This is of course not the rate that Jade or any other lenders offer for equipment finance, but it does mark historic low interest rates across lending sectors. [More info](https://www.rba.gov.au/media-releases/2021/mr-21-04.html). While the April 2021 decision was not significant in itself, except for those calling for a rate cut to dampen surging prices in the housing sector, the statement accompanying the decision sheds light on the RBA’s thinking and what could be expected in future announcements. For those planning significant asset investments in the now, the near future or down the track, having an understanding of possibly where interest rates may go, can greatly assist the acquisition schedule. ## **RBA Statement, Intentions** Prior to the April board meeting, RBA Governor, Philip Lowe, had quite clearly stated that the RBA was looking for the economy to achieve [key targets](https://www.rba.gov.au/education/resources/explainers/australias-inflation-target.html) before any increase in interest rates would be made. The year as far out as 2024 has been regularly mentioned. The targets being sought are inflation at 2-3% and lower unemployment figures. The statement acknowledges Australia’s above expected GDP growth figures and better than expected unemployment figures but notes they are not in the target zone as yet. They note higher commodity prices in April compared with January and the pleasing increase in global trade. But noted that while there is a global recovery being seen, it is uneven. This is despite the global efforts to expedite vaccination of populations. Inflation is still below the 2-3% key level and the unemployment rate was also above the target level to indicate a rate increase. Growth is expected in the economy in both 2021 and 2022 but pressures are [expected to keep wages and prices grow subdued over this time](https://www.smh.com.au/politics/federal/interest-rates-will-stay-low-until-wages-grow-says-rba-governor-20210310-p579ao.html). ## **International Trends** While the economic signs in Australia have exceeded forecasts, we don’t exist in an insular trading or economic environment and global indicators also need to be considered. The day after the RBA’s April decision, the IMF (International Monetary Fund) came out with an upgrade of the outlook for Australia. In January 2021 the [IMF forecast](https://www.imf.org/en/Countries/AUS) Australia’s growth at 3.5% and in April that was upgraded to 4.5% Such an upgrade is positive and an acknowledgement’s of Australia’s impressive recovery. But in 2020 as a result of the pandemic, the Australian economy did contract by 2.29% so any increases are coming on the back of a significant low. Some lenders may be sourcing funding from overseas sources at rates higher than those currently available in Australia. One eminent economist has noted that some global markets have already increased rates in anticipation of an increase in inflation. This increase has apparently increased the costs of the debt held by the Australian Government. ## **Equipment Finance Interest Rates** So how does all this talk of upgrades, forecasts and forward-looking targets play out in regard to the interest rate on your equipment finance? Jade Equipment Finance arranges loans at fixed [equipment loan interest rates](/equipment-finance-interest-rates) so many holders of existing finance will not have any change to their loan over the finance term as the result of any changes to interest rates in general. As with many lenders, our rates are at historic lows and we continue to achieve cheap interest rate deals across our loan portfolio. In respect to the commentary around international funding, Jade has accreditations with many and varied lenders. These include banks and specialist equipment non-bank lenders. This diverse selection provides us with the connections to assess a large market area when sourcing the cheapest equipment finance deals for our customers. Feel free to use our [online equipment loan finance calculator](/calculator) for estimates on loan repayments. While we monitor financial markets for trends and movements, our expectations are that our low interest rates will be available at current levels for some time. The next meeting of the RBA board in regard to interest rates is set for 4 May, which is only a week prior to the handing down of the Federal Budget. Both key dates for the diary! **Contact 1300 000 003 for equipment lending deals.** *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.* **Categories:** Finance --- ### [Budget Time: Time to Reflect and Project](https://www.jadeequipmentfinance.com.au/blog/budget-time-time-to-reflect-and-project) **Published:** April 16, 2021 **Author:** Publisher **Content:** There is certainly a lot going on, both in Australia and on the international scene, which businesses need to take into account when making key acquisition decisions. But one key even which usually has all Australian businesses stand up and take notice in unison is the annual Federal Budget. The time for the 2021/22 budget announcement is fast approaching and time for us to reflect and project what our team at [Jade Equipment Finance](/) would like to bring to the attention of our customers. The date to note is Tuesday 11 May, which is when Treasurer Josh Frydenberg will officially hand down the budget in Parliament. But there are the usual pre-budget announcements that should start flowing during the last weeks of April. But April is proving a problematic time for the Government with the vaccine rollout timeline having to be recalibrated. No doubt also causing recalibrations or at least some rethinking in regard to the proposed budget. [Click to read more](https://www.sbs.com.au/news/australia-s-vaccine-timeline-in-tatters-after-astrazeneca-jab-gets-blood-clot-warning-for-adults-under-50). When the delayed 20/21 budget was brought down in October, it was heralded as the most significant in at least a very long time, if ever in the nation’s history. But on reflection, the 21/22 could in many ways be even more significant. Rewind to October and we had passed and overcome what was then seen as the major impact of the pandemic. Despite Victoria still being in the final stages of the second lockdown the economy was seen to be in the recovery stage, a vaccine was a reality, though international travel, both inbound and outbound, was still not on the cards. But since those heady days of the October budget, extension of JobKeeper and JobSeeker and stimulus measures, a lot has happened. Outbreaks of the virus continue to occur, snap lockdowns have been brought in on a number of occasions and now we have setbacks with the vaccine. Key sectors are calling, loudly, for targeted support packages, JobKeeper has finished which is due to cause a bump (in the Treasurer words) in the unemployment figures and the costs of recent natural disasters including flooding on the north coast of NSW and Cyclone Seroja in WA are yet to be assessed. So it will be interesting to see what measures are introduced on 11 May. But it’s not all doom and gloom for everyone. The economy is doing better than expected overall, interest rates are still at historic lows and there are still measures from the 2020/21 budget to be released. While we await those pre-budget announcements, it’s worth recapping on what is still available to be realised by business in regard to tax benefits from equipment purchases. ## **2020/21 Budget Initiatives** Many of the measures introduced by the Government both early in the pandemic and in the 2020/21 Budget in regard to accelerated asset depreciation and other business tax relief are still available. Several of these measures are particularly relevant to our Jade customers and worth a reminder at this time. Temporary full expensing, which is an extension and expansion essentially of the Instant Asset Write-Off initiative, is current through the 21/22 financial year for eligible businesses. IAWO has been promoted and covered extensively over the past 12 months and for good reason. Eligible businesses that acquire eligible equipment assets using the relevant finance product stand to realise significant tax benefits. The relevant finance product is [Equipment Chattel Mortgage](/chattel-mortgage) as this loan product allows the equipment to be depreciated. The key purpose of accelerated asset depreciation measures. If you intended to utilise these measures but are still to action those acquisition plans, now may be timely to revived the plans and give us a call to discuss a cost-effective finance package. But one measure in the budget not as widely and continuously mentioned is Loss Carry Back. So we’re going to give it due mention now. ## **Reminder – Loss Carry Back** Under the usual tax rulings, if a business makes a loss in a financial year, it simply carries those losses forward into the next financial year and can claim against profits made in the next or future years. So no real benefit is received initially. With Loss Carry Back, a real cash benefit can be received. Loss Carry Back is a tax measure whereby eligible businesses can claim losses made in 19/20, 20/21, 21/22 against profits made in earlier years. So if you made a profit in the years designated under the ruling and paid tax, and then you made a loss in the designated years, you can claim the current loss against past profit and receive a cash refund on tax already paid. Yes, a cash refund after submitting this year’s return! The significance of loss carry back to us as equipment lenders is linked back to IAWO. Both measures can work together to deliver increased positive outcomes. Acquire equipment with a Chattel Mortgage, realise the IAWO, if that results in the business posting a loss, that loss can be claimed against profit and tax paid in earlier years. So there are benefits to be realised, by eligible business for eligible equipment purchases. We offer our [cheapest equipment loan interest rates](/equipment-finance-interest-rates) on Chattel Mortgage which can mean cost-effective equipment acquisition and additional tax benefits. So as we await the Treasurer’s announcements, don’t overlook the measures which are still available from the last budget. **Contact 1300 000 003 to discuss lending for your equipment purchase.** *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.* **Categories:** Finance --- ### [Avoid the EOFY Rush and any Delivery Delays: Secure your new equipment now](https://www.jadeequipmentfinance.com.au/blog/avoid-the-eofy-rush-and-any-delivery-delays-secure-your-new-equipment-now) **Published:** April 2, 2021 **Author:** Publisher **Content:** The past 12 months have been like nothing that most have ever experienced across all sectors of both the Australian and the global economy. COVID-19 has wreaked havoc in many areas but has presented unexpected business opportunities for others. But one aspect which may be universal could be the delay, postponement or doubt around investing in new equipment. Whether it be in the construction, manufacturing, medical, mining, transport, medical or any other industry, many business owners may have back-burnered the decisions to purchase new equipment due to uncertainty around the economy. Now could be the time to rekindle those equipment investment ideas as we quickly approach the end of the 2020 to 2021 financial year. A time when businesses traditionally rush to capitalise on tax deductions. The EOFY rush to buy equipment can be, in simple terms, an absolute pain. It may mean diverting your attention from a busy operational period, having to devote time and attention to selecting and sourcing both machinery and finance and with the rush comes possible delays in delivery. We’ve just seen a container ship holding up trade through the [Suez Canal](https://theconversation.com/why-you-should-expect-more-suez-like-supply-chain-disruptions-and-shortages-at-your-local-grocery-store-158266) which will cause delays in delivery for the many ships waiting to pass through that important global trade route. Adding to the need for action, is the raft of tax measures that can be realised by eligible businesses for eligible equipment purchases if acquired in this financial year. If you were interested in say IAWO or temporary full expensing when the Treasurer announced these schemes in 2020, but deferred your purchase due to uncertainty, now is the time to move. That is, if you want to realise the tax deductions this financial year. At [Jade Equipment Finance](/) we’ve been staying across the economic developments and provide a snapshot of why now is a good time to invest in equipment and how we can assist you in streamlining your acquisition. ## **Reasons to be Positive** If you had doubts about the economy, recent economic indicators should allay those concerns. GDP has grown in two consecutive quarters which is the indicator that the Australian economy is no longer in a recession. The employment figures are continuing to outperform expectations and despite the end of JobKeeper and COVID-19 cluster outbreaks to deal with, there are positive signs of growth and opportunity for many sectors. Both Federal and State Governments are investing big time in infrastructure projects to boost the economy and create jobs. Infrastructure investment has been a go-to lever by governments to drive economic growth. It creates work for both those companies and operators directly involved in the construction and development processes as well as through the supply chain to component manufacturers and materials suppliers and allied businesses. Click to read more. For the manufacturing sector, the Federal Government launched a massive scheme in late 2020 to boost many industries. Grants, incentives and other measures are available for many businesses and it may be worth checking out what is on the table for your business to take advantage of. Tax benefits are a key reason for businesses to invest in new equipment. Multiple incentives were announced in 2020 and many are still available. Temporary full expensing and IAWO are both accelerated asset depreciation schemes that allow businesses to realise a tax benefit in the financial year that the asset/equipment is purchased rather than having to realise a small percentage over many years. Check out your eligibility at [www.ato.gov.au](http://www.ato.gov.au) and if eligible, now could be time to move. The clock’s ticking towards 30 June 2020 so if you want that tax deduction this financial year, you may need to move promptly to secure your purchase. ## **Expediting Equipment Acquisitions** At Jade Equipment Finance we fully appreciated that many business owners and key managers have full schedules with simply running their business on a daily, weekly basis. Finding time to arrange equipment finance can be a challenge. So we have built our business model around removing the time and cost burden often associated with the equipment finance process. When contacting us, you are assigned one of our specialist equipment finance consultants to handle all stages of your finance. We have the necessary accreditations with specialist equipment lenders and direct communication channels to quickly and easily source you the [cheapest equipment finance interest rates](/equipment-finance-interest-rates). On acceptance of our quote, we streamline the application approval process and can ensure prompt settlement by liaising with the lender and your equipment dealer. To ease the cost burden, we provide cheaper interest rate loans across our portfolio and provide the option to possibly include additional costs associated with the equipment purchase in the one loan package. Those costs may include ongoing service agreements, delivery, installation and commissioning expenses. To find out repayment figures regarding you finance options, feel free to utilise our [online equipment finance calculator](/calculator). Cheap finance is offered for the full range of finance facilities including:- - [Equipment Leasing](/asset-lease) - [Equipment Rental](/equipment-rental-finance) - Equipment Chattel Mortgage - Equipment Commercial Hire Purchase We see more reasons to act than to delay that equipment purchase and our team is standing by to assist you with your acquisition process. **Contact 1300 000 003 to expedite your equipment purchase before 30 June 2021** *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.* **Categories:** Finance --- ### [Finance for Tractor Upgrades](https://www.jadeequipmentfinance.com.au/blog/finance-for-tractor-upgrades) **Published:** March 29, 2021 **Author:** Publisher **Content:** Despite multiple issues facing the sector, it is incredibly encouraging to see the sales of tractors booming. The agricultural and horticultural sector is crucial to the Australian economy both in export trade and in feeding the population. The resilience of the sector in the face of extended drought, bush fires, floods, mice plagues and other setbacks engenders huge respect and admiration for operators and is well deserving of praise and further support. [Jade Equipment Finance](/) provides support to the sector with superior lending services to quickly access cheap loans to facilitate investment in new machinery to improve productivity and profitability for our customers. So why this sudden boost in tractor sales? According to a report from the [Tractor and Machinery Association of Australia](https://www.tma.asn.au/), the sales of tractors for February 2021 are up 74% on the same period in 2020. An Association spokesperson is reported as commenting on the significance of these figures under the pressures being faced in supply chains. In particular, the impacts and delays caused in the overseas manufacturing facilities. A backlog of 2020 orders is apparently now flowing, which is great news for operators. [More information](https://www.tradefarmmachinery.com.au/industry-news/2103/tractor-sales-boom-now-12-months-old). The sales figures report sees sales increases across multiple machinery categories and notes the significance of Government tax measures for the boost. If you are still to take advantage of the tax measures on offer for this financial year, Jade can assist with lending services to expedite your tractor purchase. ## **Tractor Finance Options** For the purchase of tractors and other farming and agricultural machinery, Jade offers the full range of commercial finance facilities:- - [Equipment Chattel Mortgage](/chattel-mortgage) or Equipment Loan - Equipment Commercial Hire Purchase - [Machinery Rental](/equipment-rental-finance) - Machinery Leasing These loan types vary in a number of aspects including suitability for accounting methods, how GST is claimed, ownership of the machinery while the loan is being repaid which reflects the balance sheet and depreciation aspects, how and when a tax deduction can be claimed and the interest rate. Interest rates vary across finance products, not just through Jade, but across the lending market. Chattel Mortgage and CHP typically offer the cheapest interest rate compared with [Equipment Leasing](/asset-lease) and Rental. Though Jade does provide cheap interest rates on all our loans compared with others in the market. Refer to our [Equipment Finance Interest Rates](/equipment-finance-interest-rates) Comparison Chart to see the rates we are offering as of today and we advise speaking with your accountant as to which finance product will deliver the most significant benefits to your particular business structure. We provide finance for all types of businesses including:- - Family businesses - SMEs and large corporate operations - Owner operators and sole trader contractors Options are available for [low doc equipment loans](/no-docs-low-docs-equipment-finance), no docs and bad credit applications. With our accreditation with many non-bank lenders, we can offer greater loan flexibility when it comes to negotiating conditions and cheaper interest rates. ## **Taxation Measures Available** Chattel Mortgage has the cheapest interest rate and is also the most suitable form of tractor finance for business looking to take advantage of IAWO. A measure noted by the Tractor Association as being significant in the uptick in tractor sales figures. IAWO and temporary full expensing are accelerated asset depreciation measures which allow equipment purchasers to realise a tax deduction for the full purchase price in the financial year of the acquisition rather than over time. Check eligibility at [www.ato.gov.au](http://www.ato.gov.au) For some businesses, IAWO is available through to EOFY 2022 but if you want to claim the benefit in this financial year, contact Jade asap to commence sourcing you a tractor loan. ## **New Upgrades from John Deere** For that new tractor purchase, you may consider opting for the latest upgrades from John Deere. The company is releasing a new [9 Series range](https://www.deere.com.au/en/our-company/news-and-announcements/press-releases/2021/march/2021mar03-deere-launches-new-9-series-tractors/) which include the wheeled 9R, the four track 9 RX and the two track 9 RT models. The improvements are also being introduced to the 8 Series and cover tech, comfort and power upgrades. In the 9 Series, the company is releasing an all new PowerTech model which features a 13.6 litre diesel and larger models which are powered by a 15 litre Cummins power unit. Multiple improvements have been made to allow for the increased horsepower and ballast these tractors. They include changes to axle, undercarriage and front frame componentry. The [John Deere 8 Series](https://www.deere.com.au/en/tractors/row-crop-tractors/row-crop-8-family/) has also received an update across several models with specialised options included. One of these is a system designed to assist operators to save time when they need to adjust the tyre pressure to suit different operations on their property. Timing for these new releases – 9 Series orders can be placed now, in late March and orders will be available from mid this year. To place a pre-order, speak with Jade about a pre-approved tractor loan. These loans are sourced and approved prior to placing an order and provide confidence for operators to order machinery. Pre-approved tractor loans are available across our loan portfolio. **To join the boom in tractor sales, contact us 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.* **Categories:** Finance --- ### [It’s THAT time of year – budgets, EOFY and interest rate conjecture](https://www.jadeequipmentfinance.com.au/blog/its-that-time-of-year-budgets-eofy-and-interest-rate-conjecture) **Published:** April 30, 2021 **Author:** Publisher **Content:** Will it be a Christmas in July celebration or winter of discontent for your business? Timing the acquisition of new equipment can be critical to ROI, costs, productivity and profitability for a business. Knowing when the time is best to proceed with that machinery or equipment purchase can involve watching the economic signs, announcements and other movements in the economy. The end of the financial year is the traditional time for a lot of movement so we’re covering off a range of factors that could be relevant to your business. [Last year’s state and federal budgets were packed with gains for business in response to the effect on business and the economy of the pandemic](https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview202021/AustralianGovernmentExpenditure). But a year on and the economy has been in and out of a technical recession and has outperformed forecasts. While there is a way to go to get the economy back into full swing, it would be an unrealistic expectation to be relying on the same level or type of handouts and subsidies that were offered in last year’s budgets. The support for business could be expected to be more targeted to those sectors still struggling the greatest due to international border closures and other ongoing pandemic-related impacts. ## **What to Watch** May and June are the months to watch for both state and federal budget announcements and to get your own business balance sheet in order. Due to the pandemic, last year’s budget delivery schedule was changed. So this year’s round follows in more of a half year cycle. As such, many of the policies, measures and business benefits announced in 2020/21 budgets are still currently active and available. Here’s your guide to budget watching over the coming weeks and months:- - The Northern Territory was quick out of the blocks with a 4 May Budget. The point to note for those in the earthmoving, excavation and home building sector is the investment commitment inland releases over the next few years. [Read more here](https://budget.nt.gov.au/budget-papers). - The Federal Treasurer, Josh Frydenberg, will bring down the biggie – the Federal Budget – on 11 May. A few reveals have been announced in recent days including cuts to excise taxes for small brewers and distillers; childcare cost gains for some families; and another round of grants for shovel-ready local infrastructure and other regional projects and events. [More information](https://www.9news.com.au/national/federal-budget-2021-what-we-can-expect-after-covid19-dogged-year/6ef72c6a-b6cd-4348-80ba-ca42d6cfdaf0). - NSW Treasurer Dominic Perrottet will deliver the state’s budget in mid-June with pre-budget unveils and pre-cursors already being at least eluded to. NSW has been on a major infrastructure spend over many years and that looks likely to continue. So construction businesses, be prepared, - The Victoria state budget is also due mid-June and hopefully, Premier Daniel Andrews has recovered from his back injury and back in Parliament for the announcement. With the state election scheduled for late 2022, the budget may include some aspects with that in mind. - For Queenslanders, the budget day is 3 August, in the next financial year. The timing could be a consideration for equipment acquisitions. - Post-election, the Tasmanian state budget is also due in August. - Other states and territories TBA State and territory budgets are sometimes more relevant to individual business activity than the Federal Budget. Especially in regard to infrastructure and other construction activity, it is the states that are particularly active in this area and projects in your locale will be ones to note. The states also control payroll tax and they all either deferred or waived that cost to business as part of their stimulus responses. But check the dates. That generosity may be coming to an end and you may have to factor that cost back into your balance sheet this coming financial year. When watching budget announcements be mindful not to have total tunnel vision and focus only on yourself. Sure, everyone wants to know ‘what’s in it for me it’s only natural. But take a minute and a broader viewpoint. Assess how your customers and suppliers may fare from the announcements. If your customers are in line for a boost you may need to scale up your operation with new machinery to meet their demand. ## **Interest Rate Watch** It’s always time to watch interest rates at [Jade Equipment Finance](/) and for many Australians. At the May board meeting, the [RBA once again held the official cash rate at 0.1%](/blog/interest-rates-spotlight-april-rba-announcement/), the historic low level where it has been since November 2020. While the bank upgraded its outlook for the economy and stands by its previous statements that it was not expecting to raise rates for some time, there is conjecture in some circles that rates may rise sooner. We stress conjecture as some observers and commentators do have their own opinions on interest rates. But there is talk! Taking advantage of the current low rates now with a Jade finance deal will assure you of having that same low rate over the full finance term. We provide fixed [equipment finance interest rates](/equipment-finance-interest-rates) for all types of equipment so you will be covered if rates due rise during your loan term. ## **EOFY Countdown** 30 June is the deadline for getting your balance sheet in order to minimise tax obligations by taking advantage of tax-deductible expenditure. It’s been highly promoted over the past year but IAWO and temporary full expensing do have the potential to deliver significant returns to the business. If you always intended to take advantage of this in the current financial year, then the time for hesitating is fast running out. To be eligible for the benefits in the current financial year, the asset needs to be purchased and operational by the deadline date. There have been supplying delays in equipment, your machinery may take time to be installed and commissioned. Our consultants are ready to act quickly in securing the finance you need to acquire that equipment with [no deposit equipment loans](/no-deposit-equipment-loan) and pre-approved finance. Ensure you’re celebrating this new financial year and not regretting you delayed that equipment investment decision. **Contact 1300 000 003 to discuss how we can assist you with your acquisition plans.** *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.* **Categories:** Finance --- ### [What industries stand to gain and lose moving forward?](https://www.jadeequipmentfinance.com.au/blog/what-industries-stand-to-gain-and-lose-moving-forward) **Published:** May 4, 2021 **Author:** Publisher **Content:** It’s been a very strange time for businesses due to the pandemic and the upcoming phases may also present some ongoing and new challenges. But for many operators, the stimulus measures introduced throughout 2020 are still bearing fruit and further developments are in the works. Due to the global impacts of the pandemic and the ongoing crises in some regions, even small businesses need to take a broad view of economic conditions when planning their equipment and machinery investments. Earmarking where opportunities could be and where potential issues may be lurking is a challenge in itself. But with the budget season in full swing, the direction can be taken from some of the government announcements. We take a look at the possible prospects across some sectors. ## **Sectors for Potential Gains** The annual round of budget announcements at both a state and federal level are worth analysing in detail for what could be ahead for your industry or for your individual business. [The pre-budget speech delivered by the Treasurer made a key mention of the energy sector](https://www.abc.net.au/news/2021-04-29/pre-budget-speech-josh-frydenberg-tax-unemployment-debt/100101604). Specifically the focus on delivering reliable and affordable energy with special mention of renewables. With the pressure to deliver on climate policy, this is likely to be an area where opportunities may be realised. Following the recommendations of the Royal Commission into the aged care sector and the devastating outcomes caused by the pandemic, this sector is certain to get a massive boost in spending. For operators looking to upgrade their facilities to meet the expectations of the community and their residents, we remind you that [Jade Equipment Finance](/) provides finance in this sector. Independent distillers and craft beer brewers stand to gain from a targeted tax cut in the upcoming Federal Budget. The rebate on excise will be increased from the current $100,000 to $350,000 which is expected to represent a benefit, on average of around $55,000 to the business. The measure is being introduced to encourage investment and it could be the encouragement you need to invest in new equipment to expand your business. Finance for brewing, distilling, warehousing and other equipment is available through Jade, so talk to us about what cheap deal we can source for your business. Child care benefits for some families has been announced and for facility operators, this could be your incentive to upgrade. For NT businesses in the residential home building sector, you too could be in for a boost with the [NT government announcing a significant investment in land releases](https://newsroom.nt.gov.au/mediaRelease/34120). An investment of this kind has the potential for flow-on benefits through many businesses and their suppliers. An increase in work could signal the need for machinery and equipment upgrades. NSW has focussed intensely on infrastructure over quite some time and in the lead-up to their mid-June budget, there are already more projects being mooted. The latest being a possible tunnel(s) in or should be said though, the iconic Blue Mountains to reduce road congestion. In the wake of the devastating recent floods in NSW, the government has announced it wants the repair works to favour local contractors. With the vastness of the damage to roads, bridges, facilities and both public and private properties there is sure to be a lot of construction activity in the affected regions. Post-election, the Gutwein Government in Tasmania will hopefully be busy making good on election promises, especially in the health sector. This was a major issue in the election and hopefully, local businesses will benefit from the upgrades and improvements proposed. [More information here](https://www.health.tas.gov.au/ourhealthcarefuture). The health sector in general is likely to be the focus of many business opportunities for quite some time. The issue of constructing specialised quarantine facilities is receiving a lot of attention. Howard Springs in NT is being expanded and the Prime Minister is reportedly considering the proposal presented by the Victorian government. The vaccination program is also presenting opportunities in the building of some specialised vaccination hubs and for GP clinics and other providers to upgrade or expand in order to efficiently deliver the vaccines. While the focus has been on the initial roll-out, the process may be more long-term prospects as booster jabs down the track have been suggested. Medical and health, in general, will be sectors to watch for gains. It was widely reported that many people delayed getting some routine tests and treatment due to the pandemic. With that crisis phase seemingly over, there could be high demand for some services as patients resume normal demand. ## **Where the Chips are Down** While some sectors are set for gains, issues globally in others could be signalling warning signs. [A global shortage of electronic chips is causing production delays and other disruption in key automotive and electronic sectors.](https://www.theguardian.com/business/2021/mar/21/global-shortage-in-computer-chips-reaches-crisis-point) The business mentioned in reports as being affected includes tech giants Samsung and Apple, automotive leaders Honda, BMW and Ford and leading equipment manufacturer Caterpillar. These issues affect production which could flow on to shortages in supply down the line in Australia. Moving forward on say your Caterpillar purchase now, from current stock, may prevent you from having your own delivery delays. ## **Being Proactive** Investing in equipment now can place your business in a position to be ready to capture opportunities as they present in your sector. Utilise our [online equipment loan calculator](/calculator) to calculate estimates and speak with one of our consultants to discuss how Jade Equipment Finance can assist with a great finance deal. **Call 1300 000 003 to discuss a finance package for your requirements.** *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.* **Categories:** Finance --- ### [Pre-Budget Expectations and Indications](https://www.jadeequipmentfinance.com.au/blog/pre-budget-expectations-and-indications) **Published:** April 20, 2021 **Author:** Publisher **Content:** In the midst of the COVIC-19 pandemic, the [2020/21 Federal Budget](https://budget.gov.au/) was heralded as the most anticipated in 100 years, a generation – at least a very long time. The date was pushed back from May to October so the Treasurer could take into account more of the economic impacts of the pandemic and expected recession in the budget measures. It certainly was significant with extensive spending, business investment support and continuation of some of the measures introduced in the Government’s stimulus policies. While the spending and initiatives were welcomed by businesses and individuals, it racked up a record deficit for the country. As it is widely acknowledged that conservative (Liberal-National) governments do not embrace deficits, 2021/22 is now greatly anticipated. Will the Government revert to kind with the echoes of Treasurer Josh Frydenberg’s famous ‘back in black’ comments in bringing down an earlier budget? No. The Government is embracing the deficit situation and taking a ‘repair the economy first’ approach. The 2021/22 Federal Budget speech will be delivered in the Parliament by Mr Frydenberg on Tuesday 11 May and the pre-budget announcements and indications have now started to filter out. The Treasurer made his major speech prior to the budget on Thursday 29 April to a business chamber in Canberra. [View the pre-budget submissions and announcements here](https://treasury.gov.au/2020-21-pre-budget-submissions). So what is in store for your business? Our team was immediately across the speech and provide you with this snapshot of the Treasurer’s announcements and what we and the economy know so far as to what 11 May might have for your business. ## **Treasurer Pre-Budget Speech** Overall, the Treasurer’s pre-budget speech was more an overview of the Government’s recalibrated fiscal strategy and general approach to the next phases of the economic recovery rather than including detailed policy. He clearly stated it would not be an austerity budget in an immediate attempt to reduce the budget deficit. It would take a spending approach with a focus on driving jobs and growth. The speech opened with a recap of the global and domestic impacts of COVID-19 and the temporary and targeted measures taken by the Government in response. He said there would be the same principles that would guide the Government’s actions in this next phase. Transitioning from emergency support towards recovery led by jobs growth. He acknowledged that the economy would be smaller persistently than what was forecast in the [2019/20 budget](https://archive.budget.gov.au/index.htm), due to the pandemic. Up to 6% smaller by the end of 20/21. Due to the decrease in net migration, the population growth would also be slower. This places pressures on the labour market especially in some sectors that rely on overseas workers. He noted that while migration will return, (presumably when international borders reopen) the numbers lost during this period can’t be replaced. [Mr Frydenberg noted that inflation, prices and wages growth are expected to remain lower for some time](https://www.abc.net.au/news/2021-04-29/treasurer-josh-frydenberg-wants-an-unemployment-rate-below-5-pc/100103344). These lower numbers are significant as they result in lower-income to the Government by way of income taxes received. Due to stimulus measures such as loss carryback and investment tax deductions, corporate tax receipts would also remain lower. He clearly stated that the budget would be a recalibration of fiscal approach, different from the previous approach of pursuing budget surplus and suited to the current economic situation. The initial focus of the budget will be on consumer and business confidence. Boosting these via primarily promoting jobs. A key priority is driving unemployment down even lower. [Previously the Government had indicated a target unemployment figure of below 5%](https://www.rba.gov.au/education/resources/explainers/unemployment-its-measurement-and-types.html). The latest figures place it at 5.6%. But it is considered that they are now looking to achieve a figure in the 4% range. For business owners, the key takeout from the Treasurer’s speech was the intention to continue with the provision of target, temporary and proportionate support. This through tax measures in order to leverage jobs and investment in the private sector. The major focus of the budget will be on jobs and structural reforms. Special mention was made of: - Investment in reliable and affordable energy and new technologies. - Continuing with the $10b in transport infrastructure already brought forward. - Investment in training and skills so businesses have access to the skills they require. The Treasurer reflected on the changes to the global economy, specifically supply chains and trade patterns, which are significant to Australian businesses. He concluded by stating that budget repair would not be undertaken through austerity or by higher taxes. ## **Investment Measures** Specific inclusions in the budget will likely start to be announced in the week leading up to the budget speech on 11 May. But we remind businesses that key investment measures as announced in the October budget are still available and benefits can be realised with equipment purchases. Specifically, these are the accelerated asset depreciation measures of temporary full expensing and Instant Asset Write-off. In the October budget, these were amended and extended, within the criteria, through 2021/22. To take advantage of these measures, [Jade Equipment Finance](/) can provide cheap finance packages on [Equipment Chattel Mortgage](/chattel-mortgage) for a wide range of equipment acquisitions. **Contact us on 1300 000 003 to discuss how we can assist you with your acquisition plans.** *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.* **Categories:** Finance --- ### [Lights, Camera, Action on Affordable Production Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/lights-camera-action-on-affordable-production-equipment-finance) **Published:** April 27, 2021 **Author:** Publisher **Content:** 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](https://theconversation.com/53-million-for-screen-production-but-policy-reforms-could-spell-the-end-of-the-australian-feature-film-147834). 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](https://www.abc.net.au/news/2021-04-19/mad-max-new-movie-starring-chris-hemsworth-to-be-filmed-in-nsw/100077950). 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](https://www.vividsydney.com/) 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](/chattel-mortgage) or Equipment Loan - Commercial Hire Purchase - [Equipment Leasing](/asset-lease) - 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](/equipment-finance-interest-rates) 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](/no-docs-low-docs-equipment-finance) - 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](/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.* **Categories:** Finance --- ### [Initiatives For Commercial Equipment Loans and Gains in the Federal Budget](https://www.jadeequipmentfinance.com.au/blog/initiatives-for-commercial-equipment-loans-and-gains-in-the-federal-budget) **Published:** May 7, 2021 **Author:** Publisher **Content:** As key leaders in the business machinery and equipment sector, we are particularly pleased for our customers with a number of initiatives announced in the [2021/22 Federal Budget](https://budget.gov.au/). While many of the COVID-19 stimulus measures announced throughout 2020 and those implemented in the delayed 2020/21 Budget in October are still available for businesses, the 2021/22 Budget introduces new measures and expands existing programs. While you may have picked up on the key announcements either in pre-budget announcements or in the post-budget media, we’re covering off on the gains for businesses that we see as specifically relating to equipment and machinery investment. ## **The Big Picture** As announced on 11 May by Federal Treasurer Josh Frydenberg, 2021/22 Federal Budget is focussing on repairing the economy rather than addressing the deficit and debt accumulated through the stimulus spending over the past year. The targets are clearly jobs and growth and a continuation of big-spending programs especially in key sectors such as aged care, the security of women in both physical and economic terms and infrastructure. The Treasurer positioned the Budget as the next phase in the Government’s overall plan to extend and secure the gains already made in the recovery from the pandemic. The strategy includes personal income tax cuts; tax incentives for many businesses especially through investment; and creating jobs through training and apprenticeship programs. [More info](https://www.liberal.org.au/budget). Unemployment and economic growth figures have both exceeded expectations and the goal is to drive unemployment down further from the current 5.8% figure. It is predicted to hit 5.5% in 2021 and 5% in 2022. This is key to the Government’s recovery plan but also a key indicator for the RBA in terms of moving on interest rates. [Currently, the RBA is holding rates at the low levels and is looking for unemployment to be possibly below 5% and for inflation to be in the vicinity of 2-3% before considering increasing the official cash rate](https://www.rba.gov.au/publications/bulletin/2020/sep/the-economic-effects-of-low-interest-rates-and-unconventional-monetary-policy.html). Should either of these targets be achieved ahead of forecasts, interest rates could be increased earlier than currently intended. Before moving into the specifics of what’s in it for you, it’s worth noting that the budget needs to presented to and passed by the House of Representatives and the Senate before being able to be implemented. With many leading business groups approving of the measures, the Government would no doubt be hoping the Budget Bill passes relatively easily through both chambers. ## **Asset Acquisition Tax Measures** While many budget measures were announced prior to the actual speech, one of the big ones of particular interest to our [Jade Equipment Finance](/) customers which weren’t leaked is the extension to temporary full expensing. Temporary full expensing was introduced in the October budget and is an expansion and an extension of IAWO. It was expanded to include more businesses and extended through to 2021/22. The new announcement further extends the timeframe through the 2022/23 financial year which enables those that need longer planning times to implement asset acquisitions. For those not across temporary full expensing, it enables buyers of eligible new assets such as business equipment, plant and machinery to fully deduct the entire purchase price of the goods in the same year as the acquisition. The alternative being depreciating the asset incrementally over a much longer period. The full depreciation is a tax deduction that reduces the business tax obligation and as such frees up business finance for other purposes. Investing in new equipment is seen as a way for businesses to grow and as the Government hopes, create new jobs to drive down unemployment. The extension recognises that some businesses experienced supply and other disruptions due to COVID-19 and this allows them to participate in the initiative. For businesses looking to utilise this measure, the selection of finance product should be carefully considered. [Equipment Chattel Mortgage](/chattel-mortgage) allows for depreciation of the equipment while with [Equipment Leasing](/asset-lease) and Rental the equipment ownership is retained by the lender and the tax benefit realised in other ways. ## **Loss Carry Back** Another key business gain is the extension of the temporary loss carryback as introduced in October through another year. As with temporary full expensing, it was originally slated to expire on 30 June 2022 but will now be extended to 30 June 2023. [Read more here](https://www.accountantsdaily.com.au/tax-compliance/15677-full-expensing-loss-carry-back-extended-to-2023). This can be very effectively utilised in conjunction with temporary full expensing to deliver a significant tax benefit to a business. The benefit will depend on your business’ profit/loss result from earlier years so referring to your accountant is advised. ## **Cuts to Taxes** The LMIT (low middle-income tax offset) is extended for another year in a boost for personal income taxpayers in those categories. SMEs also get a tax reduction of 25% from 30% from 1 July. ## **Apprenticeships, Training and Wage Subsidies Schemes** To incentivise businesses to take on more staff, a number of schemes have been extended. These include the JobTrainer Fund extended to 31 December 2022 and the Boosting Apprenticeships Commencement scheme has been expanded. Additional training places have been created in the care sector as part of the focus on aged care and participation of women in the workforce to be boosted with child care support. Wages subsidies are also available through job active. For more information on the JobTrainer fund [click here](https://desbt.qld.gov.au/training/training-careers/incentives/jobtrainer). ## **Summation** While we have focussed our budget coverage on the equipment acquisition aspects, there are many programs and opportunities for businesses to investigate. In our next article, we will take a look at some of the opportunities available for businesses to capture new work through Government spending programs. While the budget still has to pass through Parliament and many of the initiatives are set for a 1 July start, IAWO and full expensing are available in this financial year. So you can still acquire equipment now and claim in this year, subject to meeting criteria. To move quickly on finance, contact us and one of our consultants will assist you. **Contact 1300 000 003 to discuss how we can assist you with your equipment acquisition plans.** *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.* **Categories:** Finance --- ### [Federal Budget: Prospects for Commercial Equipment Growth and Equipment Loans](https://www.jadeequipmentfinance.com.au/blog/federal-budget-prospects-for-commercial-equipment-growth-and-equipment-loans) **Published:** May 10, 2021 **Author:** Publisher **Content:** The Federal Budget was delivered on 11 May by Treasurer Josh Frydenberg and as previously indicated, it was not an austerity budget to address debt and deficit. But a shift, as some have said in ideology for a conservative government, to a big-spending approach. The budget seeks to address jobs and growth and continue building and securing the country’s rebound from the pandemic. Beyond the tax incentives which have been widely reported, we have delved deeper into the [Budget Papers](https://budget.gov.au/) to identify specific opportunities for industry sectors. Opportunities that may present prospects for growth for your business, depending on your industry sector. As we covered the tax deductions, investment allowances and wage subsidies in another article, here we focus on how spending by the Federal Government may open up channels for new work for your business. As we provide [equipment loans](/), plant and [machinery finance](/machinery-finance) for many businesses across all industry sectors, we’re casting our report across as many as we can to inform and advise you of what’s there for to capture. ## **Aged Care Sector** Aged care is a big beneficiary in the budget as the government implements recommendations of the Royal Commission. While much of the spending is for the provision of services, it may present the opportunity for providers and suppliers to the sector to invest in new equipment. This could be medical and health-related equipment or general business and office equipment such as technology, IT systems and general office equipment. ## **Digital Games Industry** Gaming has become an extremely popular activity and the government has recognised that by cutting the costs associated with game development developers are set to gain a 30% refundable tax offset (capped at $20m pa) for qualifying expenditure. If that means investing in tech equipment, speak with us about [technology leasing](/technology-equipment-financing) refinancing options. ## **Residential Building** Trades in the building and construction area are set to gain with amendments to the [HomeBuilder program](https://treasury.gov.au/coronavirus/homebuilder). This was introduced in 2020 but issues around commencement deadlines caused problems. Issues with the supply of building materials have further exacerbated the problems. The commencement of construction has now been extended through to 18 months. ## **Manufacturing and Processing** The 10 years [Modern Manufacturing Strategy](https://www.industry.gov.au/data-and-publications/make-it-happen-the-australian-governments-modern-manufacturing-strategy/our-modern-manufacturing-strategy) is already being implementing and will continue with further investment. This is addressing supply chains and our sovereign capabilities by encouraging Australian companies to invest in manufacturing facilities and processes. Grants will be available for businesses to build capabilities to identify and address vulnerabilities in supply chains in critical areas. Capabilities for onshore vaccine manufacturing are also being expanded with potential opportunities for businesses either directly or indirectly involved with both the COVID-19 vaccine and future vaccination programs. Waste and recycling also receive attention through environmental initiatives as do energy projects in hydrogen bubs, securing energy sources and renewables. ## **Spending on Infrastructure** For our customers across many areas including earthworks, civil works, trades, materials handling and transporting, construction and related businesses, infrastructure projects always represent great potential for new work. 2021/22 Federal Budget does not disappoint with projects spread across all states and territories, in major cities and regional areas. Work looks like being available through a significant pipeline of projects including:- - Victoria: Geelong Fast Rail; upgrades to southeastern and northern road; Melbourne Airport Rail Link; and North East Link http://www.opv.vic.gov.au/Pipeline - Queensland: Roads continue to get Government funding with Gateway Motorway, Bruce Highway and Coomera Connector included in the budget spending. Link - New South Wales: the state government is working with the federal on multiple infrastructure projects and those mentioned in the budget include the M12 motorway, a further extension to the M1 at Raymond Terrace, WestConnex and the Sydney Metro section connecting with the new Western Sydney Airport. [More info](https://www.planningportal.nsw.gov.au/major-projects). - Tasmania: funding for the revitalisation of freight rail, replacing the Bridgewater Bridge and works on the Midway Point Causeway has been allocated in the budget. - South Australia: improvements and upgrades in Hahndorf receive funding as does the electrification of the Gawler rail line. - Western Australia: METRONET on the Morley-Ellenbrook line receives funding along with the Northlink and Bunbury outer ring road. - Northern Territory: The NT is set to benefit from Central Arnhem road and gas industry road upgrades as well as the Buntine and Carpentaria Highways. - ACT: funding includes Molonglo River Bridge, Light Rail Stage 2A and Monaro Highway upgrades. - Gas infrastructure projects have also been earmarked. ## **Support for Agriculture** Assisting farmers to achieve their 2030 goals of increases in farm gate output is budgeted with a spend in excess of $800m. In addition, attention is being paid to reducing weeds and pests and to upgrading the country’s biosecurity systems. Drought has devastated many farmers and producers over the past decades and funding has been earmarked for programs in resilience, risk management and better technologies and practices. More information on the 2021 Federal Budget here. ## **Making the Most of Opportunities** While the Budget includes funding for many projects, it will be the responsibility of many businesses to invest in their own machinery and equipment in order to realise the benefits flowing from these projects or to engage in carrying out the works. Jade Equipment Finance offers cheap interest rate finance for the acquisition of all types of equipment and machinery with the full range of commercial finance facilities available. To compare multiple banks and lenders, use our [online equipment finance interest rates](/equipment-finance-interest-rates) chart. **Contact 1300 000 003 to discuss a finance package for your requirements.** *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.* **Categories:** Finance --- ### [Low Doc, No Doc Finance and Temporary Full Expensing](https://www.jadeequipmentfinance.com.au/blog/low-doc-no-doc-finance-and-temporary-full-expensing) **Published:** May 12, 2021 **Author:** Publisher **Content:** Since the Federal Treasurer Josh Frydenberg announced the budget on 11 May, there has been much spruiking of the benefits of key measures by the Prime Minister, other Government Ministers, the media and interested parties such as lenders like ourselves. The key messages for business operators are in regard to the tax benefits on offer through investing in new plant, machinery and equipment. Specifically, the extension of temporary full expensing and how that works with temporary loss carryback. [Read more on the Federal Budget here](/blog/federal-budget-prospects-for-commercial-equipment-growth-and-equipment-loans/). All well and good for those businesses that can easily access low-interest rate finance. But what is available for those businesses that face challenges sourcing business equipment loans? We’re talking about new businesses which have not been operating long enough to have all the financial records required for a loan application and very small, sole trader, owner-operator businesses. Do these businesses have the same opportunities to take advantage of accelerated asset depreciation measures? If so, how? As [specialists in equipment finance](/), we can provide information on both those counts as well as access to cheap finance by way of Low Doc, No Doc Equipment Finance. ## **Temporary Full Expensing Recap** The concept of temporary full expensing (TFE) first entered the awareness of most business operators when Treasurer Josh Frydenberg announced in the October (delayed from May) 20/21 budget. While new to some, it has been used as a stimulus measure previously. Essentially it is the same accelerated asset depreciation measure as Instant Asset Write-Off. Through extensive promotion by equipment and machinery dealers and lenders, most business operators have become familiar with how this works as a tax deduction. TFE is an expansion and extension of IAWO. It expanded the value of assets that can be depreciated and the turnover to make more businesses eligible. It allows for the full cost of equipment, plant and machinery to be claimed as a tax deduction through depreciation in the year the equipment was purchased rather than in small amounts over many years. All subject to criteria which can be checked at By having this larger tax deduction, the amount of tax owed in the year that the benefit is claimed is reduced. Thus giving the business a reduced tax obligation, less money to have to pay in tax and hence more to spend on other essentials or further investments. There appears to not be a cap on how many items of equipment can be acquired and claimed under this measure. So operators could invest in a number of new machines and make claims against all in the current year. [The budget extended the timeframe through to EOFY 2023 so businesses can possibly plan equipment purchases over this, next and the following financial years and realise a significant benefit in each year](https://www.afr.com/politics/federal/business-wins-20-7b-as-tax-breaks-extended-to-2023-20210510-p57qi7). ## **Suitable Equipment Finance Products** But in order to depreciate equipment assets, it needs to be acquired with the appropriate type of finance and that is Chattel Mortgage which is also known by some banks as Equipment Loan. Why? Because with Chattel Mortgage the entire monthly repayment is not tax-deductible, only the interest portion is deductible. The business realises the tax benefit when the equipment is depreciated in the annual income tax assessment. This differs from [Equipment Leasing](/asset-lease) where the repayments are considered a business operating expense and tax-deductible. As the tax deduction is realised at that point, the equipment is not depreciable under a Leasing finance deal. ## **Low Doc and No Doc Equipment Finance Options** Now to how businesses seeking low doc and no doc equipment loans can take advantage of these measures. [Low Doc Equipment Finance](/no-docs-low-docs-equipment-finance) and No Doc Chattel Mortgage for equipment and machinery are available through specialist lenders such as Jade Equipment Finance. While some banks may not provide this service, we are accredited with non-bank lenders that are more flexible and are prepared to make such offers. Cheap interest rate offers are available to businesses without all the financial documents and records usually required and the eligibility criteria are quite straightforward. ### To be eligible for a Low Doc or No Doc Chattel Mortgage, business requires: - A current ABN and ID. - Being registered for GST is not an essential requirement but can be seen by some lenders as a positive and contribute to a better offer. - Good credit profile to ensure the cheapest interest rate offer. - Providing some quantity of financials is desired and these may be accounts records simply prepared by the operator rather than an accountant; a business plan with very new start-ups; BAS statements if available; and similar supporting documents. - The difference between low and no docs is the quantity of information provided. The more the better. - Additional security or guarantee may be requested by lenders. Your Jade consultant will advise you of individual lender guidelines and seek the most appropriate lender to suit your requirements. When approved for this category of equipment finance, the business can usually select whichever finance product they choose – Leasing, CHP, Rental or Chattel Mortgage. To take advantage of TFE, Chattel Mortgage is seen as the most appropriate choice. But it is always advised to consult with an accountant or tax agent to ensure the choice of finance will deliver the optimum benefits to the individual business. ## **Applying for Equipment Finance** With EOFY approaching fast, if you would like to claim TFE in this financial year, contact us and utilise our [equipment loan interest rate comparisons tool](/equipment-finance-interest-rates) so we can arrange your Low Doc or No Doc Chattel Mortgage. **Contact us on 1300 000 003 to discuss how we can assist you with low doc and no doc finance.** *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.* **Categories:** Finance --- ### [Major Equipment Manufacturers Deliver with Precision EOFY Time](https://www.jadeequipmentfinance.com.au/blog/major-manufacturers-deliver-with-precision-eofy-time) **Published:** May 14, 2021 **Author:** Publisher **Content:** Just in time for the end of the financial year and perfectly timed for businesses to take advantage of IAWO or temporary full expensing, a number of leading equipment and machinery manufacturing brand recently unveiled new products. Prior to 30 June will be the cut-off for businesses to have new machines in operation in their business in order to be eligible for the new tax deduction measures on offer. The key criteria for Instant Asset Write-Off and temporary full expensing are that the asset must be purchased and operating in the same year as the tax deduction is claimed. With only weeks to the 20/21 deadline, operators will be needing to move quickly if they intend to claim the deduction in this financial year. The measures are available through 21/22 and 22/23 and multiple machines could be claimed, but if this year is your target, get moving now! ## **Komatsu Celebrates 100 Years** More a concept than an actual product, [Komatsu](https://www.komatsu.com.au/) unveiled its electric remote excavator as a next-generation machine concept as part of its 100-year commemoration events. The concept is a full electric, lithium-ion battery, mini-excavator which can be operated remotely. A 3-tonne machine with 0.09 cubic metre capacity, it combines a number of the company’s new technologies. No on-board operator, no exhaust emissions, no noise, no heat and according to the company, no maintenance, this is sure to attract a lot of attention across multiple industry applications. While it will be some time before we see this new-gen machine in Australia, you can catch the latest from Komatsu at upcoming trade events including [CRT FarmFest in Toowoomba](https://www.queensland.com/in/en/things-to-do/events/p-57574c37cdacd7d303f33acd-farmfest-sponsored-by-elders) in early June, AG Grow in Emerald in late June and the [Gunnedah AGQuip Field Day](https://www.visitnsw.com/destinations/country-nsw/tamworth-area/gunnedah/events/agquip) in August. When attending trade shows, don’t forget to have your [Equipment Finance Calculator](/calculator) on your phone or pre-arrange your finance. ## **John Deere Equipment Product Enhancements** One of the leading manufacturers of excavation equipment, [John Deere](https://www.rdoequipment.com.au/) has revealed a number of upgrades to its K series of dozers. These include slope control, tech upgrades, new track frames as well as a number of options. The slope control capability is reported to be included as a factory-integrated option for the 450K, 550K and 650K. Reportedly ideal for those working on small sites, in road building, various agriculture applications and of course forestry, the feature assists the machine operator to grade smooth planar surfaces. Operators get real-time viewing of the cross slope and fall slope percentages on the monitor in the cab. They can then make the necessary adjustments to the blade through the controls. Additional features including flip slope and button for increment and decrement adjustments. If the K series is of interest to you, speak with us about pre-approved cheap interest [equipment financing](/) before you discuss the price with your local JD dealer. ## **Kubota Goes Compact** If you operate in hard to access areas, on narrow access and other compact sites, then the [SVL97-2 from Kubota](https://kubota.com.au/products/track-loaders/svl-series/) could make your daily work a lot easier. This is a compact track loader with a cleaner engine, ergonomic cabin features, great lifting capacity and other upgrades on its predecessor. We have finance available for all types of businesses, including small owner-operators, sole traders, contractors and those operating on an ABN-only basis. Refer to our finance calculator for rough estimates on repayments to assist your purchase plans. ## **Husqvarna Showcase** Customers in Melbourne were treated to mini demo days with Husqvarna which included seeing the company’s new trench roller in operation. The LP9505 is a remote operation machine with automatic hydraulic brakes, radio control comms, closed drums and battery charger on-board. The COVID-19 situation prevented many customers from seeing a demo of this new machine in person. If that includes you, contact the company to discuss details ## **Moving the Earth with Caterpillar** The Sydney Diesel Dirt and Turf Expo was the ideal scene for a Caterpillar customer to display his mini excavator, the 306CR. He uses it in building driveways, road maintenance, and many other small residential jobs. With the upsurge in home improvements due to COVID-19, the work for a mini excavator is in demand with examples given as even digging areas for trampolines in backyards. With the housing construction sector recording excellent performance stats this year, upgrading your fleet with a new Cat mini could be a good move. ## **EOFY Equipment Loan Options** If you’re wanting to get your new machinery in place in this financial year, we can move quickly to source you a quote for:- - Chattel Mortgage - Leasing - [Equipment Hire Purchase](/commercial-hire-purchase) - Equipment Rental For those looking to take advantage of temporary full expensing measures, [Chattel Mortgage for Equipment](/chattel-mortgage) is seen as the most appropriate form of finance and attract our cheapest interest rate. **Contact 1300 000 003 for a quote on your new machinery acquisitions** *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.* **Categories:** Finance --- ### [RBA Holds Rates for June 2021: Effects and forecasts for equipment finance](https://www.jadeequipmentfinance.com.au/blog/rba-holds-rates-for-june-2021-effects-and-forecasts-for-equipment-finance) **Published:** May 21, 2021 **Author:** Publisher **Content:** The first Tuesday of the month, with the exception of January, is when the RBA Board meets to make its monthly decision on interest rates. More specifically the official cash rate is the overnight rate on lender-to-lender borrowings and the basis on which lending rates, in general, are set by banks and other lenders. In the lead-up to the 1 June 2021 board meeting, there had been much speculation and daresay suggestion, in some financial commentary circles that interest rates should be increased as housing prices soared. But, in line with previous statements, the RBA held firm on its position and kept the cash rate on hold at 0.1%. The level it has been at since the last rate cut in November 2020. For many, the decision to hold rates steady did not come as a surprise. So much so that amidst the coronavirus outbreak in Victoria, it only rated a minor mention in the press. But as this was the first RBA board decision since the Federal Treasurer delivered the 21/22 Budget, the last before EOFY and as [Victoria was amidst a fourth lockdown, businesses might have been awaiting the outcome to finalise their equipmen](https://www.bbc.com/news/world-australia-57325513)[t](https://www.bbc.com/news/world-australia-57325513)[ acquisition plans for this financial year](https://www.bbc.com/news/world-australia-57325513). The decision to hold rates steady may be in itself unremarkable at this time. But it is always helpful to study the RBA statement accompanying these announcements to get an insight into the Board’s intentions moving forward. ## **RBA June Decision Statement** Philip Lowe, Governor of the RBA, issued the traditional statement following the 1 June board meeting, stating it was decided to hold the current monetary policy settings. This involves the cash rate; the 3 year Government bond yield; the bond purchase parameters; and the [Exchange Settlement](https://www.rba.gov.au/payments-and-infrastructure/esa/) balances rate. In the release, the continuing recovery across the global economy was mentioned with the outlook pointing to strong growth over this and next year. Again it was noted that not all countries were recovering at an equal rate as some were still facing challenges in containing the coronavirus. Inflation remains low and beneath the central bank target however, commodity prices are at higher levels than at the start of 2021 and trade on a global basis was increasing. Stronger than expected growth in the Australian economy continued and the forecast is for this trend to continue further. The RBA expects GDP in 2021 to see the growth of around 4.75% and for 2022 3.5%. These forecasts were tempered with the mention of possible outbreaks of coronavirus created reason for uncertainty. This uncertainty should diminish as more of the Australian population are vaccinated. Unemployment at a level in the sub 5% range was previously indicated as a target for the RBA to consider any rate increases. The statement acknowledges that unemployment is dropping faster than earlier anticipated with the April rate at 5.5%. A 5% unemployment rate could be expected later in 2021. Balanced against that was the note of high job vacancies and labour shortage in some sectors. Inflation is another key indicator for any rate increase with the RBA Governor repeatedly stating a rate of 2% to 3% was their target. At the moment, while inflation and growth in wages both remained subdued, increases in both could be expected. As a sign for businesses looking to make forward planning decisions, the RBA expects the 2021 inflation rate to be 1.5% and to reach around 2% in mid-2023. The CPI inflation rate is expected to see a temporary 3% increase based on June quarter figures. This is put down to issues around COVID-19 pricing structures. After all the talk about housing prices, it was not surprising to see the market receive a special mention in the RBA June statement. But it was just a note that the board would be ‘monitoring’ the trends in the home loans sector as a result of the price rises as a result of the low-interest rate scenario. The RBA stressed its focus was on continuing to support the achievement of full employment in the Australian economy. The announcement concluded with a statement reiterating previous statements that a 2-3% inflation target would be sought before the RBA would make any decision on rate rises. It said that would be unlikely until prior to 2024. ## **Significance for Equipment Finance** As businesses approach the critical end of the financial year, the time to lock in plans to realise tax benefits before 30 June, holding the cash rate at the historic low rate is good news. That means that businesses can look to achieving our current [low interest rate equipment finance](/) for some time. Locking in a finance deal on a significant asset acquisition at a fixed interest rate means realising that same low rate over the full fixed term of the finance deal. While the official cash rate is set at 0.1% that clearly is only the base rate for lenders to establish their borrowing rates. Rates on equipment finance products vary based on the type of equipment being purchased, the industry, borrower credit profile and the type of finance. We direct you to [utilise our equipment loan interest rate comparison chart to see the current rates we are achieving for equipment finance](/equipment-finance-interest-rates) and contact us for a specific quote for your purchase. **Contact us 1300 000 003 for an equipment lending enquiry.** *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.* **Categories:** Finance --- ### [Bad Credit? How to make the most of budget measures, EOFY and low interest rates](https://www.jadeequipmentfinance.com.au/blog/bad-credit-how-to-make-the-most-of-budget-measures-eofy-and-low-interest-rates) **Published:** May 28, 2021 **Author:** Publisher **Content:** Business operators can find themselves in the position of having a poor credit profile or general credit issues for many reasons and often for reasons outside of their control or fault. But in the wake of the unprecedented 2020 economic situation as a result of the coronavirus pandemic, it is highly likely that many more than usual will be experiencing difficulties. While the much-anticipated post-JobKeeper ‘cliff’ did not eventuate, that is not to say that individual businesses have exited the COVID-19 crisis unscathed. Despite the general and widespread government support and stimulus measures, not every business in Australia benefited and with Victoria having to endure a fourth COVID-19 lockdown, the outcome for some operators, at minimum, will be having credit issues. Issues that can be a major obstacle to achieving cost-effective finance to purchase new equipment. With the highly advantageous budget tax-deductible measures on offer, EOFY equipment deals available and a historic [cheap interest rate equipment loans](/) borrowing scene, the inability to take advantage of these opportunities can be very frustrating for businesses with bad credit. But there are potential channels for businesses with bad credit to secure the equipment funding they require and still take advantage of the tax and other benefits available. ## **Equipment Finance Lender Selection is Key** The key to achieving good equipment finance deals for bad credit businesses is the approach taken to the loan sourcing process. Not all people are aware that each time an application for finance is made, the lender reports that application to the credit reporting agencies, even if not approved or proceeded with. Multiple applications for finance can reflect poorly on a credit profile as it can appear as desperation. Those with bad credit, that need to apply to a large number of finance companies in the source for a loan, can actually be doing further harm to their already poor credit profile. A solution to this situation is to utilise a third party, broker-style lender such as Jade Equipment Finance to handle the entire finance sourcing process. Using our lender service circumvents that negative outcome as enquiries, quote requests and applications made by brokers do not get reported in the same manner as individual applications. That’s just the start of the good news. We also provide positives in presenting a large number of finance options through a wide range of our lenders. While banks are not known for extending bad credit finance, non-bank lenders are more flexible and open to discuss and negotiate such deals. We are accredited with non-bank lenders that do extend bad credit equipment finance and can approach them on your behalf to source a suitable deal. It’s also worth noting that our lenders do take into account the reasons why the bad credit situation has been caused. The reasons can vary and they can make a difference to being approved or not for finance. Applicants can assist the process by clearly and in detail, documenting the reasons as to why they have credit issues. ## **Bad Credit Equipment Finance Products: Budget Benefits** Bad credit finance is not a loan product or facility as such but a category description of the loan applicant. If a business with bad credit is approved by one of our lenders for finance, they can in most instances, select the most suitable finance product for their business. ## In regard to equipment finance, our loan products include: - Bad Credit Equipment Chattel Mortgage - Bad Credit [Commercial Equipment Leasing](/asset-lease) - Equipment Rental with Bad Credit - [Equipment Hire Purchase for Businesses](/commercial-hire-purchase) with Bad Credit This allows the business to realise the relevant tax and other benefits pertaining to that particular loan product. This is relevant in regard to the [current business tax breaks offered through the Federal Budget](https://www.bdo.com.au/en-au/news/media-releases/federal-budget-2021-relief-on-tax-as-they-roll-out-the-vax) in respect to accelerated asset depreciation. Through a Chattel Mortgage finance deal, a business with bad credit can fully depreciate the cost of the equipment in the year of purchase, subject to meeting ATO rulings. This can represent a significant deduction that may reduce the income tax obligation for that year. In addition, the business may also be in a position to take advantage of the loss carry-back measure which is also currently available. ## **Bad Credit Finance Expectations: Interest Rates** It is widely known that interest rates on equipment finance are currently at very low rates. The rates advertised by ourselves and other lenders, however, primarily relate to applicants with a good credit profile and for new goods. It would be expected that individual lenders would assess a bad credit applicant at a higher risk and as such a higher interest rate may be attached to the loan. In addition, special conditions may be included such as additional security provided or a lower loan amount is approved. Feel free to use our [online equipment finance interest rates comparison tool](/equipment-finance-interest-rates). Despite the negatives attached to these expectations, it does not preclude a workable outcome from being achieved. Our Jade consultants work hard to negotiate the lowest interest rate for all customers and the most favourable loan terms and conditions. ## **Achieving a Workable Outcome for Equipment Finance** Businesses with bad credit do have options and possibilities to achieve cost-effective equipment finance. Options that may allow them to take advantage of discounts in EOFY sales, budget tax measures and the current low-interest rate climate to invest in equipment to grow their business. [Our free and online equipment loan repayment calculator can assist you in sourcing the best deal](/calculator). The key is don’t give up, give us a call and discuss the possibilities. **Contact 1300 000 003 for a confidential discussion about the finance options for your 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.* **Categories:** Finance --- ### [Equipment Refinance to Recharge for 21/22](https://www.jadeequipmentfinance.com.au/blog/equipment-refinance-to-recharge-for-21-22) **Published:** June 5, 2021 **Author:** Publisher **Content:** A new financial year is a good time for new year business resolutions. A time to reflect, reassess and review the way you’re operating, your costs and especially your financial commitments. Is sticking with the same old-same old way you’ve always done it really working for you? How has the COVID-19 pandemic impacted your business and the way you work? What uncertainties does the ongoing threat of coronavirus present to your business? How can you strengthen your business situation to withstand risks and threats? What do you need to set up to be in a better position to capture emerging opportunities? [Click here for more information on business restructuring methods here](https://www.weforum.org/agenda/2020/07/how-businesses-can-turn-covid-19-uncertainty-to-their-advantage/). How you approach your new financial year assessment will depend on your individual business but for many it will include a review and possible overhaul of equipment financing arrangements. The snap lockdowns and other impacts, both global and local, on businesses due to coronavirus have highlighted the need to be ready for quick changes – positive and negative. Increases in the business activity created through demand and stimulus packages or cutback due to lockdowns, border closures and supply chain issues. Reviewing equipment finance and loans with a view to refinancing at a cheaper interest rate can be an effective strategy to recharge your business for financial year 21/22 and beyond. Refinancing is a widely sought process and our consultants are highly skilled in structuring workable and cost-effective equipment refinancing deals. But it’s not all about just getting cheaper interest rates. The complete scope of upsides and downsides of refinancing should be considered. We provide a guide to assist in deciding if this is a strategy that will benefit your business. ## **Equipment Refinancing: Deep Dive** It’s no secret that interest rates across the board have dropped significantly in the past few years. The RBA has cut the official cash rate to historic lows, with two rate cuts in 2020 to simulate the economy. For businesses that have equipment finance contracts over 5, 6, or 7+ years, taken out several years ago, the rate on the same loan now may be significantly lower than when the loan was established. [More info](https://www.9news.com.au/national/rba-interest-rate-decision-may-2021-soaring-house-prices-and-low-wage-growth/15b29c34-1516-4c41-b894-78b1449ff97e). By referring to our [equipment loan interest rate guide](/equipment-finance-interest-rates) for current rates and your existing equipment finance contract, you can calculate possible repayments and see what you may potentially be saving in repayments and on total interest over the remainder of the equipment finance term. While the interest rate and subsequent lower equipment finance repayments appear a major incentive to refinance, there are other aspects to take into account. - Refinancing an existing equipment finance deal involves setting a new loan which encompasses the amount outstanding on the existing loan (the payout figure) and the relevant fees and charges in establishing a new finance contract. - The new finance deal can be for the same or a different finance product as the existing: Leasing, Rent to Own, Chattel Mortgage or Hire Purchase. Interest rates vary for these products and refinancing may present the option to move to a lower rate finance facility. - Businesses with bad credit, [no doc and low doc equipment finance may have the chance to achieve a better loan deal through refinancing partway through the existing loan term](/no-docs-low-docs-equipment-finance). It could be assumed that during the initial years of the loan term, the business would have acquired the documents required for a fully documented loan and this may attract better loan conditions. Bad credit applicant may have significantly improved their credit profile and be in a position to be offered more appealing loan conditions. Refinancing may achieve these objectives. - The current lender will impose break fees for finalising the equipment finance prior to the scheduled conclusion of the fixed loan term. These fees can be included in the new loan but need to be considered against the reduced interest and possible repayment levels achieved through refinancing. The usual loan establishing fees would be charged on the new finance deal. - The equipment being refinanced would be considered second-hand and as such this may affect the finance offered. Lenders will take into account the age and condition of the equipment when making loan offers. - Monthly outgoings and the overall business commitments can be restructured through achieving lower equipment finance repayments through refinancing. A position that may relieve cash flow pressure and free up funds for additional investments in equipment or business growth. - If approaching the end of an equipment loan term, the balloon or residual can be refinanced. ## **Securing Workable Equipment Refinance:** [Jade Equipment Finance provides refinancing services for all types of finance deals across all types of equipment](/). As we do when setting up new equipment finance deals, we source the cheapest quote from our specialist equipment lenders. For refinancing, a total loan amount would be sought to cover the pay-out amount and any charges pertaining to finalising the existing loan and those relevant to a new finance contract. With skills and expertise in refinancing, our consultant’s structure deals which are workable and cost-effective. However, should the end result of the refinancing deal not present an advantage to a business, it would not be strongly recommended. As in handling all equipment finance deals, our major priority is achieving the best deal in the best interests of our customers. Enquiries are obligation-free so please reach out and discuss the options we can offer to recharge your business to power through 2021/22. **Contact 1300 000 003 for equipment refinance quote.** *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.* **Categories:** Finance --- ### [Alternative Tax Benefits to Chattel Mortgage and Temporary Full Expensing](https://www.jadeequipmentfinance.com.au/blog/alternative-tax-benefits-to-chattel-mortgage-and-temporary-full-expensing) **Published:** June 8, 2021 **Author:** Publisher **Content:** Hand up, yes, we’re fessing up that we have been one of the many equipment finance lenders that have been continually promoting IAWO and temporary full expensing to our customers over the past year or so. For good reasons. These accelerated asset depreciation measures represent significant tax breaks for businesses. They allow for the full value/purchase price of depreciable assets to be realised as a tax deduction by eligible businesses, in the same year that the assets were acquired. This is significantly better than under normal depreciation tax rulings where only a percentage of the value of these assets can be claimed as a tax deduction each year. So it can take many years to fully realise or ‘write-off’ the purchase price against tax. The benefits to business are by having a larger amount to deduct in one year, the taxable income is reduced, thus reducing the tax obligation. When used in conjunction with loss carryback, temporary full expensing presents a supercharged tax benefit. [The success of these measures as introduced in the Federal Budget has been widely accepted across industries](https://www.abc.net.au/news/2021-05-11/federal-budget-2021-explainer/13339052). Reportedly, sales of equipment, especially trucks and vehicles, have spiked and the reason in many cases is being given as the benefits from these measures. But in order for equipment to be eligible for these measures, for the business to realise the tax benefit, the equipment must be acquired with the appropriate finance product. That is considered to be [Equipment Chattel Mortgage](/chattel-mortgage) as the ownership of the asset is taken by the borrower and the equipment listed on their balance sheet and hence can be depreciated in line with current ATO rulings. All well and good for those businesses. But what if a business does not consider Chattel Mortgage to present the overall best finance package to suit their financial objectives? What if a business does not really want the entire value of the equipment being acquired listed as an asset/liability on their balance sheet? Such a move can have drawbacks, especially if applying for other loans. Fortunately, there is a [range of equipment finance products available to all types of businesses](/), for all types of equipment purchases and they all have tax-deductible elements in the loan. We provide a brief summary of the range of equipment finance products with aspects that require consideration when selecting which finance product will work most effectively for your business. ## **Equipment Finance Products** ### Jade Equipment Finance provides a complete portfolio of finance facilities for purchasing equipment: - [Equipment Lease](/asset-lease) - Equipment Rent to Own - Chattel Mortgage - [Equipment Hire Purchase](/commercial-hire-purchase) for commercial needs ### Regardless of which product is selected, some aspects are universal across our equipment loans including: - Cheap, fixed interest rates. - Finance terms are fixed and negotiated to best meet preferences. - Monthly repayments are fixed and negotiated to an amount that best works with the business cash flow. - A residual or balloon is allowed. - No deposit equipment finance is available. - [Equipment Low doc and no doc loans](/no-docs-low-docs-equipment-finance) are available. - Bad credit finance solutions are possible. ## **Tax Deductible Equipment Finance Elements** All business finance has a tax-deductible element but that is realised differently. As mentioned above, with Chattel Mortgage, the major tax deduction is realised through depreciation as the repayments are not fully tax-deductible. Only the interest on repayments is deductible. But Leasing and Rent to Own also include significant tax deductions. As the repayments are considered as an operating expense, the entire amount is tax-deductible. So if you multiply the monthly repayment by 12, you’ll see how much the tax deduction would be each year over the term of the finance. With the ‘other tax’, GST, is also treated differently. GST is not charged on the interest on any type of loan. With Chattel Mortgage the full amount of GST which is included in the purchase of the equipment can be immediately claimed on the next BAS return. With Leasing and Rent to Own, GST is charged on the monthly repayments ex the interest portion. For businesses registered for GST, the monthly GST can be claimed on the relevant BAS, whether that be monthly, quarterly or annually. Over the term of the finance, the entire GST would be claimed, it just takes longer than with Chattel Mortgage. [More info](https://www.ato.gov.au/business/gst/lodging-your-bas-or-annual-gst-return/options-for-reporting-and-paying-gst/monthly-gst-reporting/). ## **Equipment Loan Ownership Issues** We eluded to balance sheet entries above and should elaborate. With Chattel Mortgage the equipment appears on the business balance sheet. With Leasing and Rent to Own, the lender retains ownership of the equipment over the finance term. The asset does not get listed on the borrower’s balance sheet. These are known as off-balance sheet finance products and considered to improve the balance sheet. This strategic approach to the balance sheet can present benefits to a business. Your accountant or tax agent will be best placed to discuss those issue in relation to your specific situation. ## **Sourcing Tax Effective Equipment Finance** All business equipment finance has tax-deductible elements but the overall package, all the individual features of each product should be taken into consideration. Jade Equipment Finance sources the most cost-effective finance which meets the specific requirements of our customers. With no obligation attached, our consultants can source you finance quotes on different loan options for you to consider which presents the best option to support your business. **Contact 1300 000 003 for quotes on all types of equipment finance.** *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* **Categories:** Finance --- ### [Back To Office Equipment Finance Options](https://www.jadeequipmentfinance.com.au/blog/back-to-office-equipment-finance-options) **Published:** June 14, 2021 **Author:** Publisher **Content:** Is all or some of your office space sitting empty? Space you would like to see filled with your workforce? We may be able to assist with [finance for office equipment](/) and upgrades to reconfigure and prepare workplaces to welcome staff back to the office. As more and more Australians receive their COVID-19 vaccinations and the outbreaks appear to become less frequent, many businesses are looking to return to full capacity operations. After 18 months of business disruption, many are wanting and needing to be able to operate as close to some semblance of normality as possible. But one of the major issues facing many businesses is getting their staff back to the office. Work from home became the norm for many workforces during the peak of the pandemic and continued during the snap lockdowns. But it appears that many employees are preferring this way of working, not all have returned to work in their offices full-time and many have concerns about returning. [Read more here](https://www.afr.com/work-and-careers/workplace/working-from-home-becomes-part-of-the-permanent-employment-landscape-20210122-p56w8n). To encourage and entice workers back to the office, many employers are addressing their responsibilities in regard to providing a safe and healthy workplace. A working environment that complies with both COVID-19 restrictions and conditions in their state and morally meets the expectations of their staff. For many that mean making significant upgrades and improvements to existing floorplans, work station arrangements and the physical built environment. If new arrangements mean less staff will be working in the office at any one time, changes may include downsizing and reconfigurations. Changes may include [upgrading to a new and more exciting and vibrant workspace](https://www.viewsonic.com/library/business/workplace-design-trends/). Upgrades may be an enticement for workers to want to return, attract new staff to the business and improve productivity levels across the operation. But this scope of improvements can quickly add up to a significant cost. The cost of designers, builders, fit-out specialists and other consultants for starters. Then comes the cost of the actual furniture, equipment, fixtures and fittings. A very significant investment coming on top of what may have been a significant sub-normal earnings year. Jade Equipment Finance assists businesses to upgrade and improve workplaces through cost-effective, structured equipment finance. ## **What equipment can be financed?** The scope of equipment finance is massive with a wide range of [office equipment leasing](/office-equipment-loans) used by and in businesses included in this lending category. Specifically, finance is available to cover fit-outs, fixtures and furniture in offices, factories, manufacturing premises, warehousing facilities, retail stores, hospitality venues and many other sectors. IT, computer and tech equipment is included. ## **Finance Products Available** ### Workplace upgrades typically include a combination of both: - Asset acquisitions being the actual physical furniture, partitions and office equipment. - Services of consultants, designers, builders and other trades. ### For the acquisition of the assets, we offer a full portfolio of business finance options including: - Equipment Chattel Mortgage - [Equipment Leasing](/asset-lease) - [Commercial Hire Purchase for Business Equipment](/commercial-hire-purchase) - Equipment Rent to Own or Equipment Rental Deciding which type of finance is best suited to the specific goods and the individual businesses, requires consideration of the features and benefits of each finance facility in regards to the treatment of tax, accounting method and ownership of the goods and therefore approach to the business balance sheet. All asset acquisition finance products are sourced by our consultants at our cheap interest rates, with fixed interest rates, fixed loan terms and fixed repayments. Each has an option for a balloon or residual which can be utilised effectively to achieve a target monthly repayment amount. You can [use our online equipment finance interest rate calculator to get the best deals Australia-wide](/equipment-finance-interest-rates). Financing the costs of the non-asset elements of an office upgrade such as builders and consultants can be financed through our range of business loans. Speak with one of our consultants about the options available for your business. ## **Structuring Cost-effective Finance** Undertaking this type of project will include multiple items to be purchased. To streamline the loan commitments, our consultants work with customers to structure a finance package that can include the cost of multiple items. Grouping multiple purchases into the same finance deal results in the one monthly repayment commitment which can ease cash flow pressure and significantly simplify the business accounting processes. As these projects can be complex, our consultants handle each workplace upgrade finance deal on an individual basis and source the most suitable lender that will make the cheapest and the cost-effective loan offer. We are accredited with many banks and non-bank lenders so we have a vast scope of options in sourcing the deal to meet the individual needs of each business. Making use of our [equipment loans calculator](/calculator) can come in handy to compare the best lending products for your business. Our consultants are highly skilled in structuring complex finance deals and handle the entire process from the initial enquiry through to settlement. If progressive payments to suppliers are required, we can work with lenders to negotiate suitable arrangements. The health and wellbeing of the workforce is a major business high priority consideration and we can provide cost-effective finance to facilitate the implementation of business plans in regard to office upgrades. If you have empty offices that you would like upgraded to accommodate the new requirements of returning staff, speak with us about how we can assist with finance. **Contact 1300 000 003 for quotes and options in regard to office equipment finance.** *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.* **Categories:** Finance --- ### [Upgrade Your Systems With Cheap Tech and IT Finance](https://www.jadeequipmentfinance.com.au/blog/upgrade-your-systems-with-cheap-tech-and-it-finance) **Published:** June 16, 2021 **Author:** Publisher **Content:** A recent outage of an international content delivery server caused major disruptions to multiple businesses on a global scale. It was only a short outage but it was certainly not an uncommon issue which businesses need to be aware of on a daily basis. [A cyberattack on a US company shut down a major Australian meat processing plant in the same week](https://www.abc.net.au/news/rural/2021-06-10/jbs-foods-pays-14million-ransom-cyber-attack/100204240). Cyberattacks, denials of service and ransomware incidents are impacting even the most security-conscious organisations. Apart from external risks and threats, businesses need to ensure their own internal tech, IT and computer equipment and systems are up to scratch and suited to the purpose. Our reliance on technology for many aspects of running a business has become even more prominent during the coronavirus pandemic. With many workforces transitioning to a work from home arrangement, attention has had to be made to connection security for communications and operations. Another response to the pandemic has been the surge in online shopping and an increasing number of businesses offering online services to meet demand. As we become more reliant on technology so does our need to stay across upgrades, updates and replacing ageing, obsolete and risk-prone equipment. But the cost to the business of upgrading and replacing complete IT systems can be a major investment. While the Australian economy has bounced back remarkably well from the initial effects of the pandemic, many businesses are still recovering financially. To assist business operators with the costs of computer and IT equipment, we provide [competitive rate equipment financing](/) which includes a complete portfolio of financial products and the expertise and high-level skill of our team of finance professionals. We have an in-depth and specific understanding of the tech needs of business, having operated our finance services on an online system for over 20 years. We fully appreciate the requirements of business operators in getting new systems up and running fast and acquired with business loans that will work with their operation over the life of the equipment and beyond. ## **Equipment Financing** While many may think only the actual hardware components of IT systems can be financed, you would be wrong. We provide [technology financing](/technology-equipment-financing) for both the hardware and the software involved in replacing, upgrading or acquiring new and computer systems. ### We provide finance for a wide range of computational and tech-based systems, both purchased as stock items or customised to suit the business requirements: - Security systems both within computer equipment systems and externally across entire facilities. - Digital and computer systems to operate manufacturing and processing. - Accounting and financial software. - Online shopping systems. - General business operating IT equipment and systems. - Retail and hospitality POS. - Multimedia systems for entertainment and surveillance purposes. - Precision engineering and design equipment and systems. - 3D design and printing. And many others across all industries. ### When the equipment being purchased is considered as suitable security against the loan, businesses can select the finance type that best meets their requirements: - [Equipment Leasing](/asset-lease) - Computer and Tech Equipment Chattel Mortgage - Rent to Own finance for IT Acquisitions - Commercial Hire Purchase for Computer Equipment As off-balance sheet finance facilities, Leasing and Rent to Own can be well-suited to finance equipment that is required to be replaced with upgrades on a fairly regular basis. Chattel Mortgage can better suit those purchases which a business chooses to hold as an asset for a longer period. Business owners are strongly advised to consult with their accountant on the choice of loan type. ## **Equipment Loan Products to Suit all Businesses** We work with all types of business operators including SMEs, sole traders, partnerships, large corporates and family businesses. Our same cheap interest rate finance portfolio is available for all set-ups. For businesses just starting out, getting IT and computer systems up and running tends to be the first priority. But most new operations do not have all the documentation that banks and some lenders require to apply for a business loan. We provide a specialist service for operators in that situation with our [Low Doc and No Doc Equipment Loans](/no-docs-low-docs-equipment-finance). Not all lenders offer loans to low and no doc applicants but we have accreditation with lenders that do and that provides us with the ability to source cost-effective low doc solutions. ## **Planning Your Equipment Finance** To get your budgeting underway, we have provided a self-serve finance calculator which allows users to calculate repayment estimates. [The Equipment Finance Interest Rate Table shows our current rates across a range of loan types](/equipment-finance-interest-rates) so users can instantly compare say Leasing with Chattel Mortgage. While our [Equipment Finance Repayment Calculator](/calculator) includes a field for a balloon so you can vary the values to see how you would like your finance structured. If you’ve had enough of suffering through disconnects and outages, connect with us to discuss how we can facilitate a workable finance package for you to overhaul your IT and tech systems. **Contact 1300 000 003 for quotes on IT and computer equipment lending.** *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* **Categories:** Finance --- ### [Break Fees and Payout Calculations on Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/break-fees-and-payout-calculations-on-equipment-finance) **Published:** June 21, 2021 **Author:** Publisher **Content:** When buying a new piece of equipment or machinery, the last thing you’re probably thinking about is selling it. While resale value into the future will often be a buying consideration it’s not usually a high priority at the time of purchase and when [arranging cheap rate equipment finance](/). Alert – it should be! Business owners can save on finance fees and charges by considering upfront, at what time in the life of the equipment or more specifically in the term of the finance contract that they may upgrade that equipment by sale or trade-in as the decision. Equipment finance contracts are typically set up over a fixed finance term. That, along with the fixed interest rate, results in a fixed repayment which assists the business with forwarding cash flow planning and certainty. But in the event that the finance contract is concluded prior to the fixed term as agreed, the payout figure includes penalties or break fees. ### A fixed-term finance contract can be concluded prior to the agreed term when: - The equipment is traded in or sold during the finance term. This would require the business owner to finalise the existing finance contract. - If the equipment finance is refinanced for a range of reasons. Refinancing involves establishing a new finance contract and concluding the original loan early. When these scenarios arise, the equipment owner would need to contact their lender for a payout figure and that is where fees and charges apply. ## **Equipment Finance Payout Calculations** Equipment finance is commercial finance and as opposed to highly regulated consumer loans, this sector is not as regulated. How a payout is calculated when a loan is concluded early and what break fees may apply is at the discretion of individual lenders. ### In calculating payouts on equipment finance, there are 3 methods that are commonly utilised: - The [discount rate method](https://strategiccfo.com/discount-rate/) - Interest payable charged at a percentage of the original rate - 7/8ths or using the Rule of 78s When setting up a finance contract, the details of which method is implemented and what actual fees and charges apply should be included in the contract. Each of these three methods will deliver a different outcome for the payout. ## **Discount Rate Formulation** To calculate the early payout on equipment finance with the discount rate method involves firstly calculating the Present Value (PV) of the loan. This value is not the valuation of the equipment at that time but of the monies outstanding on the loan – principal and interest. The PV of both any balloon or residual and the repayments which are outstanding is calculated using a discounted rate of interest. The discount rate is determined by individual lenders and will be set out in the finance contract. This rate is applied to outstanding amounts according to the number of repayment months that are still due. ### With the PV calculated, the payout is then tallied which includes: - Any repayment arrears which are owed. - The total of repayments still due to be paid for the rest of the finance term at the PV. - The PV of the balloon or residual. - Fees and charges as applicable by that lender. ## **Interest Percentage Method** With this payout calculation method, the total of outstanding amounts – repayments and balloon, are included and interest calculated on these amounts at an interest rate which is a percentage of the interest rate initially applied to the loan. Additional early payout fees may also apply. ## **Rule of 78s** [The Rule of 78s aka 7/8ths or Rule of 78 has been covered in our articles in great detail](/blog/rule-78-explainer/). We recommend you refer to the original article for full details as we will include a brief summary here. The ATO has a ruling which determines when this payout calculation can be utilised. In simple terms, this rule relates to at what point of time over the term of a finance contract that the interest payable is actually charged to the loan account. When a greater amount of the total loan interest is charged in the early part of the loan term, less of the principal is being repaid. So when it comes time for the payout, a greater amount of the original loan, the principal, may still be owed than the borrower may have thought. The principal is not reduced as quickly. The early repayments are used to pay down interest, not the principal. Referring to statements issued by your lender should reveal how much of the interest and the principal is being paid off each month. ## **Minimising the Equipment Loan Payout Figure** When discussing a finance contract with a lender such as Jade Equipment Finance, borrowers can do themselves a favour by considering how long they intend to keep the equipment in service. While it is appealing to opt for a longer finance term such as the maximum of 7 years in order to get as low repayments as possible, it may not be saved. If you intend to upgrade in 4-5 years then opting for a 4-5 finance term may be smarter. By selling or trading when the finance term is finalised, no break fees would be charged. Yes, the repayments would be greater than for a 6-7 year term but you could save at the end. [To see how loan terms and repayments interact, refer to our equipment finance calculator](/calculator). Your Jade consultant will work through the options when sourcing your equipment finance to ensure it meets your specific requirements. **Contact 1300 000 003 for quotes on cheap lending.** *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.* **Categories:** Finance --- ### [QLD State Budget 2021/22: Opportunities for Equipment Operators](https://www.jadeequipmentfinance.com.au/blog/qld-state-budget-2021-22-opportunities-for-equipment-operators) **Published:** June 23, 2021 **Author:** Publisher **Content:** While many business owners will be preoccupied with their end of the financial year obligations it’s worth taking some time to look ahead into the 21/22 financial year as to what business opportunities may be ahead for your operation. For those in construction, mining, agriculture and infrastructure, many of the key business growth prospects come in the policies and projects implemented by state governments. These are outlined in the annual state budget and May-June is the timing for these announcements. The Federal Budget is key to establishing income tax measures such as asset depreciation etc and many key projects are included in this annual announcement. But the majority of major project announcements are in state budgets. [Cameron Dick, Queensland Treasurer, tabled the QLD 2021/22 State Budget on 15 June](https://www.abc.net.au/news/2021-06-15/queensland-budget-2021-treasurer-forecasts-surplus-in-four-years/100197730) and it includes an extensive list of capital works projects with potential business opportunities for this in the construction, mining and infrastructure sector. Mentioned in pre-budget announcements was also the prospect of the[ 2032 Olympics being held in Brisbane](https://www.austadiums.com/news/921/brisbane-2032-olympic-games-venues-revealed). A prospect that is looking very positive and should present business opportunities for many operators in many sectors. ## **Budget Overview** Queensland operators may be encouraged by the Treasurer’s announcement that the state’s economy was actually larger now than before the coronavirus pandemic took hold. He forecast that the economy would grow further at a rate of 3.25% over the 21/22 financial year. A rate that is nearly twice that of the national economic growth forecasts. He noted in the budget documents the significant migration to the state of 30,000 people in 2020 with a further 85,000 expected over the next 4 years. Population growth of this size can be significant to many businesses. While noting the upsides the budget notes also include cautions that the pleasing performance of the state’s economy still faces potential threats and risks from the global rollout of the vaccination program no doubt especially on tourism; the trade tensions impacting Australia especially in relation to coal; and the general geopolitical situation. As with the Federal Budget, the QLD budget makes jobs growth a major priority. The state budget includes a ‘flagship’ measure – the Queensland Jobs Fund. This $3.34 billion initiative is designed to increase growth within the private sector and to drive jobs growth. Another significant initiative is the [$2b for the Renewal Energy and Hydrogen Fund](https://www.i-q.net.au/main/2-billion-investment-to-power-more-jobs-and-more-industries-through-cheaper-cleaner-energy). ## **Building Projects and Capital Works** The states are responsible for implementing much of the national infrastructure often jointly funded by the Australian Government. As stimulus measures, significant programs have been implemented over the past 18 months and QLD’s existing $52.2b over 4 years capital works program continues. ### Some of the specific projects noted in the budget include works on the Bruce Highway:- - Rockhampton Ring Road $1.1b - $1b Cooroy-Curra upgrade to 26 klms near the town of Gympie - Widening of the section of the highway between Steve Irwin Way and the Caboolture – Bribie Island Road receives $662.5b - Approaches and bridges to be constructed on the Haughton River floodplain - Stage 3 of the Cairns Southern Access Corridor widening project - Stage 5 of the Townsville Ring Road - The upgrade of the Mackay Northern Access receives $120.4m - A new 2 lane highway to be constructed on the Walkerston Bypass to connect Mackay Ring Road and the Peak Downs Highway A major project which is jointly funded by the Commonwealth is the Rookwood Weir. Construction on this $367.2m project will proceed through 21/22 towards a mid-2023 completion date. The Cairns Convention Centre is set to receive a refurb and expansion to the tune of $74m. While Townsville Community Learning Centre receives $7m and Proserpine Entertainment Centre $5.7m for works. Projects in regional areas focus on sewage and water infrastructure. Part of these funds and projects will be delivered through the local councils. ## **Government Owned Business Projects** In addition to the specific projects to be undertaken by the QLD Government, many of the state-owned businesses will also be making significant project investments in 2021/22. Of note are projects associated with several key ports which will be of interest to many in mining, agriculture and related sectors. - Ports North is allocating $38.3m to regional ports works. The Cairns Marine Precinct to receive infrastructure investment including completion of the Cairns Shipping Development. - Capital works will also be undertaken by Gladstone Ports at Bundaberg, Rockhampton and Gladstone. Works will include an upgrade of assets at the RG Tanna Coal Terminal, berths at Auckland Point and services, marina and pilot projects. - $18.8m has also been allocated by North Qld Bulk Ports for the continuation of planning and development including renewal of the wharf. - Townsville is also included with funding allocated for the upgrade of the channel capacity to allow access for larger vessels. - Energy Queensland will be establishing 5 grid-connected battery energy storage systems on a community scale as well as substation and network projects. - Capital works will also be undertaken by Powerlink Queensland in regard to Kidston Hydro network. - Seqwater will be implementing a significant capital works program including on the South West Pipeline and at Mt Crosby Treatment Plant. ## **Capitalising on Budget Outcomes** If the Queensland State Budget presents opportunities for your business, [speak with us about equipment finance to expand and upgrade](/) to take on the new work involved. **Contact 1300 000 003 for a quote on your equipment finance requirements.** *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* **Categories:** Finance --- ### [NSW 2021/22 State Budget: Project Opportunities and Equipment Finance Options](https://www.jadeequipmentfinance.com.au/blog/nsw-2021-22-state-budget-project-opportunities-and-equipment-finance-options) **Published:** June 28, 2021 **Author:** Publisher **Content:** While the Federal Budget sets much of the big picture economic outlook for the financial year, it is in the content of the individual state budgets where many equipment owners and operators will find opportunities to expand their business. NSW has been embarking on a large-scale infrastructure investment program over many years with the Metro and Light Rail amongst many other significant projects. The outlook moving forward continues that trend with a $108.5b spend on infrastructure planned over the next 4 years. The NSW Treasurer, Dominic Perrottet delivered the state’s budget into Parliament just days prior to a significant COVID-19 outbreak in Sydney. A situation that resulted in a 14-day lockdown being called for Greater Sydney and restrictions placed on regional NSW. Despite one Government minister contracting the virus and others forced into isolation, the work of the government continued and the budget measures should start to be rolled out. Measures that present opportunities for businesses in many sectors. ## **NSW Budget Overview** The NSW budget is strongly focused on jobs growth and supporting the economy to bounce back from the effects of the COVID-19 pandemic. ### Highlights:- - Stamp duty waived on purchase of new electric cars. - EV charging infrastructure. - $380m spend on renewable energy projects – wind, solar and storage. - Assistance for farmers in regard to the plague of mice. - Costs associated with occupational licences lowered and streamlining the system for those that need to operate in multiple different locations. - Specific programs to assist Sydney CBD hospitality operations. - Cutting red tape to fast track developments. [More info here](https://www.budget.nsw.gov.au/) ## **Infrastructure Pipeline** ### Infrastructure is again a big feature of the NSW budget with multiple projects in the pipeline:- - Sydney Metro West - Modernisation of the rail network - Stage 1 of the M6 - Capital expenditure on schools including new schools - Great Western Highway upgrade in joint funding with the Federal Government - Continuation of the WestConnex project - Upgrade to the Northern Road and M12 - New England Highway projects - Widening of Henry Lawson Drive - Stage 2 of Parramatta Light Rail - Upgrading Warringah Freeway - Release of new land for home building to assist with the demand for housing in Sydney and surrounds - Transformation of the Powerhouse Museum at Ultimo - Development of the Great Southern Walk in the Illawarra - Significant health infrastructure spends covering 110 capital works projects. Including works on John Hunter Health Precinct, Liverpool Health Precinct and Tweed Hospital. ## **Development of the ‘New CBD’** A key part of the NSW state budget is an $870m spend on the first stages of development on what has been tagged as Sydney’s next CBD- the Bradfield City Centre. This area is around the site of the new airport under construction and the development will include land releases as well as commercial developments. This is being billed as ‘Australia’s first smart city’ and will provide an economic hub focusses on high tech. The budget funds are earmarked for enabling works and site preparation. Another spend of $175m is set aside for the first building, a high tech structure and new training and education model. ## **Disaster and COVID Support Payments** Just a week after announcing the budget, the NSW Treasurer was required to develop support funding for businesses impacted by the COVID lockdown. These plans have been announced with monies available after 19 July by application and subject to a downturn in turnover. [Click here for more information on business support funding](https://www.nsw.gov.au/businesses-and-employment/financial-assistance). ### **Finance for New Business Opportunities** Despite the Greater Sydney lockdown and restrictions in the regions, many businesses are still able to operate and as such, start planning how they can take advantage of new projects in the various state budgets. Most businesses in the agriculture, construction, trades, manufacturing and processing areas will still be operating as relatively normal and considering their equipment and machinery requirements. The projects being funded by the NSW Government cut across many areas and present opportunities for a vast range of operators. If you are considering tendering for work on these projects, new machinery and equipment may be your first concern. Being able to include details of the equipment you have to complete the works may be a big plus for your submission. We have the full portfolio of asset acquisition [finance available for the purchase of plant, machinery and equipment](/). ### Our finance products include: - [Equipment Rent To Own](/equipment-rental-finance) - [Equipment Leasing](/asset-lease) - Chattel Mortgage - Commercial Hire Purchase If you would like to maximise the tax deductions of your purchase, Chattel Mortgage may be the most suitable form of finance as it is seen as best suited to temporary full expensing (TFE). An accelerated asset depreciation measure, TFE allows eligible businesses to deduct the full purchase price of new, eligible assets in the year of acquisition. Chattel Mortgage also attracts the cheapest interest rate of the range of asset acquisition loans. [To compare the best deals across multiple banks and lenders, feel free to make use of our equipment finance interest rate tool](/equipment-finance-interest-rates). To start working up repayment estimates on equipment for new projects, use our loan calculator tools or simply contact us for a quote and an individually tailored solution. **Contact 1300 000 003 for quotes on cheap equipment finance.** *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.* **Categories:** Finance --- ### [RBA July Decision: Rates on hold, but support winding back](https://www.jadeequipmentfinance.com.au/blog/rba-july-decision-rates-on-hold-but-support-winding-back) **Published:** July 8, 2021 **Author:** Publisher **Content:** The July 2021 board meeting of the Reserve Bank (RBA) was held amidst a multi-state COVID-19 outbreak and with Australia’s largest city and key economic centre, Sydney, in a multi-week lockdown. A stark contrast to the positive outlook and economic climate of a month earlier when the various state and territory treasurers were bringing down their optimistic budgets for economic recovery. Despite the lockdowns etc, the climate was also defined by the continuation of soaring house prices, unemployment at 5.1% yet many businesses crying out for staff. Somewhat confusing and possibly contra messaging from the Australian economy. In recent times, some economists and financial analysts had been predicting and in some instances suggesting, that the RBA lift rates earlier than their target timeframe. With all this happening, the RBA’s monthly interest rate decision was once again keenly awaited. [The RBA July decision was to keep interest rates on hold but has commenced to wind back its level of emergency support](https://www.rba.gov.au/media-releases/2021/mr-21-13.html). We provide as simple an explanation as possible to assist you in planning ahead. ## **RBA Board Decision** ### The key outcomes of the RBA Board’s July decisions are:- - To hold the cash rate at the current rate of 0.1% - To continue the purchase of government bonds beyond the early September target and to mid-November at least. - To reduce the bond purchases from $5 billion to $4 billion per week. The change to the bond-buying program which is the quantitative easing aspect is seen as easing support. In the statement accompanying the monthly decision, the RBA Governor, Philip Lowe, stated that these measures would support the economy as it transitions from recovery to the expansion phase. He said the RBA was committed to its targets of full employment and its target inflation rate. It was noted that the outlook for investment had improved with the balance sheets of both businesses and households in good shape. The recent COVID-19 outbreaks were noted as an uncertainty but it was also noted that in previous outbreaks a quick bounce-back was experienced once restrictions were lifted. The statement repeated similar comments made in previous months that it was expected that both inflation and wages growth is expected to pick up but with modest and gradual growth. [Inflation is not expected to reach 2% until mid-2023](https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview202021/MacroeconomicOverview). Previously the RBA has noted its target for a rise in interest rates is inflation in the 2-3% range. Key for our customers, Dr Lowe stated that leaving the cash rate at 0.1% would keep interest rates at low rates and support low funding costs. The target of mid-2024 was repeated in regard to consideration of increasing rates. But a noted omission was the previous inclusion of ‘at least’ 2024. An indication to some analysts of a slight change of thinking. ## **Analysis and Commentary** The significance of the RBA’s bond-buying program is not an aspect that is widely understood. Understandably, as it is an area that most people will not have been exposed to. But the RBA stated that the step down in the bond-buying to $4 billion did not represent a withdrawal of support. The process is actually pumping money into the economy and is a stimulus policy. Dr Lowe noted that the economy was in a better than forecast position but noted the bank’s concern over the housing price situation. In the press conference held after the board meeting, which is not always held, Dr Lowe said the bank wanted to see results before raising the cash rate. Saying that wages growth needed to exceed 3% and currently, it is much less than that level. He stressed that any increase in the interest rate would be linked to inflation, not wages growth, going on to comment that a sustainable inflation rate and sustained wages growth are related. ## **Equipment Finance Interest Rate Outlook** With the official cash rate on hold and at the historic low levels, [interest rates on equipment finance also remain at our current cheap levels](/). Our rates are fixed for the full term of equipment finance deals which can be as long as 7 years. Well beyond the expected 2024 rate rise target as expressed by the RBA. But some analysts and markets are not necessarily agreeing with the RBA’s position. Some lenders were already raising their rates on home mortgages. Our customers should note however that the housing interest rate market is different from the equipment lending market. For our customers with existing equipment finance contracts which we have arranged at fixed interest rates, those contracts will remain constant and unchanged regardless of any moves by any lenders in rates. [To view and compare, head over to our equipment finance interest rate table](/equipment-finance-interest-rates). For those considering an investment in new equipment to take on new work or expand their business as the economy enters the expansion phase, our cheap interest rate finance is available for the purchase of a wide range of equipment. The next scheduled meeting of the RBA Board re interest rates will be the first Tuesday of August. **Call 13000 003 for quotes on cheap equipment finance.** *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.* **Categories:** Finance --- ### [Lower Equipment Finance Repayments: Strategic Approach](https://www.jadeequipmentfinance.com.au/blog/lower-equipment-finance-repayments-strategic-approach) **Published:** November 26, 2021 **Author:** Publisher **Content:** With pandemic financial support for businesses being wound back or discontinued, many businesses will be reviewing and assessing their balance sheets and cash flow situations. Keeping a positive bottom line with rising costs of materials and supplies and other impacts and cash flow negatively impacted due to the pandemic can be a major challenge. Businesses may be taking a ‘whole of business’ approach to the process to see where they can reduce expenses. One area where Jade Equipment Finance can assist businesses to reduce their outgoings is in achieving lower equipment finance repayments. When taking on finance to purchase new equipment, many factors need to be taken into account and our consultants work closely with customers to address every detail in order to achieve the most suitable outcome. While ourselves and most lenders and borrowers focus heavily on equipment finance interest rates, the key to a cost-effective outcome may be in the repayments. We outline strategies and suggestions we offer for businesses to consider when structuring their finance deals to achieve lower equipment finance repayments. Our approach takes in all the elements which comprise and contribute, both individually and when combined, to equipment finance repayments:- - [Finance product](/overview-of-equipment-loan-products) - [Interest rate](/equipment-finance-interest-rates) - Finance term - Balloon - Choice of lender Varying one or some of these components can result in lower equipment finance monthly repayments which may provide valuable support for the business. **Finance Product** The choice of finance product impacts the monthly repayment amount because the interest rate is different for different loan types. Chattel Mortgage and Commercial Hire Purchase have the lowest rate, Leasing is slightly higher and Rent to Own higher again. While the temptation may be to opt for the cheapest rated finance, the overall benefits of each product should also be take into account. These relate to accounting methods and measures and individual business objectives. A lower interest rate finance product will deliver a lower monthly repayment than a higher interest rate product. But the benefits derived from the higher rated product may be seen as more advantageous to the business. For a clear illustration of how this works, simply refer to our Interest [Rate Comparison Calculator](/calculator). **Interest Rate** Following on from above, the interest rate is the major contributor to the cost of finance and it follows that the cheapest interest rate finance will deliver the smallest monthly repayment figure. The key figure that many business owners are seeking to achieve. Our continual focus on achieving better and cheaper interest rates for our customers can be the answer to them receiving an offer with that target repayment level. We achieve the cheapest rates as a result of a number of factors including expertise, longevity and status with the lending market, our vast lender base and the negotiating skills and dogged determination of our consultants. Rates do vary across equipment finance lenders and this in part plays into our point below on lender selection. The [RBA](https://www.rba.gov.au/) sets the official cash rate and from that banks and non-bank lenders will set the rates they are prepared to offer across their lending markets. These rates take into account their own operational costs and their confidence in specific industries or lender markets. Getting a lower rate from some banks and lenders is challenging, especially for individual business owners. Some non-bank lenders that have equipment finance as their specialty can tend towards greater flexibility in rate negotiations than say the big banks which are more constrained by their corporate guidelines. Interest rate variations may appear as miniscule, sometimes a 0.1% difference. But when you calculate that variation over the up to 7 years of the equipment finance term, you’ll realise how significant that can be to your bottom line. Use our [Equipment Finance Calculator](/calculator) to see this in action. **Finance Term** As interest is a per annum rate, the length of the loan term will determine the overall cost of the loan. Together, the finance term and interest rate, essentially determine the monthly repayment. So by varying the term, a different repayment figure can be achieved. - If lower repayments are the target, opting for a longer term may be sought. - If owning the equipment sooner is the target, then a shorter term will achieve that, but with a higher monthly repayment. Bring in the cheapest interest with a variation of the loan term through skilful negotiation with the lender, and an optimum outcome may be the result. **Balloon** A balloon (Chattel Mortgage and CHP) and residual (Leasing) are a percentage of the loan amount which is set aside for payment at the conclusion of the finance term. This can be used strategically to structure a finance deal to achieve the targeted repayment amount. The larger the balloon, the lower the repayments and vice versa. But attention needs to be paid to the value of the machinery at the end of the finance term when the balloon is payable. Lenders may also have their individual approach to what maximum balloon percentage they agree to. **Choice of Lender** As we covered briefly above, the choice of equipment finance lender can impact the interest rate offered which flows onto the resultant repayment. Taking advantage of our broker-style services with access to many including specialist lenders, can ensure the cheapest rate and hence optimum equipment finance is secured. To wrap it up, to achieve lower equipment finance repayments to ease pressure on cash flow, pay attention to the structure of the finance and each element that contributes to the outcome and utilise a lending expert to assist in achieving the optimum outcome. **For lower repayment equipment finance speak with a Jade Equipment Finance consultant 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.* **Categories:** Finance --- ### [Timely reminder to revisit Chattel Mortgage Equipment Finance for Temporary Full Expensing](https://www.jadeequipmentfinance.com.au/blog/timely-reminder-to-revisit-chattel-mortgage-equipment-finance-for-temporary-full-expensing) **Published:** September 26, 2022 **Author:** Publisher **Content:** It was top of mind for business owners from the early start of the pandemic. But with drawn-out and repeated lockdowns, striving for economic recovery, dealing with labour issues, a Federal Elections, soaring inflation and global supply chain disruption it may have faded into the background. What are we referring to? Temporary full expensing or IAWO, Instant Asset Write-off and how Chattel Mortgage Equipment Finance best suits those intending to use this tax measure. When initially announced as part of the Government’s stimulus measures early in the pandemic and after it was expanded from IAWO to temporary full expensing to include more assets and more businesses this measure was very popular. Many operators jumped on the chance to upgrade equipment, machinery and plant and receive the very attractive tax measures. Equipment manufacturers, dealers and lenders, including ourselves, were constantly promoting IAWO to remind and incentivise buyers. But that hype appears to have died down somewhat but the measure is still available. But, it has an expiry date of 30 June 2023. That may seem a long way away to have to start thinking ‘last minute’. But when you consider what the next few months may bring with increased business activity, summer holiday and travel plans and further interest rate hikes, NOW make be the right time to act. An added complication in acquiring new equipment in many markets over the past few years has been the disruptions to supply. In many areas this is continuing. So buyers that leave that new equipment acquisition for temporary full expensing purposes till the last minute may face supply issues and miss out. The other factor in regard to cost and what we consider a major motivator is of course interest rates. While we will always focus on achieving cheaper interest rates, the [RBA](http://www.rba.gov.au) has increased the cash rate for the past five months and Governor Lowe pretty much confirmed in a recent committee hearing that a rise in October is certain. So with all those compelling reasons, we provide this **timely reminder to business owners to start thinking of the benefits of temporary full expensing which can be realised with Chattel Mortgage equipment finance**. **Accelerated Asset Depreciation Tax Initiatives: Revisited** Let’s quickly and briefly revisit IAWO and temporary full expensing. These were introduced as part of the overall package of business stimulus measures by the Federal Government and then Treasurer Josh Frydenberg to tackle what was anticipated with the COVID-19 pandemic. The initial announcement in April 2020 was as IAWO and due to the lockdown and other timing concerns, it was extended, expanded and amended and became known as temporary full expensing by November 2020. As a tax measure, this is regulated and managed through the tax system and the [ATO](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/). The attractive tax benefit is in allowing not just a small percentage per year of a new asset purchase to be tax deductible, but the entire total value/purchase price in the one year. In the year the eligible equipment is acquired, the full purchase price becomes a tax deduction in that financial year. Comparing the smaller deduction allowable under normal depreciation schedules with deducting the full amount of the price of new equipment or machinery you are considering, and the full extent of the benefit may become clearer. As a further benefit, if deducting this amount puts the business in a loss position for that year, they may be able to take advantage of a [Loss Carry Back tax offset](https://www.ato.gov.au/business/loss-carry-back-tax-offset/). There are conditions around what years are eligible etc but the bottom line may mean an actual refund on tax previously paid plus less or no tax payable in this current financial year. Check the criteria for eligibility for both machinery and equipment and business at the ATO website. **Chattel Mortgage Relevance** As temporary full expensing relates to depreciation of assets, Chattel [Mortgage Equipment Finance](/chattel-mortgage) is considered the most suitable form of finance for this purpose. With this form of finance the equipment ownership is transferred to the name of the business on settlement. The equipment is posted as an asset/liability to the balance sheet and as such depreciated in accordance with the ATO schedule. With [Equipment Leasing](/asset-lease), ownership remains with the lender as the business makes lease payments which are tax deductible. Chattel Mortgage may not suit all businesses. The features of different finance products relate to accounting aspects such as the method of accounting implemented by the business; strategy around the balance sheet; and other business objectives. As an initial step, business owners are urged to have a discussion with the business’ accountant or financial advisor around selection of finance products. To be eligible to utilise the benefits of temporary full expensing, the eligible machinery and equipment must be operational in the business by the deadline date of 30 June 2023. Taking into consideration sourcing machinery, the acquisition process, possible delivery delays, installation and commissioning timeframes for some plant, that date may actually be closer than you realise. Jade Equipment Finance can assist with the Chattel Mortgage Equipment Finance either on a pre-approved or post-purchase basis. **To get moving with asset acquisitions to meet the temporary full expensing deadline contact Jade Equipment Finance on 1300 000 003 regarding finance.** *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.* **Categories:** Finance --- ### [Staffing situation improving? Time to upgrade with cost-effective hospitality equipment finance?](https://www.jadeequipmentfinance.com.au/blog/staffing-situation-improving-time-to-upgrade-with-cost-effective-hospitality-equipment-finance) **Published:** September 26, 2022 **Author:** Publisher **Content:** **With staffing pressures set to ease, cafes, restaurants, pubs and caterers may now be looking to upgrade facilities with workable hospitality equipment finance.** The hospitality industry has been extremely hard-hit both during the pandemic and through the ensuing period. In addition to strict social distancing rules which limited venue capacity and hence ability to trade at optimum levels, the staffing situation reached critical levels. The departure of many international students and workers due to the pandemic and many hospo workers moving industries to source more reliable work, left the sector in dire straits. Add to that the isolation rules and resultant spike in COVID-related sick leave and the inability to source temporary staff which caused many to cut back on trading hours and days. After a long time in this critical position, the sector may now be able to look forward to better times due to some of the outcomes from the Jobs Summit. Look forward to better staffing prospects, improved trading opportunities and the chance to upgrade facilities and equipment. From the Summit, a number of [key actions have been slated](https://treasury.gov.au/sites/default/files/inline-files/Jobs-and-Skills-Summit-Outcomes-Document.pdf) to occur over various timeframes. Actions tagged as ‘immediate’ which may be of particular benefit to the industry include:- the increase in the intake of migrant workers; boosting government departments to process the backlog of visa applications; easing of restrictions around work for international student graduates; and new rules around maximum earnings for aged pensioners. These should be good news for many in the industry and positive signs that businesses have a pathway to return to better trading conditions. For many, it will mean upgrading and replacing equipment and possibly the venue to boost trade by attracting new customers. But after an extended period of reduced trade, those upgrades will likely require extremely cost-effective finance in order to make them workable and possible. Business Finance assists operators in the sector with a range of hospitality equipment finance products and cheaper interest rates. **Hospitality and Catering Equipment – what can be financed?** We provide finance for a vast selection of different types of venues in the hospitality sector and the broader catering industry. These include:- restaurants, hotels, pubs, cafes, clubs, accommodation providers, catering companies, care homes and business premises with catering facilities, food processing and preparation operations, staff canteens, entertainment venues and many others. Specialising in the area of business equipment finance, we finance a large and diverse range of equipment:- - Kitchen upgrades and fit-outs either of individual equipment or complete overhauls. - Refrigeration, commercial cooking equipment, cold storage and general storage. - Bar equipment including systems for dispensing, beer line systems and specialised racking. - Furniture, fixtures and fittings for the customer areas. - Back-of-house facilities and systems including POS, IT, communications, security and entertainment systems. - In addition to many. If you have plans to upgrade certain equipment and would like a quick answer on whether or not we can assist with finance, please give us a call. **Finance Options** Hospitality industry equipment can be financed through the choice of business equipment finance products, which included:- - Chattel Mortgage aka [Equipment Loan](/chattel-mortgage) - [Equipment Leasing](/asset-lease) - CHP – Commercial Hire Purchase - Equipment Rent to Own Deciding which particular finance product is best suited to the business set-up should involve a discussion with the accountant for the business as many of the deciding factors relate to accounting matters. Our consultants will then handle sourcing the best offer including negotiating on interest rates and the structure of the loan. This individual and personalised attention to finance structure can be critical to achieving a workable option. Achieving the finance term, residual or balloon option and the total finance amount which lenders will approve, all contribute to the monthly payment and as such, affordability for the operator. Despite the issues which the hospitality industry has faced over the past 2+ years, new operators are still entering the sector. Sourcing finance for new businesses can be challenging as some lenders will have conditions on minimum trading periods for loan approvals. We assist operators in this position through No Doc and Low Docs [Hospitality Equipment Loans](/no-docs-low-docs-equipment-finance). We have non-bank lenders that offer greater flexibility and the opportunity for many new operators to secure cost-effective finance at workable interest rates. **Achieving Cheaper Interest Rates** It’s no secret that interest rates have been rising over the past 6 months. The [RBA](https://www.rba.gov.au/) has increased the official cash rate for consecutive months and has indicated additional rises will be required. This has resulted in lending interest rates being raised across many markets. Rates are varied with many of our lenders remaining extremely competitive. In this rising rate period, operators requiring finance need to be more astute in order to secure the cheapest [equipment finance rates](/equipment-finance-interest-rates). With multiple lenders in our lender panel, including specialists that work only with their selected brokers like ourselves, we are well-placed to source the cheapest rates. Businesses can optimise the outcome of upgrading hospitality equipment by considering tax measures such as temporary full expensing. This expires at the end of June 2023 so the decision to upgrade equipment now, could be opportune in many ways. **Contact Business Finance on 1300 000 033 to source cost-effective hospitality equipment finance.** *DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.* **Categories:** Finance --- ### [Revisiting Chattel Mortgage finance as temporary tax measure expiry date nears](https://www.jadeequipmentfinance.com.au/blog/revisiting-chattel-mortgage-finance-as-temporary-tax-measure-expiry-date-nears) **Published:** September 26, 2022 **Author:** Publisher **Content:** **Temporary full expensing expires on 30 June 2023 and with supply issues prevailing, businesses may be wise to fast-track purchases with Chattel Mortgage finance.** Instant Asset Write-off and temporary full expensing, which are essentially the same tax measure, were the ‘talk of the town’ in 2020 and early 2021 but attention seems to have faded more recently. But businesses should be aware that the very generous benefits of temporary full expensing are still available on eligible asset acquisition through to the end of this financial year. While the deadline is still 9 months away, there are a number of factors to take into account if the intention is to acquire new assets with this initiative. First, we entering what is traditionally a very busy trading period for many industries – Christmas! Attention will be primarily on running the business and making up for lost opportunities due to COVID. Those not run off their feet may be choosing to put their feet up with well-deserved time-off now COVID restrictions around travel have been lifted. Then there is the major issue of supply chains. The availability of many brands and models of machinery, equipment and motor vehicles has been severely limited for some time. The outlook, as mentioned by [FCAI](http://www.fcai.com.au) Chief Executive Tony Weber in a recent statement, is for supply constraints in the automotive sector not to stabilise until into 2023. Possibly mid-next year. Those that think they can wait till say May 2023 to make those last minute EOFY acquisitions may find difficulty in sourcing the assets and face the prospect of missing out on taking advantage of the [tax measure](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/). Astute operators will heed these alerts and start thinking asset acquisitions now to capture both the temporary full expensing opportunities and possibly achieve cheaper interest rates before more increases. To take advantage of temporary full expensing, [Chattel Mortgage](/chattel-mortgage) or Equipment Loan as it is referred to by some lenders, is considered the best-suited form of finance. This is a very versatile and widely used form of finance as it can be utilised by many different types of businesses and suits the acquisition of many different assets. These include business vehicles such passenger cars, utes, cab chassis, all types of trucks and plant, machinery and equipment. **Chattel Mortgage – Equipment Loan** Temporary full expensing and IAWO are accelerated asset depreciation measures which Government introduce to support the economy under certain conditions. The introduction of these measures in April 2020 as part of the pandemic stimulus policies was not the first time they have been available in Australia. But the attention they attracted was probably greater due to the pandemic. The key to why Chattel Mortgage (Equipment Loan) is best-suited for those wanting to realise the benefits of accelerated asset depreciation is in the reference to ‘depreciation’. These measures allow for assets to be depreciated at a greater rate than under the normal tax schedule for depreciation. But in order for a business to account for the depreciation of assets the business must actually own the assets. That is where the relevance to appropriate finance comes in. With Chattel Mortgage, the ownership of the vehicles, trucks or equipment transfers on settlement to the business. The lender holds security over the loan through the assets. With ownership, the asset is posted into the business accounts and is depreciated over time in accordance with the tax rulings at that time. This is different from the second most popular form of business finance – Leasing. With [Leasing](/asset-lease) the lender retains the ownership of the assets. The business does not take ownership and as such does not list the assets in their books for depreciation purposes. Instead, the business pays a monthly lease payment and that is tax deductible. Once acquired through Chattel Mortgage by assets may then become eligible for temporary full expensing. Businesses can check the criteria for businesses and for assets at the ATO website. The big drawcard for this tax measure lies in ‘accelerated’. Normal depreciation schedules allow for a set percentage of the asset value or purchase price to be claimed as tax deduction in a financial year. So the asset is incrementally depreciated over many years. With these accelerated asset depreciation measures, the entire total value or purchase price is tax deductible in the one year, the financial year of the acquisition. Depending on the cost of the asset, that can represent a huge reduction in taxable business income and hence in the tax payable for that year. Another big drawcard for Chattel Mortgage over Leasing is in the [interest rate](/equipment-finance-interest-rates). Typically this is universally lower for Chattel Mortgage than Leasing. Interest rates do vary with different lenders, for different assets and for different industry sectors as well as for individual businesses. We assist businesses to achieve the cheapest Chattel Mortgage interest rates and streamline the process to save time and hassle. With time slowly running down to realise the significant benefits of these temporary tax measures, it could be time to speak with us regarding Chattel Mortgage for your asset acquisitions. **To discuss Chattel Mortgage finance contact Business Finance on 1300 000 033** *DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.* **Categories:** Finance --- ### [ABS Inflation Data Signals More Equipment Finance Rates Rises](https://www.jadeequipmentfinance.com.au/blog/abs-inflation-data-signals-more-equipment-finance-rates-rises) **Published:** September 30, 2022 **Author:** Publisher **Content:** The ABS released the June quarter inflation data on 27 July and for those planning to purchase new plant, machinery and equipment, the figures may represent a setback or reset of those plans. Further rises in inflation which will no doubt lead to further increases in equipment finance rates. The data shows yet another significant quarterly jump in inflation which has not hit 6.1% A far cry from the 4.25% which was expected based on predictions of just a few months ago. The higher rate and significant jump comes on the back of the 40 year low record unemployment figures, also released by the ABS a few weeks ago. This is specifically the data that the RBA was referring to in its July statement as consideration for the size of the next round of cash rate increases. **The latest inflation figures combined with the employment data are certain to result in interest rate rises including across equipment finance rates market.** Soaring inflation is the major reason that the RBA has acted to lift rates in order to quell the strong demand in the post-restriction era and lower prices. **Inflation Figures: ABS July Statement** Inflation data is reported quarterly by the [ABS](http://www.abs.gov.au) with the latest figures covering the quarter April through June 2022. In the quarter, inflation rose by 1.8% to reach 6.1%. In the March quarter the increase was 2.1%. While June is lower than March, both figures are the largest rises recorded since GST was first introduced and data compiled and reported in this manner. The highest since 2003. Head of Prices Statistics at the ABS, Michelle Marquardt said in the statement that the largest contributors were rising fuel prices and prices for new housing. She noted that shortages of supplies and of labour in the construction area as well as higher freight charges and strong building activity levels were driving new housing price increase. Another factor was that there were fewer grant payments in the period. The data is broken down into goods, food and non-food and services. Goods recoded 79% of the price rises and services less. The ABS notes that this reflects supply chain constraints and strength in demand in addition to increasing transport costs. For eight quarters in a row the price of fuel recorded an increase. This is attributed to a number of factors including the global scenario around oil as a result of the Ukraine war. In addition, demand on a global scale has increased in line with restrictions being lifted following easing of pandemic conditions. In what was no surprise for consumers, grocery prices continued their upward trend over the June quarter. This was for food as well as non-food products. Issues around supply and the effects of floods are attributed to the increases. As many businesses will be fully aware of, the continuing tightness in Australia’s labour market is having a significant impact on business ability to operate to full capacity. This is causing supply issues which are not meeting strong demand and pushing prices upward. **Rates and Forecasts** The soaring rate of inflation is the major reason that the [RBA](http://www.rba.gov.au) has commenced normalising interest rates. At the start of the pandemic in April 2020 when the worst case scenario was anticipated, the RBA slashed rates to motivate business investment and purchases to stimulate the economy. But as pandemic restrictions were eased in late 2021, inflation commenced rising and has continued through 2022. The RBA has acted by raising the cash rate in May, June and July and is expected to do so in August and possibly September and October. The effect on rates rises on inflation are not immediate or even short-term. It is expected that it will take quite a while until any real effect is recorded. Updated forecasts as announced by Treasurer Chalmers now have inflation slowing to around 5.5% by the middle of next year. But it is not expected that inflation will once again reach the 2-3% target range as set by the RBA until sometime in 2024. This indicates that higher interest rates including for equipment finance will be around for the foreseeable future. The next set of inflation data, for the September quarter, would be expected in late October. **Achieving Cheaper Equipment Finance Rates** Within this current economic climate, businesses still need to acquire new machinery and equipment with finance to operate and grow their business. Faced with the reality that finance rates will rise as the RBA hikes the cash rate, businesses will searching for the cheapest equipment finance rates available. Rates on equipment finance vary across the [lender market](/equipment-finance-interest-rates). Rates also vary across different industry sectors and for different types of equipment. So in-depth research or reaching out for assistance in sourcing finance can increase the prospects of connecting with cheaper rate lenders. Sourcing the cheapest rates can start by using our services to access non-bank specialist equipment finance lenders. With more choices in regard to lenders, we can present more optimistic prospects for achieving lower rate finance. Even in this rising rate climate, we focus on achieving the cheapest rate available to suit specific customer requirements. The full range of [equipment finance products](/overview-of-equipment-loan-products) is available including for Low Doc No Doc and Bad Credit Loans. Businesses can work to improve their prospects of being offered the cheapest rate and better loan conditions by maintaining a good credit rating and good balance sheet. The RBA is set to meet on 2 August and the markets are expecting a possibly 0.5% rise to the cash rate. With more rises to come, workable and cost-effective equipment finance can still be possible through Jade Equipment Finance. **Contact Jade Equipment Finance on 1300 000 003 to discuss how we can assist your business with cheap equipment finance amidst the rising interest rate scenario.** *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.* **Categories:** Finance --- ### [Ease Equipment Finance Pressures in Tradies National Health Month](https://www.jadeequipmentfinance.com.au/blog/ease-equipment-finance-pressures-in-tradies-national-health-month) **Published:** September 30, 2022 **Author:** Publisher **Content:** August is Tradies National Health Month. This is an initiative introduced 10 years ago by the Australian Physiotherapy Association (APA) and is seen as a time that workers can reassess both their physical and their mental health. Issues which often get sidelined. **Finance can be a major cause of mental health issues for SMEs and easing the pressures of equipment finance can be addressed in Tradies National Health Month**. Business owners in particular have been under extreme pressures over the past few years with COVID-19 issues and currently with ongoing economic challenges and rising interest rates as the [RBA](http://www.rba.gov.au) hikes the cash rate. Pressures which can lead to both physical health problems and major worries which can impact mental health. We cover off on this campaign by the APA and provide options and ideas for how we can assist with easing finance pressures to assist mental health. **Tradies National Health Month** August 2022 is the tenth annual Tradies National Health Month and a worthwhile awareness campaign for tradies across many industries to focus on their health. The APA says that research show that around 60% of tradespeople often experience aches and pains from their jobs. The association comments that the resultant reduction in physical health can also have a negative effect on mental wellbeing. The Association notes that many tradies simply accept that experiencing aches and pains is just part of their job. But they point out that when untreated, seemingly small matters can escalate to chronic issues that can impact the ability to perform at work which can have long-term negative outcomes. For employers, the significance is in ensuring workers address health issues both for their personal wellbeing and to avoid long absences from work which can impact the business. As most operators are well aware, labour shortages are having a nation-wide impact on business capacity and is seen as a major contributor to supply issues which are driving inflation. So minimising sick leave by having staff pay more attention to health can present a win-win from many perspectives. The APA encourages tradies to refer to their physiotherapy toolkit to access resources and suggestions to improve both [physical and mental wellbeing](https://choose.physio/tradieshealth?utm_source=Corporate_Web?utm_medium=toolkit?utm_campaign=Tradies2022). The toolkit provides a range of resources with answers to questions such as:- - Reducing risk of injury at work - How employers can assist - Steps to avoid back pain - Good lifting techniques - Physio assistance By its very nature, much trades work is extremely physical so the human body is very much the tool of trade. As important, if not more, than the equipment and tool kit. Prevention and treatment of injuries should be a priority. The APA says physios are available to complete risk assessments at sites and educate workers and employers on managing injuries and supporting trades people. Tradies are also being encouraged to share the Association’s digital resources with others to ensure the message is widely spread. **Easing Financial Pressures** Finances can be a major source of worry and concern which can lead to major mental health issues. This can be particularly significant for sole traders and owner operators. Jade Equipment Finance as a broker-style lender is well-placed to assist operators ease the burden of equipment and business finance pressures. Before getting into the financial solutions, let’s look at one way we may be able to assist with those daily aches and pains. If operating possibly outdated machinery is causing physical health issues, consider purchasing new ergonomically designed equipment. Machinery manufacturers spend a lot of research and development time and money on developing new models which are not cost and energy efficient but are packed with ergonomic features. Investing in this new equipment may ease the pain of work and may also be acquired with cost-effective equipment finance with added tax benefits. While interest rates are on the rise, we continue to focus on achieving [better interest rates](/overview-of-equipment-loan-products) across our finance portfolio. In acquiring new equipment with Chattel Mortgage, businesses may be eligible for the [temporary full expensing](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Temporary-full-expensing/) tax measure. This accelerated asset depreciation measure allows for the full purchase price of eligible assets to be claimed in the 2022/23 tax year. A major deduction which can result in less tax payable come end of June next year. In regard to easing current finance pressures, business owners can discuss refinancing existing equipment finance with our consultants. If the loan was arranged at a repayment level which is no longer workable for the business, refinancing to achieve a lower monthly repayment may present a very attractive option. Reduce the monthly financial burden and the stress associated with balancing cash flow. For businesses feeling the stress of short-term cash flow issues, a [Business Overdraft](/business-overdraft) may be a suitable relief option. We have non-bank lenders that offer this facility at very attractive and workable interest rates for both short-term purposes and for longer term arrangements. So why not make a point of addressing both mental and physical health this August to improve both personal wellbeing and the wellbeing of your business. **For equipment loans in most industries and businesses contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Finance --- ### [With rates rising, how does this effect Bad Credit Equipment Loans?](https://www.jadeequipmentfinance.com.au/blog/with-rates-rising-how-does-this-effect-bad-credit-equipment-loans) **Published:** September 30, 2022 **Author:** Publisher **Content:** The recent cash rate rises by the RBA were not really a surprise. Inflation had been soaring for some time and some analysts were surprised that the central bank didn’t act sooner with a cash rate hike. While not a surprise, higher interest rates are still a major consideration and higher cost impost for businesses planning new equipment purchases with finance. But while many businesses will be well-placed to plan and cope with higher rate finance, those requiring bad credit equipment loans may be particularly alarmed by the current situation. Those requiring bad credit finance already face quite a number of challenges and obstacles to sourcing loans and more importantly affordable finance. The higher rate environment may be seen as making that situation even more difficult. If finance to acquire new equipment and machinery is not a workable option, the business itself may become vulnerable. Bad credit finance applications, by their definition, are seen as a higher risk by lenders. This results in higher interest rates being offered compared with finance for good credit profile applicants. Additional conditions are also applicable. With rates rising and the [RBA](http://www.rba.gov.au) tipping even more hikes ahead, have the prospects for bad credit loans changed? Some may have and some remain constant. **Bad credit equipment loans at workable rates may be achieved amidst rising rates by engaging with Jade Equipment Finance, a broker-style, specialist lender**. One of the most important considerations for businesses requiring cost-effective bad credit loans is the lender. Not all major banks and finance companies readily offer this type of finance in their portfolio. Connecting with a lender such as Jade that does have access to this type of finance is the first step towards a possible workable outcome. We outline what is involved in sourcing [bad credit equipment loans](/bad-credit-equipment-finance) the expectations a business should have and what is possible. **Defining Bad Credit** The reference of bad credit is a direct description of the actual business or individual who is applying for the finance. In the case of very small operations such as sole traders and owner-operators, the credit situation of both business owner and business may be addressed together. Individuals can consider the range of steps available to repair their [credit profile](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports). Taking action may improve the score and improve the prospects for a better bad credit equipment loan. A business can find themselves in a bad credit situation due to defaulting on loans, establishing a track record for continual slow payment of bills or through bankruptcy. These situations may eventuate as a result of the business’ actions or behaviours or may be brought on via a flow-on effect from its customers or suppliers. It is important to note that some lenders will be considerate of the circumstances which led to the bad credit rating. Applicants are encouraged to be open and honest and wherever possible, provide documentation around the circumstances to support the finance application. Bad credit does not by definition apply to businesses that are new or starting out. That is a separate category and those in that position may require [No Doc or Low Doc Equipment Finance](/no-docs-low-docs-equipment-finance). These loans have different criteria to bad credit finance. **Loan Conditions and Options** As mentioned above, not all lenders do offer bad credit equipment finance. We can offer assistance to business in this position due to our vast accreditations. These include specialist non-bank lenders that are known to be more flexible when it comes to special loans. The bad credit loan applicant will have a poor to bad rating on its credit profile. This represents a high risk to lenders and results in a number of possible conditions being placed on any loan offer made:- - A higher interest rate than for good credit applicants is to be expected. Applicants should plan for this by working their financials to work with a higher rate and hence higher repayments. - A limit might be set on how much in total will be approved for a bad credit loan. Applicants can prepare for this situation by having options to reduce the amount requested by selecting lower priced machinery or making a deposit to reduce the amount required, - Extra security as well as the equipment being acquired can be requested. This may take the form of property or assets. - Conditions may also apply to the loan term and the residual/balloon which is approved. Rising rates may have an impact on bad credit equipment loans through the increase the rate would have on the total amount of the finance. A higher rate, compared with what may have been available pre the rate rises, will result in a larger amount of interest in total. This will increase the overall amount payable. A situation which may incur conditions by lenders. Some may look to purchasing used equipment rather than new to reduce the price and hence the loan amount required. In this regard, note that in some cases, used equipment may attract a higher interest rate than new equipment. The interest rates advertised by lenders, unless indicated otherwise, will be for new goods. Opting for used may be counter-productive to achieving the best interest rate loan. Also worth noting is that interest rates do vary on equipment for different industries. When the application for bad credit is approved, the business should be in a position to opt for their choice of [equipment finance product](/overview-of-equipment-loan-products) from our full portfolio of options. **Offsetting Higher Rates** While bad credit equipment finance will attract a higher interest rate and that will rise as the RBA continues to hike the cash rate, offsets may be realised through tax deductions. The tax deductions vary on the different loan products. Temporary full expensing, which is available in the 2022/23 financial year, offers significant tax benefits for those businesses that meet the eligibility criteria. **Prospects** We address every bad credit equipment loan application individually and with respect and consideration. Quotes are sourced and negotiated as best as possible by our consultants. We can never guarantee general, broad-based success for everyone. However, utilising our services can place applicants in a better position to achieve a workable offer compared with handling the process on their own. **Contact Jade Equipment Finance on 1300 000 003 for a confidential discussion about how we may be able to assist you with bad credit equipment finance.** *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.* **Categories:** Finance --- ### [Latest Updates for New Machinery Models and Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/latest-updates-for-new-machinery-models-and-equipment-finance) **Published:** September 30, 2022 **Author:** Publisher **Content:** Busy operators have a lot to deal with on a daily and weekly basis. So staying across new machinery upgrades and releases can be challenging. But it can be worth taking the time to address as manufacturers are spending considerable R&D on developing more fuel and cost-efficient models to delivery improved productivity across the operation. **Achieving optimum performance from investments in new machinery can be further enhanced when machinery is acquired with cheap equipment finance**. The selection of the latest machinery from leading manufacturers combined with sourcing equipment finance with better interest rates can be significant to achieving productivity and profitability gains across operations in many applications and industries. We’ve checked in with some of the leading machinery suppliers for information on their latest releases to assist those seeking options to upgrade. **Latest from CASE** Back in June, CASE announced two additions to its Farmall tractor range – the JXM 55 and a 65hp model. This range was first launched locally in 2018 and its popularity and demand for the lower horsepower models, has led to these latest models being introduced to the range for Australia and New Zealand. CASE spokesperson, Seamus McCarthy said these 65hp and 55 hp models would suit the market ideally. Mr McCarthy said they were well-suited to range of farming applications. The new features are extensive and include:- a 4WD configuration; 2.9L 3 cylinder turbo-charged engines; transmission choices; hydraulic or mechanical shuttle; 60 litre fuel capacity; air filter to suit dusty operating conditions; ergonomic operator environment with wide-ranging instrument panel; and many others. If a new CASAE tractor is on your must-have list, speak with us about cheaper tractor finance. **New Excavators from Komatsu** Those in the market for a new excavator may like to consider the latest from [Komatsu](https://www.komatsu.com.au/company/news-media/videos/imc-2-0-excavators). A new iMC 2.0 range has been launched with updates to the multi-GNSS antenna, bucket angle hold, monitor and attachment for auto tilt. An acquisition of a new excavator may be eligible for tax benefits under temporary full expensing. [Chattel Mortgage](/chattel-mortgage) is considered best-suited for this accelerated asset depreciation measure and is also has the cheapest interest rate across the equipment finance selection. Use our finance calculator to work up repayment estimates prior to speaking with your Komatsu dealer. **John Deere Launch** Any launch from John Deere attracts attention and when it coincides with the company’s 50th anniversary, it is even more notable. In a release of 3 August, the company announced the launch of the 9500 Self-propelled Forage Harvester. An innovative machine that John Deere says will deliver more precision, power and the all-important productivity factor for Aussie farmers. Stephanie Gersekowski from John Deere said it was just a part of the company’s redefined line-up of this type of harvester. The 9600 has also been reintroduced as part of this announcement along with a 9700 with a new level of horsepower and engine. Ms Gersekowski said that the 8000 Series MY23 remains the same but with an increase in horsepower for the 8200 with its upgraded engine. She said that the 9500 is just one of three harvester models which offer increased power and increased throughout for 2023. These new models – 9500, 9600, 9700, come with the HarvestMotion PLUS feature which synchronises the engine speed with the crop flow and the power needs. Check out the [full release](https://www.deere.com.au/en/news/all-news/9500-self-propelled-forage-harvester-launched-during-milestone-year/) with all the additional features to decide if this may be a worthwhile investment for your farming operation. **Equipment Finance Update** After an extended period of historically low interest rates due to the RBA’s COVID-19 stimulus response, the scenario is now quite different. Inflation has been soaring for quite some months with the ABS recently reporting it had reached 6.1% The RBA response has been to raise the cash rate on four consecutive occasions – its Board meetings in May, June, July and August. The official cash rate has risen from that record low of 0.1% to its current level of 1.85%. The next Board meeting of the RBA is scheduled for the first Tuesday in September and another rate rise is highly expected. In his August statement, Governor Philip Lowe said as much in saying further rate rises would be required as the Board normalises monetary policy. Exactly how much that rate rise may be? We need to wait till that September meeting. While forecasts are for inflation to rise further to 7.75% this year, some positivity may be drawn from the recently released US inflation figures. These showed a decrease in the country’s inflation rate which is we must stress, currently much higher than the rate in Australia. But much of the inflationary pressures and decreases appear in the US especially to be coming from oil price fluctuations with little relief for prices and costs of living. As is happening across all lending markets, the equipment finance is seeing rises in rates. Lenders respond to RBA decisions as well as relying on their own research and analysis. Some are actually raising their rate before official rate rises. There are always variations across the market as banks and the non-bank lending sector make individual decisions on the rates they will apply to their different markets. This, combined with the rising rate scenario, highlight the need for businesses seeking cheaper equipment finance to utilise the services of a broker-style lender. Our services provide customers with access to a vast selection of lenders and enable us to continue to offer [better interest rates](/equipment-finance-interest-rates) across our portfolio. **For better interest rates on new machinery finance, contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Finance --- ### [Machinery and equipment price rises highlight need for cheaper equipment finance](https://www.jadeequipmentfinance.com.au/blog/machinery-and-equipment-price-rises-highlight-need-for-cheaper-equipment-finance) **Published:** October 2, 2022 **Author:** Publisher **Content:** While costs of living pressures are in the spotlight as inflation has been soaring, for business operators the rising prices of machinery and equipment are also of major concern. In addition to the price rises buyers may also be finding a lack of discounts and special offers being available through dealers and manufacturers due to stock shortages. These issues are highlighting the need for business owners to source cheaper equipment finance when acquiring new plant, machinery and equipment. Global supply issues including shortage of components, inflationary pressures in many overseas markets, supply and demand inequalities and other issues are causing, in some cases, huge hikes in the prices of manufactured goods. **Cheaper equipment finance can offset the additional cost factors from rising prices and less availability of discounts and make machinery purchases affordable.** The process of acquiring that essential cheaper, more workable finance involves addressing a number of aspects of the loan. We explain each of these aspects and how we assist operators to achieve the optimum finance solution. **Interest Rate** Interest rates are definitely key to the overall cost of finance, the monthly repayment and the general affordability of the loan. Interest rates in general have risen over the past few months as the [RBA](https://www.rba.gov.au) has commenced a process of normalising the cash rate to address the rising rate of inflation. After an extended period of record low lending rates, many operators may have become somewhat complacent. Now is not the time for complacency. Rates will vary across the lender market, for different loan types, in different industry sectors and possibly on specific types of machinery and equipment. To source the cheapest rate, business owners can either do a lot of work themselves in researching the lender market and requesting multiple quotes or they can save that time and hassle and engage Jade Equipment Finance to handle all that for them. As a broker-style lender we have direct and immediate access to many bank and non-bank lenders. This enables us to quickly and accurately identify which lender is offering the cheapest rates for that specific industry and specific equipment category. **Finance Term** The finance term can have an important bearing on the affordability of finance as it determines the repayment in conjunction with the interest rate. If the goal is to achieve the lowest monthly repayment to ease pressure on cash flow, then a longer finance term would be sought. But be aware that this would incur a greater total interest payable and as such increase the overall cost of the equipment. If the goal is to reduce the overall acquisition cost, then opting for a shorter finance term may be sought. The monthly payment would be higher than for a longer term, but less interest would be payable. Thus reducing the combined total cost of the machinery. This could be the reduction to offset any higher prices or lack of receiving the usual dealer discount. Terms must be approved by lenders and form part of the finance application assessment process. Some lenders will have strict guidelines to operate to. Your Jade consultant steps in at this point and negotiates for the preferred finance term to achieve the preferred outcome. **Balloon and Residual** The amount of the balloon or residual can also impact affordability by varying the monthly payment. Higher balloon lower monthly payment. Lower balloon higher monthly payment. But similar considerations as discussed in regard to the finance term also apply. Total interest payable should be considered as well as lender guidelines. To form a view as to how you may like your finance structured in this regard, utilise our [Finance Calculator](/calculator). **Finance Amount** This may sound like stating the obvious, but the amount requested for the loan effects the total cost as well as the repayments. While rates were at their lowest, when machinery prices lower and when dealer discounts were readily available, requesting no deposit finance was very much the go-to preference for business owners. But with the current scenario it may be time to rethink that option. Making a down payment on the purchase price can reduce the amount required for the loan. That will in turn reduce the total interest payable and the monthly payment. Worth giving a bit more thought. By using this strategy, the higher cost of the new equipment may be offset. **Tax Deductions** Tax deductions effectively reduce the cost of finance and in turn the cost of equipment and machinery by reducing taxable income and hence tax payable. So any lower cost of the machinery and ‘discount’ can be realised in the end of year accounts. Tax deductions vary across the selection of [finance products](/overview-of-equipment-loan-products) and the choice of which loan type best fits with the individual business structure should be considered in depth with the accountant. Special tax measures such as [IAWO](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) and temporary full expensing should also be considered. To take advantage of this measure, [Chattel Mortgage](/chattel-mortgage) **Lender** Bringing all these aspects together may come down to the choice of lender. Having a lender that is flexible when it comes to negotiating on term, conditions, structure and can offer cheaper rates can be the game-changer. Jade Equipment Finance is that game-changer. Our contacts, accreditations, accessibility and proven track record in sourcing better interest rates provide our customers with a service to deliver better, cheaper finance outcomes. **Contact Jade Equipment Finance on 1300 000 003 to discuss how we can assist with reducing the overall cost of machinery acquisitions with cheaper equipment finance.** *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.* **Categories:** Finance --- ### [Achieving Productivity Improvements For Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/achieving-productivity-improvements-for-equipment-finance) **Published:** July 12, 2021 **Author:** Publisher **Content:** Running a business successfully and reaping rewards at any time can be challenging. [During the past 18 months and with the ongoing threat of COVID-19 outbreaks, those challenges have been intensified and increased](https://www.abs.gov.au/articles/measuring-impacts-covid-19-mar-may-2020). When things are not coming together, when we feel like we’re working to capacity but just not seeing results in the bottom line, it can be frustrating. Astute business owners and operators look to all areas of their operations to achieve improvements that will generate increases and better profits. A key aspect is a productivity. This term is a favourite go-to for political and business leaders as well as many economic commentators. But for the regular business operator perhaps in agriculture, construction, mining, retail or any other sector, what actually is productivity and why is it important to consider? ## **What is productivity?** While it may seem so in some contexts, productivity is not a buzz word it is a real economic measure of the output of a business. In economic terms, it is a measure of the efficiency of a process, a specific operation or an entire business over a period. In the simplest terms, it is achieving a greater output for less input. Converting what is put into the process into more output at a faster rate. Building the same house with 10 fewer workers and receiving the same price. Producing the same tonnage of agricultural produce by the same farmer in less time. For general business, it can mean getting more out of what you already have by working harder or better still, smarter. Or getting more output or results by reducing costs or input. ## **Increasing Productivity** Operating with less efficient machinery and equipment can hold back productivity. You just don’t get as much done in a day if your backhoe, grader or dozer is running less than optimally. If farming machinery is ageing and constantly out of action for repairs, then productivity will decline. Productivity is a link between costs and output or income. If your costs are too high, then your optimal productivity won’t be realised. This measure is important to business operators because it is a truer sense of performance than say the whole figure output or income. An increase in income or output may have been achieved through massive increases in costs. By putting on my staff for example. If you’re facing the challenge of not seeing the returns for the effort that you feel you should, then possibly it’s time to analyse your productivity. That sounds technical and time-consuming, but it doesn’t have to be. It may be as simple as having a hard look at the equipment you’re using and facing the stark reality that you really do need to upgrade if you want to get ahead. Manufacturers of heavy-duty equipment especially in the excavation, farming, mining and construction sectors have long focussed on producing efficient machines. Gains in energy efficiency are of particular note. Engines are being made more efficient to save fuel costs for producers and users. Fewer costs can deliver improved productivity. Technical advances in plant and machinery have been massive in recent times and these improvements can greatly contribute to the overall productivity of a business. [Read more on productivity here](https://www.rba.gov.au/education/resources/explainers/productivity.html). ## **Achieving Productivity Gains Through Equipment Finance** Acquiring new, more efficient plant, machinery and equipment can be a key step to improving productivity in your business. Hand in hand with the acquisition decision is the financing decision process. Finance can play a vital role as the repayments are a cost to the business and hence can impact productivity. ### In making your equipment finance work for you to contribute positively to productivity there are several aspects to be mindful of:- - Selecting your lender - Selecting your loan product - Achieving the lowest cost outcome Be mindful at every stage that the costs of funding are a cost to the business and a contributor or a detractor to productivity gains. Equipment finance can be a maker or breaker. While there are numerous sources of equipment finance available – banks, non-bank lenders and dealer finance, using Jade Equipment Finance, a broker-style lender can assist you to improve productivity on several fronts. Not only can [we source you the cheapest equipment finance to reduce your business costs](/), but we also save you the time in sourcing finance yourself. For many business owners, especially sole traders and SMEs, not being available to work in their business can come at a cost. What’s your current hourly rate? Are you prepared to spend, how many hours speaking with multiple banks and lenders about finance at that rate? How much in dollars will that cost you in lost income and hence productivity? The range of equipment finance products available offer benefits in regard to tax deductions and other aspects. Having a conversation with your accountant as to which will deliver the best outcomes for your business is an important step in the process. ## **Reducing Costs of Funding For Equipment Loans** The cost of financing even the most efficient machinery and equipment is a cost to the business and as such an impact on productivity. Keeping that cost of funding to a minimum is a step in the right direction to improving the productivity of your business. The interest rate is the key driver of the cost of finance and that is why at Jade we focus on achieving the cheapest interest rates on equipment finance across the board. That’s on all our finance products, for all types of equipment, all business types and even for [low doc and no doc equipment finance](/no-docs-low-docs-equipment-finance) and bad credit applicants. By achieving the cheapest interest rate and structuring the finance deal in regard to loan terms to achieve the desired repayment amount while not incurring excess interest, can keep the costs of funding at minimal levels. [View our equipment finance interest rate table here](/equipment-finance-interest-rates). You might be used to running on gut instincts and advice from your accountant at tax time as a gauge of how your business is performing. But perhaps to ensure you get the most return for your effort it’s time to consider productivity and how you can improve that measure through cheap finance equipment purchases. **Contact 1300 000 003 for quotes on cheap finance.** *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.* **Categories:** Finance --- ### [Impacts on Equipment Finance of NSW Construction Pause](https://www.jadeequipmentfinance.com.au/blog/impacts-on-equipment-finance-of-nsw-construction-pause) **Published:** July 19, 2021 **Author:** Publisher **Content:** It came as a shock and no doubt the shockwaves will roll through many areas of the economy and the population as a result. Facing rising coronavirus case numbers and stubborn figures in active in the community while infectious category, the [NSW Government took the unprecedented action of shutting down the construction sector for 14 days as part of the July lockdown](https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp2021/Chronologies/COVID-19StateTerritoryGovernmentAnnouncements). The sector awaiting nervously and hopefully for a backflip at the Premier’s Monday press conference, but this was not to come. From large infrastructure projects to small residential projects, sites were being secured until 30 July and many business owners considering what actions they needed to do to secure their business from the financial fallout. Construction equipment finance is a major part of our business so we are fully aware of a large number of individuals and businesses that will be impacted and we are striving to assist where possible. The decision was quite unexpected as the sector had been a cornerstone in the economic recovery with multiple Government policies and measures targeted at bouncing back through infrastructure and housing projects. This strategy was further emphasised with the equipment acquisition investment tax measures introduced and expanded by the Federal Government in the current and previous budget. Businesses have been encouraged and incentivised to acquire new equipment and many will now be faced with 14 days without working. For sole traders and owner-operators that may mean 14 days with no income. If your business is impacted by this latest decision and especially if you have current equipment finance contracts or you are in the process of finalising new equipment acquisitions we provide guidance and direction on what options are available to you in regard to relief and support. ## **Deferring Equipment Loan Repayments** [Equipment finance](/) customers facing difficulties in meeting repayment obligations can contact their lender to discuss the possibility of payment deferrals. Banks and lenders have come out in offering support to business customers by way of deferrals. Be mindful and ask questions re the interest charges in regard to the deferral period. Will interest be paused or will it continue to be charged? This may increase the overall cost of your loan. Deferring payments will extend the equipment finance term, meaning it will be long before the machinery is fully paid and owned. It was noted by the Banking Association CEO Anna Bligh, that even if loan holders had received loan deferrals previously, that would not be an impediment to receiving deferrals under the current situation. It was noted by lenders in 2020 that requests for loan deferrals would not be reported negatively on a credit report. We have not as such noted a specific reference to this point at this stage, so clarification from individual lenders at time of applying could be advisable. Please click here to read more information. ## **Immediate Cash Flow Support** The NSW Government has a range of business financial support packages available. These cover micro-businesses as well as large scale operators and include grants, payroll tax deferrals and payments per fortnight to cover wages and other expenses. Applicants will need to meet the eligibility criteria for each package as set out on the Service NSW website. Head to and follow the relevant links. Some packages are open for application and others open on 26 July. Applicants need to show a downturn in turnover of 30% or more in 26 June-26 July 2021 period in comparison with that period in 2019. It does not appear to take into consideration any increase in pricing over the 2 year period and we note the 26 July does not take into account the full 14 day construction shutdown deadline to 30 July. This may mean issues in achieving the target 30%. If your business does not meet the criteria for the government support packages, contact Jade Equipment Finance to discuss other options for cash flow support. ## **Reducing Equipment Finance Repayments** For those looking to reassess their existing equipment finance contracts in the light of the current pause and moving forward, our Jade Equipment Finance is ready to discuss the options we can offer through refinancing. Our refinancing services are available to both our existing Jade customers as well as to customers of other lenders including banks and non-bank lenders. Regardless of where your original loan was sourced, we can assist with refinancing quotes. One of the primary goals of refinancing in the current scenario may be to reduce the monthly repayment level. A lower repayment may ease cash flow pressures, especially in the event that additional lockdowns and shutdowns are called in the future. Refinancing can be an effective strategy to assist in these situations by providing both a short term fix and a longer-term solution for business finance. ### When considering refinancing, several aspects should be noted:- - Fees may apply for finalising an existing finance contract prior to the end of the agreed fixed loan term. These fees and charges can be rolled into the overall new loan (refinanced) amount. - The equipment would be considered as used for the purpose of refinancing and the age and condition of the machinery assessed by lenders when quoting a finance deal. - A different type of loan product can be selected when refinancing. We offer varying interest rates on different finance products and a cheaper interest rate product may be chosen. This may offer the business both the opportunity to achieve a lower repayment as well as to pay less interest on the loan over the refinanced term. [Click here to use our equipment finance interest rate table](/equipment-finance-interest-rates). Our team is available to discuss the options and source a quote to meet your requirements. Due to our business model and style of operation, we can act quickly with quick quotes and fast approvals to ensure refinancing deals are in place ASAP. ## **Processing Equipment Finance Applications at this Time** Current finance applications can proceed on schedule at this time through our Jade Equipment consultants. If a pause is required as you are unable to proceed with the purchase immediately, please contact your consultant. Requests can also be made to extend pre-approved equipment finance beyond the current lockdown period. **Contact Jade Equipment Finance on 1300 000 003 to discuss options available to address any issues you are facing in regard to your equipment finance.** *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.* **Categories:** Finance --- ### [Lockdowns, Unemployment and their Effect on Interest Rates](https://www.jadeequipmentfinance.com.au/blog/lockdowns-unemployment-and-their-effect-on-interest-rates) **Published:** August 2, 2021 **Author:** Publisher **Content:** Australia is currently in a fast-moving and evolving COVID-19 scenario with the eventual outcomes unknown at this stage. The extended lockdown in NSW especially the 14 day pause to the construction sector was something very few expected. There is a lot of information, data, commentary and opinion, both qualified and unqualified, to digest. So much so that some may have missed the significance of, or even the announcement of the latest unemployment figures. Over recent months the unemployment figures have continued to defy predictions and have moved steadily in a downward direction. Normally these announcements are heralded as major wins by the Federal Government. But in this case, the announcement coincided with the Greater Sydney extended lockdown and outbreaks and snap lockdowns in other states. While no doubt pleased, Treasurer Josh Frydenberg appeared cautious and subdued in discussing the figures. The figures – [unemployment has dropped to 4.9%. Significance to business?](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release) The link between unemployment levels and interest rates! Specifically, the costs of securing equipment finance and other business loans. We explain how current unemployment figures and the effect of lockdowns may impact interest rates and potentially your costs of finance. ## Unemployment – Interest Rates Link While unemployment has dropped over the past few months, the 4.9% figure has particular significance. A sub 5% unemployment figure has long been touted as one of the indicators for the [RBA to trigger a rate rise](https://www.rba.gov.au/statistics/cash-rate/). During the early part of 2020 it was expected by many that unemployment could reach in excess of 10%, especially after the conclusion of the JobKeeper program. The RBA cut the official cash rate as part of their stimulus response to the early stages of the pandemic to the current historic low of 0.1%. The cash rate is a major determinant for banks and other lenders in establishing their own interest rates across their lending portfolio. Lenders and borrowers closely follow the RBA decisions and our team especially analyse the statement issued by the RBA Governor, Dr Philip Lowe following each announcement. These announcements over recent months have included consistent messaging – that the RBA Board is looking for unemployment to be sustainably lower and inflation to be in a range of 2% to 3%. The target unemployment has been tagged at below 5%. So now that it is sitting at 4.9% will that trigger a rate rise? No. Inflation is still sitting in the 1% range and Dr Lowe has repeatedly said he was not expecting to raise rates till 2023/24. It is considered that the unemployment target figure could even now be less than 4%. What will potentially interrupt the downward trend in unemployment is the extended lockdown in Greater Sydney, Central Coast and Illawarra. Significant numbers of both individuals and businesses have applied for support through Service Australia and Service NSW. At least an ad hoc indication of the hurt being felt by the lockdown. Any impact on actual data will not be revealed for several weeks. Any push up in unemployment could push out any rate increase date. But 2024 is still several years away. ## Extended and Repeated Lockdowns and Interest Rates The impact on interest rates of repeated lockdowns, noting that Victoria has just emerged from a fifth lockdown and areas of NSW is into the fifth week of one, is less clear. The impact on business will be clearer in coming weeks but not fully appreciated until lockdowns are lifted and the degree of bounce back can be assessed. A drop in overall growth/GDP could delay any rise in inflation and as such keep rates at current low rates. What is probably more significant in regard to lockdowns and interest rates is how individual lenders will assess individual loan applications. Typically, lenders will take into account the strength of the business moving forward and may consider any potential exposure to the effect of lockdowns. As an example, the construction sector was previously allowed to operate during the NSW 2020 lockdown. But in July 2021, a 14 day halt to all construction activity was a surprise move by the NSW Government. This may, as the saying goes, throw a spanner in the works for business lending. ### Achieving Cheaper Equipment Loan Interest Rates The complex nature of the impacts which determine interest rates including the unpredictable factors around COVID-19 highlight the importance of adopting a highly professional and expert approach to sourcing equipment finance. Businesses taking on the task themselves rather than engaging experts such as [Jade Equipment Finance](/ "Equipment Loans") face the possibility of missing out on cheaper rates and a better finance deal. The benefits of using our broker-style service are clear, proven and very real. With our vast accreditations with both the major banks and a multitude of non-bank lenders, including specialists in equipment finance, we can offer more choices, more quickly and more efficiently. Our consultants are fully trained and have the direct, industry connections to negotiate with the decision-makers in our lender organisations. Presenting our individual customer applications to the lenders and using our strong bargaining power to achieve the best outcomes. It is without doubt an unprecedented time in global history and astute businesses will be seeking to utilise the most expert services available to achieve the best finance outcomes for their operations. Stay connected with us to stay across developments in [equipment loan interest rates](/equipment-finance-interest-rates "Get latest best rates for equipment here") and contact us at any time to discuss how we can assist you with cheap equipment finance. Contact Us on 1300 000 003 to discuss your equipment finance. 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. **Categories:** Finance --- ### [Time for a change in strategy with sourcing your finance?](https://www.jadeequipmentfinance.com.au/blog/time-for-a-change-in-strategy-with-sourcing-your-finance) **Published:** August 2, 2021 **Author:** Publisher **Content:** There is a famous quote, often credited to Albert Einstein which roughly translates to insanity as repeating the same process with an expectation that a different outcome may miraculously result. Regardless of the original source, the idea can easily apply to sourcing equipment finance. Prior to the emergence of online resources, when a business owner needed finance to purchase new equipment they would speak with their bank manager directly. In many cases the process would involve a sit-down, face-to-face meeting which at times could feel more like a student in the headmaster’s office. Many business owners would simply accept whatever was offered, without question or further discussion. In some cases just happy to have secured a loan so they could proceed with the equipment or machinery purchase. At the end of the time scale, tech-savvy operators can source finance online and can be tempted by so called great deals which conceal hidden costs and fees. Over the term of the finance, if the repayments had not been secured to meet their individual requirements, the pressure on cash flow can start to show and the whole finance deal becomes a burden rather than a benefit to the business. But when it’s time to invest in more equipment, the business owner would once again repeat their previous process, no doubt with expectations of a better outcome, only to have the same scenario play out. Despite the expansion of the Australian financial sector and the vast choice of lending options, there are businesses that continue to follow the same process when they need loans, only to fail in achieving the best outcome. That process may be through the same bank or finance company or by shopping around and jumping onto the latest craze or a tip from a mate. We’re certainly not criticising banks. Australia’s leading banks are the major source of finance to both business and individuals in Australia and highly valued lending sources for us on behalf of our clients. Jade Equipment Finance is accredited with the [big 4 major banks](/lenders-and-banks-information) and many second tier and less well known institutions. They can be highly competitive in many finance deals we arrange but there are other options to consider by way of non-bank lenders which specialise in equipment finance. The key however to achieving the finance outcome which will deliver the benefits anticipated, is having quick access to a wide range of lenders to source the best deal and the expertise to access and negotiate a better outcome. In simple terms, if doing it yourself is not working out, then we suggest it’s time to change your strategy. ## **The Case for Change** A change may be required in how you go about arranging your loans or which lenders you are dealing with. If you’ve always handled the finance process yourself, consider using a service like [Jade Equipment Finance](/). We are experts in the field and have an impressive track record over a long period for delivering not only cheaper equipment finance but additional benefits to our customers:- - Saving business owners a heap of time by handling the entire deal. - Covering more lender options quickly and easily to ensure the most appropriate solution has been found. - Eliminating the risk of the DIY approach potentially causing a negative effect on a credit profile - Providing high level finance expertise and experience in sourcing and structuring even the most complex equipment finance deals. ## **Change for Savings Sake** If not for any other reason, why not consider changing your ways to save money! Paying too much for your finance in higher interest charges, hidden costs or in unsustainable repayments is a cost to the bottom line. Any reduction in costs can deliver an increase in profits and deliver improved productivity. Securing finance at a cheaper interest rate can deliver workable repayments and lower the overall cost of finance. We consistently deliver better interest rates across our portfolio – worth taking a look? Refer to our Interest Rate Comparison Calculator to see exactly what we’re talking about. If you’ve always selected a particular loan type without considering the benefits of other options, perhaps it’s worth considering a change. The selection of finance for equipment finance includes:- - [Equipment Rental or Rent to Own](/equipment-rental-finance) - Equipment Leasing - [Chattel Mortgage or Equipment Loan](/chattel-mortgage) - Commercial Hire Purchase With the availability of Instant Asset Write-off and temporary full expensing, more business owners are likely to be paying more attention to the type of finance they secure and are becoming more aware of the benefits that the choice of finance can deliver to their business. Having a conversation with your accountant is always advised regarding choice of loan type. ### **[Bad Credit Equipment Loans](/bad-credit-equipment-finance) and Low Docs Applicants For Equipment Finance** Businesses with credit issues and those without all the documentation to meet the usual loan application requirements of the banks and some lenders, can be most vulnerable in sourcing cost-effective finance. Desperation to get a deal and possibly not realising that they can access services such as ours can be some of the factors that caused many to handle their own loan process. They apply to as many lenders as they can find in the hope of landing the cheapest, or any, loan deal. What many don’t realise is that this approach may be negatively affecting their credit profile. Applications for credit and loans are reported to the credit reporting agencies and multiple applications for the same loan can be interpreted in a negative way by lenders. ### **Make the Strategic Move** We can assist with our full lending service for all types of equipment for all types of businesses. Why risk the same poor outcome again? There is no obligation to requesting a quote so nothing to lose in making the strategic move and making the change to your financing behaviours. Cheaper finance could be just a phone call away. **Contact US on 1300 000 003 to discuss your equipment finance.** *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.* **Categories:** Finance --- ### [Agricultural Industry Finance Equipment and Events Updates](https://www.jadeequipmentfinance.com.au/blog/agricultural-industry-finance-equipment-and-events-updates) **Published:** November 22, 2021 **Author:** Publisher **Content:** To acknowledge annual Farm Safety Week, Jade Equipment Finance provides an update on a range of issues around agricultural industry finance, equipment, and events. Acknowledging the importance of the sector to the overall economy and highlighting significant events and ways to reduce the operating costs and boost productivity. For those unaware of Farm Safety Week, it is an annual initiative of Farmsafe Australia which aims to raise the awareness across the wider community of the risks faced by farmers across the country. The organisation provides events across the week and resources and tools that the industry can utilise to improve safety in their lives. The focus is on both physical safety with work practices and very importantly on mental health and wellbeing. This year’s event had a particular focus on farming across all age groups. If you missed the shout out, you can review the resources **Event Cancellations and Rescheduling** While the COVID-19 pandemic has highlighted the importance of our agricultural and farming industry to feed the nation, it has also impacted many of the events which the sector very much looks forward to each year. The latest casualties list include annual industry shows and showcases. Due to the COVID outbreak in NSW, the [Agquip](https://acmruralevents.com.au/agquip/home) events scheduled for August have had to be postponed to November. Organisers, ACM Rural Events, acknowledge that 16-18 November rescheduling is not ideal being so late in the year and at harvest time. However, it is important for suppliers and manufacturers to connect with the industry at these very well-attended events. The organisers will be continuing to stay across developments and work with authorities to ensure the events can proceed on these new dates. New Holland has also cancelled its Biloela field days which were scheduled for 11-12 August. For those in WA and SA, unaffected by the eastern seaboard outbreak, you still have quite a few showcases to look forward to during the latter part of this year:- Dowerin Machinery Field Days, Newdegate Machinery Field Days, and the Royal Adelaide Show, plus other SA Field Days are still set to proceed as scheduled. Not proceeding is the Royal Melbourne Show and Queensland’s Ekka. Both have had to be cancelled for 2021 due to the coronavirus pandemic. The Melbourne Show was scheduled for late September and usually attracts over 400,000 visitors and contributes over $200m to the state’s economy. It is also a valuable opportunity for rural producers to connect with the city and showcase their produce. This is the second year the show has had to cancel, so hopefully 2022 it will be back. With the extension to the SE Queensland lockdown as the Delta variant spreads through the region, the big call has been made to cancel Ekka for 2021. A second year of cancellation for this much-loved annual event for Queenslanders. With such short notice of the cancellation as it was scheduled for 6-15 August, organisers are offering ticket refunds to those that have pre-purchased tickets. While cancellations of field days mean potential buyers miss these opportunities to see new machinery and equipment in action, hopefully acquisitions can still proceed via a contactless or remote process. Jade Equipment Finance operates in this way and continues to provide our full range of lender services throughout Australia. **New Machinery Releases** Despite outbreaks and lockdowns, manufacturers continue to launch new machinery and equipment into the market to assist producers improve their operations. We have noted a few of the recent announcements for special mention. [Kubota](https://kubota.com.au/) has announced the release of two new diesel generators to its collection – the GL Compact and SQ Super Quiet series models. According to the company, these new models can be used as both prime and back-up power and include improved features to deliver reliable and safe power in many applications. Australian specialist in spraying equipment, HARDI, has recently launched a new product – Geoselect. This spot spraying system was developed at the company’s South Australia headquarters and is designed to save chemicals, labour, water and most importantly, money. For more info head to Speaking of saving money, John Deere has come to the party for the ag sector by removing monthly subscription costs associated with its data collection system JDLink. The move is seen as giving farmers better control of data while removing the additional barriers. As a business that focuses on cheaper ag machinery and equipment finance, we salute any efforts to reduce operating costs for businesses. **Interest Rates on Farm Machinery and Equipment** The good news on equipment interest rates continues, with the RBA keeping the official cash rate on hold through 2021. This has enabled us to continue to offer [cheap interest rate](/equipment-finance-interest-rates) equipment finance on a wide range [farming machinery](/equipment-finance-interest-rates) and equipment to support the sector. Many business operators and economic analysts have been contemplating how the recent lockdowns, especially the extended period in NSW and snap periods in SEQ, SA and Victoria will effect interest rates. They will no doubt have a significant impact on the economy and are expected to cause a rise in what were, very encouraging unemployment figures. The RBA has repeatedly stated that the Board is looking for a target in inflation and unemployment to be achieved before considering a rise to the official cash rate which would likely flow on to a rise in lending rates. It is unlikely that these targets will be achieved until 2024 and the economic effects of the lockdowns would not trigger a rate rise. If you are planning acquisitions of new machinery, refer to our [loan calculators](/calculator) to assist your buying decisions or just contact us to handle the sourcing, negotiating and securing of your equipment finance. **Contact Jade Equipment Finance on 1300 000 003 to discuss your farming machinery and equipment finance requirements** *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.* **Categories:** Finance --- ### [New Holland New Machinery Releases](https://www.jadeequipmentfinance.com.au/blog/new-holland-new-machinery-releases) **Published:** October 2, 2022 **Author:** Publisher **Content:** [New Holland](https://agriculture.newholland.com/apac/en-au) is a popular brand in the agricultural and horticultural sector with both large scale and lifestyle hobby farmers. The brand has been a familiar sight on Australian properties for a long time and the name has developed an impressive reputation. So any new machinery releases from New Holland are met with keen interest from many operators. The company has a long and stellar history in the provision of agricultural equipment dating back to 1895 in New Holland in the US state of Pennsylvania. Fast forward to 2022 and the company provides a comprehensive range of agricultural machinery including tractors and telehandlers, balers and hay tools, forage equipment, combines and fronts, hay and forage equipment and grape and olive harvesters. Adding to that range are now two new machines for buyers to consider. The latest releases from New Holland were unveiled at a recent dealer conference and revealed to eager buyers at the 2022 AgQuip. They include both a sub-compact and a heavy-duty spec tractor. But in order to purchase these tractors or in fact any new machinery, many operators will be seeking extremely cost-effective and workable finance. The agricultural sector has been especially hard-hit of late with labour shortages due to the pandemic and eastern state floods seriously impact production for many growers. We cover off on the new releases from New Holland and outline how Jade Equipment Finance can assist agricultural operators acquire new machinery with cheaper interest rate finance. **New from New Holland** As reported in the popular [Farm Machinery Sales](https://www.farmmachinerysales.com.au/) New Holland recently launched two new tractors into the Australian market. Those who attended AgQuip in August may have had the chance to see these new tractors up close. The Boomer 25C is a sub-compact tractor and at 25 horsepower is the smallest in the New Holland range. This particular model caters especially to hobby farmers and the lifestyle farm market as it is quite easy to operate and is extremely versatile. The 25C has a wide selection of attachments available which enables this small tractor to be used in many applications. For those that know the Boomer 25 which was New Holland’s smallest model, the difference with the 25C is that the 25 has a heavier footprint and a bigger frame. The 25C will be particularly of interest to those that are looking for a lighter machine to handle maintenance of turf and lawn with damaging the growth. It has a 1.3 litre, 3 cylinder diesel engine and is easy to operate. Making it an ideal purchase for many looking for an entry level machine. The ease of operation is provided with just the two forward and reverse pedals. The selection of attachments are a big drawcard for the 25C. They include front end loader with a versatile bucket with which covers off on 4 purposes in the one bucket, plus an attachment for backhoe work and a mower deck. In addition, the 25C can also connect with other implements including slashers. Reports have the Boomer 25C available for purchase this season. Interested buyers can contact us to discuss pre-approved equipment finance to be in a position to purchase as soon as stock is available. The other new tractor from New Holland is the T7HD with PLMi. This heavy-duty specification model was launched globally in 2021 and has now reached the Australian market. It is an extremely advanced model which is similar in appearance to earlier models in the T7 range but with a very difference interior set-up. The tech and the cab providing operators with greater comfort and improved machine control. To discuss availability and price of this new tractor, speak with your local New Holland dealer. To discuss finance, speak with us. **Workable Machinery Finance for Productive Outcomes** With the areas of the agricultural sector under pressure around costs, prices and constrained output due to floods, labour shortages and supply chain issues, the investment in new machinery must deliver in productivity and profitability in order to be a viable investment decision. **Jade Equipment Finance assists producers to acquire the New Holland latest release tractors with cheaper interest rate equipment finance** structured to suit their needs. We are well-placed to assist the ag sector with workable machinery finance due to our [large lender panel](/why-jade-equipment-loans). This includes not only the major banks which are often the only option for operators, but also specialist non-bank lenders that are not readily available directly to individual businesses. These lenders understand the specific needs of the agricultural sector and can be more flexible than the banks when it comes to negotiating on finance terms and conditions and the all-important interest rate. Our consultants handle that entire process on behalf of our customers – sourcing the cheapest finance offers, negotiating and structuring the finance to meet the objectives of our customers. Machinery finance is available through the full range of [finance products](/overview-of-equipment-loan-products) including Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase. All with better interest rates than many will be in a position to achieve when sourcing their own finance. If the latest releases from New Holland are of interest to your operation, speak with us about how we can assist by making the finance work for your bottom line as well as your new tractor will work for your production. **Contact Jade Equipment Finance on 1300 000 003 to discuss cheaper interest rate finance on New Holland tractors.** *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.* **Categories:** Finance --- ### [Supply issues move operators to used market but how does this effect equipment finance?](https://www.jadeequipmentfinance.com.au/blog/supply-issues-move-operators-to-used-market-but-how-does-this-effect-equipment-finance) **Published:** October 3, 2022 **Author:** Publisher **Content:** **Issues with the new equipment supply chains have businesses turning to the used market but there are differences with equipment finance compared with new goods.** Global problems associated with the pandemic in international manufacturing hubs as well as the Ukraine war and the ongoing computer chip shortage have created severe delays in delivery of many types of new goods into the market in Australia. This includes cars, motor vehicles, electronic goods and a vast range of machinery and the equipment used in many sectors. With the new goods they require unavailable for immediate delivery, many business operators are now turning to the market for used machinery in order to fully-equip their operation. According to reports in industry media, the trend is occurring across many sectors such as construction, transport and farming. The outcome of this trend and spike in demand for used goods is reportedly seeing over 150% increase for certain equipment types. The biggest demand being for heavy machinery such ass dozers, excavators, loaders and some forklifts. The move to used may on the surface appear as a sensible move, especially if that equipment is essential to the business operations and especially if it is replacing machinery which is no longer workable. But delve deeper, and if that equipment needs to be purchased with finance, then there are considerations around that aspect to take into account. Business Finance provides equipment finance for both new and used plant, machinery and equipment and we outline the considerations in relation to the differences between finance for new and used goods. **Used Equipment Finance** We have lenders that provide cost-effective finance for used equipment so don’t be perturbed that finance would not be accessible if considering the purchase of second-hand machinery. However, there are distinct differences between what a finance offer for new goods compared with used goods might look like. We will cover this topic in general terms as every finance application we receive is treated on an individual basis and customised solutions sourced and negotiated. The approach by our lenders will also vary and be dependent on their individual lending guidelines. - Finance for both new and second-hand equipment is available with the same asset acquisition loan types which include [Chattel Mortgage](/chattel-mortgage), Commercial Hire Purchase, Lease and Rent to Own. The same rationale and decision-making process should be applied when deciding, which is the most suitable form of finance for an individual business. - The interest rate is likely where the major difference will be identified. The finance rate on used goods may be higher than that available for new goods. If basing purchase decisions and possible finance plans on the [interest rates](/equipment-finance-interest-rates) as shown by most lenders, it is important to note that these are typically for new goods. Unless it is stated to the contrary. If planning purchases in future months, allowance should be made for increases in the interest rates as the [RBA](https://www.rba.gov.au/) continues its moves on the cash rate. - While a higher interest rate should be taken into consideration, the effect on the finance repayments may be of greater relevance. The cheaper purchase price of the used goods compared with what may have bene paid for new goods, will of course reduce the overall loan amount required. This could result in a lower repayment or offset any higher rate. - Another key aspect is in relation to the security against the finance. Lenders have their own guidelines in regard to taking into account the age and condition of goods when accepting them for loan security. If for example used equipment is not accepted as suitable security, other options may need to be considered. These can include Unsecured Business Loans. - The value of the used goods as assessed by lenders may also impact details of the finance. This may include if no deposit finance is approved. If not, operators may need to pay a deposit to reduce the loan amount. The term requested may also be impacted. - Where the goods are not accepted as the sole security against the finance, additional loan conditions such as other property as security may be requested. While these issues may appear as challenges or even obstacles for operators, be assured that your Business Finance consultant will be handling the entire finance process on your behalf. So we will be negotiating with our lenders to achieve the most cost-effective and workable solution. **The Upside** On the upside of the used versus new decision, consider:- - The immediate improvements which may be realised in productivity by installing newer equipment, albeit second-hand, into the operation. If the purchase is replacing machinery which is costing a fortune in ongoing repairs or downtime, then a replacement could deliver that immediate uplift. Reducing maintenance costs to offset against the finance. - The acquisition may meet the [criteria for temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) which may deliver a further benefit to the business. Eligibility of both the asset and the business would need to meet ATO guidelines. Before making any firm decisions or commitments with asset purchases, businesses can contact us and receive a quote for pre-approved equipment finance. This would provide a clear indication of what is available for the specific equipment being purchased for that specific business operation. Our consultants are more than happy to discuss the options with you and in respect to your individual circumstances to assist with the decision process. **Contact Business Finance on 1300 000 033 to discuss equipment financing for second-hand machinery** *DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.* **Categories:** Finance --- ### [Equipment Finance strategies for capitalising on buying at trade expos and field days](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-strategies-for-capitalising-on-buying-at-trade-expos-and-field-days) **Published:** October 3, 2022 **Author:** Publisher **Content:** **Arranging equipment finance beforehand can be an astute approach for capitalising on the opportunities of trade expos and field days for buying new machinery**. After a few years of absence of these great events due to COVID-19 issues, the trade show and those large field days are now returning and attracting big attendances. In the last few weeks alone [AgQuip](https://acmruralevents.com.au/agquip/home), AGE and [AWRE](https://awre.com.au/) have recorded great crowds. Manufacturers finally have those valued opportunities to showcase new equipment to keen buyers in the type of environment that only an exhibition can provide. Exhibitions provide business owners with a valuable opportunity to see numerous makes and models at the one time, compare features, to discuss specifics and especially to make buying decisions and place orders. Making that final purchase decision while at an expo can save a lot of time compared with having to individually visit numerous dealers on separate occasions. It can also be an astute move if the manufacturer is offering a show-only special. Add to that the shortages being experienced with the supply chain disruptions and the necessity to secure limited stock whenever possible. However, orders can only be placed with confidence, especially for major, higher-priced items of equipment and machinery when the finance has already been secured. That is where we can assist business operators with pre-approved equipment finance. We provide plant, machinery and equipment finance for a wide range of industries and for many different types of equipment and businesses. So this service is easily accessible and available to many operators to facilitate ordering at a field day or expo. **Pre-arranging Finance Delivers Key Benefits** As mentioned above, there are advantages to being in a position to order equipment at an expo – time-saving and possibly cost saving if show discounts are on offer. But the benefits of pre-approved finance extend beyond those initial considerations. - Buyers can select a make or model that is priced in the range of the loan they have been approved. This can contrast favorably to the alternative of selecting a model only to find the business does not get approval for finance for the amount required. - Empowers buyers with greater confidence to negotiate price with the dealer. Having a buyer that is in a position to sign on the spot can be a great incentive for dealers to shave a little more off the price. - Enables businesses to attend a show and make multiple acquisitions at the same time and place. Our consultants work with individual customers to structure finance to specifically suit requirements. That may involve a request for a finance deal combining multiple assets or for several individual loans. **Finance Products and Features** The same types of finance products apply for pre-approved equipment finance and that includes Lease, [Chattel Mortgage](/chattel-mortgage), Commercial Hire Purchase and Rent to Own. All the same features and benefits, including eligibility for tax measures such as [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) would apply, as would the same interest rates. Interest rates on equipment and machinery finance are primarily offered based on an assessment of the business application and the lender’s assessment of risk. The application approval process is the same regardless of whether it is carried out prior to an actual purchase being made or after. Our cheaper interest rates on [equipment finance](/equipment-finance-interest-rates) apply to pre-approved finance applications. The actual interest rate does vary with some types of equipment and some industries. Pre-approved loans do have a set timeframe after which the offer does expire. So the acquisition would need to be finalised within that timeframe or would need to be re-quoted. The re-quoted offer would reflect the interest rate current at the time. **Expo Prep Tips** There are many more exhibitions, trade fairs and field days coming up and those planning to attend may like to consider our tips:- - Book tickets online or register well ahead. - Review the exhibitor list ahead of time and note where those you need to see are located. - Do whatever research is possible before the day so you are across the features of the equipment being considered for purchase. - Try to make appointments with dealers at the show so you don’t miss out or have to wait to speak with them. - Have our [Equipment Finance Calculator](/calculator) easily accessible on mobile phone to work up quick repayment estimates when quoted prices. And of course, if serious about that show purchase, speak with us to discuss pre-approved finance. We can provide quick quotes and fast approvals on cheaper equipment finance sourced from across our vast lender choices. One key date to note is the upcoming National Field Day in Orange NSW for those in the agricultural and farming sector! **Contact Business Finance on 1300 000 033 for pre-approved finance before attending industry expos and trade days** *DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.* **Categories:** Finance --- ### [Henty Field Day Success – positive signs to invest with farm machinery finance?](https://www.jadeequipmentfinance.com.au/blog/henty-field-day-success-positive-signs-to-invest-with-farm-machinery-finance) **Published:** October 9, 2022 **Author:** Publisher **Content:** According to organisers, the recent Henty Field Day was a huge success. After 2 years of cancellations due to COVID, the event return even bigger and better than ever. Record attendances, $100m injected into the economy and great machinery sales are just some of the good news stories. While machinery sales at the event were reportedly very good, many operators will wait until after these events to finalise decisions around machinery acquisitions. Taking extra time to consider their options especially in regard to machinery finance. **With further RBA cash rate increases, operators can source better interest rates on machinery finance for field day purchases through Jade Equipment Finance**. For operators in the process of make those assessments and finance decisions and for those that didn’t get the chance to attend the Henty event, we provide information on the highlights and the machinery finance options currently available. **Henty Field Day Report** The Henty Field Day was held on 20-22 September with over 70,000 attendees, 1200 sites and more than 800 exhibitors. The event is a not-for-profit so the funds that were raised go back into infrastructure and social capital for local community groups. CEO of Henty Machinery Field Days, Belinda Anderson, said that the recording breaking crowd numbers caused capacity to be reached by noon on the Thursday and many ticket holders were turned back for safety reasons. The record interest comes on the back of several above-average seasons and record prices for commodities. Highlights:- - Large sales of products and services were reported. - Trade delegation attended from Argentina. - The MacDon FD2 Flex Draper was presented with Machine of the Year Award with highly commended going to JD for the See and [Spray Select](https://www.deere.com.au/en/news/all-news/deere-see-and-spray-select/). - Award for Australian-designed and built machine went to Daniel Draper’s Ezy Feeder. - CASE reported 3 days of tractor sales. Plus many more good news stories which may provide operators with reason to invest in new machinery with finance. **Strategic Plan Launched** In another positive sign and move for the area, the 2022-2025 Regional Development Australia Murray Plan was launched at the Henty Field Day. Minister for Regional Development, Kristy McBain, launched the plan which helps to identify the opportunities in the region, manage the pressures on growth and address infrastructure needs and economic development in the region. Stakeholders from all levels of Government were involved in development of the plan. Edwina Hayes, CEO of RDA Murray said that central to this plan were connectivity, greater uptake of technology, skilled workforce as well as supply of housing. The full report can be viewed at **Farm Machinery Finance Options** The reports from the September Henty Machinery Field Day with the record attendances and interest in machinery purchases hopefully indicate a positive outlook for the agricultural sector. Additional positive signs for the economy in general may be taken from the outcomes from the Jobs Summit to address the labour shortage situation and for agriculture, the ABS figures that demand for food-related items remains strong. Judging from the reports of interest in tractors and other machinery, many operators may be in the process of making post-event buying decisions. The decision to invest in new agricultural machinery has to stack up in benefits to output and production and in affordability to the balance sheet and cash flow. We assist operators in the agricultural sector with cost-effective farm machinery finance. [Finance products](/overview-of-equipment-loan-products) for the purchase of farm machinery include:- - Chattel Mortgage or Equipment Loan - Machinery Leasing - Commercial Hire Purchase for Agricultural Machinery - Rent to Own [Chattel Mortgage](/chattel-mortgage) is extremely popular with the suitability for temporary full expensing. [Refer to our article](/blog/revisiting-chattel-mortgage-finance-as-temporary-tax-measure-expiry-date-nears/) on this tax measures for full details and assessing whether it may suit your operation. Finance affordability is critical to many purchase decisions. That can come down to the interest rate. Rates have been on the rise due to the RBA decisions to hike interest rates to address Australia’s rising rate of inflation. That has meant that lenders across many lending sectors have raised their rates. Rates do vary across industries and across different lenders. So there may be work to do in order to identify which lender is offering the best rates in the agri sector. If you’ve always headed straight to the bank when requiring finance, utilising our broker-style services may offer a welcome alternative and deliver a better finance outcome. As we are accredited with multiple lenders – banks and specialist equipment non-bank lenders, we continue to be in a position to source and negotiate better interest rates on [farm machinery finance](/farm-machinery-and-agricultural-equipment-loans). **For cost-effective farm machinery finance at cheaper rates, contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Finance --- ### [Interest Rates Increased by RBA](https://www.jadeequipmentfinance.com.au/blog/interest-rates-increased-by-rba) **Published:** October 13, 2022 **Author:** Publisher **Content:** The RBA Board met for its monthly interest rate decision on 4 October and the decision was yet another increase to the cash rate. It was widely expected that the RBA would increase interest rates in October but there was also pressure building for the central bank to ease back on the rate rises. The reasoning behind the pressure relating to the risk of recession as households and business struggle with inflation and the effects of higher rates. The October decision may be seen as taking a middle-ground with a 0.25% and not the 0.5% increase as seen for the previous five months. But the increase does take the cash rate to the highest in 9 years at 2.6%. This makes it now 6 increases and according to Governor Lowe, further increases will be expected as the RBA seeks to work towards inflation falling back to its target of 2-3%. The rationale behind RBA decisions and its forecasts and outlooks are provided in the monthly [rate decision statement](https://www.rba.gov.au/media-releases/2022/mr-22-33.html) and in the more detailed paper and meeting minutes which are published a few weeks after each meeting. The RBA Governor Philip Lowe very often also delivers presentations and speeches to industry and business groups following the monthly Board meetings. These speeches can often cover other ground around economic conditions and provide further insight into what may occur to interest rates in the future. We fully appreciate that not many business operators will be in a position to refer to these documents and have the time to fully process and assess the information and how it may impact their business. We have extracted the key points here and provided a brief recap on how the October rate decision may effect equipment finance. **RBA Cash Rate Decision – October** Many of the same comments made in the September and other monthly statements for 2022 were included in the October posting. However, there are some notable new wording and inferences that could be significant. As mentioned in RBA statements since inflation started surging and the current rate rise cycle commenced, the Board again stressed its commitment to getting inflation back down to that 2-3% level. As has also been mentioned previously and was included again for October is the mention that it could be expected that more rate rises would be needed in the time ahead. For businesses that have equipment acquisition plans on the back-burner, that may be the motivation to more those plans to the hot plate and start the process before further rate hikes. An interesting new comment in the October statement was that, over a small period, the official cash rate had been increased substantially. This comment has been picked up and noted by media as possibly the acknowledgement that a slowing down of interest rate rises is needed. The Board notes that this factor was reflected upon in making the October decision. Additional points to note in October RBA statement include:- - Inflation in Australia is too great as it is in many parts of the world. - The reasons for the rising inflation are noted as very much due to issues globally. - Factors in the domestic economy are also the cause of inflation rises. In particular that supply is being outstripped by the high level of consumer demand. Many businesses will relate to this issue as they have seen they own operations restricted by issues in relation to supply chains and labour shortages. - The expectation by the RBA for the rate of inflation is to increase to 7.75% in this current year, next year drop to around 4% and near the 3% target in 2024. - Unemployment at 3.5% in August indicates continued tightness of the labour market. A further fall in unemployment expected prior to increasing as growth in the economy slows. - Governor Lowe also repeated the comment from previous statements regarding a narrow way to achieve the target level of inflation while keeping the economy on its even keel. The stand-out comment for businesses considering asset acquisitions with finance is in regard to further increases in interest rates expected in the coming period. **Equipment Finance Rates** Banks and non-bank lenders typically follow RBA rate rises with increases in the interest rates they apply to their lending markets. **Equipment finance interest rates will likely be affected by the RBA October decision but Jade Equipment Finance maintains its better interest rates policy.** With rates varying across the lender market and across different industries, businesses can engage our services to assist in sourcing the [cheapest rate](/equipment-finance-interest-rates) to suit their requirements. With our [multiple accreditations](/why-jade-equipment-loans), we have the resources to assist businesses to quickly access the cheapest equipment finance rates available. The next rate rise may come at the November RBA Board meeting. Acting on purchases prior to further rate rises may result in a significant savings on equipment finance. **To source cheaper equipment finance as interest rates rise, 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.* **Categories:** Finance --- ### [Machinery Finance for HMFD Award-winning Models](https://www.jadeequipmentfinance.com.au/blog/machinery-finance-for-hmfd-award-winning-models) **Published:** October 13, 2022 **Author:** Publisher **Content:** The Henty Machinery Field Days (HMFD) are back for 2022 and the September event was hailed a great success. A highlight of the event was the announcement of awards for impressive new farm machinery. For operators interested in upgrading to achieve greater productivity with award-winning equipment, sourcing cost-effective machinery finance could be key to an optimum outcome. These new award-winning machines are designed to deliver significant benefits to operators. But when acquired with less than effective machinery finance, achieving the full benefit of the investment may be compromised. **Jade Equipment Finance supports the farming sector with cost-effective, individually sourced and structured machinery finance at cheaper interest rates.** Finance is available across a wide range of machinery and equipment used in farming, horticulture and agriculture including the HMFD award winners – the JD See and Spray, MacDon FD2 and the Ezy Feeder. For those that missed seeing this machinery at the field day, we provide an overview of the features and the finance available to purchase. **John Deere See and Spray Select** The JD See and Spray Select received a Highly Commended nod at the September HMFD. Available for a [400 Series and 600 Se](https://www.deere.com.au/en/sprayers/400-600-series/)[r](https://www.deere.com.au/en/sprayers/400-600-series/)[ies](https://www.deere.com.au/en/sprayers/400-600-series/), these sprayers have technology to deliver consistent and precise applications with minimal waste. This new technology became available in Australia in late 2021 for MY2022 machines. The sprayers were developed by JD in a partnership with the University of Southern Queensland. JD states that using the See & Spray, operators can more efficiently apply complex tank mixes while easily switching from targeted to broadcast spraying – all without exiting the cab. See and Spray on the 600 or 400 unit is said to be the only OEM solution which can deliver this in the Australian market. The See and Spray Select can fitted to models in the 400 and 600 ranges such as the 616R, 612R, 408R, 410R and 412R. **MacDon Award-Winner** The coveted Machine of the Year award for 2022 went to the MacDon FD2 Flex Draper. This new machine provides greater capacity, increased speed and more flexibility to deliver improved harvesting performance. This machine has the company’s technology, with wheels which enables the header to follow the contours of the field. Resulting in consistent height of stubble when cutting 1-18” off the ground. Features include a high-speed cutting system; deeper deck; and many other exciting inclusions to deliver improved performance. Check out all the [details and specs](https://www.macdon.com/products/fd-series/fd2-series) to decide if this award-winner is suited to your operation. If so, contact us for pre-approved machinery finance so you’re ready to order fto expedite delivery and start realising the benefits asap. **Ezy Feeder** Another of the highly-coveted awards, that for the machine designed and built in Australia, went to the Ezy Feeder. Designed and built by West Wyalong’s Daniel Draper who reportedly said he was privileged to take out the gong. The Ezy Feeder is a dual-auger, multi purpose machine with capacity for 70 bags. The machine was first launched back in 2004 but has evolved over time to become this year’s award winner. Features include a rear 305 litre additive box, Bluetooth-enabled scales and waterproofed display with read-out in the machine. As an award-winner, this could be a must-see machine for many farmers. **Machinery Finance Options** This year’s award-winners at the September HMFD event are designed to deliver better performance and productivity for farmers. That outcome can be optimised and further improved by acquiring machinery with the most cost-effective finance. The choice of finance product can be significant to the business achieving its financial objectives. The [selection of loan products](/overview-of-equipment-loan-products) for farm machinery acquisitions include: Leasing, Chattel Mortgage, Commercial Hire Purchase and Rent to Own. There are varying features across this selection with choice depending on the structure of the business, accounting method implemented, approach to the balance sheet and overall financial goals. We highly recommend that our customers speak with their accountant in arriving at a decision around choice of loan product. The interest rate on machinery finance is critical to the overall cost of the loan and hence the total investment in the equipment. Rates will vary across banks and non-bank lenders and for different businesses. Covering many lenders to find the cheapest rate can be time-consuming and at times, confusing. We support the farming community by offering a broker-style lender service to save time, save the hassle of sourcing finance and cut through any possible confusion. Interest rates can vary with the type of industry also. Making pre-purchase finance decisions based only on general rate advertisements for equipment finance may not deliver a close enough estimate. With access to more choices of lenders, we can source the [cheapest interest rates on farm and agricultural equipment](/farm-machinery-and-agricultural-equipment-loans). To assist farmers with budgeting with quick quotes and pre-approved machinery finance. The loan can be quoted and processed through to approved stage even before the commitment has been made to purchase. This allows farmers to know exactly what the finance will cost and hence, they can proceed with confidence. In the current economic situation, especially in regard to the shortage of labour and rising costs, equipping a property with machinery which will deliver improved productivity may be a huge benefit. **For cost-effective finance on award-winning farm machinery, contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Finance --- ### [Scholarships Support for Tertiary Students](https://www.jadeequipmentfinance.com.au/blog/scholarships-support-for-tertiary-students) **Published:** October 13, 2022 **Author:** Publisher **Content:** With the expenses associated with studies soaring, many students will be seeking support from scholarships to assist with covering their costs. While there are a range of scholarships available, many have criteria which exclude some students from applying. They may be awarded based on financial need, student categories and other criteria. Jade Equipment Finance in conjunction with Jade Finance Australia is offering an approach to tertiary scholarships which focuses on generating ideas and conversations. **Jade Finance Australia is offering scholarships for tertiary students to nurture new ideas and thinking around the finance and lending sector in Australia**. The scholarship will be awarded for the most outstanding response in writing, as deemed by the judging panel, around the theme of innovations and insights into the finance, business and lending sector in Australia. Applicants are encouraged to express their own ideas and opinions by selecting their own issue or topic to discuss. There are no strict limits or boundaries to what can be explored in the submission, except it must have relevance to finance and lending. Applicants may be studying a wide range of courses and be interested in expressing their views in applying. Applications are open to students in all fields of tertiary studies at recognised Australia institutions for higher education at a tertiary level. As Jade Equipment Finance provides[ finance for equipment across many industry sectors](/heavy-machinery-loans) our article readers can span a vast cross-sector of Australian business. Giving rise to contacts with students across multiple faculties, fields of study and courses. The scholarship is a very generous $5,000 award to further the studies of the winner. This is a great opportunity, so if you know someone who meets the criteria, we welcome you sharing this information and the link for applications. **Scholarship Specifics** Applicants can source all the information on the terms and criteria for entry to the Jade Finance Tertiary Studies Scholarship by following this link. Here are main details for consideration:- - Open to students in tertiary full-time and in part-time courses. - Studies must be being undertaking at a recognised institution in Australia for tertiary study or higher education. - Studies may be in any faculty or field. - One year of study must be completed and the student must be currently enrolled in the course. - The application must include a written submission of 800 words with content as stipulated. - The written submission should be related to the area of lending finance but can be of the topic or theme of the applicant’s choosing. - The written work must be the applicant’s original composition. - The scholarship is an amount of up to $5000 which will be deposited into the winner’s bank account. - The funds are provided for expenses related to the studies. - Deadline for applications is July 18, 2023. Winner decided by July 31, 2023 **Written Submission Ideas** We are leaving the topic, issue and approach of the written response as open as possible to encourage and nurture innovative and original thinking. As our customers come from many areas of Australian business – manufacturing, construction, medical, professions, farming and agricultural and many others, the ideas from students that they connect with re this opportunity will also be extremely varies. Those studying areas of technology may take that approach. Employing new technologies and embracing greater connectivity with customers is a major focus for the finance sector. Jade Finance was at the forefront of digital and online services, starting online loans services many years prior to mainstream take-up. So this may be an area where students can see potential for advancement. Political studies students may address the regulation and legislation side of this area of finance. Australian lenders must adhere to guidelines for [consumer finance](http://www.asic.gov.au) but the business finance sector is less regulated. Governments and central banks including Australia’s [RBA](http://www.rba.gov.au) play a critical role in the impact on finance of fiscal policy and monetary policy decisions. These [determine interest rates](/equipment-finance-interest-rates) which are achieved by lenders such as Jade Equipment Finance as well as tax deductions which can be realised. A review of current policies and settings may provide inspiration for new ways that this could be approached. Students in engineering and trade courses may take a more practical point of view to their written response content. Possibly addressing how the lending sector can better serve certain business sectors and types of businesses. There has been a significant increase in the number of small businesses starting up and some sectors such as building and construction is suited to sole traders and contractors. But these SMEs can face obstacles when requiring finance. The impact of global events on the Australian economy has been especially highlighted in recent times. This may also present a great topic to cover. Climate change is arguably the greatest challenge of the contemporary era and has a bearing and relevance across many sectors. Students may choose to write a piece on how lenders can better place climate change as a key focus in their business plan and approach. **Apply Now** Applications are now open and run through to July 2023. Please share this opportunity with students, friends, course providers and others to ensure as many as possible have the chance to submit an application. **Jade Equipment Finance expands its support for business with cheaper equipment finance to supporting tertiary students** *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.* **Categories:** Finance --- ### [‘Umbrella’ business and equipment finance as economic storm clouds predicted](https://www.jadeequipmentfinance.com.au/blog/umbrella-business-and-equipment-finance-as-economic-storm-clouds-predicted) **Published:** October 17, 2022 **Author:** Publisher **Content:** The current commentary and predictions for the Australian economy may have business owners concerned about the future and seeking solutions. **With the current level of economic uncertainty, business operators may look to business and equipment finance to ensure their operation is on a sure footing** moving forward. Uncertainty has arisen from changes and deterioration in the global economy and from domestic events. It seemed like only a short time ago there was a positive outlook being spruiked that the economy was recovering well following the lockdowns and other pandemic restrictions. But as inflation, both in Australia and internationally, has soared, that positive outlook appears to have altered. The [RBA](http://www.rba.gov.au) Governor Philip Lowe has made note of the uncertainties around the global economy in a number of monthly monetary statements announcing cash rate decisions. Treasurer Jim Chalmers in [recent statements](https://ministers.treasury.gov.au/ministers/jim-chalmers-2022) has said Australia would not be spared the impacts of a global recession which he now rates as ‘probable’. The Treasurer’s statements, ahead of the release of the October budget, have attracted a range of commentary. Some saying he is talking down the economy while others consider it is stating reality. During a visit to the USA, the Treasurer then said he was optimistic for the Australian economy. For operators trying to make business decisions based on the sound bites and news headlines, it can be challenging. While individual businesses may at any time face their own specific difficulties, widespread impacts from ongoing labour shortages and supply chain disruptions and interest rate rises dampening consumer confidence to spend may have effect the outlook for quite a few operators in many sectors. If the outlook is somewhat uncertain, amongst other possible ways forward, businesses may look to finance as a solution. Jade Equipment Finance assists businesses in a range of situations and with different requirements by providing an ‘umbrella’ approach to finance. Providing a comprehensive range of finance products and providing loans with the objective of sheltering a business from potential downturns and nurturing growth. **Umbrella of Finance Options** Being able to source a wide range of business finance options from the one broker-style lender can be extremely advantageous. Our trained and highly experienced consultants have the knowledge and expertise to develop structure finance solutions to address general and specific requirements. While some lenders and sources of finance such as equipment dealer finance may offer only the one type of finance, we provide a comprehensive range of commercial loans and finance options. **Acquiring New Machinery to Boost Productivity and Income** While some finance solutions may be sort to reduce costs and outgoings, finance may also be sort to expand the business to increase income. Upgrading obsolete machinery or expanding fleet capacity can offer businesses the opportunity to take on more work, larger scale projects or move into new markets. Our [asset acquisition finance](/overview-of-equipment-loan-products) includes loan types to suit all types of equipment and business set-ups:- - Chattel Mortgage or Equipment Loan - Leasing - Rent to Own or Equipment Rental - Commercial Hire Purchase (CHP) The cheapest interest rate quotes are sourced and loans individually negotiated and structured to meet the specific needs and preferences of the business. New businesses are catered for with our [Low Doc and No Doc Equipment Finance options](/no-docs-low-docs-equipment-finance). **[Refinancing](/equipment-refinancing) Option** When current loan commitments are placing pressure on the business, refinancing may be a solution to ease that pressure and provide clearer air in the times ahead. Refinancing may not necessarily result in achieving a cheaper interest rate than the existing loan, depending when that loan was set-up, but achieving lower loan repayments through restructuring could be considered. During the period of record low interest rates, refinancing presented an attractive possibility to secure a cheaper interest rate. But with the cash rate currently at a 9 year high it may be unreasonable to expect that refinancing would definitely deliver a cheaper rate. But it could – where the current loans were acquired at higher rate than we are currently achieving; where the current loan was arranged as a Bad Credit Loan and the credit situation has resolved; and where changing to a loan product with a lower rate is sought. Our consultants will discuss the objectives, work through the options and source cheap interest rates refinancing quotes. **Comprehensive Finance Support** Where the finance requirements are more general in natures, businesses may require solutions such as a Business Overdraft, Secured Business Loan or an Unsecured Business Loan. These are very flexible finance products which can be useful for a wide range of purposes. Where a specific pain point is identified, solutions such as [Debtor Finance](/debtor-finance) or Insurance Premium Funding may be considered. With so many solutions available with the one contact point, we can save business owners time and hassle and deliver commercial loans to ease any pressure and uncertainty presented by the current economic outlook. **For a comprehensive umbrella approach to business and 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.* **Categories:** Finance --- ### [Support for operators with cheaper equipment finance as rate rises impacting construction activity](https://www.jadeequipmentfinance.com.au/blog/support-for-operators-with-cheaper-equipment-finance-as-rate-rises-impacting-construction-activity) **Published:** October 17, 2022 **Author:** Publisher **Content:** The report on construction activity for September indicates yet another month of contraction in the sector with interest rates a reason given for a reduction in apartment and home building areas. This is the fourth month in a row that the sector has recorded a contraction. No coincidence that it occurs at the same time as the [RBA](http://www.rba.gov.au) has increased rates for six consecutive months. **With construction activity contracting, support through cheaper finance for operators needing to upgrade machinery can be sought from Jade Equipment Finance**. Cheaper interest rate machinery finance may be a solution for businesses to be able to acquire much-needed equipment as they ride out the current decline in activity. We provide an overview of the latest Performance of Construction Activity report and an update on construction equipment finance and interest rates. **September Construction Activity Report** The Performance of Construction Index from the Housing Industry Association (HIA) and the Ai Group has been released for September revealing 2 of the 4 sectors in deep contraction for the month. Not only is this the 4th consecutive month of contraction, but the report reveals that compared with August, the rate of the decline has also increased. The apartments and housing sectors posted deep contraction while the commercial sector improved and engineering was stable. Commercial construction recorded the strongest performance in regard to new orders. Reasons given for the outcomes are pressures on the demand side such as uncertainty around the economy and increasing interest rates. This is reflected in the drop in the number of new order enquiries being received for builders for houses and apartments. On the supply side, the ongoing supply chain constraints are identified as continuing to inhibit growth. But the report does see early indications of an easing in supply chains. Employment in the construction sector also recorded an improvement. The Chief Policy Advisor, Peter Burn, said that higher rates of interest were clearly causing a negative impact for the residential construction sectors. Mr Burn said that the delayed effect of the recent rate increase was likely to impact the residential sectors further down over the coming months. However, he also commented that apartment and house builders could take comfort from the RBA’s recent decision to slow down the rate rises. Nicholas Ward, the Senior Economist for the HIA said that during the time of the pandemic, builders had built up an extensive pipeline of jobs and as such, it would take significant time for the effects of weaker demand to be translated into lesser activity at ground level. High capacity utilisation figures remain as the builders work through jobs in their pipeline. The construction sector was kept extremely busy during the pandemic years, so this current contraction may be giving some builders, contractors and suppliers reason to assess their business situation. This may include a rethink of finance and loans in general or greater attention to acquiring cheaper finance for necessary machinery upgrades and replacements. **Acquiring Necessary Equipment with Cost-effective Finance** The construction sector is one of our key lending markets and we have extensive expertise and experience in securing cheaper equipment finance for operators. While many operators may be used to applying for finance from their bank, we offer the opportunity to access more lenders which increases the possibilities for acquiring cheaper rates and overall more cost-effective finance. Our lenders include select non-bank lenders that specialise in heavy equipment and construction industry machinery. Lenders that know the sector, appreciate the challenges being faced by operators and exhibit flexibility when it comes to negotiating with our consultants for better loans. We handle loans for all types of [equipment and machinery](/civil-construction-equipment-finance) in construction and building, excavation and civil works, materials handling and transport and others. To suit the needs of the wide range of business structures that are prevalent in the construction sector – large pty ltd companies, SMEs, sole traders, family enterprises, partnerships and ABN holders, we offer the full gamut of [loan products](/overview-of-equipment-loan-products) :- - Chattel Mortgage or Equipment Loan - Equipment Lease - Commercial Hire Purchase (CHP) - Rent to Own or Equipment Rental The interest rates do differ and while simply opting for the lowest rate product may seem a no-brainer, the full features and benefits to an individual business should be assessed. The tax deductions and approach to the balance sheet vary and these may be more significant to a business than simply the interest rate. A key aspect of securing cost-effective and affordable finance can be in the structure of the loan. This is another aspect where your Jade consultant will assist. The loan term, balloon or residual and any special conditions are negotiated with lenders. Achieving approval for say a longer loan term or a larger balloon may result in lower monthly finance payments. This may be the breathing space needed for operators during the current period of activity contraction. **General Business Finance Support** For operators looking for financial breathing space and not looking to acquire new machinery, speak with us about the options we can offer in regard to Business Overdrafts and Business Loans. The construction sector is very important to us and we are committed to support operators with cheaper equipment and business finance during boom times and through the current period of reduced construction activity. **For cost-effective construction equipment finance contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Finance --- ### [NSW, TAS and VIC Flood support – info re equipment and machinery losses](https://www.jadeequipmentfinance.com.au/blog/nsw-tas-and-vic-flood-support-info-re-equipment-and-machinery-losses) **Published:** October 31, 2022 **Author:** Publisher **Content:** With areas of NSW, TA and VIC flood effected, the impacts on many businesses will be immense in terms of machinery and crop losses, disruption to production and income and the emotional stress experienced. State governments have announced [relief for flood victims](https://www.premier.vic.gov.au/beginning-victorias-flood-recovery) and Prime Minister Albanese has also announced support through the [federal scheme](https://www.pm.gov.au/media/financial-support-people-affected-south-eastern-australia-floods). But many businesses, operators and producers will be requiring support which goes beyond what is offered in these government packages. **To assist NSW, TAS and VIC flood impacted businesses, a range of finance is available to replace machinery and support operators through this difficult period.** **Damaged Machinery Under Finance – Steps to take** With many key food producing regions impacted by the floods, many producers may have lost valuable agricultural machinery and equipment. If the machinery was under finance, then it should be covered by insurance. Lenders of [secured equipment finance products](/overview-of-equipment-loan-products) do require that the equipment is insured as a condition of the finance. In the event that machinery under finance has been written off or seriously damaged, business owners can take these actions:- - Contact the insurer and advise of the situation. - Many insurance claims can be lodged online or over the phone to speed up the process. - The procedure for processing claims may vary for different insurers. - The insurance company will advise what the process will be in the individual case. - Assessors may be required to inspect the machinery to confirm if it is reparable or a complete write-off. - If a write-off, the claim will be processed. - The machinery would be held as security over the finance in the case of Chattel Mortgage and with other forms of finance – Leasing and Rent to Own, the lender holds an interest in the goods. - The amount outstanding on the finance, including any balloon or residual, will need to be paid to the lender from the insurance claim. - Any excess funds after the lender is repaid goes to the business. While there are many, many issues for business operators to deal with in a flood situation, it can be important to get onto the insurance company as quickly as possible. Large numbers of claims are always lodged in these types of events and that can lead to delays in payouts. The faster a claim is lodged, the faster the matter can be resolved and the machinery replaced. In regard to the finance, be aware that the monthly machinery finance payments will still be payable even after an insurance claim has been lodged. That is unless alternative arrangements are made with the bank or lender. Banks and non-bank lenders are typically especially supportive during flood and other disasters. Operators should contact the lender to advise that the machinery under finance has been written-off and work out what arrangements can be made to pause the payments if business income is also disrupted. If alternative arrangements are not made and the repayment schedule not adhered to, the finance may be deemed in default. This can impact the credit profile of the business which can lead to issues with new applications for finance. **Replacing Machinery – Finance Options** While many operators may have to wait some time to be operational again – waiting for floodwaters to recede and the clean-up to be completed, starting the process to acquire replacement machinery may be a priority. Some equipment and machinery may take time to be delivered so the sooner this process is commenced, the quicker the prospects of having the business up and running again. In order to acquire replacement machinery, a new finance application may be required. Any funds received from the insurance claim may be used as a deposit on the new goods or for other business purposes. But there is no need to wait until the claim is finalized before applying for new machinery finance. We can assist by handling the finance for the new machinery either as pre-approved finance if the equipment is still to be sourced or as a normal finance application if the machine has been ordered. The new machinery finance can be with the same or a different type of finance product from the one used for the original equipment. The finance application would be a new application and subject to an assessment by lenders of the business. The [interest rate](/equipment-finance-interest-rates) would be based on current rates. Our consultants fully appreciate and understand what our customers in these situations are experiencing and work to make sourcing finance as streamlined and easy as possible by handling all aspects of the process. If you have any initial questions around process, timing and eligibility or any other matters, please contact us for prompt attention and answers. **Additional Finance Support** In addition to finance to purchase replacement machinery, there may be an urgent need for finance for other purchases or as ongoing operational support while the business recovers. This may include purchase of supplies, costs of clean-up and other expenses. We offer a range of solutions including [Business Overdraft](/business-overdraft) and Secured and Unsecured Business Loans which may suit these purposes. As with the asset finance, our consultants will handle the finance process to alleviate operators of this burden. Please feel free to contact to discuss your circumstances so we can offer solutions to support your business in these difficult times. **For finance assistance for Tas, Vic and NSW flood affected businesses, 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.* **Categories:** Finance --- ### [Unemployment stays steady. Will interest rates remain unchanged?](https://www.jadeequipmentfinance.com.au/blog/unemployment-stays-steady-will-interest-rates-remain-unchanged) **Published:** October 31, 2022 **Author:** Publisher **Content:** The latest employment data has been released by the Australian Bureau of Statistics (ABS) with the figures showing that unemployment has remained at 3.5%. **The unemployment rate is just one of the factors considered by the RBA when making cash rate decisions which effect equipment finance interest rates**. There are numerous other impacts and economic data that needs to be taken into account. With the next RBA Board meeting on 1 November, many business owners may be wondering with unemployment steady, what will the outcome be for interest rates? We cover off on the latest announcement on employment by the ABS to and how the rate of unemployment is significant in regard to the cash rate and specifically, equipment and machinery interest rates. **ABS Employment Figures Announcement** The ABS released the latest figures on unemployment in Australia via a [media release](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-remains-35) on 20 October. The figures see the unemployment rate at 3.5% which is the same as for the previous report. The ABS Head of Labour Statistics, Bjorn Jarvis said that new jobs found for the period were around 1,000 which resulted in a slight rise in employment. But that there an additional 9,000 leaving employment and adding to the unemployment figures. The outcome being a slight, 0.1%, increase. When rounded, that figure is given as ‘steady’ by the ABS. According to Mr Jarvis, the growth in employment has slowed in the recent months. Nearly 500,000 people were finding jobs, ie entering employment each month. But nearly the same amount were ‘exiting employment’ over the same period. There was a slight decrease in hours worked, below 0.1%. This was explained by Mr Jarvis as due to annual leave being taken by a greater number of people in September. In the same month in the previous two years, 2021 and 2020, many states and territories were in lockdown or subject to COVID restrictions and that limited the number taking leave. The sick leave figures are also reported by the ABS and can be of importance for those operating businesses. In the September period, sick leave was recorded as higher than is usual for the month. But as mentioned by Mr Jarvis, the figures are not in the two to three times above normal as was happening earlier in 2022. A more detailed and lengthy report – [Labour Force Australia](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/sep-2022), is also available for review. This covers numerous aspects including labour activities in the regions. The reports issued by the ABS on employment can be helpful to some businesses by providing an outlook of the labour market. As many businesses and industries are still experiencing labour shortages, this information may assist with forming business plans into the future. In addition to the unemployment figures, the ABS also issues reports on many aspects including inflation, consumer spending and other economic data. Their website is worth visiting on a regular basis to see the latest announcements as they may provide information and insights relevant to a specific area of operation, industry or market. **Relevance to Equipment Finance Interest Rates** Unemployment is currently at extremely low levels in Australia and this factor has had an impact on the RBA’s cash rate decisions as noted in the Board’s monthly statements. The Board has noted the low rate of unemployment as a tight labour market. Many sectors and individual businesses have struggled to recruit the staff required to operate to full capacity. This constraint on capacity contributes to constraints in supply, coming when consumer demand is high. The supply-demand imbalance then leading to rising inflation. In recent statements, the RBA’s outlook for unemployment was for the rate to fall further before increasing next year, as the economy began slowing. The unemployment rate is just one many issues which the RBA Board considers. Currently global factors has been a source of uncertainty for the economy and of course, inflation is the key reason that interest rates have recently been on the rise. The next report on inflation will be released by the ABS on 26 October. This is the week prior to the [RBA](http://www.rba.gov.au) November Board meeting where a decision on the cash rate will be made. At the October RBA meeting where a 0.25% increase was announced, Governor Philip Lowe stated that further increases would be expected. The economic data including unemployment figures and inflation rates and other figures and circumstances and forecasts are considered by the Board when making cash rate decisions. Decisions which then have relevance to [equipment finance interest rates](/equipment-finance-interest-rates). A steady unemployment rate for one month, such as has just been recorded, would be unlikely to have a significant bearing on a rate rise. The inflation data and the uncertainties around the global economy would potentially have greater significance. Banks and non-bank lenders react to the RBA decisions with increases to rates in their markets of interest. With our [extensive accreditations](/why-jade-equipment-loans), we maintain our capability to achieve better interest rates across our portfolio. **For better interest rates on 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.* **Categories:** Finance --- ### [Federal Budget - impacts for equipment finance](https://www.jadeequipmentfinance.com.au/blog/federal-budget-impacts-for-equipment-finance) **Published:** November 7, 2022 **Author:** Publisher **Content:** The announcement of the mini Federal Budget by Treasurer Chalmers has been received with a mix of responses. The negative reactions stem primarily on the lack of immediate relief for power prices and general costs of living pressure. The Budget was pre-empted with talk of a bread and butter approach and cutting Government expenditure. Those in some industries such as those working on infrastructure projects possibly concerned about future work as this sector has had a strong pipeline of projects. But there was expenditure announced for infrastructure projects in all states and territories. Commentary around the Budget see it delivering on a number Labour’s promises made during the election but failing to deliver specifically on reduced energy bills. Some see it as possibly putting off some of the hard decisions around the economy until the main Federal Budget is delivered in May next year. Soaring energy costs are of major concern for many business operators especially those in the manufacturing sector. Many would have been looking to the Budget for relief in this area. Relief which possibly may be a key factor in deciding whether or not to proceed with upgrading, replacing and expanding machinery, plant and equipment with finance. Another Budget item which may impact business decisions is the new IR Laws which have not been well-received by all business groups. These Laws have already passed the House of Representatives where Labour holds balance of power, but are yet to pass the Senate. While not directly impacting equipment finance products and rates**, the measures, programs and policies included and excluded in a Federal Budget may influence decisions to invest in new machinery with equipment finance.** When considering measures announced in any Federal Budget, keep in mind two factors – the timing of when the measures and/or spending is to be introduced and the fact that the Budget bills need to be passed by both Houses of the Federal Parliament. Consideration of these facts may assist business decision-making. **Federal Budget Key Points** While our focus is on finance for businesses, there will be many owner-operators, sole traders and SMEs that have their business income and prospects closely tied to their personal level of income. When the business is doing well they can afford to pay themselves more or when more is on offer to individuals through Government channels, they may not need to pay themselves as much. So we mention both the key measures in the budget for individuals as well as businesses. Key points to note:- - Child-care and parental leave increased. - Through an accord with a number of parties, plans for 1 million new homes to be built over 5 years. - Infrastructure expenditure. - New Industrial Relations Laws which are intended to boost wages growth. - Investment of $25 billion for climate change through grid changes to allow for more renewable energy. - Support for the acquisition of hydrogen-fuelled trucks with key routes to be ‘hydrogen highways’. - FBT for electric vehicles and EV import tax cut to encourage EV take-up. - SME grants for upgrades to more energy-efficient operations. Individual business operators may wish to review the Budget Papers for specifics of measures for their particular industry or business category. **Infrastructure and Housing** The housing measures in the Budget have been reviewed by the Ai Group and their commentary may be of interest to those in the housing construction sector. On face value the 1 million houses over a 5 year period sounds impressive, but the start date is mid-2024. So that is some way off. The spending for infrastructure has been the subject of some mixed reactions with some states saying they have been short-changed. Operators are encouraged to review the specific projects in regard to opportunities in their region. As many of our customers are involved in the infrastructure sector, we highlight some of the projects slated for spending in the budget:- - ACT – Light Rail Stage 2A - NT – road upgrades – Central Arnhem Rd and Tanami Rd - WA – EV bus charging infrastructure for Perth - TAS – key road upgrades - QLD – upgrading to Kuranda Range Rd and Bruce H’way - NSW – road upgrades in Western Sydney and high speed rail for Newcastle-Sydney - VIC – Stage 2 of the Barwon Heads Rd Upgrade and the Suburban Rail Loop **Impacts for Machinery and Equipment Finance** Unlike the Federal Budgets delivered during the pandemic when the objective was to stimulate the economy, the [October 2022 Budget](https://archive.budget.gov.au/2022-23-october/) comes in very different economic circumstances. There is none of the attractive tax measures such as IOWA etc in this one. Businesses will need to draw their own conclusions as to if the Budget presents positive prospects moving forward and as such reason to invest in new equipment with finance. Note that temporary full expensing for eligible assets and businesses is still on offer until the end of this financial year. Clearly it does not look at this stage that that deadline would be extended. So now could be timely to make those acquisitions with [Chattel Mortgage](/chattel-mortgage) to take advantage of the generous deductions available. The Budget does not change the type of equipment finance products or interest rates. Though some lenders may draw amend their own forecasts for the economy based on inclusions and exclusions in a budget to set their lending rates and conditions. From an interest rate perspective, the more pressing announcement will come from the RBA Board at its November and December meetings. We will report on these and other key economic matters when available. **If the Federal Budget presents a positive outlook for your business and reason to invest in new equipment with 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.* **Categories:** Finance --- ### [Inflation Soaring – what next for interest rates?](https://www.jadeequipmentfinance.com.au/blog/inflation-soaring-what-next-for-interest-rates) **Published:** November 7, 2022 **Author:** Publisher **Content:** Many Australians would not have needed official figures to know that inflation is gripping the economy hard. But the reality of the current economic conditions were confirmed last week with the release of the official report on inflation for the September quarter by the Australian Bureau of Statistics (ABS). The **September 7.3% inflation figure has many experts indicating further rises in interest rates will be announced affecting many markets including equipment finance.** The soaring rate of inflation has been the main reason that the [RBA](http://www.rba.gov.au) has undertaken the current cash rate rises and these latest figures will no doubt be considered by the RBA Board regarding its next rate decisions for November and December. The ABS announcement also came in the same week as the October mini-budget was delivered by the Federal Treasurer. While the budget itself does not directly affect interest rates, as they are established by the RBA, these latest decisions and figures around the state of the economy have the potential to impact lending interest rates. **Inflation Figures – September Quarter** The ABS published the latest [Consumer Price Index](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-18-cent-september-2022-quarter) (CPI), better known as inflation rate, on Wednesday 26 October for the quarter July through September 2022. The report reveals the CPI rose 1.8% in the quarter, placing Australia’s inflation at 7.3%. Michelle Marquardt, the Program Manager of Prices at the ABS said the increase for the recent quarter were in line with the previous June (April through June) quarter but lower compared with the March (January through March) quarter. A 2.1% increase was recorded for the quarter ending 30 March. Since 2000 when GST was brought in, each of these 3 quarters has recorded a higher increase than any of the other quarters over the past 22 years. The annual inflation rate of 7.3% is the highest going back to 1990. The most significant contributors to the rise were named as gas, furniture and especially new homes. In the media release, Ms Marquardt advised that the increases in the new houses sector resulted from higher costs of labour as a result of the shortages being experienced in construction in addition to materials shortages which added pricing pressure. September did see an easing in the rate of growth of prices of new dwellings when compared with earlier quarters this year. This slower growth is seen as supply constraints easing and demand softening. Higher wholesale pricing of gas then passed to consumer was seen as the reason for the 3.2% increase in electricity. Rises nationally were offset in part by electricity credits in WA, ACT and QLD. Without the credits, the ABS says electricity costs would have risen 15.6%. A 2.9% rise in takeaway and dining accounted for much of the 3.2% food price rises. This is attributed to increased costs of wages, transport and ingredients. Price of fruit was up 6.6% and vegetables 2.9%. Weather events also contributed to these higher costs, though it should be noted here that the recent devastating floods in Victoria and NSW where many crops have been wiped out are not reflected in this recording period. Automotive fuel prices fell by 4.3% for the quarter. This reflects the drop in the price of crude. Overall, major contributors to the 7.3% annual rise in CPI are new homes 20.7% and 18% from automotive fuel. The new dwellings area has now recorded two consecutive quarters of its strongest inflation since reporting of the these statistics started in 1999. Less grants through schemes such as HomeBuilder were down compared with 2021 and that also contributed to the rise, along with the increased costs. Goods continue to record higher price increases than services, 9.6% compared with 4.1%. **Significance for Interest Rates** Prior to the release of the latest statistics, there may have been hope that future rate rises would be smaller. The October 0.25% cash rate rise by the RBA and as noted in the Governor’s statement was a slowing of rate rise amounts. This followed the five consecutive months of 0.5% increases. But based on the latest stats, analysts now expect another 0.5% rise in November and possibly in December. The RBA Board’s outlook for inflation has been for 7.75% in 2022 before starting to fall in 2023. At least one major bank has, based on these latest inflation results, adjusting its outlook to an expectation of 8% inflation this year. Increases to the cash rate as announced by the RBA have an effect through lending markets with individual banks and lenders making their own determinations. Some are even known to make those rate changes early, in anticipation of RBA decisions and based on their own analysis. That can include the machinery and equipment lending market. We continue to hold strong with our [better interest rates](/equipment-finance-interest-rates) policy across our [loan portfolio](/overview-of-equipment-loan-products). The current scenario further underlines the importance for business operators to source the cheapest rates on finance for new machinery and equipment. Even the smallest saving on the interest rate can add up to significant cost savings over the full finance term and represent important savings on monthly finance payments. Savings which will no doubt be extremely helpful during this current challenging economic times. The key message from the September inflation figures for those planning new equipment acquisitions with finance, is to move quickly as further rate rises are imminent. **For better interest rates on 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* **Categories:** Finance --- ### [Reminder of deadlines, flood support & other updates on equipment finance](https://www.jadeequipmentfinance.com.au/blog/reminder-of-deadlines-flood-support-other-updates-on-equipment-finance) **Published:** December 5, 2022 **Author:** Publisher **Content:** As we near the end of 2022, the year can definitely be described as once again, challenging for businesses and individuals. After the ‘pandemic years’ of 2020 and 2021, some relief from the pressure may have been expected as the economy recovered. But soaring inflation, supply chain issues, devastating floods and rate rises in many sectors including equipment finance have presented plenty of issues to deal with. But despite the current situations facing many operators, particularly in regard to the floods in NSW, there are some important deadlines and information to be across. This **update on equipment finance includes alerts around Director ID, expiring tax measures, interest rates and flood victim advice for businesses with loans**. **End of November Cut-off for Director ID Number** A new regulation from ASIC has been reported as not being noted by many affected business owners and requires immediate attention. ASIC brought in a new ruling some time ago that all directors of companies, with some exclusions, need to have their own unique Director Identification Number – Director ID. There have been varying deadlines to acquire a number with the final deadline for those that have been directors of companies prior to 2018 now just a week away – 30 November. The penalties for failure to comply with this ruling a significant – large fines and possible deregistration. Issues which could have serious impacts. Anyone who is a director of the company and has not yet acquired their Director ID are urged to get onto this asap. The process is not difficult, it basically requires entering information at the [ABRS](https://www.abrs.gov.au/ "Welcome to Australian Business Registry Services | Australian Business Registry Services (ABRS)") website. You will need to have a MyGovID in order to complete the form. This is separate from having a login for the Government’s MyGov website. We’ve posted a blog with handy tips to explain and make the process easy for our customers. You can access that article in our News and Tips section. Be mindful that the information required does relate to the individual director and not the actual company. **Temporary Full Expensing Ends 30 June 2023** The very attractive tax benefits that many operators have taken advantage of over the past 2+ years are due to come to an end at the end of this financial year. That is, the benefits associated with Instant Asset Write-off aka [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/ "Temporary full expensing | Australian Taxation Office") (TFE). This tax measure hit the headlines from April 2020 when introduced as a COVID stimulus measure but may have faded from consciousness recently with so many other business issues to deal with. For those with plans to upgrade or replace equipment or expand their fleet of machines, TFE may definitely be worth some close consideration before the deadline. The tax benefit is significant as the full cost of the new machinery, plant or equipment that meets the criteria can be claimed as a tax deduction in the year of purchase. That can be quite a substantial amount which would in turn reduced taxable income and tax payable in the 2021/22 tax year. The offer of this tax measure comes to an end on 30 June 2023. Yes, that is quite a few months away but keep in mind that stocks of many new machines and equipment continue to be disrupted by global supply chain issues. Operators may need to order now to ensure the equipment is received and operating in the business with finance finalised before the end of June deadline. The usual Christmas holiday shutdowns both here and overseas may cause further delays. The type of equipment finance selected for purchases will impact the suitability for TFE. The equipment needs to a ‘depreciable asset’. That means it needs to be ‘owned’ by the business, as in, listed in the company’s balance sheet. That is particularly relevant to the equipment finance. [Chattel Mortgage Equipment Finance](/chattel-mortgage "Chattel Mortgage - Equipment Finance Loan") is best-suited for this purpose compared with Rent-to-Buy and Equipment Leasing. With the latter finance types the lender retains ownership of the equipment and as such it would not be considered a depreciable asset for the buyer. In regard to interest rates, Chattel Mortgage is also very attractive finance option. Compared with other finance types, it typically has the [lower interest rates](/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 40+ Lenders"). This is not only through Jade Equipment Finance but Chattel Mortgage or Equipment Loan, tends to have lower rates than Leasing across the lending market. **Flood Victim Information** Once again we’re seeing yet another area of the country devastated by floods. This time it is central west of NSW and authorities are warning more flooding even without further rain as the waters move downstream. For operators that have lost machinery under finance in a flood event, it is important to contact the lender as well as the insurer. The equipment finance repayments will still need to be met even after the insurance claim is lodged. Failure to do so can have impacts on the credit profile and future finance prospects. If machinery hasn’t been lost but work flow has, relief for equipment finance repayments may be sought through the lender. Banks are usually very accommodating under these disaster situations as previously demonstrated. To replace machinery immediately, new finance applications can be made even before the insurance claim is settled. Our Jade Equipment Finance consultants can expedite applications and assist with liaising with the seller, to ensure swift replacement of essential gear and equipment. Cash relief for businesses may be available through state and federal government emergency programs. **Equipment Finance Rates Update** As indicated by the RBA Governor and Deputy Governor in recent addresses, further rate rises are to be expected. Lenders vary in how they respond to RBA decisions, in both timing and the amount of the their own rate increases. Despite the rising rate scenario, we continue to be in a position to secure cheaper equipment finance interest rates and very attractive terms and conditions for business finance products. **For cheaper machinery and 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.* **Categories:** Finance --- ### [Unemployment numbers point to December increase for interest rates](https://www.jadeequipmentfinance.com.au/blog/unemployment-numbers-point-to-december-increase-for-interest-rates) **Published:** December 5, 2022 **Author:** Publisher **Content:** Sadly the goodwill of the festive season does not apply to interest rates with little on the cards for rate relief based on the latest unemployment and wages growth data. After Dr Philip Lowe, RBA Governor, revealed that the Board had discussed the dual impacts of rate rises and inflation pressures on households, and the comment around easing the size of rate rises, some relief may have been at least hoped for if not expected. That ‘easing’ was seen in the November RBA decision with a 0.25% rather than 0.5% cash rate rise, which came on the back of another rise in the inflation rate. But that hope for smaller rises is likely short-lived as the latest unemployment figures were released by the Australian Bureau of Statistics (ABS) on 17 November. **Based on latest jobs figures an easing of interest rates rises is not expected with another 0.25% likely in December affecting lending such as equipment finance.** The ABS reported yet another fall for the rate of unemployment from 3.5% to 3.4% for the latest reporting period. In addition, a significant increase in wages growth has been reported which may also need to be taken into account by businesses trying to keep costs under control in this inflationary period. **Latest Unemployment Report – ABS** The latest report on employment from the [ABS](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-falls-34-0) covers the October survey period. The data shows unemployment falling to 3.4% and the rate of participation staying at 66.6%. The rate of underemployment was steady at 6%. As noted by Bjorn Jarvis, Head of Labour Statistics, ABS, the rate of unemployment for men fell to the lowest level recorded since November of 1974 – down 0.3% to 3.2%. The unemployment rate for women was unchanged. The hours worked may be a notable statistic for businesses as it reports on the number of hours lost due to sickness. This was very significant during the peak of COVID. The current figures show the figure at a third over what is usual for this reporting period. However, as Mr Jarvis noted, it is not near the 2-3 times more which was reported earlier this year. Hours worked were also noted as being impacted by the floods in the reporting period, especially in Victoria, Tasmania and NSW. Though the current central west NSW would not be included in this reporting period. Mr Jarvis said the underutilisation rate was at its lowest since March of 1982. Mr Jarvis said that the rate of employment growth had slowed to a rate which is below the long-term average. **Growth in Wages** Wages growth has been a major goal for government as inflationary pressures place considerable stress on household budgets. [The Wage Price Index](https://www.abs.gov.au/media-centre/media-releases/wages-increase-10-september-quarter-2022) for the quarter ending 30 September was also released this last week by the ABS. The data shows a 1% rise in wage growth for the period and 3.1% on an annual basis. Prices Program Manager Michelle Marquardt said this was the biggest quarterly growth since the March quarter of 2012. Growth was driven primarily by private sector wage increases, no doubt in turn driven by the competitive situation of filling jobs in a time of low unemployment. The effect of the recent Fair Work Commission decision was also noted as a reason for the increase. **Finance Relevance** The figures are being seen as showing continuing strength in economic conditions. This coming while high inflation rates and the global scenario do point to a possible downturn in the future. The data on jobs is seen as giving further reason for the RBA Board to announce further rate rises. The Board has said for some months that further increases were expected. After easing from an expected 0.5% rise in November to the actual 0.25%, there may be a level of expectation that the RBA was easing back and possibly giving some relief to those already feeling inflationary pressures. But these latest figures have some economists already predicting another 0.25% December rate rise. While RBA rate rise are initially and virtually automatically felt in the home loan market, the relevance for other lending markets including equipment finance should not be overlooked. Lenders in general terms will change their lending rates as a response to RBA decisions. But these changes are not uniform across the business and equipment finance sector in either timing or the size of interest rates changes. Lenders may move on rates ahead of RBA decisions and based on the forecasts of their own analysts and economists. It is quite common to see economists from different banks and finance companies making comments on rates in the media as to their outlook. Lenders make their own decisions and this leads to variations in interest rates in areas such as [equipment finance](/equipment-finance-interest-rates). There can also be variations in [interest rates on machinery and equipment](/farm-machinery-and-agricultural-equipment-loans) according to the industry such as agricultural compared with say transport or [aviation finance](/transport-equipment-finance). To receive a comprehensive coverage of the equipment finance market and to achieve the cheapest rates on offer at the time of applying for finance, operators can benefit greatly from using our broker-style lender services. **For consistently cheaper interest rates on 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.* **Categories:** Finance --- ### [How are your data security systems? Affordable IT Equipment Finance is available to upgrade and protect business, customers and reputation](https://www.jadeequipmentfinance.com.au/blog/how-are-your-data-security-systems-affordable-it-equipment-finance-is-available-to-upgrade-and-protect-business-customers-and-reputation) **Published:** December 5, 2022 **Author:** Publisher **Content:** 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](https://www.cyber.gov.au/). 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](/chattel-mortgage) - 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](/equipment-finance-interest-rates). 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](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/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.* **Categories:** Finance --- ### [Realise temporary full expensing tax benefits before the deadline](https://www.jadeequipmentfinance.com.au/blog/realise-temporary-full-expensing-tax-benefits-before-the-deadline) **Published:** December 5, 2022 **Author:** Publisher **Content:** As the end-of-calendar year and holiday season quickly approaches, businesses will possibly either be ramping up to handle the seasonal surge in trade or easing up and preparing to take a well-earned break. But before sliding into full end of year mode, there is a key issue that you may like to give some thought to – realising the tax benefits on offer with temporary full expensing. This is a matter of some urgency for a number of reasons. Firstly, this ‘temporary’ measure is due to move ‘off the table’ at the end of the financial year, 30 June. Second, supply issues in some sectors are starting to ease but delivery delays still exist in regard to some machinery and equipment. Orders may need to be placed now in order to ensure delivery and operational in the business by the end of June deadline. Many business owners may not actually be aware that this tax measure is available. When the Government introduced it as part of the pandemic stimulus package in April 2020 as Instant Asset Write-Off, the timing was not seen as ideal by many operators to proceed with major acquisitions such as equipment and machinery. So it may have been dismissed and not revisited over the past two years. **With business recovering from the pandemic era, now may be a good time to consider equipment and machinery purchases and temporary full expensing**. Remember, this is not an ongoing tax measure. It does have a set timeframe and with soaring inflation and other a deficit to address, it is highly unlikely that such a stimulus measure would be extended beyond the current deadline. To assist business owners to decide if temporary full expensing is a good reason to make the investment in new machinery, we’ll recap on the benefits and the appropriate finance options we can offer. **Temporary Full Expensing: Overview** As mentioned, [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) was first introduced as Instant Asset Write-off and is still often referred to as such. But after amendments to eligibility criteria, it was then referred to temporary full expensing. It is an accelerated asset depreciation measure which means the assets can be depreciated, as in written off as tax deductions, faster than under the usual tax rulings. In fact, the entire value or purchase price can be claimed as a tax deduction in the year that the machinery or equipment is purchased. But it must be new assets. Refinancing existing assets does not meet the criteria. The major advantage is of course that such a significantly large tax deduction, which most business equipment would represent, can significantly reduce the taxable income of the operation. With lower taxable income, a lower tax bill is applicable. Less tax payable in what would be this current financial year, may provide a business with less pressure on cash flow or more available funds for further investment in the business. Another measure has also been introduced with a similar timeframe which also ties in with temporary full expensing – [Loss Carry Back](https://www.ato.gov.au/business/loss-carry-back-tax-offset/). This is not as easy to explain but we’ll provide this simple overview:- - Under normal tax rulings, when a business makes a loss they must ‘carry it forward’, ie claim it against profits made in future financial years. - Loss Carry Back allows losses made in specific years to be claimed against profits and tax paid in earlier years. The years are specified by the ATO. - By claiming temporary full expensing on a large piece of machinery or equipment, the business may then show a loss. That may be claimed against earlier profits and may result in a refund of tax which was paid in those earlier years. So the benefits are quite significant and we recommend a discussion with the accountant for the business to ensure both the business and the machinery and equipment meet the criteria and suitability. **Choice of Equipment Finance is Key** To be eligible, the machinery and equipment being acquired must be ‘depreciable’. That means that they must first be owned by the business. They can be ‘under finance’ but ownership in terms of being an asset/liability held by the business. The choice of finance ties into this issue as the ownership of the goods varies between different finance products. With Rent to Buy and [Equipment Lease](/asset-lease), the lender retains the ownership title until such time as finance is fully paid-out. In comparison, with [Chattel Mortgage Equipment Finance](/chattel-mortgage) the ownership of the equipment immediately transfers to the business when the finance and purchase are settled. This means the equipment becomes an asset/liability in the company books and a depreciable asset. So this form of finance is seen as the most suitable for those operators looking to realise the tax deductions available through accelerated asset depreciation measures. Those opting for Lease or Rent to Own do still have tax deductions with the monthly finance payments but these can only be claimed per annum for the amounts paid which would not equate to the full purchase price. A final word on timing. Be mindful of any delivery delays with the specific machinery you are considering buying. Ensure you place that order within a sufficient timeframe so that it arrives and is operating in the business prior to the temporary full expensing deadline of 30 June next year. **To discuss Chattel Mortgage quotes for the machinery and equipment you need to purchase, 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.* **Categories:** Finance --- ### [Latest employment data may assist with machinery finance decisions](https://www.jadeequipmentfinance.com.au/blog/latest-employment-data-may-assist-with-machinery-finance-decisions) **Published:** December 20, 2022 **Author:** Publisher **Content:** Making decisions around major plant and equipment acquisitions with machinery finance can be a thorough process for owners of all sized business operations. With the current economic conditions of inflation, high costs, rising interest rates and tightness in the labour market, many factors may need to be considered in making those critical investment decisions. Astute operators can make use of assistance and guidance from respected sources and utilise the many resources and data as available to gauge their business prospects moving forward. Prospects which may raise the need for upgrading in new equipment and may determine the requirements for the machinery finance. With Australia experiencing extremely low rates of unemployment, many businesses are finding it hard to fill roles and as such, operate to capacity. Staying across the Labour Force Survey reports and Employment Data as released by the Australian Bureau of Statistics (ABS) may provide insights into the prospects for the business in regard to filling jobs vacancies and the need for machinery. **Latest ABS Employment Reports** The ABS released the latest monthly [Labour Force Survey](https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/nov-2022) on 15 December. This report covers estimates of unemployment, participation rates and hours worked in the survey period. The report just released reveals the unemployment rate in Australia is steady and unchanged at 3.5% and seasonally adjusted at 3.4%. The [participation rate](https://www.abs.gov.au/media-centre/media-releases/participation-rate-returns-record-high-november) rose by 0.2% and returned to a record high of 66.8% in the period. The previous high was in June this year. Mr Bjorn Jarvis from the ABS said that this record rate shows the continuing tightness in the labour market. On a seasonally adjusted basis, the employment rate increased by 0.5%. Mr Jarvis said that hours worked are well higher that the rates recorded prior to the pandemic. But despite these strong figures, there was higher numbers of reduced hours as a result of illness. No doubt this could in line with the latest wave of COVID-19 which saw a spike in cases over recent weeks. The net employment growth has primarily been in regard to full-time work. The percentage of people employed full-time had been trending down for some time up to 2017. Just before the pandemic the figure was 68.3%. Mr Jarvis notes that in the latest survey that figure has risen to 69.7%. This is close to the figures recorded around 10 years ago. In addition to the general employment and labour force data, the ABS regularly provides reports on labour statistics for specific industries. For example, on 21 December the quarterly labour statistics for the tourism industry are due for release. Also due this week is the Jobs Australia report which provides information on not only the number of jobs that are filled but the nature of those roles and the employers and the people. The ABS can be a great source of data for both employment statistics and other key indicators including inflation, spending, construction activity and many other areas. This information may be of assistance to business operators in developing plans for their operation. **Utilising the Data** So how could a business utilise say the latest employment data? That will of course depend on the specific nature of a business, the industry, region and many other considerations. But in let’s say general terms, the trends in unemployment may provide insights into prospects for filling those jobs that are current vacant. This may be major reasons to invest in more efficient machinery to address the lower staff numbers or if the prospects are good, possibly expand the fleet with the intention of hiring more staff moving forward. More efficient machinery can improve productivity, meaning greater output in less time or possibly with less staff. Machinery manufacturers pay a lot of attention to increased efficiency in the design of new models. With the tightness in the labour market continuing, if that means dealing with operating below capacity for a longer time, there may be a need to cut costs. That may be achieved through investing in more fuel efficient machinery or upgrading machines which spend more time in the workshop than in the field or on site. **Machinery Finance Update and Options** With the decision to invest in new equipment usually comes the need for [machinery finance](/overview-of-equipment-loan-products). To complement the intended productivity and efficiency gains from the equipment, the finance must also be cost-effective and deliver for the business. **Individually structured machinery finance to meet specific business needs can be key to ensure upgrading equipment is cost-effective and delivers on objectives.** Business owners can utilise our readily available broker-style lender services to individually source the cheapest finance and structure the loan to meet the specific needs of the business. The interest rate is the key determinant of the overall cost of the finance and sourcing the [cheapest rate](/equipment-finance-interest-rates) is essential to the cost-effectiveness of the loan and the overall cost of the equipment investment. But the finance term must also be negotiated to ensure the monthly finance repayment works with cash flow. To assist with the planning phases for new machinery acquisitions, we assist businesses with pre-approved finance, quotes and options for the most appropriate finance solutions to meet their objectives. Referring to statistics and data can be extremely useful but having the personalised attention and services from our experts can be invaluable. **For workable machinery 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.* **Categories:** Finance --- ### [Affordable Excavator Finance for New Cat Models](https://www.jadeequipmentfinance.com.au/blog/affordable-excavator-finance-for-new-cat-models) **Published:** December 20, 2022 **Author:** Publisher **Content:** Caterpillar recently released several new excavators into the Australian market – the 350, 340 and 352, which are sure to be attracting attention from operators in a number of key industries. But **the deciding factor for operators to realise the benefits and ROI of the new Cat excavators may be the affordability and cost-effectiveness of excavator finance**. The focus of these latest Cat models is on achieving increased efficiency, requiring less maintenance and supporting customers to reach their objectives in reducing emissions. Caterpillar’s Global Product Manager for hydraulic excavators, Mr Brian Abbott, said that the company was committed to the reduction of greenhouse gas emissions while at the same time assisting customers to meet their own climate objectives. He said that new Cat 350 was a great example of that commitment. On the Cat 340, Mr Abbott said it reached new performance levels with additions that made the excavator more productive and more stable. Additions which provide operators with greater flexibility to take on a larger range of projects. As for the Cat 352, Mr Abbott said this model is unmatched for performance in its class. And that class is BIG. This machine is designed for those big jobs, with suitability for equipping with large capacity buckets. That means less passes to dig and to load a lot of material. Ideal for the demanding conditions in quarries and similar applications. To assist operators to consider whether a new Cat excavator is a possible addition to their fleet, we summarise the key features of each model and provide the options for excavator finance. [**Cat 350** ](https://www.cat.com/en_AU/products/new/equipment/excavators/large-excavators/15969691.html) There’s a lot to know about the Cat 350, but we summarise some of the key features and the benefits that operators may enjoy:- - Fixed-gauge excavator with powerful digging force, strong swing torque. - Productivity which is class-leading – suitable for equipping with buckets up the 3.2 cubic metres. - Uses up to 13% less fuel than the 349 model – lowering costs, reducing emissions and providing more sustainable operation. - Three options for power modes to match the job – Eco, Power and Smart. - Outstanding technology to increase efficiency including Grade Assist, Vision Link, Swing Assist, Product Link and Lift Assist. - Real time estimates of weight for precise load targeting and further efficiency gains. - Requires less maintenance over previous designs. - Simple, comfortable operation. **Cat 340 Key Features** The new 340 model is presented as offering the best in its class for production. This hydraulic excavator has a more power, a wider track and a large counterweight for an increase in productivity of 10% over the 336 model of 2020. Key features include:- - Less maintenance required. - Match the jobs to one of the three engine modes. - Downtime is reduced with the synchronising of the intervals for servicing the oil and fuel filters. This is detailed as eliminating labour costs for nine changes and the cost of parts for 27 oil and fuel filters across 10,000 hours of operating. This is compared with many of the competitor machines in this 30 to 40 ton class. Interested? Check out the [full details](https://www.cat.com/en_AU/news/machine-press-releases/new-cat-340-excavator-offers-best-in-class-production.html) and speak to us for an excavator finance quote. **Bigger Jobs? Consider the Cat 352** When the job requires working with larger tools, consider the new Cat 352. With greater power and with its heavier counterweight, this hydraulic excavator presents potential for increased production which may equate to increased profits. The 352 offers impressive features including:- - Variable or a fixed gauge undercarriage. - Cab options include a deluxe version. - Pushbutton to start and via passcode. - Smart technology with numerous Caterpillar systems to assist operators and deliver improved productivity and production. - And many more to check out at the Caterpillar website. **Excavator Finance Options** As specialists in heavy equipment finance we provide the full portfolio of [loan options](/overview-of-equipment-loan-products) for excavators including Leasing, Rent to Own, Commercial Hire Purchase and Chattel Mortgage. These loan products are available as Low Docs and No Doc Finance for new business set-ups and for ABN only holders. All loans are individually sourced, negotiated and structured to meet the requirements of the business. A factor which can be critical in realising the expected ROI on the acquisition. For contractors, SMEs and sole traders it is particularly important that the finance is structured in line with the prospects for the business over the coming years. Finance terms negotiated with our cheaper interest rates to deliver a repayment schedule that will not pressure cash flow but will deliver positive outcomes. Interest rates are central to finance affordability and despite the recent RBA rate rises, we continue to deliver better interest rates across our excavator finance portfolio. There is no RBA Board meeting in January which means no rate rises until at least early February. So why not get in now, secure your new Caterpillar with our cheap interest rate excavator finance. **For finance on a new Caterpillar excavator, 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.* **Categories:** Finance --- ### [How cost-effective equipment finance for asset acquisitions may assist operators get a head start on the new year](https://www.jadeequipmentfinance.com.au/blog/how-cost-effective-equipment-finance-for-asset-acquisitions-may-assist-operators-get-a-head-start-on-the-new-year) **Published:** December 28, 2022 **Author:** Publisher **Content:** As the first summer in several years without COVID-based restrictions, without bush fires and for many areas, with a lull in La Nina’s heavy rainfall, it can be tempting to relax, chill and take some well-deserved time out. But astute business operators will still have an eye on prospects and possibilities for 2023. **Getting a head start on the new business year and being well-placed to capitalise on opportunities may be facilitated with cost-effective equipment finance**. Being ready to take on and overcome ongoing challenges that may not disappear as the calendar ticks over to a new year on 1 January. Unfortunately, many of the issues that have challenged businesses over recent years including operating with reduced staff levels, not being able to meet customer demand due to supply disruptions and rising costs from inflationary pressures, look like continuing into at least the early part of 2023. Investing in new machinery and equipment with cost-effective equipment finance may put businesses in a stronger position to successfully overcome economic conditions and be ready to capture new and emerging opportunities. Is it time for you to move those new machinery and equipment purchase from the back burner to the hot plate? **Consider the Business Possibilities** While investments in new machinery and equipment may have been delayed due to economic uncertainties in recent times, upgrading equipment can be a very positive contributor to improving business. - The labour scenario has been dire in Australia with near record unemployment rates. Upgrading or replacing equipment may deliver productivity improvements to counter these labour shortages. For example, excavators with larger buckets can do more work in the same timeframe to increase productivity by the one operator. - Efficiency increases can be realised through newer technology machinery. - Operating expenditure can be reduced with more fuel-efficient machinery and equipment which requires less ongoing maintenance. Ageing equipment can be costing valuable dollars with constant repairs. Dollars which can put undue pressure on cash flow. Dollars which could be better directed into finance repayments on new equipment. - New machines may present the opportunity to actually increase the business income. Being able to operate for longer hours, take on bigger or tougher jobs and reduce the amount of unproductive downtime. - The business may win more tenders for new work with a newer fleet of equipment. Chances of winning tenders for major works including infrastructure projects may be enhanced with top grade machinery detailed in the documentation. - Tax payable may be reduced through taking advantage of [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) before it expires at the end of June 2023. Accelerating those acquisitions may deliver wide-ranging benefits to many businesses across many industry sectors. But with any major purchase, the extent of the benefits realised may come down to the cost-effectiveness of the equipment finance. **Consider the Equipment Finance Options** Interest rates will likely be the first thing that comes to mind when any business operator thinks of machinery and equipment finance. The Reserve Bank (RBA) has hiked the cash rate significantly and the Board has said that it expects further increases to be required in order to bring inflation back to its target range of 2-3%. There are a few issues around interest rates to be aware of. Firstly, the minutes of the RBA Board’s most recent meeting, record interesting discussions around the latest cash rate rise. Those discussions were debating the pros and cons of continuing with the recent run of 0.25% cash rate rises compared with returning to implementing larger hikes of 0.5% or of just leaving the cash rate unchanged. This discussion has been noted in media reports as the RBA Governor has, on separate occasions, also confirmed that larger hikes and halting rises are on the table. But for those considering equipment finance in 2023, that could mean two quite different scenarios. Those of rates rising sharply or, hopefully, not changing and remaining steady. In conjunction with the RBA information, business owners should also be aware of how equipment finance interest rates are impacted by RBA decisions. Unlike in the home loan market where an RBA rate rise automatically results in a lift in variable home mortgage rates, the equipment finance rate market works differently. Banks and other lenders operating in the commercial loans sector make their own individual and independent decisions around rates. This can lead to quite significant rate variations and raises the necessity for business owners to have access to more lenders to identify the cheapest finance offers. Access which we can provide through our broker-style services. Heading to the bank for equipment finance is certainly not the only option on the table. As can easily be seen when using a [Finance Calculator](/calculator), the interest rate has a significant effect on the monthly repayments and the overall expenditure cost of the equipment. Accessing non-bank lenders that can be flexible and negotiable when it comes to rates can make a huge difference in the overall cost of finance and new equipment. The difference between affordable or back on the back burner. Choosing the most appropriate finance product to suit the accounting method used by the business and to meet its financial objectives is also extremely important to the overall cost-effectiveness of the loan. The choice of loan types includes:- - Rent to Own or Rent to Buy, which is also known as Equipment Rental. - Commercial Hire Purchase or simply Hire Purchase. - [Equipment Lease](/asset-lease) or Asset Lease. - Chattel Mortgage which is also referred to as Equipment Loan. Tax deductions are available with all finance products but those seeking to utilise temporary full expensing, [Chattel Mortgage](/chattel-mortgage) is considered most appropriate. Getting organised now with those equipment acquisitions rather than waiting until say February/March may avoid a possible RBA rate rise in February and give your business a head start on the competition. **For quick responses and action on 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.* **Categories:** Finance --- ### [Prepare the office or workspace for a more productive 2023 with affordable equipment finance](https://www.jadeequipmentfinance.com.au/blog/prepare-the-office-or-workspace-for-a-more-productive-2023-with-affordable-equipment-finance) **Published:** January 13, 2023 **Author:** Publisher **Content:** 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](http://www.rba.gov.au)) 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](/overview-of-equipment-loan-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](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/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](/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](/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.* **Categories:** Finance --- ### [Considering new machinery for ‘23? Popular loaders and excavators and equipment finance options](https://www.jadeequipmentfinance.com.au/blog/considering-new-machinery-for-23-popular-loaders-and-excavators-and-equipment-finance-options) **Published:** January 13, 2023 **Author:** Publisher **Content:** For operators in landscaping, agriculture, earthmoving and civil works, purchasing new loaders and excavators may be a smart move to increase productivity and output with the same labour force. Many industries are facing the challenges presented by Australia’s very low unemployment rate. Challenges in filling their staffing requirements in order to operate to full capacity. As an option, investing in new machinery which offers greater efficiency and the potential to improve productivity with existing labour numbers, may be a worthwhile strategy to consider. **Investments in new loaders and excavators can present many benefits to operators but the real return can often be in securing cheaper equipment finance.** Now may be an especially advantageous time for operators to make those investments in new machinery. Great timing to stay ahead of any possible interest rate rise decision from the RBA, to take advantage of new year special offers and to capitalise on the benefits of temporary full expensing before this measure expires. But first the decision on which particular makes and models to purchase. To assist with that step, the team at [constructionsales](https://www.constructionsales.com.au/) has published their end of year wrap on some of the most popular loaders and excavator makes and models for 2022. Popularity based on views to the website and other data. **Compact Track Loaders to Consider** Compact track loaders are extremely versatile to get jobs done easily in hard to access places and to handle the smaller tasks. These handy machines can be used in road repair, grading, snow clearing, digging, trench making and a whole range of other jobs. The small size can make these machines more easily transportable and a great option for individuals looking to start up as an owner-operator contractor. To assist new operators get into their own business, we offer [Low Doc and No Doc Equipment Finance](/no-docs-low-docs-equipment-finance). Constructionsales reported the most popular brands of this type of machinery in 2022, based on the data collected were:- - [Bobcat’s T590, the S590 and the T870 ](https://bobcatofaustralia.com.au/) - Kubota SVL 75 - Caterpillar’s 259D - Case TR270 - Terex models **Small in Size, Big in Popularity – Mini Excavators** According to the data which was compiled by constructionsales over the year, the mini excavator continues to be one of the most popular machinery items on the market. This is based on the number of visits to the website for this equipment category. The top brands considered by site visitors were:- - Kubota - Yanmar - Komatsu - Kobelco - Bobcat A mini excavator could be another option for new start-up contractors. Have a chat to one of our consultants prior to purchase to find out how cost-effective we could make the machinery finance. **Special Offers** Bobcat currently has a special offer on a [Tractor and Mulcher Bundle](https://bobcatofaustralia.com.au/Promotions/69/Bobcat-Tractor-Mulcher-Bundle). The bundle includes the company’s 38hp compact tractor, the front end loader, the 4-in-1 bucket and the 140cm mulcher. All for just $44,950 for those quick to move – offer expires at the end of January. To see what that price might equate to equipment finance repayments, just head to our Finance Calculator. Tip: the RBA Board is due to announce its next interest rate decision on the first Tuesday in February. Buying in January may beat any possible equipment finance interest rates increases following the RBA February decision. **Range of Equipment Finance to Consider** Equipment finance is not usually rated from a popularity basis as the choice of which finance product is made based on suitability to the individual business objectives. But, over the past few years, since April 2020 actually, there has been greater interest in [Chattel Mortgage Equipment Finance](/chattel-mortgage). This is due to the suitability of this loan type for Instant Asset Write-off and temporary full expensing. The very attractive tax measures which were introduced to stimulate the economy at the onset of the COVID-19 pandemic. [Temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) expires at the end of this financial year, so move quickly to receive the tax deductions on offer. Business operators have a number of [equipment finance products](/overview-of-equipment-loan-products) to consider including:- - Chattel Mortgage - Lease - Rent to Buy - Commercial Hire Purchase The specifics of each loan type should be considered in relation to the specifics of the business, especially the financial objectives and accounting processes and methods used. The interest rates do vary across the selection of machinery loan products and can vary for different industries, for individual loan applicants and for new and used machinery. As with most lending markets, interest rates in the equipment finance sector can be affected by decisions made by the RBA. The next rate decision by the RBA is due in early February so getting equipment finance confirmed in January may be a shrewd move. We can provide confirmed quotes on equipment finance for loaders and excavators even before purchasing for all types of loan types including Low Doc and No Doc loans for new contractors. **For equipment finance on loaders and excavators, 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.* **Categories:** Finance --- ### [Equipment Finance Options for New Operators](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-options-for-new-operators) **Published:** January 13, 2023 **Author:** Publisher **Content:** So you had great plans for making that bold move that many do, setting up your own business this year with your own piece or fleet of machinery and equipment. But once you started looking into the options for equipment finance for new businesses and especially sole traders, those plans are looking less possible. Not being able to meet the criteria for finance as set by some lenders can deter many individuals from proceeding with plans to set-up their own business. These criteria can include the lack of all the documentation which is required to fully complete a typical business finance application. **To assist new operators, Jade Equipment Finance provides access to cost-effective Low Doc and No Doc Equipment through specialist non-bank lenders**. Finance which enables new operators to acquire the machinery and equipment required to establish their own business and work to achieving their self-employment goals. This type of equipment finance may suit those looking to self-employment as a sole trader in many areas including construction, building, trades, landscaping, civil works, earthmoving, IT, digital industries, retail, beauty services, fitness and many others. Low doc and no doc loans are especially designed for those without the complete set of financial documentation required to meet the eligibility criteria as set by some lenders. While some conditions may be attached to the loans that would not apply to established companies, this type of equipment finance can still be achieved at affordable interest rates and with workable terms. **No Doc Low Doc Equipment Finance** Exactly as the name implies, these loans require less or even [no financial records or docs](/no-docs-low-docs-equipment-finance). The reference is to the operator or business owner that is making the finance application. Once the application is approved, the new operator has the choice of which particular finance product will best work for their set-up. More on those options below, first we cover the details of the No Doc and Low Doc application category. Docs is a term used in the finance sector to refer to a wide range financial information about an individual or business. In regard to businesses, those docs include records such as the Business Activity Statements, the business tax return, the annual business accounts as prepared by the account, bank account statements, asset and liability statements and trading figures. New operators that have been operating for a short time may have accumulated some of these docs, while those in the initial set-up stages will likely have none or very few. The amount of financial information or docs which can be included with the application can improve the application and as such, may lead to a cheaper interest rate equipment finance or more amenable conditions. Lenders may view this in a positive light. What is definitely required by all No Doc and Low Doc applicants is to hold a current Australian Business Number (ABN) and present verifiable forms of identification. Having GST registration is not an essential requirement but may be viewed favourably by lenders. Businesses generating in excess of $75,000 pa must have [GST registration](https://www.ato.gov.au/Business/GST/Registering-for-GST/). Most applicants should expect that their personal financial position and credit rating will be reviewed and assessed when an application for this type of equipment finance is made. Those planning to set-up as a sole trader or as self-employed operator or contractor may enhance their finance application by addressing issues with their credit rating. Information on this can be obtained at [Moneysmart](http://www.moneysmart.gov.au). **Sourcing New Operator Equipment Finance** One of the major queries for new operators seeking equipment finance will be what finance companies or lenders actually offer loans to suit their circumstances. There are lenders that do offer this type of finance but often not directly to the business applicant. These types of what we refer to as non-bank lenders, are often difficult for business operators to find and in many cases, the lender does not offer finance directly to business owners. Instead, their business model is to work through a network of finance brokers, such as Jade Equipment Finance. We have this arrangement, known as accreditation, with numerous non-bank lenders which allows us the access to their finance products for our customers. Contrary to what some new operators may think, utilising the services finance brokers is available to them and can deliver significant benefits. Benefits such as having professional experts to source and structure the equipment finance and negotiate the interest rate and any special finance conditions. **Equipment Finance Products** As mentioned above, after the new operator’s equipment finance application is approved, or even prior to applying, the business owner can decide which of the finance products will suit the acquisition and the business. The choices include:- - Equipment Leasing - [Chattel Mortgage](/chattel-mortgage) - Commercial Hire Purchase - Rent to Own There are a number of differences in these products which relate primarily to the structure of the business in regard to accounting practices. As such, we encourage our customers to refer to an accountant or their financial advisor to assist in the decision-making. Plans for self-employment with your own machinery or equipment purchased with affordable equipment finance may be highly achievable with Low Doc No Doc finance. To discuss what the specific options may be for your individual circumstances, have a confidential discussion with one of our operators. **To explore equipment finance options for new operators, 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.* **Categories:** Finance --- ### [Plan acquisitions and machinery finance in advance - diarise 2023 Field Days](https://www.jadeequipmentfinance.com.au/blog/plan-acquisitions-and-machinery-finance-in-advance-diarise-2023-field-days) **Published:** January 13, 2023 **Author:** Publisher **Content:** Field days are extremely popular events and what was great to see so many return to the calendar in 2022. These events represent ideal opportunities for business operators, especially those in the agricultural, horticulture and farming sectors, to meet with manufacturers and see first-hand, the latest technology and model releases. They can also present opportunities to order machinery and often to take advantage of special deals which are only available at the field days. **To optimise opportunities presented by field days, smart operators will be planning ahead for 2023 events and pre-arranging machinery finance to be ready to buy.** The Association of Agricultural Field Days of Australasia (AAFD) provides a convenient listing of all the events both in Australia and in New Zealand in addition to some international events. A great reference point to start the planning and we can provide pre-approved machinery finance to further assist buyers maximise attendance. **2023 Field Days Calendar** The [AAFD register of fields days](https://www.aafda.com.au/register-of-field-days/) for this year includes many, many events. Those interested in plotting out their full year can refer to the specific events of interest in their area. For others with a more general view, here are a few key dates to diarise for 2023:- - AgQuip Gunnedah, regarded as the largest event on the field days calendar will be held on 22-24 August. Due to the popularity and scale of this event, locking in plans well ahead could be in order. The date is too far off to source pre-approved machinery finance but not too far off to do the preliminary research and planning to be ready to apply as the date nears and the machinery requirements become clearer. - AgGrow will be held in Emerald Queensland over the three days of 22nd to 24th Close to EOFY so buyers would want to have finance in place if planning to buy at this event. - Australian National Field Days will be held in Orange NSW from 26 to 28 October. - Agrotrend will be held in Bundaberg Queensland in early May. - [The Karoonda Farm Fair and Show](https://www.farmfair.com.au/) in South Australia is coming up soon starting 31 March for 3 days. Keen buyers can start talking to us about finance for purchases and lock-in loans. - East Gippsland Victoria Field Days will be held at the Bairnsdale Aerodrome on 21-22 April. - Mildura Victoria Field Days will be held 19-20 May. Considering the flooding which has been occurring in this region, it may advisable to check in with organisers regularly and lock-in accommodation and other arrangements early. - Henty Machinery Field Days are also held later in the year around September with dates TBA. - Murrumbateman Field Days also in October this year. - Early in the year is the Tocal Field Days in the Hunter Valley. This year the event takes place 5-7 May. - Mingnew Midwest Expo in WA will be held 9-10 August. - Dowerin (WA) Machinery Field Days are also slated for end of August. - For Tasmanian operators, lock in the dates 4-6 May for AgFest. Refer back to the AAFD website for updates and dates not as yet published and refer to individual field days for details of exhibitors. **Pre-planning Machinery Finance** While many of the 2023 field days occur in the second half of the year, there are some in the first half and there are steps which can be taken even well ahead of the date. Here are a few tips for long-range and last-minute finance for buying at field days:- - Research finance products and discuss with the business accountant which is best suited to the individual operation. The selection includes [Chattel Mortgage](/chattel-mortgage), Leasing, Commercial Hire Purchase and Rent to Buy. - [Use a finance calculator](/calculator) to work up rough estimates of possible machinery loan repayments. Being mindful that the interest rate offered to you may vary from the current rates when using the calculator. But these estimates can be very helpful for forming general ideas. - If planning machinery a long way in advance, allow for changes in interest rates and possibly in the pricing of machinery. Machinery finance interest rates can change with decisions made by the Reserve Bank of Australia and will vary across the lending market over time. Supply, inflation and other issues may have impacts on the price of new machinery when launched into the market. Being aware of these issues and factoring them into planning is strongly advised. - In the lead-up to field days, make an application for pre-approved machinery loans. We provide this option so operators can have confirmed, approved offers for specific loan amounts ready to go when attending events such as field days. - Talk to our consultants at any time regarding machinery loan options to assist with planning. **Finance Dates to Note** When planning machinery finance and acquisitions in advance, there are a few key dates and events to keep in mind in addition to the field days:- - May Federal Budget: policies made at Federal level can impact business taxation and other business operating conditions. - RBA meetings are held on the first Tuesday of each month (excluding January) and decisions made can impact machinery finance interest rates. - 30 June end of financial year is the deadline for finalising acquisitions for inclusion in 22/23 tax returns and annual accounts. - 30 June is the deadline for instant asset write-off. Assets must be operational in the business prior to this date to be eligible for this tax measure. - Mid-year/EOFY sales can often start in May or early June and may present good discounts. **For machinery finance prior to field days, 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.* **Categories:** Finance --- ### [Pre-approved Equipment Finance for Trade Show and Field Day Attendees](https://www.jadeequipmentfinance.com.au/blog/pre-approved-equipment-finance-for-trade-show-and-field-day-attendees) **Published:** October 2, 2022 **Author:** Publisher **Content:** With pandemic restrictions now easing, the calendar of trade shows and the very popular field days is once again filling up for 2022. Over the past month or so there have been a number of large events across many industries including the Australasian Gaming Expo (AGE) for the hospitality sector, the Australasian Waste and Recycling Expo ([AWRE](https://awre.com.au/)) and of course the massive [AgQuip](http://www.agquip.com.au) 2022 event for the agricultural sector. These events are great for seeing the latest machinery and equipment, but in order to be in a position to purchase, buyers can secure pre-approved equipment finance prior to the show. **Jade Equipment Finance offers pre-approved equipment finance to enable attendees to confidently place orders for new machinery at trade shows and field days.** With supply a major problem across many sectors due to global issues around the pandemic and semiconductor shortages, getting in quick with orders can mean a big difference in delivery times. Being able to order on the spot may place operators at the top of the list for delivery of their new equipment when it arrives. Timing may be critical if that machinery or equipment is required to update and upgrade ageing and obsolete machines which are no longer performing as desired. New equipment can deliver improved productivity and fuel efficiency which can increase output and reduce costs. So considering finance requirements before attending a trade show can be an essential part of the show preparation process. **Sourcing Pre-approved Finance** Typically, most business owners will look to arranging their finance after they have selected, ‘done a deal’ and effectively committed to buying the machinery or equipment they require. That is totally fine when supply of makes and models is plentiful and when businesses are confident they will be approved for a certain finance amount and can proceed to commit without the finance sorted. But in many instances, that is not the ideal scenario. Pre-approved finance is sourced, quoted and processed through to the approval stage before that buying commitment is made. As the exact price of the machinery is not always known at that stage, an estimate of the finance required is used for the pre-approval loan application. The benefits of pre-approved finance include:- - Providing confidence to proceed with a purchase. - Knowing the amount that the business is approved to borrow. - Providing a guide or budget for selection of machinery and equipment to meet finance budget. - Enabling budgeting and forecasting for asset investments. - Allowing for options and accessories to be included in the purchase up to the approved finance amount. - Being in a position to place an order at trade shows or on the first visit to a dealer and inspection of the machine to save time and expedite delivery. - To capture limited supply equipment by being able to make that ‘no the spot’ purchase commitment. - Provide businesses with firm quotes on monthly repayments for certain machinery. It is important to note that the types of [finance products ](/overview-of-equipment-loan-products)and the [interest rates](/equipment-finance-interest-rates) applicable are the same for pre-approved finance as they are when the finance application is processed after the buying commitment is made. Interest rates on equipment can vary across different industry sectors. So planning acquisitions with finance based purely on general advertised interest rates on equipment finance may come with issues. The rate actually offered may be different from the rate advertised. The rate and loan conditions also vary with the credit rating and other aspects of the business applicant. Pre-approved equipment finance eliminates those doubts and question marks by providing a firm quote based on the individual finance application. Pre-approved loans do have a timeframe within which the loan must be activated or used or else the offer expires. If required at a later date, the offer would need to be re-quoted. If the offer is not used prior to expiry, there is no obligation so no problems! **Upcoming Trade Shows** We provide finance to all industries, so we stay across the events in many sectors. Some of the trade shows coming up include:- - Asia Pacific Oil and Gas Conference and Exhibition in Adelaide, 17-19 October - Foodservice Australia, Sydney, 23-25 October - All-Energy, Melbourne, 26-27 October - [Australian National Field Days](https://anfd.com.au/) , 20-22 October, Borenore, NSW If planning to attend these or any other industry trade show where new equipment will be demonstrated and available to order, consider speaking with us prior in regard to pre-approved equipment finance. We provide workable, cost-effective loans for businesses of all types on machinery and equipment across all industry sectors. **For pre-approved equipment finance, contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Finance --- ### [Attending a Field Day or Trade Show? Consider Pre-approved Machinery and Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/attending-a-field-day-or-trade-show-consider-pre-approved-machinery-and-equipment-finance) **Published:** October 2, 2022 **Author:** Publisher **Content:** Trade and industry conferences and exhibitions are now back on the agenda as COVID restrictions are eased and lifted across Australia. In the past weeks AGE, [AWRE](https://awre.com.au/) and [AgQuip](http://www.agquip.com.au) have all been held and plenty more are to come this year. Great news for business owners and operators as well as the equipment manufacturers that now have a showcase for their new releases. For operators in the process of planning to attend their industry event, now could be the time to consider talking with us about pre-approved machinery and equipment finance. Placing orders for new equipment at expos and field days can be convenient, time-saving and astute. With supply chains causing delivery delays of many makes of new equipment, being in a position to place an order asap may mean a shorter delivery time or securing items which are in limited supply. But in order to be in that privileged position, many business operators will want to know clearly and specifically that they have their finance organised. **Jade Finance provides operators attending field days and trade shows with the confidence to place an order on the day with pre-approved equipment finance.** For those attending upcoming exhibitions, we explain the benefits that can be realised with pre-approved finance and how simple we make the process of applying and securing the cheapest equipment finance. **Benefits of Pre-approved Equipment Finance** Pre-approved finance is a loan for machinery or equipment that is applied for, offers and quotes sourced and application approved before the purchase has actually been finalised. This type of finance can even be arranged before the final choice of machinery is made. Why would businesses want to source finance before they even know what they will be buying? - So they have a better idea of how much they would be approved to borrow. - So they have a finance budget to work to rather than scrambling to source a loan to match the price tag of the equipment they have committed to buy. - Provide greater confidence to make asset investment decisions and commitments. - To structure the machinery with options and extras to the amount of the loan total approved. - To have firm quote and monthly finance repayments known prior to buying. - For investment planning and budget forecasts. - To make quick buying decisions to snap up equipment which is only available in limited quantities due to supply chain issues. **Products and Interest Rates** Pre-approved equipment and machinery finance is available on our full range of [business asset acquisition finance products](/overview-of-equipment-loan-products): - Chattel Mortgage - Commercial Hire Purchase - Leasing - Rent to Own This type of loan and finance products are available for a wide range of new equipment and machinery across all industry sectors. The [interest rate](/equipment-finance-interest-rates) that applies to a pre-approved loan will be the same as is applicable to a loan which is sourced and quoted after the sale. The interest rate is determined primarily on the credit profile and risk assessment of the business by our lenders. Rates do vary across the different finance products. Rates will vary across equipment for different industries and for different businesses. So a pre-approved loan eliminates any uncertainties around what rate you may be offered on a particular type of equipment. Pre-approved finance will have an expiry time. The business has that timeframe, which is advised at the time an offer is made, to proceed with the finance. If that does not occur, the finance offer will expire with no obligation. If the business requires the loan at a date down the track, we would need to re-quote. With interest rates currently being increased as per RBA decisions, a ‘down the track’ requote may be at a higher interest rate. **Upcoming Exhibitions** A number of key exhibitions and conferences are on the horizon, including:- - 17th-19th October, Oil and Gas Exhibition, Adelaide. - 23rd-25th October, Foodservice, Sydney – this is a massive event and must-attend for those in the hospitality sector. - 20th-22nd October, [Field Day Orange NSW ](https://anfd.com.au/) Plus many more. All great opportunities to meet with manufacturers and suppliers and see first-hand the latest releases in machinery and equipment in your particular industry. These types of events often offer show discounts and special offers which are only applicable to orders placed at the event. Pre-approved finance would enable buyers to take full advantage of such offers. When booking your tickets for your industry exhibition, make the next step contacting us to discuss pre-approved machinery and equipment finance to complete your pre-expo preparation. **Contact Jade Finance 1300 000 008 for pre-approved machinery and equipment finance.** *DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.* **Categories:** Finance --- ### [Cheaper Equipment Finance for Latest Model Machinery](https://www.jadeequipmentfinance.com.au/blog/cheaper-equipment-finance-for-latest-model-machinery) **Published:** October 3, 2022 **Author:** Publisher **Content:** **Cheaper equipment finance at better rates can add even greater value, productivity and profitability to major investments in the latest machinery and equipment**. Upgrading older machinery to newer models has the potential to contribute significantly to improving overall output and production. Manufacturers focus heavily on delivering efficiency through cost and fuel savings as well as adding features to improved safety and operator comfort. These savings and cost-effectiveness can be added to even further when the machinery is acquired with cheaper interest rate finance. We focus on some of the recent new machinery releases particularly in the agricultural sector that may have passed you by and update on the latest moves and changes in machinery finance. **New Case Tractors** In case you missed it, Case added two new Farmall tractors to its range back in June. These are the 65 horsepower model and the JXM55. The range launched in the Australian market in 2018 and the popularity it quickly acquired and the demand for models with lower horsepower led to the release of these new models into the Aust-NZ market. Seamus McCarthy from Case said these models would be ideal for its Australian customers and would suit a wide many applications in the farming sector. An extensive range of new and updated features have been included:- a 3 cylinder, 2.9 litre turbo-charge engine; configuration for 4WD; mechanical or a hydraulic shuttle; choices in transmission; fuel capacity of 60 litres; suitability for work in dust-prone conditions with a new air filter; an environment for the operator which is ergonomically designed; and many other inclusions. Finance for tractor purchases is available through Business Finance so contact us for a quick quote prior to discussing the model to suit your operation with your local Case dealer. **Komatsu Excavators** Komatsu recently launch new excavators – the iMC 2.0, which may represent benefits for your operation. The new range has numerous updates include with the angle of the bucket gold, antenna updates, [auto tilt attachment](https://www.komatsu.com.au/company/news-media/videos/imc-2-0-excavators) and others. Suitable for a wide range of applications, new excavators may meet the ATO criteria for temporary full expensing. Delivering operators greater efficiency and significant tax benefits as well. In order to take advantage of this tax measure, which is in effect through to 30 June 2023, consider Chattel [Mortgage Machinery Finance](/chattel-mortgage). Chattel Mortgage is a flexible and widely-used finance product which suits many types of operations that utilise the cash accounting method. It also attracts the lowest interest rate compared with other products, adding further value to the acquisition. **JD Launches New Harvester** Earlier this month John Deere launched a new harvester in conjunction with its 50 year anniversary. Making the launch and this machine particularly significant for the company. JD states that the SPFG (Self-Propelled Forage Harvester) 9500 model is an innovative model and designed to deliver Australian farmers with greater precision, more power and improved productivity. In the [launch statement](https://www.deere.com.au/en/news/all-news/9500-self-propelled-forage-harvester-launched-during-milestone-year/), spokesperson Stephanie Gersekowski said this release was part of the redefined collection from the company for this harvester type. In addition to the 9500, a 9600 and 9700 are reintroduced to the market. New horsepower level and a new engine are key features. The 8000 Series for model year 2023 has remained unchanged except for increased horsepower on the 8200 model as it has an engine upgrade. Ms Gersekowski says the 9500 along with the other two in the series offer greater power and throughout. They include HarvestMotion PLUS, a special feature to synchronise the speed of the engine with power need and crop flow. **Update on Machinery Finance** There has been a lot of activity in the lending sector over the past months as the [RBA](https://www.rba.gov.au/) has embarked on a process of normalising monetary conditions with pandemic support in low rates no longer deemed necessary. In simple terms, the RBA is increasing the cash rate to address soaring inflation rates in Australia. We’ve seen four consecutive rate hikes and Governor Lowe has strongly indicated that the additional increases will be needed. The Board will be closely watching the employment and inflation data when forming its decisions around how much and when further rate rises will be called. For machinery finance, these rate hikes have flowed through our lending sector and resulted in rises in rates. This is happening across all markets. But variations in machinery finance rates are still clearly evident across the lenders that are active in this area. Sourcing the cheapest available rates can be key to achieving a cost-effective machinery acquisition. We assist customers achieve this objective through our vast selection of lenders and our ability to [secure better interest rates](/equipment-finance-interest-rates) across the finance selection. Rates displayed by lenders will be the lowest they can offer and will typically apply to businesses with a good credit rating and for the acquisition of new machinery. There are variations in interest rates across different industries and for second-hand machinery. Those interested in upgrading machinery are advised to contact for a no-obligation finance quote so they are prepared with the full picture and clear idea of finance repayments prior to committing to the purchase. **Contact Business Finance on 1300 000 033 for cheaper machinery finance.** *DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.* **Categories:** Finance --- ### [Conditions which may indicate the time is right to upgrade with equipment finance](https://www.jadeequipmentfinance.com.au/blog/conditions-which-may-indicate-the-time-is-right-to-upgrade-with-equipment-finance) **Published:** October 9, 2022 **Author:** Publisher **Content:** Identifying exactly when is the right time to invest in new plant, machinery and equipment can involve consideration of a range of factors. These, among others, may include the equipment finance scenario and the outlook for the business. But finding the time to stay across the current, quite changing economic situation can be challenging. Finding the time to source which lenders are offering the best rates as the RBA continues to lift rates can be time-consuming. **Jade Equipment Finance has collated recent economic and finance data and information to assist with timing decisions for major asset acquisitions with finance**. Data from sources such as the ABS, the Australian Bureau of Statistics, the Reserve Bank of Australia (RBA), the Australian Tax Office (ATO) as well as government. **Staffing and Labour Issues** One of the major issues which has been holding many businesses back over the past 2 years has been staff shortages and increased absenteeism due to COVID-19 isolation restrictions. The RBA has noted this as a major issue which has constrained business capacity. The latest figures and some upcoming Government actions may be set to alleviate the labour shortage and provide a more positive outlook for business. After falling for many months, the unemployment rate rose for August to 3.5%. The September figures should be available in coming weeks and can be accessed at the [ABS](http://www.abs.gov.au) website. A National Jobs Summit was recently held and has led to a number of positive outcomes. These can be reviewed in detail at [Treasury](https://treasury.gov.au/sites/default/files/inline-files/Jobs-and-Skills-Summit-Outcomes-Document.pdf) and include migrant intake increases; dealing with visa processing delays; and changes to both how much aged pensioners can earn and restrictions for international students graduating from Australian universities. Another major plus for businesses is the decision made by National Cabinet on Friday 30 September to cut mandatory COVID isolation rules. These come into effect from 16 October. But some medical experts warn of issues around this easing. Businesses may wish to make their own decisions as to whether or not they will ask their staff to continue isolating for 5-7 days when they test positive. **Inflation and Spending Patterns** Soaring inflation has been the main reason that the RBA has been raising interest rates over the past 6 months. Consumer demand was and continues to be strong after easing of lockdown restrictions while supply for many goods has been constrained due to both domestic and global issues. Inflation figures have traditionally been issued every few months. A scenario which may make it more difficult to assess the situation. But the ABS had now made the decision to release inflation data on a monthly basis and have just released the [August figures](https://www.abs.gov.au/media-centre/media-statements/monthly-cpi-indicator-rose-68-year-august). Following how inflation is tracking on a monthly basis, may provide businesses with indications for their own operations. Following spending trends for consumers may also assist by seeing in what sectors demand is strong and where spending may be dropping off. This data can also be accessed on a monthly basis at the ABS site. The [August data](https://www.abs.gov.au/media-centre/media-releases/retail-sales-continue-rise-06-cent-august) revealed a further increase in the retail sector. Mr Dorber from the ABS said the August increase was the eight consecutive monthly increase and was driven by the food sector. He mentioned cafes and restaurants as well as food produce and takeaway. Spending on non-food goods posted a mixed result. A fall of 2.5% was recorded in goods including clothing, footwear and accessories. What can this mean for businesses and the economy? Businesses in certain sectors that are still seeing strong consumer demand may see this as positive signs and justification to proceed with asset acquisitions. Those in other sectors may use this data to adjust production. There is however a potential downside to strong consumer demand. That is, further interest rate increases by the [RBA](http://www.rba.gov.au). Governor Philip Lowe stated in a number of media releases that there would be take time for rate rises to record an effect on inflation. If the RBA Board see inflation continuing at strong levels, further rate rises may be considered appropriate. For businesses this may be motivation to move quickly with machinery purchases with equipment finance before interest rates rise further. **Finance Rates** The interest rate is the key determinant of the total cost of an equipment finance deal and the monthly finance payments. The RBA has acted to raise the official cash rate at each of its monthly Board meetings recently and additional increases are expected. Despite the recent interest rate increases which have flowed through lending markets, we have continued to maintain better rates across the full portfolio of our [equipment finance products](/). **Tax Benefits with Finance Selection** Optimising tax benefits of equipment finance can deliver significant savings. Currently, eligible businesses acquiring eligible assets may choose to take advantage of temporary full expensing. [Read our article](/blog/revisiting-chattel-mortgage-finance-as-temporary-tax-measure-expiry-date-nears) on this measure as a reminder of the machinations. In regard to timing, businesses should note the 30 June 2023 cut-off. Reason enough to move on plant, machinery and equipment purchases with Equipment Loan or [Chattel Mortgage](/chattel-mortgage). Our consultants can move quickly with sourcing the cheapest finance quotes, structuring finance and arranging settlement to ensure business operators meet their preferred timeframe. **Summing Up** Another matter to look out for, coming up shortly, is the October Budget to be delivered by Treasurer Chalmers. We appreciate that not everyone has the time to stay across these issues as they unfold, so we do. Stay connected with our [News and Tips](/blog) as we post weekly articles on topics that are relevant to general business and specifically to equipment finance. **To discuss your finance requirements 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.* **Categories:** Finance --- ### [What the RBA December Meeting Minutes reveal about interest rates prospects](https://www.jadeequipmentfinance.com.au/blog/what-the-rba-december-meeting-minutes-reveal-about-interest-rates-prospects) **Published:** December 28, 2022 **Author:** Publisher **Content:** Most people receive the news on interest rates via news media which usually only includes the announcement of the Reserve Bank Board’s monthly decision. These announcements, which are posted as a press release on the bank’s website, are somewhat brief but they do typically provide a basic overview of the reasoning behind the cash rate decision. The announcements over the past few months have concluded with similar statements around further rate rises would be expected in the coming times. That’s quite a general indication and not extremely helpful for business owners considering investing in new equipment with finance in coming times. More information on what may be ahead for interest rates would no doubt be extremely helpful in making those equipment acquisition decisions. But following the recent criticism of the RBA for their remarks around interest rates not needing to be increased until 2024, Governor Lowe has said that the Board would not be providing any specific dates like that again. However, for those that would like more information and direction, the Minutes of each RBA Board meeting can be worth the read. The December document is particularly interesting because it reveals that the RBA has and is considering pausing its current run of rate hikes. Positive news for those considering taking on new finance, but the detail should be considered so as not to draw inaccurate or ill-informed conclusions. For in addition to discussing the possibility of a stop to rate rises, the Board also discussed the for and against arguments for a return to the larger rate hikes. For those wanting a quick overview of the December meeting minutes, we have summarised some of what we consider the most relevant aspects. For those wanting the more complete version, we direct you to the full document at the Reserve Bank of Australia ([RBA](https://www.rba.gov.au/monetary-policy/rba-board-minutes/2022/2022-12-06.html)) website. **Overview: Minutes of December Rate Decision Meeting** Developments in the economy – both globally and at a domestic level, were the topics discussed at the start of the Board meeting. Specifically, the changes and continuations of existing conditions since the November Board meeting. Aspects noted in the minutes include:- - The level of inflation remains very high globally. - Inflation appears to have reached a peak level in some countries. - China continues to face challenges in regard to the ongoing COVID-19 situation. - Disruptions to supply chains appear to be easing and inventories returning to more normal levels. - In the Australian economy, the data released in recent weeks was seen as ‘in line’ with the Board’s November meeting assessment. - While remaining high, the Australian inflation rate posted a small decrease in the data released for October. - The October inflation result to be treated with some caution as some relevant contributing data would not be included until the last month of the quarter – in December. After further discussion of the labour market and other economic issues, the discussion turned to the decision for the cash rate – the interest rate rise decision for the month. And this is where it gets interesting for those considering equipment and machinery finance. The minutes reveal that the Board discussed the arguments for three options: a return to the large 0.5% hikes; a continuation of 0.25% rises; and a 0% decision – holding the cash rate steady and unchanged for the month. The pros and cons for another large increase covered the fact that inflation was still high and demand needed to brought back into balance with supply. But other arguments were present against this option. The arguments for holding the rate unchanged included the delay which occurs between when rate increases are announced and when they start to take effect in economic activity. The Board discussed how even with further rises, the forecasts pointed to the economy taking several years to achieve the target inflation level. A cautious approach in uncertain times was also discussed as was the fact that there have no rate pauses implemented by other central banks globally. As is now known, the decision was made for a further 0.25% rise as the arguments for this option were considered as the strongest. The minutes note that several options would be in the discussions at the next Board meeting. Remarks made by Dr Philip Lowe, Governor of the Reserve Bank of Australia, elaborated further on these discussions when he said that returning to bigger rises and halting rises were not ruled out at this time. **Interest Rates Prospects** The data to be released prior to the February RBA meeting, especially the quarterly inflation figures, will likely be significant to future rate rise decisions. The lag effect has been mentioned on a number of occasions and with rises since May 2022, some level of effect may start to become evident. With the Board not ruling out a number of options, the prospect for interest rates in the early part of 2023 is still clouded in some doubt. Acting promptly with asset investments may be advisable. **Businesses ready to act can access the cheaper, current equipment finance interest rates through Jade Equipment Finance prior to a possible February rate rise.** Due to our multiple lender accreditations, we continue to be well-placed to offer [better rates](/equipment-finance-interest-rates) across our [finance portfolio](/overview-of-equipment-loan-products). **To secure machinery and equipment finance at the current interest rates prior to any possible 2023 rises, 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.* **Categories:** Finance --- ### [With another inflation rise, what next for equipment finance interest rates?](https://www.jadeequipmentfinance.com.au/blog/with-another-inflation-rise-what-next-for-equipment-finance-interest-rates) **Published:** January 16, 2023 **Author:** Publisher **Content:** **Operators that have delayed buying plans may benefit from expediting purchases to secure cheaper equipment finance interest rates before the next rate decision**. While lenders in the business finance sector make individual and independent decisions around their own interest rates they are typically guided by the cash rate decisions as made by the Reserve Bank Board. As most will be acutely aware, there have been increases in the cash rate each month since May 2022 as the RBA focuses on its objective of returning the rate of inflation to the 2-3% range. As announced by the[ Australian Bureau of Statistics](http://www.abs.gov.au) (ABS) on 11 January, the rate as of November has once again edged up. This comes following a fall in inflation for the October period and the rise happens to be for the same amount. The rate for November rose by 0.4% lifting the inflation level back from the 6.9% October rate to again be 7.3%. The RBA did have an outlook for the rate to hit 7.75% in 2022 and altered this outlook to 8% in December. The annual figures would be available after the monthly data for December and the Quarterly CPI report to December are released on 25 January. If those figures reveal a further increase, the [RBA](http://www.rba.gov.au) may need to act with another cash rate increase. But Governor Lowe is not revealing too much in regard to detail after the response received in the latter part of 2022 at a Government Committee re the 2021 indications that rates may not rise until 2024. What is known from the December Board meeting and in remarks by the Governor and Deputy Governor following that meeting, is that all options are on the table. The Board considered the arguments for a number of options including halting the current run of rises. It also considered another 0.5% rise before settling on consistency with the 0.25% cash rate decision. The December statement also noted that further increases could be expected. With no meeting to discuss the cash rate in January, 7 February is now the date to watch. For astute operators it could be the date to get in before to ensure cheaper equipment interest rates for new machinery. **Inflation Rises in November** Reviewing the ABS statement announcing the November CPI figures reveals what areas of the economy are contributing the most to the current inflationary situation. Ms Marquardt from the ABS said that these were:- housing including new dwellings recording a 9.6% rise; transport 9%; food and drinks (non-alcoholic) rose 9.4%; an 8.4% rise in the household equipment sector; and recreation and culture rose 5.8%. For those in construction it will come as no surprise to see Ms Marquardt note that it was higher costs for both labour and the costs of materials which were contributing most significantly to the annual new dwellings prices. However, she also notes that the November rate eased from the 204% recorded in October. The food sector is also being impacted by the increases in operating costs especially electricity pricing. Supply issues as a result of the flood events through 2022 which are continuing, also affected food prices. The travel and holiday sector recorded a different trend to the norm for November. Usually prices dip at that time as school resumes after the holidays. But November 2022 saw a 12.8% hike. This was attributed to demand and jet fuel costs. **Prospects for Equipment Finance Interest Rates** As mentioned above, the focus will now turn to the release of the December Quarterly CPI figures on 25 January. The RBA mentioned in its December statement that some pricing would not be reflected in the inflation rate until that quarterly data was released. If the data indicates that inflationary pressures are still strong, it will be interesting or more specifically of great interest to see how the RBA responds. Business operators and owners that do want to beat any possible [equipment finance interest rates](/equipment-finance-interest-rates) increases can speak with us for quick action on sourcing quotes. With many banks and non-bank lenders in our lender panel, we are well-placed to source the cheapest rates from across a wide selection. The prospect of continuing high inflation also highlights the importance of securing cheaper interest rates on machinery and equipment finance to keep expenses as low as possible to offset high costs in other areas of the business. In addition to focussing on those cheaper rates, business owners can also look to tax measures such as temporary full expensing with [Chattel Mortgage Equipment Finance](/chattel-mortgage) to further enhance the finance option. This tax measure is only on the table until the end of the financial year. Another compelling reason to expedite acquisitions of new plant, machinery and equipment with finance. There will be numerous announcements coming up in the next few months which have the potential to affect equipment finance interest rates. For regular updates in easy to understand format, check in with our News pages as we post new information on a weekly basis. **For cheaper equipment finance interest rates 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.* **Categories:** Finance --- ### [Refinancing equipment loans a workable solution?](https://www.jadeequipmentfinance.com.au/blog/with-rising-operating-costs-is-refinancing-equipment-loans-a-workable-solution) **Published:** January 16, 2023 **Author:** Publisher **Content:** Raising the topic of refinancing at a time when interest rates have been on the rise may seem a little strange as arguably, the most popular reasons for refinancing equipment loans is to achieve a cheaper interest rate loan. But there can be other objectives that business owners may aim to achieve through refinancing. **Businesses may aim to ease pressure on cash flow in a time of high operating costs by refinancing to lower the monthly equipment loan repayments**. Refinancing can form an important part of an overall finance restructuring strategy to better position the business for success in challenging times. In 2020 and 2021 when the [RBA](http://www.rba.gov.au) was slashing interest rates to historic lows, refinancing was an attractive proposition for many operators to achieve lower interest rate finance. But since early 2022, inflation rose and along with global supply chains issues and labour shortages, have presented many businesses with higher and increasing operating costs. In announcing the November inflation figures, the [Australian Bureau of Statistics](http://www.abs.gov.au) noted that higher operating costs including for materials and labour was a major contributor to inflationary pressure in a number of sectors including new dwellings/construction. Electricity prices are place enormous pressure on many businesses. Labour shortages are also taking their toll, preventing many from operating to their optimum capacity and as such, limiting income opportunities. These issues may be reason for many business owners to review their overall income and outgoings position in search of ways to cut costs to improve the bottom line. While some business expenses are not within the power to control or cut, repayments on equipment finance is a possible area where savings may be possible to achieve through refinancing. In this instance, the objective of refinancing may be to reduce the monthly finance commitment rather than to secure a cheaper interest rate. Another possible scenario for refinancing could be that when rates were at historic lows, some may have secured finance and opted for a higher repayment amount due to the low interest rate available. Allowing the finance and the debt to be paid out sooner and reduce total interest payable while improving the balance sheet. That decision may now require re-evaluation if there is a need to cut outgoings. In the face of the current challenges for many businesses, refinancing may be a solution to ease the pressure on cash flow and offset rises in other areas. **Refinancing Equipment Loans** [Refinancing Equipment Loans](/equipment-refinancing "Compare Refinancing On Equipment") is the process of sourcing a new loan to replace an existing finance contract. The entire amount currently owing on the existing loan, including any balloon or residual and payout fees, would be included in the new loan. A full payout figure can be requested from the existing lender to ascertain the total amount required for the new loan. Payout figures are typically quoted as valid to a certain date. The refinanced loan can be with the existing bank or lender or with a different lender. There is no obligation or necessity to have an existing account with say a bank, in order to apply for finance through that lender. We have multiple lender accreditations to provide customers with wide choice when it comes to sourcing refinancing options. As with all business finance applications, our lenders assess each application individually and based on the current financials and credit rating of the business. A quote is sourced for consideration by our customer. As a licensed finance provider, we do not advise proceeding with refinancing where the outcome would not be positive for our customers. Referring to the business accountant for advice may be advisable in some circumstances. Where the objective of the refinancing is to reduce the monthly repayments, a longer finance term may be requested. Longer terms can reduce the monthly repayment but can attract a higher total interest payable. Another option is to consider varying the amount of the balloon or residual. This can also reduce the repayment amount. The interest rates applicable to refinanced loans will be based on current rates and subject to an assessment of the individual application. With rates now generally higher than say in 2020 and 2021, if the existing loan was sourced at that time, it would be unreasonable to expect a rate to be offered which was lower than those historic lows. But we will still be working hard to achieve the cheapest interest rates possible for the refinanced loan. **Refinancing Product Options** When refinancing, the loan type can be the same or different from the existing loan. Depending on the business set-up and overall objectives, the selection may be made from the [range of equipment finance products](/overview-of-equipment-loan-products "Loan Types") including Leasing, Rent to Buy, Commercial Hire Purchase and Chattel Mortgage. The general tax benefits of each finance product should be applicable to refinanced loans with the exception of temporary full expensing with Chattel Mortgage. To be eligible for this tax measure, the assets must be ‘new’. Refinancing may not meet the ATO criteria. **Considerations** Refinancing may be a very workable solution to reduce monthly commitments on equipment loans in order to offset higher costs or lower capacity. But there are factors to keep in mind. Any penalties and fees which may be incurred by finalising the existing loan early and establishing the new loan will need to be factored in. Any implications regarding tax should be discussed with the accountant. The equipment may have been purchased new originally, but for the purpose of refinancing, it would be considered as used. Used goods may attract higher interest rate finance than new goods. Depending on the objectives and the perceived need for refinancing, we may be able to offer other, more workable finance solutions. These may include a Business Overdraft Facility or a Secured Business Loan. Refinancing may be a workable solution to achieve a better loan repayment schedule to assist businesses overcome the higher cost challenges in this inflationary period. **To discuss the refinancing options specific to your requirements, 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.* **Categories:** Finance --- ### [Does uptick in unemployment rate provide reason to proceed with acquisitions with equipment finance?](https://www.jadeequipmentfinance.com.au/blog/does-uptick-in-unemployment-rate-provide-reason-to-proceed-with-acquisitions-with-equipment-finance) **Published:** February 18, 2023 **Author:** Publisher **Content:** The economic statistics, information and commentary continued to flow this past week, presenting more intel for businesses considering their prospects of acquiring new assets with equipment finance. Overall it’s been an extremely significant and busy start to the year in regard to economic indicators which can impact interest rates, finance and business decisions. In mid-January the Australian Bureau of Statistics (ABS) reported the inflation rate for the December quarter with an unwelcomed uptick. The Reserve Bank of Australia (RBA) followed up on its previous indications with another 0.25% increase to the cash rate in early February. This past week, the ABS has revealed that unemployment has also risen. Unemployment has been falling and remained steady over recent months at lows not seen for around 50 years. Making it extremely hard for businesses to fill staff rosters. In January, unemployment actually rose by 0.2% which has attracted attention. This uptick may be seen as a positive sign by some but a negative in other circles. Either seen as an easing in what has been an extremely tight labour market. Hence, offering better prospects of hiring the staff required. On the possible downside, could it be the sign of high interest rates and high inflation biting and a portent of a recession? Being statistics for a very seasonal period – January, the figures may simply be seasonally-affected data. To add even further interest to the economic week, RBA Governor, Philip Lowe, fronted two committee hearings in Canberra. Governor Lowe responded to a question from a committee member re the latest unemployment rate. He responded that the rate was expected to rise further as higher rates of unemployment were the costly outcome of driving high inflation down. The [RBA](https://www.rba.gov.au/ "Reserve Bank of Australia") did mention in a number of monetary statements last year, that it expected unemployment to rise and actually quoted statistics for the Board’s outlook. We cover off on the latest statement from the ABS and how we can assist operators looking to proceed with acquisitions through our cheaper equipment finance. **January Unemployment Data** On 16 February the ABS posted the [latest employment data](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-rises-37-january "Unemployment rate rises to 3.7% in January") covering the January reporting period. This revealed an increase to 3.7% in the unemployment rate. Bjorn Jarvis, the ABS Head of Labour Statistics, said that the number of people unemployed increased by 22,000 and the number employed fell by close to 11,000. The result being an increase in the unemployment rate. This was noted as the second consecutive reporting month that the unemployment rate had increased. But Mr Jarvis said that this result was on the back of strong growth in employment through last year. The seasonal aspects of the data was detailed. Mr Jarvis noting the tendency for exiting jobs late in a year to take a break before starting new roles early in the following new year. Thus impacting the January data. It was noted there was a greater number of people indicating that was their situation than was usual for this time of year. Not mentioned in the statement from the ABS, but an observation – the above trend could reflect individuals taking up better opportunities in what, in many sectors, has become an extremely competitive jobs market. The figures for numbers of work hours lost due to illness have returned to more normal levels. This should be a relief for many employers who have been dealing with workers off sick with the waves of COVID. The participation rate dropped to 66.5% for January and underemployment stayed at 6.1%. There was a fall in employment in full-time jobs and a rise in part-time work. The latter representing 30.2% of the total employment figures. **Proceeding with Equipment Finance for New Machinery** Individual businesses will have varying reactions and responses to the January unemployment report, depending on the specific outcomes in different industries and sectors. **For businesses that see the latest unemployment figures as encouraging to proceed with new acquisitions, Jade Equipment Finance can assist with cheaper finance.** The encouragement may come from the prospect that more people are now looking for work. Providing the possibilities of hiring to fill jobs in the business and enable the operation to return to full capacity. We full appreciate the pressures that businesses have been enduring due to the tightness in the labour market as well as from rising costs due to inflation and global supply issues. We assist by sourcing workable, cost-effective equipment finance at the [cheapest rates](/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders"). Cheaper rates can be found across our range of finance products – Leasing, Rent to Buy, Chattel Mortgage and Commercial Hire Purchase. Note that temporary full expensing is due to expire on 30 June. Machinery, plant and equipment needs to be operating in the business before that date to be considered an eligible asset by the ATO. [Chattel Mortgage](/chattel-mortgage "Chattel Mortgage - Equipment Finance Loan") is considered the most suitable choice of loan type for that purpose. For those yet to make a final decision on new acquisitions, more information on the economy and rates is due in coming weeks. The minutes from the RBA February Board meeting are due on 21 February, the next rate decision on 7 March and the latest Wage Price Index from the ABS on 21 February. **For cheaper interest rates on 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.* **Categories:** Finance --- ### [Get approved for machinery finance ahead of National Diesel Dirt and Turf Expo](https://www.jadeequipmentfinance.com.au/blog/get-approved-for-machinery-finance-ahead-of-national-diesel-dirt-and-turf-expo) **Published:** February 22, 2023 **Author:** Publisher **Content:** The construction industry’s largest Australian expo is under 2 months away so its time for operators to start planning their visit and securing finance to enable streamlined ordering of new equipment at the event. **Pre-approved machinery finance for buyers attending the National Diesel Dirt and Turf Expo can be arranged ahead of the event through Jade Equipment Finance.** Particularly important if planning to bid at the Pickles auction on the final day of the expo. Pickles will have more than 150 lots up for sale and those with finance sorted, may be well-prepared to place their bid. There will be an impressive line-up up brands on display as well as demos., the auction and the National Operator Excavator challenge. **National Diesel Dirt and Turf Expo – Event Details** This [event](https://www.dieseldirtandturf.com.au/ "The National Diesel Dirt & Turf Expo") is huge for the industry and will be a must-attend for those wanting to see many new models of machinery in one place. Expos offer ideal opportunities for making comparisons of different makes and models and speak with the manufacturer’s representatives. - Friday 21st to Sunday 23rd April - Sydney Dragway, Eastern Creek, Sydney - Tickets $10 with children under 16 years free - 30am – 5pm Friday and Saturday; 10am – 3pm Sunday **Exhibitors and Brands at the Expo** Many of the biggest names in construction and earthmoving machinery will be exhibiting at the 2023 Diesel Dirt and Turf Expo. Equipment and specialised machinery, vehicles, attachments as well as tech and services will be on display. Names like Boss Attachments, RDO Equipment, Alemlube, John Deere, Makinex and many others are included. Ahead of attending, visitors can check the [exhibitor list](https://www.dieseldirtandturf.com.au/exhibitors-list-2023-brands/ "Exhibitors List 2023 Brands") and ear-mark those that they particularly want to catch up with. **Pickles Live Auction** A big attraction at the expo is sure to the live auction of machinery to be conducted by Pickles. The auction will happen at 1pm on the final day of the event – the Sunday 23rd April. This gives those interested two days to check out the lots which will be available for viewing on stand 131. For those unable to attend in person, the auction will be a live simulcast. Further information can also be obtained ahead of the event at [Pickles](https://www.pickles.com.au/ "Online Auctions. Buy & Sell Cars, Trucks, Damage - Pickles AU") website. A range of different types of machinery and equipment will be auctioned including:- - Earthmoving and construction equipment. - Plant equipment. - Quarrying and mining machinery and equipment. - Trucks and trailers. - Implements and attachments. - Forestry and agricultural machinery. - Ride on mowers and utility vehicles for farming. - Access equipment including forklifts. - Shipping containers and site sheds. One essential that potential bidders will be wise to pre-arrange is their finance. That is where we can assist. **Getting Approved for Finance Pre-event** Attending an event like the Diesel Dirt and Turf Expo offers many opportunities, especially to order new machinery. These opportunities can be optimised when the finance for the machinery and equipment has been secured before arrival. Often manufacturers will offer show specials and discounts which are only available for orders and sales made at the event. Without the equipment loan confirmed, operators may not have the confidence to place the order on the day and capture the discount on offer. Even where discounts and specials are not on offer, there can be benefits to pre-approved finance. One being the recent delivery delays with machinery in many sectors. Being one of the first to order newly released models may mean being high in priority for delivery. The sooner the machinery is delivery and commissioned, the sooner operators can start realising the benefits of improved productivity, increased capacity and better outcomes for the operation. There are many benefits, but two key reasons to consider getting approved for finance ahead of ordering are:- - One is so you know how much in the total loan amount you would be approved for. Confirmation of the loan amount can be of particular importance to new operators and those requiring [Low Doc and No Equipment Finance](/no-docs-low-docs-equipment-finance "Low Doc & No Doc Equipment Loans"). - The other is securing a confirmed offer, with confirmed repayments and interest rates on a certain amount to purchase a specific piece of equipment. Allowing fast ordering and ensuring that you have our cheaper finance offer if presented with a financing offer from the dealer. This also allows confident bidding at auction, knowing the amount your finance has been approved for. When buy at auction with pre-approved finance, the settlement may be streamlined as our consultants will assist with that process. When the successful bidder, simply call your Jade consultant to advise them to finalise your finance, send through the invoice and we’ll handle the rest for you. One tip when planning to buy at auction – you may like to include auction fees and any possible transport costs in the loan. Speak with us about these possibilities. We provide pre-approved finance on all types of machinery and equipment and customers can select which is the most appropriate loan type to suit their operation – [Chattel Mortgage](/chattel-mortgage "Chattel Mortgage - Equipment Finance Loan"), Leasing, Rent to Buy or Commercial Hire Purchase. All the same features and benefits including tax deductions are relevant for finance secured pre-purchase and post-ordering. One issue which does need to be considered is the timing. Pre-approved loans do have a set timeframe. A quick call to us and we will confirm how far out from the Diesel Dirt and Turf Expo in April you should apply for finance. **Contact Jade Equipment Finance on 1300 000 003 to get approved for finance before the National Diesel Dirt and Turf Expo.** *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.* **Categories:** Finance --- ### [Staying across the interest rates and business outlook](https://www.jadeequipmentfinance.com.au/blog/staying-across-the-interest-rates-and-business-outlook) **Published:** February 21, 2023 **Author:** Publisher **Content:** With the RBA indicating more interest rates rises and many industries still facing challenges with labour and supply chains, it has possibly never been more important for business to stay across developments. **Keeping abreast of outlooks from available sources including for interest rates may provide valuable intel for operators planning major equipment acquisitions**. Investing in new plant, machinery and equipment with finance can include assessing projected earnings and ongoing business conditions in the sector. While sources such as the [Australian Bureau of Statistics (ABS)](https://www.abs.gov.au/ "Australian Bureau of Statistics") provides extensive data, much of their reporting is on what has already occurred. Yes, that can provide information on trends and they do sometimes include forward estimates. But have an indication of what could lay ahead may be of greater value. The Reserve Bank of Australia (RBA) does provide forecasts and outlooks on both a global and domestic level for a number of economic indicators. These include inflation, employment, economic growth and indications of what they consider may be required with interest rates. In its monthly interest rates announcements, a brief outline of these outlooks is provided. A more detailed coverage is provided in the minutes of each of the monthly Board meetings. The minutes from the February meeting were recently released and we provide a summary of what was discussed and the central bank’s outlook. **Summary of RBA Board Meeting Minutes** Possibly the most notable take-outs from the [minutes](https://www.rba.gov.au/monetary-policy/rba-board-minutes/2023/2023-02-07.html "7 February 2023 | Minutes of the Monetary Policy Meeting of the Board | RBA") are that the option of holding interest rates steady was not discussed at the February meeting; and that the bank sees many uncertainties on both a global and domestic level. It was revealed in the minutes of the December RBA Board meeting that 3 options were discussed in regard to interest rates. They were to announce another large 0.5% hike, to remain consistent with the smaller 0.25% rise of the previous few decisions and to leave the cash rate unchanged. This discussion of the possibility of holding rates steady attracted much media attention and no doubt raised the hopes of many planning to take on finance. When asked about this in ensuing appearances and interviews, the Governor of the RBA, Dr Philip Lowe, said that ‘all options are on table’. Unfortunately, come the February meeting, and the decision to keep rates on hold was not included in the Board’s discussion. Arguments were discussed by Board members in regard to both a 0.25% and a 0.5% increase. The arguments for both decisions were considered strong. Greater insights into future decisions may be acquired by knowing what these discussions centred on. Inflation is core to these interest rates decisions. It appears that the rate may have peaked as per the latest data for the December quarter. But the Board notes that this can’t be confirmed for some months. Inflation was seen as being more broad and more persistent that had been expected. Strong demand in some sectors was still putting upward pressure on prices. Should this go unaddressed and inflation become more embedded and persist for longer, significant impacts and costs to the economy and individuals by way of higher unemployment and much higher rates. The uncertainty around how inflation would track was noted as how fast the Australian economy would respond to trends being seen overseas. Global inflationary pressures appear to be easing after the peak, but this is still not being seen in the Australian economy. When it does start to be seen and result in a fall in the rate of inflation is where the uncertainty lies. While the two options were discussed, Board members decided that the stronger arguments were in favour of the 0.25% increase. Of major note is that more rate increases are expected to be required ahead. In regard to economic conditions, outlooks which may provide insights for performance in some sectors, the change in the response to the pandemic in China was seen as notable. Some commodity prices such as for coking coal and iron ore, has lifted. But it was noted that others remained lower. Uncertainties were noted in the global outlook. Scenarios for opposite possibilities – stronger and weaker growth and inflation, were considered credible. On the domestic front, the Board discussed the large construction project pipeline that supported a positive investment outlook. Credible possible scenarios were also discussed for growth and for inflation in the domestic economy. **Staying Across Cheaper Interest Rates** Banks and non-bank lenders in many sectors, including our equipment finance area, have been responding to the run of rate rises by the RBA. Rates have been increasing but it must be remembered that these are coming off that period of historic lows which came about due to an emergency-style response to the pandemic. Despite the rising trend, we continue to see variations in finance rates across our lenders and continue to be in a position to source the [cheapest rates](/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 80+ Lenders"). Essential at all times, but even more important in this current environment, is having [access to more lenders](/why-jade-equipment-loans "Why Use Jade Equipment Loans | About Us") through our broker style lending services. Operators can speak with us even well ahead of purchasing new equipment, to get approved for finance and to discuss options which may assist with their decisions. **For cheaper interest rates on 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.* **Categories:** Finance --- ### [Be prepared with equipment finance ahead of Qld Heavy Machinery Show](https://www.jadeequipmentfinance.com.au/blog/be-prepared-with-equipment-finance-ahead-of-qld-heavy-machinery-show) **Published:** February 25, 2023 **Author:** Publisher **Content:** This is a key time for machinery and equipment acquisitions. Temporary full expensing is set to expire on 30 June, leaving only a relatively short timeframe for operators to purchase and have machinery in operation. The RBA has again given strong indications that we will see further interest rates rises including for equipment finance in the months ahead. And operators have a number of major expos and shows with opportunities to order new machinery just months away. Following the Dirt and Turf Expo in Sydney in April is the Heavy Machinery Show in Brisbane in May. With its new name, the [Heavy Equipment and Machinery Show](https://www.heavyequipmentshow.com.au/ "2023 Heavy Equipment & Machinery Show") previously known as the Civil Construction Field Days is shaping up as another must-attend for operators in construction, earthmoving, infrastructure and civil construction sector. A major drawcard of the event will no doubt be a new addition to proceedings – a live auction of equipment and machinery by Pickles Auctions. It’s one thing to be there, it’s another to be there to genuinely bid at auction or place orders. **Buyers planning to place orders at the Heavy Machinery Show or purchase at the live auction, can pre-arrange their equipment finance with Jade Equipment Finance**. **Event Details** The Heavy Equipment and Machinery Show is being held in conjunction with the Brisbane Truck Show by the Civil Contractors Federation of Queensland. The one ticket covers both shows and both events share handy shuttles and other facilities. - 18-21 May 2023 - Brisbane Showgrounds - [Tickets from $20](https://ticket.hems.au/ "HEMS23 - Ticket for the Australian Heavy Vehicle Industry Week") - Discounted accommodation offer - Live Auction Fri 19 May – Pickles Auctions - State Conference Thurs 18 May - Over 6,000 visitors expected - 80+ exhibitors The speakers at the conference have been named as including Dr Ben Heard, an expert in alternative energy; Aaron Broughton, the Executive Director of Infrastructure for Brisbane Games; noted demographer Mr Bernard Salt and Drew Klease, the Principal Economist at QIC. The CEO of the QLD CCF, Mr Damian Long said that the Federation is thrilled to be partnering with the Truck Show as the two events share synergies. He said that the industry participants had become even more time-poor and that events such as this which provided buyers with opportunities to see many new technologies and machinery in the same place at one time, was required. To promote working in the sector and no doubt address the current labour issues, a careers, training and jobs hubs will be at the show. The location is ideal for accessing many of Brisbane’s attractions and shuttle buses will transfer guests between the equipment and trucks shows. Organisers are expecting over 80 exhibitors to display the latest machinery, technology and equipment at the show. The full listing is still be revealed but already includes big names such as Hastings Deering, CAT, KOR and Maxilift. The auction to be conducted by Pickles Industrial will be held on the Friday. Closer to the date, buyers can check the lots at the [auction house website](https://www.pickles.com.au "Online Auctions. Buy & Sell Cars, Trucks, Damage - Pickles AU"). **Be Prepared with Equipment Finance Secured** Two key points mentioned by Mr Damian Long dovetail appropriately into the conversation about securing equipment finance through us prior to this event. The show being a fantastic opportunity to purchase so many of the latest models and technology. This show certainly does look like presented great opportunities to purchase both new and used machinery. The used machinery being via the auction. But in order to have that confidence to bid or buy, operators will want to have their finance sorted or at least be approved for a certain loan limit. The other point – how many operators are time-poor. We fully appreciate that many operators in civil construction are extremely time-poor especially when it comes to arranging things over the phone and possibly in the office. Their priorities have to lie with the jobs, possibly spending the majority of their time on site. That leaves less time available to scour the vast lending sector to secure the cheapest equipment finance. Using our services can address both those issues quickly and seamlessly and deliver the cheapest interest rates on equipment finance. We have accreditation with over 60 lenders – banks and non-bank. Our consultants know which lenders are offering the best rates at any particular point in time. Rates do vary over time as lenders don’t uniformly follow RBA decisions or set the same rates. Lenders will vary their own rates based on the outlooks from their own analysts. With our extensive resources and expertise, we can quickly identify which lender is offering the best rate to match with the application details of our customers. Saving our customers the time which they really don’t have much to start with anyway. In the lead-up to the Heavy Equipment and Machinery Show, operators can speak with us about the best way to organise finance. - If planning to bid at auction, that may mean securing finance approval to bid to a certain dollar limit. - If planning to place an order on a specific item of new machinery, that can mean securing a confirmed offer for pre-approved finance. Both can be of extra importance to buyers requiring [Low Doc and No Doc Finance](https://www.smh.com.au "Australian Breaking News Headlines & World News Online"). These operators can often face many uncertainties around sourcing cost-effective finance which can be a major obstacle to securing the equipment required. Buyers can be prepared with equipment finance with their [choice of product](/overview-of-equipment-loan-products "Overview of Equipment Loan Products") – Leasing, Rent to Own, Chattel Mortgage and CHP. The Heavy Equipment and Machinery Show is not that far away, so don’t put finance plans on the back burner, speak with us soon to get things underway. **Contact Jade Equipment Finance on 1300 000 003 to be prepared with equipment finance for the Heavy Machinery Show in Brisbane.** *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.* **Categories:** Finance --- ### [Formulating Equipment Finance plans? Utilise latest economic data to assist](https://www.jadeequipmentfinance.com.au/blog/formulating-equipment-finance-plans-utilise-latest-economic-data-to-assist) **Published:** March 3, 2023 **Author:** Publisher **Content:** When it comes to upgrading or replacing plant, machinery and equipment, there is a lot of planning to be done. Selecting the manufacturer, model, variant and scheduling the commissioning and installation in some cases. To make those decisions, business owners usually know what they want or need for their own operation. But that is only one side of the process. The other aspects of planning involve the equipment finance. Knowing what could be ahead for the business may greatly assist the equipment finance process in regards to future workflow, what repayments will work with projected turnover, what terms to request and importantly, what could happen with interest rates. With the lack of a crystal ball, business owners can utilise the data on the economy as released by the [Australian Bureau of Statistics (ABS)](https://www.abs.gov.au/ "Australian Bureau of Statistics"). The latest sets of data have recently been released which provide information on the economy, GDP, inflation and the residential construction sector. We’ve summarised some of the key points. **January Inflation Rate** According to figures released by the ABS, the rate of inflation fell in January to 7.4% from the 8.4% recorded in December. While a positive sign, the ABS noted that this annual increase in inflation is the second largest increase since these monthly data sets have been reported – September 2018. The ABS notes that inflation is continuing. Housing, food and recreation and culture were noted as the largest contributors to the rate. In the housing area it was rents and construction of new dwellings which showed the largest price increases. In the food sector, fruit and vegetables actually dropped slightly for the period. In the area of recreation and culture, prices for holiday accommodation and travel were the biggest contributors. **Economic Update** The ABS also posted the economic data sets for the quarter ending 31 December which include the latest figures for GDP. The figures show the economy slowed with 0.5% growth for the quarter. As an added bonus for those wanting to easily interpret what’s happening in the Australian economy, the ABS has provided a summary of the key things that happened. A list of [12 things that happened in the last quarter](https://www.abs.gov.au/articles/12-things-happened-australian-economy-during-last-quarter "12 things that happened in the Australian economy during the last quarter | Australian Bureau of Statistics") of 2022. The list includes:- - Five consecutive quarters of growth following the lockdown periods. - International trade driving growth. - Price pressure continues with biggest increase in annual inflation for over 30 years. Inflation being driven predominantly by electricity and by travel and accommodation for holidays. - While spending by consumers was strong, an easing in spending on discretionary goods was seen. December saw a drop in retail sales. - Increase in investment in new dwellings of 1.4%. This was offset by a 4.2% fall in investment for alterations and additions. - Mining production grew for the third quarter in a row. - Domestic manufacturing fell by 1.8%. - Travel and coal driving exports. - Productivity slumped. Refer to the full list for more ‘things’ and further detail. **Building Approval Data** The ABS regularly release the data for the building and construction sector and the most recent figures are for the residential sector. The ABS reports that private house approvals are now at the lowest for 10 years. An increase of 15.3% in December was followed by a fall of 27.6% in January. Those are the figures for total dwelling approvals. Daniel Rossi, the ABS Head of Constructions Statistics, reported that approvals for private sector houses fell 13.8% in January. The fall is the fifth consecutive. When houses are excluded from the private sector dwelling number, the fall was 40.8%. This follows an increase of 41.9% for December. The data is broken down by state with Queensland being the only state to record a rise in total number of approvals. Approvals for apartment developments accounted for the 25.6% increase in Queensland. All states recorded a fall in approvals for private sector houses. **Equipment Finance** **Utilising the latest economic data may assist business owners in formulating how best to structure equipment finance to work with the projected outlooks.** At the moment, inflation is the big data to watch as it is key to the interest rate decisions made by the [Reserve Bank of Australia](https://www.rba.gov.au/ "Reserve Bank of Australia") which are then felt across the lending sector. The Treasurer and the RBA have both commented that it looks like inflation did peak in December. Whether this fall results in the RBA holding rates steady is yet to be seen. In February the Board did say that more rate rises were likely to be required. Despite the run of rate rises, we still continue to achieve cheaper interest rates on [equipment finance](/equipment-finance-interest-rates "Compare Equipment Finance Rates From Over 40+ Lenders") across our [loan portfolio](/overview-of-equipment-loan-products "Overview of Equipment Loan Products"). When using Jade to source your finance, our consultants negotiate with our lenders to achieve the best outcome with finance terms, loan amount approved and balloon/residual. Outcomes which can be critical to the acquisition decision delivering ROI and a positive result for profitability and productivity. **For further assistance when planning acquisitions with 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.* **Categories:** Finance --- ### [Early EOFY Prep: equipment finance tax benefits](https://www.jadeequipmentfinance.com.au/blog/early-eofy-prep-equipment-finance-tax-benefits) **Published:** March 1, 2023 **Author:** Publisher **Content:** For business owners that have been putting off machinery acquisitions while waiting to see how the economy, inflation, business conditions may pan out, the time for waiting might be over. Over if you are keen to realise tax benefits on acquisitions with equipment finance in this financial year. Tax deductions reduce the taxable income which means less tax payable in that financial year. A reduction which could be extremely welcome by many operators after a number of challenging years. While consumer demand has been strong over the past year, pushing inflation to a 30 year record, that demand may not be resulting in increased profitability for business in all sectors. Inflation and supply chain issues have been driving up the costs of materials and supplies, adding to operating costs for business. Costs which are not always possible to pass onto customers which may be resulting in cash flow pressures. So less tax payable down the track could be extremely important. Now could be the ideal time to stop the wait-and-see and start acting to ensure that new machinery is acquired and operating in the business prior to 30 June 2023. It’s definitely the ideal time if you have been intending to take advantage of the tax benefits of [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/ "Temporary full expensing | Australian Taxation Office") but are yet to do anything about it. This tax measure, first introduced as a stimulus measure, will not be available after the end of June this year. In order for businesses to be eligible for the tax benefits available with temporary full expensing, the equipment must be operating in the business prior to 30 June. This timeframe may impact purchase decisions if there is a lengthy wait time for delivery. Important to keep in mind! **Tax deductions which can be realised with equipment finance vary with the different loan types including Leasing, Rent to Buy and Chattel Mortgage.** While we advise customers to speak with their accountant or financial adviser regarding the most suitable loan type to suit their business, it can be helpful to understand the differences. Another reason to proceed with acquisitions with equipment finance now, is interest rates. Despite inflation falling as reported in the latest figures by the [ABS](https://www.abs.gov.au/ "Australian Bureau of Statistics") the Reserve Bank Board is still expected to continue with further rate rises. This could mean rate increases in March, April and May. Securing finance at current rates could also represent a significant savings. We provide an overview of the tax benefits, what items are and are not deductible and how GST is treated with the most popular forms of equipment finance to assist operators with their acquisition and equipment finance planning. [**Chattel Mortgage**](/chattel-mortgage "Chattel Mortgage - Equipment Finance Loan") **Tax Deductions** - GST on the purchase can be claimed in full on the corresponding BAS return. - The interest payable on the monthly finance repayments is tax deductible. - The remainder of the monthly repayments and the balloon are not tax deductible. - With Chattel Mortgage ownership of the equipment is transferred to the business and entered on the business balance sheet. - The equipment is depreciated in line with the ATO scheduling at the time. - The depreciation amount is the tax deduction. - With temporary full expensing, the full purchase price can be deducted in the year of purchase. - Under normal depreciation schedules the asset is depreciated in increments over a number of years. [**Equipment Leasing**](/asset-lease "Equipment Finance Lease | Machinery Leasing") **Tax Deductions** - Leasing is an off-balance sheet finance product. That is, the ownership of the equipment is retained by the lender until all payments including the residual are finalised. As such, this form of finance is not suited to temporary full expensing. - GST is charged on the monthly lease payments and claimed on BAS. - The monthly lease payments, including the interest component, are tax deductible as a business expense. - Any residual is treated as per ATO regulations. **Rent to Buy Equipment Finance Tax Deductions** - Rent to Buy is also an off-balance sheet finance product. As such, this form of finance is not suited to temporary full expensing. - GST is charged on the monthly rental payments and claimed on BAS. - The monthly rental payments, including the interest component, are tax deductible as a business expense. **Low Doc No Doc Equipment Finance Deductions** Businesses approved for Low Doc and No Doc finance select which is the most appropriate loan type for their operation. All the same tax deductions would apply for the relevant finance product for Low Doc and No Doc loans as for fully documented applicants. The same would apply for operators approved for Bad Credit Equipment Finance. **Meeting EOFY Deadlines** We can assist operators to meet the 30 June deadline with fast approvals on equipment finance. With further rate rises tipped, further benefits through lower interest rates may be realised by securing finance and the required equipment ASAP. **Contact Jade Equipment Finance on 1300 000 003 for all types of equipment finance.** *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.* **Categories:** Finance --- ### [Close to rate pause, but RBA lifts interest rates 0.25%](https://www.jadeequipmentfinance.com.au/blog/close-to-rate-pause-but-rba-lifts-interest-rates-0-25) **Published:** March 8, 2023 **Author:** Publisher **Content:** The Reserve Bank of Australia Governor, Philip Lowe, said in a speech to a business summit, that economic conditions were getting close to being appropriate for the Board to pause interest rates rises. But those conditions are not quite right now and the Board proceeded as expected with a further 0.25% rise for March. In addition, the Board said that it expected to make further increases as they were likely to be required to bring inflation down to the target range. The cash rate is now 3.6% with the lending sector reacting with various increases in their rates across markets including for equipment and machinery finance. This is now 10 rate rises consecutively since the first 0.5% hike in May 2022. The continual rises and indication of more ahead, means operators requiring finance for asset acquisitions should utilise professional broker services such as through Jade Equipment Finance, to secure the cheapest rates. There will be variations across the lending sector and having access to specialist non-bank lenders may make a big difference in rate achieved, total interest payable, repayments and the overall investment in new assets. Also of assistance in planning asset acquisitions may be to understand the RBA’s thinking in regard to the economic outlook, business conditions, inflation and its forecasts for interest rates. This summary of the RBA Board March monetary policy announcement and of Dr Lowe’s recent speech may provide further, valuable insights to assist with business decisions. ## Monetary Policy Announcement – 7 March 2023 The Board of the Reserve Bank of Australia met for its scheduled meeting to discuss monetary policy (interest rates) on March 7th in Sydney. The decision to lift the cash rate a further 25 basis points was announced, as is standard practice, via a [media release](https://www.rba.gov.au/media-releases/2023/mr-23-07.html "Statement by Philip Lowe, Governor: Monetary Policy Decision") on the Bank website. In the release, the Board notes:- - Inflation at a global level is starting to moderate, however remains elevated in services prices. There is a subdued outlook for the global economy as it will take time for inflation to drop to target levels. The CPI (Consumer Price Index) as released by the Australian Bureau of Statistics suggests December was the peak for Australia’s rate of inflation. The annual rate as at the end of the December quarter was 8.4% and the by end of January that had fallen to 7.4%. Good prices inflation is expected to moderate as a result of weakening demand and in response to the developments at a global level. Services prices remain high. Strong seasonal demand in summer for some services pushed up prices. Rents noted as increasing at very high rates. The rate of inflation is forecast to fall in 2023 and 2024 but not near the outside range of the target of 3% by the middle part of 2025. Economic growth has slowed as per the December quarter data. 0.5% growth in GDP for the quarter and an annual rate of 2.7%. The expectation is for growth to be at levels below the trend. There is a softening of demand in the home building sector as higher rates take effect. But investment by business has a positive outlook. Unemployment is still around near 50 year lows, indicating the continuing tight labour conditions. Some easing seen in the latest data. A price-wage spiral is seen as a low risk but the Board is remaining alert to the possibility. Uncertainty is seen around how fast and to what extent inflation will fall as spending patterns respond to tightened monetary policy – the recent run of interest rates increases. Also how spending responds to global conditions. This means several scenarios are possible for the Australian economy. Further interest rates increases are likely to be required as the priority for the RBA remains returning the current high rate of inflation to 2-3%. We look forward to reviewing the Minutes of this meeting when released on March 21 for more information on exactly what rate options were discussed by the Board. For more information, you can visit the website of the [Australian Bureau of Statistics (ABS)](https://www.abs.gov.au/) to access valuable insights and data regarding inflation and economic indicators. ## Dr Lowe Business Summit Speech While the release announcing the March rate decision was typically brief, a far lengthier coverage of the economic conditions, inflation and monetary policy was provided by Dr Lowe on March 8. Dr Lowe was addressing the Australian Financial Review Business Summit. The [full transcript of that speech](https://www.rba.gov.au/speeches/2023/sp-gov-2023-03-08.html "Inflation and Recent Economic Data") is readily available at he RBA website. There are some very interesting comments which will be of interest to operators in different industry sectors. But we have extracted just a few remarks which relate specifically to interest rates. Dr Lowe said that interest rates are the tool that the Bank has to address high inflation, prevent it from becoming engrained and ensure this current period is only temporary. He pointed out the different channels through which monetary policy does work and how it takes time for the effects to be seen. Dr Lowe elaborated on issues discussed by the Board at its meeting the previous day. One of the more notable comments was that the recent rate increases now have monetary policy in what he described as ‘restrictive territory’. But he said, this has been required and more increases are likely to be needed. Another comment which was picked-up by many commentators in the business media was in relation to when a pause in rates may occur. Dr Lowe said that the conditions are closer to being at an appropriate setting to pause increases in interest rates. No specific timing was given, which is not unusual. The Board next meets to discuss what next for interest rates in early April. ## Equipment Finance Interest Rates As has always been the case but further elevated in importance since the 0.5% rate hike in May 2022, the focus for businesses when seeking finance for new equipment is the cheapest interest rates. Rates vary across the finance products and business in different industries and with different requirements will be offered varying rates. The business finance lending sector is vast and can be competitive with cheaper rates to be found, especially through many of our non-bank lenders that do not operate within the same strict guidelines as the major banks. Despite the ongoing RBA rate rises, Jade Equipment Finance continues to assist business owners with cheaper interest rates for more cost-effective finance. If you’re in the woodworking industry and looking for [Finance For Machinery – Woodworking Equipment](/woodworking-equipment-loans "Flexible Financing Solutions for Woodworking Machinery"), we can help. We also provide a [Small Business Overdraft](/business-overdraft "Flexible Funding Solutions for Small Businesses") option for those in need. And for comprehensive solutions, we offer [Equipment Finance Loans & Leasing Australia](/equipment-finance-australia "Comprehensive Financing Solutions for Equipment in Australia") wide. **For cheaper interest rates on machinery and 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.* **Categories:** Finance --- ### [Strong agriculture and aquaculture numbers](https://www.jadeequipmentfinance.com.au/blog/strong-agriculture-and-aquaculture-numbers) **Published:** March 10, 2023 **Author:** Publisher **Content:** On the same day as the Reserve Bank delivered the bad news of another rate rise, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) delivered more positive news for the agriculture and aquaculture sector. News which may provide reasons for operators to consider investing in new equipment with cost-effective machinery finance. It may sound incongruous to suggest asset investments with finance in the same conversation as interest rate increases. But as Dr Jared Greenville, Executive Director of ABARES noted, investments in productivity is seen as one of the reasons for the good results in the agricultural sector. In addition, despite the RBA rate rises, cheaper interest rate asset finance can be achievable. Jade Equipment Finance assists agriculture and aquaculture operators with cost-effective machinery finance for asset investments to achieve greater productivity. The ABARES is the science and economics research division of the Department of Agriculture, Fisheries and Forestry. The Bureau’s latest snapshot shows the agriculture industry continuing to grow strongly. The projection is for broadacre farm income to decrease in 2022/23 but it remains well above the average over 10 years. Production in the aquaculture and fisheries sector is forecast to increase 8% in 2022/23. To assist operators plan asset investments in machinery, we provide a summary of the latest ABARES reports and information on securing cost-effective machinery finance. ## Agriculture Sector Snapshot The ABARES released the [latest agricultural sector snapshot](https://www.agriculture.gov.au/about/news/snapshot-shows-strength-behind-numbers "Snapshot shows strength behind the numbers") on March 7. The headline ‘strength behind the numbers’ provides positive indications for the industry. The snapshot shows the sector is performing strongly and growing in the key areas of incomes, risk management and exports. Record levels of export values and industry production have been forecast for 2022/23. Cash incomes for dairy and broadacre farm remain significantly above the historic benchmarks. Dr Greenville said that the statistics tell only a part of the story. Investments in productivity, past reforms, and the changes to what is produced and exported contributed to achieving the good results. According to Dr Greenville, these are the factors that have the industry in a strong position for taking advantage of the favourable climate and high prices for commodities. The ABARES anticipates operators facing challenges in adapting to the negative impacts on profits from changing climate despite the beneficial effects of the recent climatic conditions. Sustainability is noted as increasing in importance as an attribute for both investors and for consumers. Being included in the criteria for investments and in trade policy in many countries. Dr Greenville said that the Australian agricultural sector is already very sustainable on many of the criteria in comparison to other global competitors. But this advantage needs to be maintained. A return to normal patterns of rainfall are expected following the recent years of high levels. The rebuilding of herds, strong moisture levels in the soil and full water storage will provide a safeguard, despite conditions deteriorating. Dr Greenville said this buffer will give the sector a further year in the high country. For more information, you can visit the website of the [ABARES](https://www.agriculture.gov.au/abares) to access valuable insights and research reports.. ## Easing Farm Incomes In another report, the ABARES projects a 7% decrease in broadacre farm cash incomes this financial year but remaining 46% over the average for 10 years. Peter Gooday, ABARES Head of Farm Production, said the decrease was expected in all states with the exception of WA and SA. ## Aquaculture Report The recent ABARES report on aquaculture forecasts a promising 8% rise in the gross production value for fisheries and aquaculture in this fiscal year, largely driven by the aquaculture sector. Dr Greenville highlights that the growth forecast for aquaculture stands at an impressive 11% increase in production value. This growth is primarily driven by the elevated values of tuna, abalone, and salmonids. The production across both aquaculture and fisheries is projected to remain stable in 2023/24. However, the real total value is predicted to decrease by 0.7% by 2027/28. Despite this, exports in 2023/24 are expected to experience a 7% increase. Given this context, the present time might be opportune for operators to invest in new machinery to spur further productivity improvements. The Reserve Bank of Australia has indicated the likelihood of more rate increases in the future. Additionally, the appealing tax benefits of temporary full expensing are due to end on 30 June. ## Sourcing Cost-effective Machinery Finance We support operators in sourcing more cost-effective interest rates across our extensive portfolio of farm and agricultural loans. Operators can choose the finance product that best aligns with their business setup. Our consultants then take up the task of sourcing and negotiating the most affordable and suitable solution. Our finance products range includes Leasing, Commercial Hire Purchase, Chattel Mortgage, and Rent to Own. Chattel Mortgage is often considered the most suitable for temporary full expensing. Engage in a no-obligation discussion with one of our consultants to explore how we might assist in further enhancing the productivity and profitability of your operation with low-interest rate asset finance. If you are looking for [Brisbane Equipment Loans](/equipment-finance-brisbane "Efficient Financing Solutions for Equipment in Brisbane"), or if you’re considering [Medical Equipment Loans](/medical-equipment-loans "Tailored Financing Options for Healthcare Equipment"), we can assist. We also offer [Forklift Lease Fi](https://www.jadeequipmentfinance.com.au/forklift-lease.php "Flexible Financing Solutions for Forklift Equipment")[n](/forklift-lease "Flexible Financing Solutions for Forklift Equipment")ance to cater to your specific needs. **Contact Jade Equipment Finance on 1300 000 003 for cost-effective machinery finance.** *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.* **Categories:** Finance --- ### [Jobs Data – significance for interest rates](https://www.jadeequipmentfinance.com.au/blog/jobs-data-significance-for-interest-rates) **Published:** March 20, 2023 **Author:** Publisher **Content:** The Australian Bureau of Statistics (ABS) released the most recent Labour Force data for the February reporting period on March 16. The unemployment rate remains a key concern for many business owners and operators due to the ongoing tightness in the labour market. Additionally, the latest data could have significant implications for interest rates. The February data shows a 0.2% decrease in unemployment, following an increase in January’s figures. Economists believe this outcome may affect upcoming rate decisions by the Reserve Bank of Australia (RBA) Board. Factors such as the unemployment rate, inflation, and global economic developments are crucial considerations for the RBA Board. Market expectations predicted another 0.25% rate increase in April. However, the February jobs data was released alongside news of significant problems in the US banking sector and Credit Suisse in Europe, prompting many analysts to revise their expectations. For more information, you can visit the website of the [Australian Bureau of Statistics (ABS)](https://www.abs.gov.au/) to access the Labour Force data. ## February Unemployment Figures According to the [ABS media release](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-returns-35-february), unemployment dropped by 0.2% to 3.5%. Bjorn Jarvis, ABS Head of Labour Statistics, reported an increase in employment of 65,000 people and a decrease in the number of unemployed individuals by 17,000, returning the unemployment rate to December 2022 levels. Jarvis also highlighted that the employment increase in February followed declines in employment (and increases in unemployment) recorded for December 2022 and January of this year. The January figures included a higher-than-usual number of people leaving their jobs to start new ones, a trend particularly evident in the southeastern regions. Seasonal employment increases were recorded in the Australian Capital Territory (ACT), Victoria, and New South Wales (NSW), with those waiting to commence new jobs returning to more normal levels. The February data indicates a return to December levels for the employment-to-population ratio, with the participation rate rising by 0.1% for the period, equal to the December rate. A 3.9% increase in hours worked was also reported. Following the traditional annual leave period in January, Jarvis observed a strong rebound in hours worked for February. Hours worked in February 2023 were 5.1% above the February 2022 level. Jarvis noted that the reporting period did not experience the same disruptions as previous years, such as natural disasters (2022 floods) and the pandemic. When examining the employment trend over a 20-year period before the pandemic, February’s data is only slightly below the monthly average. Jarvis explained that employment growth is approaching historic long-term rates, despite recent deceleration. ## Interest Rates Significance The February unemployment data may be significant for business owners considering new equipment finance, as [RBA decisions](http://www.rba.gov.au "Reserve Bank of Australia") affect all lending markets, including the machinery and equipment sector. As the Reserve Bank of Australia (RBA) Board makes decisions concerning the cash rate, unemployment factors prominently in their considerations. However, they must also balance this with the latest data on global banking sector developments. This subject has been widely discussed by numerous analysts, economists, and commentators, each offering their perspective. The potential outcomes of the RBA’s April Board meeting offer different possibilities. Some predict another 0.25% cash rate rise due to the decrease in unemployment, while others suggest a pause in rises due to global financial developments. Prominent lenders have varied opinions on this matter. For instance, Westpac has revised its outlook for the peak cash rate from 4.1% to 3.85%, while ANZ has maintained its current outlook, projecting two more 0.25% rate increases. ## Managing Equipment Finance Amidst Market Uncertainty With the end of the financial year approaching, many operators are looking to acquire new machinery and equipment. Therefore, future interest rate prospects become increasingly significant. Planning and budgeting efforts may need to consider different interest rate scenarios, such as a potential increase in Equipment Loan Rates or the possibility of a pause, with current rates persisting through April-May. No matter the outcome, operators can take solace in the fact that we will continue to offer competitive interest rates across our Equipment Funding portfolio. For instance, those needing [Business Vehicle Finance](/business-vehicle-finance "Flexible Financing Solutions for Commercial Vehicles") or [Technology Leasing Chattel Mortgage Loans](/technology-equipment-financing "Efficient Financing Options for Technological Equipment") can expect competitive terms. In addition, some commercial finance sector lenders may adjust their interest rates based on their own forecasts, even ahead of RBA decisions. This underscores the rate variation across the market and the advantages of our broker-style lender services to secure the most favourable Large Machinery Loan Rates available. One such area where this could be crucial is [Excavator Finance & Lease](/excavator-loans "Tailored Financing Solutions for Excavation Machinery"). Operators looking to secure Competitive Equipment Funding before any potential rate increases are encouraged to contact us for finance approval at their earliest convenience. For more information and insights, stay tuned for the release of the March RBA Board meeting minutes on March 21, the detailed Labour Force report from the ABS on March 23, and the National Accounts Finance and Wealth release on March 23. **For cheaper equipment finance interest rates 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.* **Categories:** Finance --- ### [Alert: get finance approved now for Dirt and Turf Expo](https://www.jadeequipmentfinance.com.au/blog/alert-get-finance-approved-now-for-dirt-and-turf-expo) **Published:** March 20, 2023 **Author:** Publisher **Content:** In February, we posted an [article](https://www.dieseldirtandturf.com.au/) reminding operators about the upcoming National Diesel Dirt and Turf Expo. Now that we’re a month away from the event, it’s the perfect time to get pre-approved for finance to make purchases at the expo. Securing acquisitions with confirmed orders and pre-approved finance can lead to potential savings on interest rates compared to waiting until after the expo. Another reason to arrange finance before the expo is to confidently bid at the [Pickles Live Auction](http://www.pickles.com.au " Online Auctions. Buy & Sell Cars, Trucks, Damage - Pickles AU"). Operators eager to bid at the auction or order new machinery at the Dirt and Turf Expo can pre-arrange finance with Jade Equipment Finance. The Pickles auction will feature 150 lots, including construction equipment, earthmoving machinery, mining equipment, trailers, trucks, and agricultural machines. Considering recent supply issues with many new machinery lines, purchasing quality used items with immediate delivery may be a practical option. Having pre-approved finance when buying at an auction is essential. Payment may be required immediately upon winning a bid. By getting pre-approved for a set amount or a specific item of machinery, bidders can confidently secure well-priced items. ## Unlocking Opportunities Finance for auction items is available through Jade Equipment Finance, and our [Equipment Loan Rates](/equipment-finance-interest-rates "Assess Machinery Financing Rates") policy still applies. A range of finance products is available, including Chattel Mortgage, Leasing, Rent to Own, and Commercial Hire Purchase. Operators looking to purchase at this event to qualify for temporary full expensing should check the eligibility of assets with the ATO. Pre-approved finance for new equipment is also available, and the process is simple and straightforward. With many leading machinery and equipment manufacturers attending the Dirt and Turf Expo, buyers can inspect multiple options in one place and save time by placing orders for new equipment on the spot, knowing their finance is approved. Interest rates for new equipment are lower than for used, and the rates we display are for new items and operators with a good credit profile. Pre-approved finance is available for all types of business setups, including sole traders, owner-operators, [No Doc Equipment Funding](/no-docs-low-docs-equipment-finance "Lite Documentation Machinery Financing"), No Doc Loans, and Bad Credit options. Secure your tickets now for the highly anticipated Dirt and Turf Expo, with admission priced at just $10 per adult. Scheduled from Friday 21 to Sunday 23 April at the Sydney Dragway at Eastern Creek, this event presents an excellent opportunity for operators from various sectors to keep abreast of the latest products, establish connections with manufacturers, and potentially acquire new machinery to enhance their operations in the coming fiscal year. ## Exploring Finance Options for Equipment Acquisition The National Diesel Dirt and Turf Expo is a unique platform for businesses to delve into an array of equipment from diverse manufacturers, conveniently gathered in one location. This event is particularly relevant for businesses in sectors like food service, which might benefit from [Catering and Kitchen Equipment Loans](/catering-and-kitchen-equipment-loans "Affordable Financing Solutions for Food Service Equipment"), or those dealing with industrial machinery, who could consider [Industri](/industrial-equipment-finance "Flexible Financing for Industrial Machinery and Equipment")[a](https://www.jadeequipmentfinance.com.au/blog/alert-get-finance-approved-now-for-dirt-and-turf-expo "Flexible Financing for Industrial Machinery and Equipment")[l Equipment Finance](https://www.jadeequipmentfinance.com.au/industrial-equipment-finance.php "Flexible Financing for Industrial Machinery and Equipment"). Having pre-approved finance at their disposal, operators can make informed purchasing decisions, both at the expo and during the Pickles Live Auction. Jade Equipment Finance provides a range of finance options, including Equipment Chattel Mortgage, Leasing, Rent to Own, and Commercial Lease-to-Own. By understanding the financial products available, operators can select the best option that aligns with their business objectives and tax strategies. One such tax strategy could involve the temporary full expensing benefit, an accelerated depreciation measure. This scheme allows businesses to claim the full purchase price of eligible assets as a tax deduction in the year of purchase. For instance, those in the logging industry contemplating new machinery acquisitions might find [Logging Equipment Lease & Asset Finance](/logging-equipment-finance "Tailored Financing for Logging and Timber Equipment") a suitable option to leverage this benefit. ## Collaborating with Jade Consultants Pre-approval for equipment finance can be organized based on a maximum loan amount or specific items, depending on the operator’s preferences and business credentials. Collaborating with a Jade consultant can simplify this process, helping operators navigate their options and find the most suitable finance solution. Please note that interest rates for new equipment typically tend to be lower than those for used equipment. The rates displayed by Jade Equipment Finance are for new items and operators with a commendable credit profile. Rates can fluctuate, and operators should use the provided repayment calculator judiciously for estimates. The Dirt and Turf Expo is a significant milestone for the construction and related industries. By attending this event, operators can gain industry insights, network with professionals, and make strategic equipment acquisitions to fuel their business growth in the upcoming fiscal year. **For cheaper equipment finance interest rates 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.* **Categories:** Finance --- ### [Pause in interest rates up for discussion by RBA in April - but so could be an increase](https://www.jadeequipmentfinance.com.au/blog/pause-in-interest-rates-up-for-discussion-by-rba-in-april-but-so-could-be-an-increase) **Published:** March 27, 2023 **Author:** Publisher **Content:** After a run of consecutive interest rates increases from May through December 2022, it was revealed in the minutes of the RBA Board’s December meeting that a pause in rate rises was discussed. This revelation was no doubt met with a glimmer at least of optimism, especially by business operators looking to invest in new equipment. That optimism was tempered somewhat by the fact that a return to a higher 0.5% rate hike was also discussed at the same meeting. The Board finally deciding the strongest arguments were for a continuation of the 0.25% increases. At the Board’s first meeting for 2023, in February, there was no mention of a pause being discussed. But with the release of the March meeting minutes, it is now known that a pause in rate rises is once again in the mix. The Board discussed how the point would arrive where it would be appropriate to leave the cash rate steady. RBA Governor, Dr Philip Lowe, mentioned this in a speech after the March meeting, saying we were nearing such a situation. The March minutes reveal that the Board agreed to discuss if conditions were appropriate to keep rates steady at its April meeting – now just over a week away. Great news. Yes and no. At the same meeting, the Board repeated its comment that it was likely that further rises in interest rates would be needed. These revelations highlight the value in reading the minutes of the RBA meeting for a more thorough overview of the outlook for the economy and interest rates in particular. Jade Equipment Finance provides a summary of the RBA March meeting minutes to assist business owners with major acquisition planning with finance. Topics covered in Board discussions include economic issues in regard to both the global and the domestic economy. Discussion of data pertaining to certain sectors such as retail and construction, can receive special mention. Business owners in those industries may benefit from [reading the full document](https://www.rba.gov.au/monetary-policy/rba-board-minutes/2023/2023-03-07.html "7 March 2023 | Minutes of the Monetary Policy Meeting of the Board | RBA") when budgeting for [new equipment finance](/equipment-finance-interest-rates "Latest Equipment Finance Rates"). In considering the content, be aware of the timing of the meeting – 7 March. Several issues relevant to interest rates, have emerged after that date – global banking problems and unemployment figures. These and other data releases will no doubt be discussed by the Board at the 4 April meeting. ## Global Economy Inflation rates are still above the targets as set by individual central banks but an easing was recorded over the last few months. In many advanced countries, unemployment remains at quite low levels. As a result of the approach to containing the pandemic, China is only in the initial stages of its post-pandemic recovery, when compared with other countries. ## Domestic Economy February data confirms the expected slowdown in December quarter and into early 2023. The main themes for the Australian economy were essentially unchanged. Investment by the business sector had eased but the Board considers the outlook to be positive. The January employment data is subject to seasonal factors, making it difficult to assess the overall labour market. Wages growth is of concern. Data shows this indicator increasing less than had been expected on the back of strong quarterly figures for September. Also of major concern is the lack of growth in productivity. The past 3 years has not shown any net growth in this area. As such, businesses are not realising an offset against rising labour costs which had posted a 3% increase over that timeframe. Due to the volatility which can exist in some individual monthly figures, it is noted that the Board is waiting for the February CPI data rather than drawing conclusions from the January figures. ## Interest Rates – Monetary Policy The discussion about the monthly rate decision – monetary policy, notes how the most important data – GDP, wages growth, labour market and inflation, was all ‘softer’ than had been anticipated. Specifically, the inflation rate remained too high and the forecast was for it to stay over the target range of 2-3% for 2 years. Due to these considerations, the Board agreed that a further interest rates rise was required. The Board announced a further 0.25% increase to the cash rate and said it was likely that more rises would be required. Rates however, the Board agreed, were in ‘restrictive territory’ and uncertainty surrounded the economic outlook. The discussion on holding rates steady was included at this point in the meeting. The Board agreeing there would be a point when this was appropriate. The lag between rate rises being seen in the economic data was discussed and how this created complications in assessing the outlook. With further data to be released in the upcoming timeframe, it was agreed that pausing rate increases would be considered at the next meeting. ## Planning Equipment Finance Business owners planning equipment purchases with finance over the coming months are now faced with two scenarios to budget in – rates on hold and further increases. The response from the major banks has been somewhat mixed following this meeting. Westpac downgraded its forecast for the cash rate maximum to 3.85% while the ANZ held with its original outlook of 4.1%. We appreciate that the next few months can be critical as operators finalise new machinery and equipment acquisitions before the end of the financial year. Even more relevant this year with the end to [temporary full expensing](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Temporary-full-expensing/Eligibility-for-temporary-full-expensing/ "Eligibility for temporary full expensing | Australian Taxation Office") also on 30 June. Whether it’s [Concrete Pump Equipment Loans – Construction Finance](/concrete-pump-equipment-loans "Efficient Financing Solutions for Construction Pump Equipment"), [Fit Out Finance – Equipment Loan Broker](/fit-out-finance "Tailored Financing for Office and Commercial Fit-Outs"), or [Commercial Equipment Financing – Sheet Metal Machinery](/sheet-metal-equipment-loans "Flexible Financing for Sheet Metal Manufacturing Equipment"), we strive to provide cost-effective, viable equipment finance solutions. We continue to work with individual operators to source and secure the cheapest interest rates from our vast lender panel to ensure cost-effective, workable equipment finance solutions. For further indications and direction, operators may stay across the latest data releases from the Australian Bureau of Statistics ahead of the 4 April RBA cash rate decision. **For cost-effective equipment finance with better interest rates 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.* **Categories:** Finance --- ### [Get Gym Equipment Finance Approved for Ausfitness Expo](https://www.jadeequipmentfinance.com.au/blog/get-gym-equipment-finance-approved-for-ausfitness-expo) **Published:** March 27, 2023 **Author:** Publisher **Content:** ## Unlocking Opportunities for Fitness Businesses The fitness industry can be a very competitive sector. Having the latest equipment including the latest technology and systems can be critical to attracting and retaining club members and to business success. But acquiring new equipment to upgrade or to set up a new fitness centre can be a major decision, especially where gym equipment finance is required. The finance itself can be challenging to obtain, especially at affordable interest rates and if setting-up a new business. While fitness professionals support clients achieve targets, Jade Equipment Finance supports them achieve their goals with cost-effective gym equipment finance. We work with individual businesses of all sizes and set-ups, to secured finance that will work towards attaining the goals and targets they have set for their operation. Affordable, achievable options are possible, even for small, sole traders and ABN-only holders. The upcoming [Ausfitness Industry Expo](https://ausfitnessexpo.com.au/industry "AusFitness Industry B2B Trade Show & Summit") offers opportunities to check out the latest equipment and technology. Placing orders at the event can be a great way to expedite the whole acquisition process, but you’ll need to be organised with your finance sorted. Those planning to purchase at the event, can speak with us first to get finance approved before the expo starts. Organisers say the expo will have everything required for improving and growing a fitness business. What’s needed to attract and keep members and run a world-class facility and successful programs. The event offers the chance to compare and buy the latest technology, equipment and a lot more. Check out the details, register to attend and call us to talk finance so you’re sorted well in advance. ## About the Event The Ausfitness expo will be held at the International Convention Centre (ICC) at Sydney’s Darling Harbour over Friday and Saturday, 28-29 April. Doors open 10am to 5pm both days. Those in the industry can receive free entry by registering at the event website before the start date. Those who don’t get around to that – tickets will be available at the door at a cost of $50. Another good reason to prepare ahead of time. The event is the industry’s annual conference and trade show and is for those that work in the leisure and fitness industry and/or own a business in the sector. The expo offers learning and networking opportunities as well as seeing and possibly buying equipment. The schedule includes workshops and classes and a stellar speaker line-up. The trade show part of the expo includes over 100 brands with the chance to test-drive much of the latest technology and equipment on the market. Products include not only work-out equipment but systems and programs to promote and market a business to boost membership. If considering acquiring technology systems, we do provide finance for software and hardware as well as for the equipment for the facility. Beyond equipment, the show has been expanded for 2023 and includes apparel, training gear and nutrition brands and products. cove [Register now](https://ausfitnessexpo.com.au/industry/ticketing?utm_source=&utm_medium=&utm_campaign=&utm_content=&utm_term= "Tickets & Trade Registration - AusFitness Industry ") so you’re sorted and then get on the phone to us to discuss the gym equipment finance options. For more information about the Ausfitness expo, you can visit the [official website](https://ausfitnessexpo.com.au/). ## Gym Equipment Finance Options New operators planning to set up may face challenges. Both from many of the more well-established centres and in sourcing cost-effective finance through many of the major banks. We assist by handling the whole finance sourcing process. We source the most suitable loan and cheapest rates from across our vast lender base of 60+ lenders. We negotiate on your behalf to secure the most workable finance conditions and handle the paperwork and other time-consuming and potentially challenges tasks. All you have to do is brief your Jade consultant as to your requirements and provide the required details and paperwork for the loan application. If you are a new business and don’t have all the paperwork or documentation, we can source a [Low Doc or No Doc Financing option](/no-docs-low-docs-equipment-finance "Minimal Documentation Equipment Finance Choices"). Speak with an accountant to assist with deciding which equipment finance product will work best to achieve your financial objectives and suit your business set-up. ## The selection of loan types for gym equipment includes:- - Chattel Mortgage - Leasing - Rent to Own - Commercial Hire Purchase Tip: purchase of gym equipment may be eligible for the attractive tax measures available with temporary full expensing. But you will need to have the equipment purchased and operating in the business before 30 June 2023. Consult with our team about bundling the financing of multiple equipment purchases into one comprehensive solution. Whether it’s [Earth Moving Equipment Finance & Leasing](/earth-moving-equipment-loans "Streamlined Financing Solutions for Heavy Machinery"), [Farm Equipment Financing](/tractor-loans "Flexible Financing Options for Agricultural Machinery"), or [Logging Equipment Lease & Asset Finance](/logging-equipment-finance "Optimal Financing Solutions for Forestry Equipment"), we’re here to assist you in securing the necessary capital for your business’s success. ## Obtaining Finance Approval Pre-Show If you’re planning to attend the [Ausfitness Industry Expo](https://ausfitnessexpo.com.au/industry), it is essential to obtain finance approval beforehand. This expo provides opportunities to explore the latest equipment and technology. By securing finance approval in advance, you can expedite the acquisition process and make informed purchasing decisions at the event. **Contact Jade Equipment Finance on 1300 000 003 to get gym equipment finance approved ahead Ausfitness expo** *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.* **Categories:** Finance --- ### [No Holding Back for RBA With May Interest Rates Rise](https://www.jadeequipmentfinance.com.au/blog/no-holding-back-for-rba-with-may-interest-rates-rise) **Published:** May 15, 2023 **Author:** Publisher **Content:** Many analysts and economists were expecting the Board of the Reserve Bank (RBA) to hold interest rates steady again when they met on May 2. Undoubtedly, many business owners, operators, and households were hoping for the same result as April. But the RBA did not hold back, announcing another rate rise of 0.25% for the cash rate. According to reports, this did catch the markets by surprise as many had not forecast such a decision. The forecasts may have been derived from the positive inflation figures released by the Australian Bureau of Statistics ([ABS](http://www.abs.gov.au/)) just a week before the May 2 RBA meeting. The fall from 7.8% to 7% is seen as a positive sign, plus the pressure already being felt by households from the previous ten rate rises. It was the actual detail in the latest inflation data, which was one of the major reasons the Board gave for announcing the May increase. While goods inflation has been slowing, price growth in services remains consistently at too high a rate. This, coupled with the forecasts expecting a much longer time for inflation to approach the target, the Board saw as warranting the further rate rise. The official cash rate is now at 3.85%, the highest for 11 years, and the May decision may not be the last increase we see. Governor Philip Lowe noted that more may be required to ensure inflation reaches the target in a more reasonable timeframe. ## **RBA May Decision on Interest Rates** As usual, the May decision on interest rates by the RBA Board was delivered via a [media statement](https://www.rba.gov.au/media-releases/2023/mr-23-10.html) from Governor Philip Lowe. Later that day, Dr Lowe addressed the Reserve Bank Dinner, where he elaborated on a number of the themes in the decision statement. Details of the specific discussions, including what rate options were considered, will not be revealed until the minutes of that meeting are available on May 16. In the announcement release, Governor Lowe notes that the peak of Australia’s inflation rate has passed, but the current rate of 7% is still too high. Based on current forecasts, Dr Lowe said it would take quite a while for inflation to get back down to the target of 2% to 3%. This amount of time is considered too long, and with reducing inflation the priority for Board, getting inflation down in a more reasonable amount of time is extremely important. This was one of the main reasons for the 0.25% interest rate rise decision. Dr Lowe repeated the reasons for the April rate hold. The key reason is for Board members to have the time to access and review the most up-to-date data on the economy, especially how the previous rate rises were having the effect required. That data included the March Quarter CPI, which revealed that inflation had dropped to 7%. While welcome, Dr Lowe said it would take until the middle of 2025 for inflation to reach the target’s upper range, 3%. With current forecasts, inflation will drop to 4.5% this year. Goods inflation is easing as a better balance between demand and supply is reached, as the disruptions in the supply chains caused by the pandemic resolve. However, service inflation is still too high, as is being seen in global economies. The continuing high rate of service inflation is a risk and a key concern to the Board. Labour costs are increasing, but growth in productivity continues at subdued rates, and the labour market is still tight. Dr Lowe said that Board members remain vigilant to the risk of a prices-wages spiral and continue paying close attention to how businesses set prices regarding labour costs. The difficulties and damage to the economy that high inflation rates can create were noted. Dr Lowe said that if high rates developed to become entrenched in expectations, the situation would be extremely costly to adjust later. Correcting such a scenario would mean even higher interest rates and an increase in unemployment. The Board seeks to bring inflation down while preserving the advances already made in employment. Uncertainties in how demand would be impacted by higher interest rates, increasing living costs and house prices were noted. Also, an area of uncertainty is the global economic environment. With the need to bring inflation down faster and the high services inflation rate, the Board members decided to increase the cash rate by 0.25%. This May increase may not be the last rate rise we see. Dr Lowe said that further monetary policy tightening – more interest rate increases- may be needed to bring inflation down faster. The key dates to watch for how the economy is faring and what may be ahead for interest rates and business prospects are: – - May 9 Federal Budget - May 16 RBA Meeting Minutes - May 15 – ABS, Building Approvals Data - May 18 – ABS, Unemployment Figures - May 31 – ABS, Latest Inflation Data - June 6 RBA June Board Meeting ## **Securing Better Equipment Finance Rates** We appreciate that another rate rise will have many operators questioning whether or not they should proceed with their [machinery acquisition finance](/heavy-machinery-loans) plans at this time. But with tax benefits to be realised in this financial year; the potential additional benefits from temporary full expensing; plus the prospect of higher rates down the track, there are strong arguments for proceeding as planned, but with the cheapest interest finance rate achievable. **In light of this latest interest rate rise, business owners revisiting asset acquisition plans can engage Jade Equipment Finance to secure cheaper finance.** The May rates decision may result in rising [equipment finance interest rates](/equipment-finance-interest-rates) by some banks and non-bank lenders. But operators can be confident that with our vast lender base, we have the capabilities, drive, and eagerness to source the cheapest rates for our customers. **For cheaper interest rates on machinery finance, contact Jade Equipment Finance at 1300 000 003** *DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATIONS 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.* **Categories:** Finance --- ### [Cost-Effective Options for Plant, Machinery and Equipment Finance Following the Latest Rate Rise](https://www.jadeequipmentfinance.com.au/blog/cost-effective-options-for-plant-machinery-and-equipment-finance-following-the-latest-rate-rise) **Published:** May 15, 2023 **Author:** Publisher **Content:** The decision by the Board of the Reserve Bank ([RBA](http://www.rba.gov.au/)) to lift interest rates in its May meeting will have left many operators in a dilemma regarding new acquisitions with equipment finance. Stressing the importance of driving inflation down in a shorter timeframe, the Board decided to increase the cash rate for the 11th time since May 2022 by a further 0.25%. The significance of the poor timing and the amount is sure not to be lost on business owners currently planning, arranging or even finalising new plant, machinery and equipment acquisitions before the end of the financial year. After a hold in rates for April and many in the markets expecting a further hold, they are now facing an additional rate hike. An increase may increase the rate of finance and repayment and throw doubt over the viability of proceeding as planned. Many business owners will be facing tough decisions over whether or not they continue with the purchase plans or defer acquisitions to possibly next year. One of the major drivers for investing in new equipment is the looming 30 June date – the deadline for getting available tax deductions in place for this financial year. A further incentive is an opportunity to realise even larger tax deductions this year with temporary full expensing. And it’s the last chance for this accelerated asset depreciation measure as it will no longer be available after 30 June unless the Government extends the measure in the upcoming Federal Budget. That is not looking likely but could never be ruled out. But now, with this latest rate rise, the tax benefits may not be attractive enough with the prospect of even higher rates on equipment finance. **After the latest rate rise, operators seeking better equipment finance rates can look to Jade Equipment Finance for better rates and cost-effective solutions.** ## **Sourcing Better Interest Rates** While structure, term and any special conditions can be extremely significant to the viability of a commercial loan, the interest rate is key to the cost. The interest rate decisions by the RBA will have flow-on effects through lending markets, including commercial finance sectors. So, with the latest decision, there is the possibility that rate increases will be seen from some lenders. In this regard, we can’t give a blanket comment, as banks and lenders in the equipment finance market make their own decisions based on their analysts’ guidelines and forecasts. Lenders expecting further rate rises may have already priced those expectations into their rates before the RBA May decision. However, those that expected a rate hold may need to increase their rates. Others may keep their own rates steady to maintain a competitive edge. The challenge for business operators seeking finance is knowing where to look for the cheapest rates. Many non-bank lenders are not widely known or easily accessed directly by business owners. They work exclusively via a broker network. Our vast selection of both banks and non-bank lenders provides our customers access to more options and the opportunity to easily access lenders offering the cheapest rates. The [Equipment Finance best rates](/equipment-finance-interest-rates) advertised will typically be offered to businesses with a good credit rating and full documentation for the application. But we can achieve workable rates for those requiring Low Doc and No Doc finance. ## **Finance Products that Work with Objectives** Cost-effective finance is a loan that will work with the individual objectives of the business. Operators have a choice of equipment finance products: – - [Chattel Mortgage Rates](/chattel-mortgage) - Leasing - Rent to Own - Commercial Hire Purchase They differ regarding the approach to the balance sheet; tax deductions; compatibility with accounting methods; and interest rate. Speaking with the business accountant can assist operators in deciding as to which finance product will deliver the best outcome for their business. ## **Maximising Tax Benefits of Equipment Finance** With interest rates increased by the RBA 11 times over 13 months, other aspects of finance should be considered to achieve a cost-effective outcome. Tax deductions may significantly affect the affordability and cost of finance. Still available for those that can act quickly to finalise acquisitions is [temporary full expensing.](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) This measure allows for the full purchase price of the asset to be deducted in the same year as a purchase rather than depreciating in smaller amounts over several years. While the depreciation value would be the same, achieving the larger deduction now may reduce tax payable this financial year and represent an advantage. Chattel Mortgage is considered the most suitable form of finance to utilise this tax measure. ## **Structuring Equipment Finance** Higher rates can mean higher repayments. But when engaging with us, we work to negotiate the most suitable loan term, balloon and loan conditions to deliver a workable monthly commitment. Achieving a repayment level that does not pressure cash flow may make the acquisition a viable option despite the recent rate increase. To see how this could work for your planned acquisitions, use our [Equipment finance calculator](/calculator). ## **Getting Approved for Equipment Finance** Sourcing cost-effective equipment finance that supports the business objectives and allows for growth and productivity gains does not have to be a time-consuming and challenging task. Our broker-style lender services enable operators to secure the finance they need at better rates without those challenges. The RBA has indicated that further rate increases may be required. But the benefits offered by pre-EOFY acquisitions may be strong incentives to proceed as planned with purchases at this time. Please speak with us about how we can assist you in achieving your objectives. **Contact Jade Equipment Finance on 1300 000 003 to discuss achieving cost-effective equipment finance.** *DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATIONS 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.* **Categories:** Finance --- ### [Be ready to take advantage of housing targets. Upgrade machines with affordable construction equipment finance](https://www.jadeequipmentfinance.com.au/blog/be-ready-to-take-advantage-of-housing-targets-upgrade-machines-with-affordable-construction-equipment-finance) **Published:** September 3, 2025 **Author:** Publisher **Excerpt:** Construction equipment finance at competitive rates may enable operators to upgrade machines to take advantage of a boost in work with new housing targets. **Content:** Construction equipment finance at competitive rates may enable operators to upgrade machines to take advantage of a boost in work with new housing targets. In efforts to meet the Federal Government’s new housing targets, many state governments and local councils are rezoning areas for residential and identifying key sites for new housing developments. To meet the authorities’ targets and timeframes, the building industry will need to be ready to start work when plans are approved. To ensure you’re ready to take advantage of potential increases in work on offer in your area, consider upgrading your equipment. New machinery can provide significant benefits in greater efficiency, lower fuel costs, improved reliability, less downtime, lower maintenance costs and the potential to achieve increased productivity. Allowing more work to be completed in less time and deliver a better return to the business. In addition to the prospect of lucrative work contracts, operators may be incentivised to upgrade their machinery by the recent cuts to interest rates. [The Reserve Bank](http://www.rba.gov.au "The Reserve Bank") (RBA) cut the cash rate at their July meeting and another cut is anticipated at the Board’s 30 September meeting. Consider your options, use [our Calculator](/calculator) to work up loan estimates for budgeting and to help decide if upgrading is the right move for your business. ## Construction Equipment Finance Facilities Business assets used in the building and construction sector can be financed with Lease, Rent-to-Own, Chattel Mortgage or Rent-to-Own loans. All offer tax deductions, fixed interest rates, fixed terms up to 7 years, and end of term lump sum payments. The decision as to which is the most suitable option involves considering the accounting method used by the business, the preferences with asset ownership and approach to tax deductions. ## Upgrades to Existing Machines Where an upgrade involves reconditioning existing units or purchasing additional attachments, financing may be provided with secured or unsecured credit. Where the item is considered suitable collateral by the lender, asset acquisition credit facilities may be used to finance the purchase. Where an upgrade involves a new tech system or parts, an [Unsecured Business Loan](/unsecured-business-loans) may be suitable to fund the work. ## Interest Rates on Construction Equipment Finance [Interest rates](/equipment-finance-interest-rates) on business asset loans vary with credit facilities, lenders, with new and used assets, and with individual businesses. With the recent RBA rate cut decisions, asset finance rates across the market have been changing. But differences can still be found with different lenders. We assist operators to ensure they have secured their best possible rates by sourcing loans from our vast market coverage. Our lenders include specialists in lending to the building industry and financing heavy equipment. Ensuring more competitive rates are obtained compared to some banks and finance companies. ## Small & New Operator Construction Equipment Finance The work prospects presented in the building sector in coming years by the Government housing targets, may be the motivation some individuals require to finally make their move and set-up business on their own. This may be as a sole trader, owner-operator as an incorporated entity, or in partnership with others. Affordable loans for new businesses can be more difficult to secure than finance for a long-established operation. Difficult, but not unattainable. Our accreditation with specialist non-bank lenders allows us to provide machinery loan opportunities for new operators on a [Low Docs and No Docs](/no-docs-low-docs-equipment-finance) approval basis. Operators apply without all the usual financial documentation such as annual accounts, several years of tax returns, minimum levels of turnover, BAS returns and bank statements. With little or no business financial details available, applicants will be required to provide their personal financial information and documents. The individual’s personal credit score will be reviewed. If planning finance for future purchases, new operators may take the chance to improve their financials by reducing current debts and loans. ## Construction Equipment Finance – Machine Types When planning machinery upgrades, be assured that all types of machines used in the building and construction sector can be financed with the same credit facilities. This includes yellow goods, wheeled goods, excavators, loaders, dozers, graders, cranes, lifting equipment and other units. All brands can be financed including CASE, [Kubota](http://www.kubota.com.au "Kubota"), [Caterpillar](http://www.cat.com "Caterpillar"), Bobcat, and others. Where extra accessories such as various buckets and attachments are required, they may be included in the same loan as the machine when purchased together. Where purchased separately, attachments may be financed with Unsecured Loans where not accepted as suitable loan collateral. Differences with rates and loan terms are found with finance on new and used models. To decide if a new or used purchase is your most workable option, request quotes on both for comparison purposes. If intending to buy used at auction, operators may benefit from applying for a pre-approved loan. This allows operators to know they are approved for finance and have a borrowing limit set for bidding. **Be prepared to take advantage of new work opportunities by upgrading with our affordable rates on construction equipment finance – contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Buying Tips --- ### [Consider the options for finalising equipment loan payouts](https://www.jadeequipmentfinance.com.au/blog/consider-the-options-for-finalising-equipment-loan-payouts) **Published:** August 4, 2025 **Author:** Publisher **Excerpt:** Equipment loan payouts are the amounts due at the end of a loan term – residuals, balloons, buybacks, or the full sum due when finalising a loan mid-term. **Content:** Equipment loan payouts are the amounts due at the end of a loan term – residuals, balloons, buybacks, or the full sum due when finalising a loan mid-term. End of term payments are a feature of asset acquisition credit facilities and are the responsibility of the borrower to finalise to take full ownership of the machinery or in order to on sale the asset. While these payments are due at the end or midway through a finance term, planning for making the payments can actually start when applying for the original loan. We explain why and detail the options available to finalising loan payouts when they are due. ## What are equipment loan payouts? Equipment loan payouts are the amounts due on asset finance for the operator to finalise a loan completely. The term can have a slightly different interpretation depending on the timing. If finalising a loan at the end of the term the payout may be the balloon with [Chattel Mortgage](/chattel-mortgage) and Commercial Hire Purchase finance, the residual with a Leasing agreement, and a buyback with a Rent-to-Own loan. A balloon amount can be negotiated with lenders when setting up the loan. A residual will be in line with the schedules for asset values as determined by the [ATO](http://www.ato.gov.au "ATO"). A buyback is negotiated between the business and the lender. If a business looks to finalise a loan mid-way through the loan term, the payout will include all the amounts still owing – the monthly repayments, interest, balloons and residuals, as well as the fees charged by lenders for finalising a loan prior to the end of the term. This may occur if the asset is being resold or traded-in, or if the business is seeking to refinance the loan to achieve a more workable solution. ## Refinancing End of Term Equipment Loan Payouts Most businesses will have an amount to finalise at the end of their machinery loan term – a balloon, residual or a buyback. Where funds are not readily available to meet that payment, a very popular option is refinancing. This involves taking out a new finance arrangement to cover the total amount owed. When refinancing end of term payments, [loan rates](/equipment-finance-interest-rates), terms and conditions for used machinery finance apply. Lenders assess the asset for collateral suitability, and if acceptable, the business can select from CHP, Leasing, Chattel Mortgage or Rent-to-Own for the refinanced loan. If the lender deems the machinery unacceptable as finance security, the business may consider taking on an Unsecured Business Loan. The objective of refinancing is to include the total amount due in the loan. All relevant tax benefits and other features, eg balloons, would apply to the new loan. ## Finalising Equipment Loan Payments at Resale Where a business decides to trade-in or sell an asset while the asset is still under finance, they will need to finalise all outstanding amounts before the resale/trade can be finalised, or concurrently. The amount involved would include the lender exit fees, interest, end of term payment and the remaining monthly repayments. Operators can contact their lender to obtain an exact payout figure. When trading in the machine on a new model, a common practice is to have the trade-in value subtracted from the price of the new model. In this instance, the dealer typically asks what is owed on the machine prior and they may factor that into the trade value to cover any monies owed. Instead of taking the traded value as a discount on the new price, the operator may request that amount be remitted to the lender to cover the payout. If insufficient, the operator needs to make up the balance. If selling a machine privately, the operator may use the funds received to make the payout. ## Why Early Payout Planning is Advisable In our intro we mentioned that operators can start planning their payout when they are applying for the original loan. With asset finance terms available for up to 7 years, that is quite some time before the due date. So why the need for early planning? The ideal scenario at the end of a finance term, where a balloon or residual is due, is for the machine’s value to be in line with the amount due to finalise the loan. If more is outstanding than the machine is worth, the operator will need to find the funds to make the payment. Lenders may only approve refinancing to their assessed value of the asset. Leaving the operator out of pocket for the remainder due. When taking on Chattel Mortgage and CHP, plan for the balloon to be in line with the projected asset value at the end of the term. While a larger balloon will reduce the monthly payments on the original loan, it may leave the operator with a larger amount to finance or finalise at the end of the term. When taking on new machinery finance, your Jade broker will be working to structure a solution that best meets your current requirements and the end of term payout requirements. **To discuss your options for finalising equipment loan payouts, 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.* **Categories:** Buying Tips --- ### [Prepare now for AgQuip – Secure Your Machinery Finance](https://www.jadeequipmentfinance.com.au/blog/prepare-now-for-agquip-secure-your-machinery-finance) **Published:** July 30, 2025 **Author:** Publisher **Excerpt:** AgQuip 2025 will be held at Gunnedah, 19-21 August, showcasing new products and services, that operators can be ready to order with pre-arranged financing. **Content:** AgQuip 2025 will be held at Gunnedah, 19-21 August, showcasing new products and services, that operators can be ready to order with pre-arranged financing. This is the major field days event for the primary industry sector and the ideal opportunity to find out what’s new and what’s happening to assist your business operation. See machinery from major brands such as Case IH and John Deere and new innovations in systems and electronics, and much more. Meeting the dealers and brand representatives at the event, provides the opportunity to not just demo machinery and equipment, but plus orders. Simplifying the entire procedure of acquiring new assets and expediting delivery to have those machines working for you. To assist operators be in a position to order, we provide pre-arranged agricultural equipment and machinery finance and loans for non-asset purchases. Review what’s coming up at this year’s major field days and action your financing requirements ahead of the date. ## [AgQuip](https://acmruralevents.com.au/agquip/home "AgQuip") 2025 – Event Details The gates to the 2025 Field Days open at 8.30am on Tuesday 19 August! The event is in Gunnedah and will run over 3 massive days – Tuesday 19th through to Thursday 21st August. Parking is available on-site and opens at 7.30am each day. The complete Visitor Guide is expected to be posted on the event website shortly. Ticket sales are now open and [can be purchased online](https://tickets.acmruralevents.com.au/events/49118/agquip-2025 "can be purchased online"). As the premier event for the agri sector, visitors can expect to once again see an impressive showcase of new products that highlight the innovation and technology developments for the industry. ## AgQuip 2025 Exhibitors As regular Field Days visitors will know, these events feature not only the big name brands, but many smaller and emerging names in the sector. Exhibitors will cover a broad spectrum of machinery, equipment as well as other requirements for businesses in the agricultural industry. Exhibitors include suppliers of ATV accessories and attachments, air seeder equipment, aquaculture equipment, Agribusiness consultants, building and construction equipment, bulldozers, cultivators from [Gessner](http://www.gessner.com.au "Gessner"), the latest in electronics from [Agtronics](https://www.agtronics.net.au/ "Agtronics"), and plenty more including the latest models from brands such as Komatsu, Case IH and John Deere. To assist in planning your visit, refer to the Exhibitor Directory and the interactive site map to plot your way for the 3 days. Ensure you don’t miss visiting stands of brands you want to catch up with it. To arrange a dedicated appointment time, contact the supplier beforehand. Many representatives will be accommodating and set inspection times for keen buyers. ## New Attraction – Tractor Games Something new for AgQuip 2025 will be the Tractor Games. Daily shows will be presented of some of the best tractors in action, putting them through their paces and providing visitors with a great view from behind the wheel. Guest drivers will compete in various games and activities such as lifting hay bales, lawn bowls and kicking goals. All the driver’s action will be covered with cameras in the cabin. Don’t miss this, there are 3 shows each day. ## Securing Finance for AgQuip Orders Operators can be ready to place their orders by securing their financing before the date. For machinery and other assets, all our commercial credit facilities – Rent-to-Own, [Chattel Mortgage](/chattel-mortgage), Lease and Commercial Hire Purchase can be pre-approved. This includes our [Low Docs](/no-docs-low-docs-equipment-finance) for new and start-up businesses. If planning to order electronics, systems and other non-asset items, our Secured and Unsecured Business Loans and Lender Overdrafts can provide affordable loan options. The process of securing pre-approval involves submitting an application based on the estimated loan required. The [interest rates](/equipment-finance-interest-rates) will be the same regardless of when a loan application is made. Lenders assess the application based on the financials and credit profile and provide conditional approval. Providing operators with the assurance that they can proceed to order their requirements to their approved credit limit. To establish an estimated loan amount, operators may contact suppliers for their pricing or make a guesstimate based on past purchases or preferences. When financing machinery, don’t forget to include an allowance for attachments, tech and systems which may enhance performance on your property. When the entire unit with accessories is purchased as the one acquisition, the one financing package can usually be secured. An important aspect to keep in mind when attending field days and expos is not to be drawn into dealer financing without checking your options. Our highly competitive rates can be more affordable than many dealer finance offers. Use our Finance Calculator on your phone to get a quick estimate based on our rates while speaking with representatives. And if you don’t get around to pre-arranging your finance, our 24 hour approval service may have you sorted quickly after the event. Applications pre and post purchase can be made online or by phone from anywhere in Australia. **Pre-arrange your financing for AgQuip 2025 by contacting 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.* **Categories:** Buying Tips --- ### [Shock RBA decision left you wondering how to get affordable equipment finance rates? What you need to know ](https://www.jadeequipmentfinance.com.au/blog/shock-rba-decision-left-you-wondering-how-to-get-affordable-equipment-finance-rates-what-you-need-to-know) **Published:** July 10, 2025 **Author:** Publisher **Excerpt:** Following the RBA shock decision to hold the cash rate steady rather than cut, operators can secure affordable equipment finance rates through expert brokers. **Content:** Following the RBA shock decision to hold the cash rate steady rather than cut, operators can secure affordable equipment finance rates through expert brokers. When the Reserve Bank Board announced it was holding the cash rate on 8 July, the financial markets and many businesses were shocked. It’s fair to say that pretty much everyone was expecting a 0.25% cut to the cash rate with flow-on rate cuts through both commercial and consumer lending markets. Especially coming early in the financial year when asset acquisitions are a priority for many operators, the decision may have left many questioning their next move. Weighing up their options as to whether to continue with that machinery purchase or to wait and seeking options for securing workable finance. If the purchase is to replace unserviceable units, those questions may need quick resolutions. The decision could be a major blow for the many individuals that are in the process of setting up their own business with the purchase of construction, earthmoving and other machinery. As specialists in asset acquisition loans, we provide this explainer of why the RBA made that decision and the opportunities available for operators to secure workable machinery loans. ## RBA July Monetary Policy Decision At its scheduled meeting on 8 July, the [Reserve Bank (RBA)](https://www.rba.gov.au "Reserve Bank (RBA)") Monetary Policy Board made the decision to hold the cash rate steady at 3.85%. In a first for the bank, the announcement revealed the numbers for and against the decision – 6 in favour with 3 against the decision. No individual Board member names were announced, but simply revealing the numbers is quite a change for the RBA. This has not been announced before. A brief statement is issued to announce these decisions, with more detail on the discussions held by the Board available in the Meeting Minutes which are published on the RBA website a few weeks after the meeting. In the initial statement, the RBA Governor Ms Michelle Bullock highlighted inflation and uncertainties with global tariffs and trade as the key reasons for the decision. Inflation is seen as moderating but there is an expectation following some recent data, that the CPI figures for the June quarter may be stronger than the bank’s forecast. To ensure the inflation target of 2.5% is being sustained, the Board judged that they did have the time to wait for more data before moving again on rates. With the USA continuing to change its position on imposing tariffs, the global scenario remains a key area of uncertainty. The Board expects developments in global trade could have an adverse impact on the global economic activity. These global impacts could impact Australia’s economy and remain an uncertainty. While the Board is remaining cautious with the domestic outlook, Governor Bullock said the Australia’s Monetary Policy is well positioned to respond to international impacts if they affect domestic inflation and economic activity. The Board will be considering the data available over coming weeks and will next meet on 11-12 August to make its next decision on interest rates. For those interested in further detail on the July RBA Board meeting, refer to the Bank’s website for the release of meeting minutes and the transcript of the Governor’s July meeting media conference. ## Know the Basics of Competitive Equipment Finance Rates Trying to time asset investments around RBA rate cut decisions and lenders reducing their loan rates may not be the most effective way to manage a business. Knowing the basics of how asset finance rates are set and offered, and how to secure your best offer, can be important in astute business financial management. Lenders offering asset financing will be setting their individual rates according to their outlook for the rate market, the economy and their individual guidelines. Banks and non-bank lenders will offer varying rates and will change their rates according to their own schedule. A schedule which is not always aligned with the RBA meetings. You may hear reports of the markets ‘factoring or costing in a rate cut’, ahead of RBA decisions. With so many commercial lenders in the market, operators of all sizes and in all industries can access brokers such as Jade, to source their loan. We have access to many lenders and the resources to quickly find each operator their best machinery [loan rate](/equipment-finance-interest-rates). Credit profiles and specifics of the loan application can affect the offer. Strong financials and a good credit rating will contribute positively to a better offer. New businesses without complete financials may need to utilise broker services to access specialist [No Doc Loans](/no-docs-low-docs-equipment-finance). While a higher rate may be expected without complete financials, competitive rates are still sourced by our experts. There are also variations in rates with loan products – [Chattel Mortgage](/chattel-mortgage), Lease, Rent-to-Own, and CHP. New assets can attract better rates and loan terms and conditions than second-hand machines. While waiting to see what happens with rates in August may be your current opinion, also consider the benefits you may be foregoing in the interim by not having that new machinery operating in your business and the possibility of a price rise on the required units. **For affordable equipment finance rates, request a quote from 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.* **Categories:** Buying Tips --- ### [New biz for new fin year? Set up affordably with Start-up Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/new-biz-for-new-fin-year-set-up-affordably-with-start-up-equipment-finance) **Published:** June 23, 2025 **Author:** Publisher **Excerpt:** Start-up equipment finance is available on a wide range of yellow goods, machinery and other assets for new businesses without full financial documentation. **Content:** Start-up equipment finance is available on a wide range of yellow goods, machinery and other assets for new businesses without full financial documentation. Providing a workable way forward for those planning to set up a new venture to kick off the 2025/26 financial year. Acquiring machines such as loaders, dozers, backhoes and other wheeled goods can be an ideal starting point to operating your own business. Computer equipment, essential to all business operations, can also be financed on a low doc or no doc basis. Access to the specialist non-bank lenders that offer loan approval without complete financials is made possible through Jade. We assist and support new operators to get their start with workable financing at affordable rates. We outline what new operators can expect when applying for loans without financials, the requirements, and the credit options and opportunities available. ## What is start-up equipment finance? Applying for asset financing requires completing a commercial credit application form. Lenders request documents to show the financials of the business and the turnover for the past 12 months at least. The documentation requested includes annual tax returns, annual business accounts, bank statements, BAS returns and other financials. Other essential criteria such as 12-24 months in business and minimum turnover figures are required by some lenders. New businesses, many that may not yet have been trading, do not meet these criteria. Start-up equipment finance are loans for those businesses. Businesses starting up or which have only been in operation for less than 12 months. These loans are known as without financials, [low docs](/no-docs-low-docs-equipment-finance), no docs, and often ABN-only loans. The references are a description of the type of application or the operation. They are not specific loan facilities or products. The category can comprise a company structure, a partnership arrangement, or a one-person operation. ## Requirements for Start-up Equipment Finance Requirements for no docs or low docs financing can vary with lenders and for individual business operators. Essential for eligibility for all commercial credit products is providing ID and holding an ABN. The ABN can be recently attained. GST registration is considered a plus by some lenders but is not an essential eligibility requirement. Operators should note that under Australian tax regulations, any business that records an annual turnover of $75,000 or greater is required to register to pay, charge and claim GST. The stronger the application in regard to financial information, the greater the potential for approval and a better loan offer. Businesses that do not have accountant-prepared financials are encouraged to prepare and present what financial details they do have available. In addition to turnover for any work already carried out, operators may include a business plan and other supporting information. The personal financial position and documents of the owner of the operation will usually be requested by lenders to support a no financials business loan application. Operators should expect to have personal tax returns and other financial documents requested and that their personal credit rating will also be checked. New operators should also be prepared for special requirements or conditions attached to any loan offer. This may include providing loan security as well as the equipment being financed. Cars, boats, property and other assets may be provided as loan collateral. A personal guarantee may meet the approval requirements of some lenders. ## Start-up Equipment Finance Products New businesses have access to the complete selection of asset finance facilities when their application is approved. Operators should select the loan product that is compatible with their accounting approach and the goals they have for their business. Choose from Lease, Rent-to-Own, [Chattel Mortgage](/chattel-mortgage) and Commercial Hire Purchase. Seeking advice from an accountant is recommended when choosing the most suitable loan facility. Interest rates on Low Docs asset finance can be higher than for businesses that have complete financials. But our brokers will be sourcing the best possible rate for you from across our large lender base. The interest rate will be fixed. Asset finance includes fixed terms and fixed repayments. Low Docs loans include all the features and benefits of fully documented loans – balloons, residuals, buybacks, and tax deductions. For budgeting purposes, get a rough estimate on your possible loan payments by using our Equipment Finance Calculator with [our displayed rates](/equipment-finance-interest-rates) or another rate. ## Eligible Machinery for Start-up Equipment Finance All types of assets used in a commercial enterprise may be financed with Low Docs loans. This includes yellow and wheeled goods for construction and agriculture from leading names such as CASE, [John Deere](https://www.deere.com.au/en/ "John Deere"), [CAT](https://www.cat.com/en_AU.html "CAT") and others. Computers and other equipment used in all industries may be financed without full financials. When considering a new versus a used unit, be aware that interest rates on used goods may be higher than new, and that the lender will need to approve your loan limit. Getting a pre-approved Low Docs Machine Loan can assist operators to better choose machines within their loan limits. **To apply before you buy for start-up equipment finance, speak with 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.* **Categories:** Buying Tips --- ### [Gear up for the new financial year with our great rates on equipment loans](https://www.jadeequipmentfinance.com.au/blog/gear-up-for-the-new-financial-year-with-our-great-rates-on-equipment-loans) **Published:** June 24, 2024 **Author:** Publisher **Excerpt:** Jade Equipment Finance offers operators expert services and access to a vast lender base to obtain competitive rates on equipment loans. **Content:** Is your operation equipped to capture emerging contracts and opportunities as they arise? Are you struggling with ageing machines that are adding more to costs than to output? Do you need to embrace new technology to be competitive? Acquiring new plant and machinery with our competitive rates on equipment loans may be a cost-effective way forward for your operation. The start of a new financial year is often the time when many operators may choose to do a SWOT analysis of their business. Identifying how new assets may assist in capitalising on opportunities and minimising weaknesses and threats. The benefits of upgrading or replacing assets, or installing new systems and processes, can be significant. New units may deliver greater fuel and energy efficiency to reduce costs, while increasing output. The latest models may present the opportunity to commence production of new product lines to meet changed buyer trends. But when those acquisitions require financing, many operators can be left idling in neutral, unsure of where to go to get the best rates, terms and deals. Jade Equipment Finance offers operators expert services and access to a vast lender base to obtain competitive rates on equipment loans. Providing a simple, streamlined way for businesses across all industry sectors to have lending experts source their finance. Finance at the most competitive rates in the market, which can make the acquisition of the necessary assets a cost-effective, affordable and extremely productive move. ## Selecting the Most Effective Equipment Loans We provide a complete portfolio of asset acquisition funding facilities to suit all business set-ups and all types of plant, machinery and equipment. New assets may be financed with Chattel Mortgage, Machinery Lease, [Rent-to-Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance) loans and with Hire Purchase. Deciding which facility will be most effective for the individual operation involves reviewing the credit product features against the structure and objectives of the business and the accounting practices implemented. Where posting large value assets to the business balance sheet is not an ideal scenario, Lease and Rent-to-Own provide an off-balance sheet credit facility. Where the plan is to own the machinery for a long period, Chattel Mortgage may be the most effective facility, with ownership directly transferred to the business, and the lowest asset acquisition funding rates applying. Hire Purchase allows operators to realise many of the same benefits of Chattel Mortgage, whether they use the cash or the accruals accounting method. All asset acquisition funding facilities provide for tax deductions, which can reduce the overall cost of the machinery. Monthly payments can be tailored by our experts through negotiating on balloons and residuals. ## How to Secure the Best Interest Rates on Equipment Loans Integral to new assets being a viable option for boosting business performance and output can be the interest rate on the financing. Rates determine repayments, total interest payable, and the overall cost of the investment. Securing the lowest rates is key to the most affordable asset acquisitions and to realising production, productivity and ROI targets. Securing the [most competitive rates](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates) can depend on numerous issues including the credit profile and financials of the business; the lender; and the asset being acquired. The lender is critical as interest rates vary across the commercial credit market. Lenders set their own interest rates based on their outlook for the economy and the markets, while [Reserve Bank](http://www.rba.gov.au) rate decisions also have an impact. Lenders have their own set of criteria for making rate offers and approving applications. We open channels to a vast selection of lenders for our customers through our large lender panel. Providing direct access through our brokers to source the best current market rates. ## Budgeting for Equipment Loans with Quick Estimates To assist in making decisions around whether gearing up with new machinery will be affordable and cost-effective, operators can use our [online financing calculator](https://www.jadeequipmentfinance.com.au/calculator). This tool allows a DIY approach to getting financing estimates for budgeting and planning purposes. Compare estimates on different types of credit, on different machine models, and plan how the financing will work with cash flow forecasts. ## Ready to gear up? Fast Equipment Loans Approvals for Fast Acquisitions Whether it’s a new digger, a new tractor, the latest materials handling machinery, a new manufacturing production line, or new IT, when the need for new assets is identified, the sooner they are in operation, the sooner the business will realise the results. We support operators with a simple application process and capability for fast approvals. Applications can be uploaded using our online tools or details provided over the phone with one of our brokers. Why delay any longer? Apply for financing and get the new financial year off to a productive start. **To equip your business with the necessary machinery to achieve improved performance and results, contact Jade Equipment Finance on 1300 000 003 to discuss equipment loans.** *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.* **Categories:** Buying Tips --- ### [Understanding Finance: Chattel Mortgage](https://www.jadeequipmentfinance.com.au/blog/understanding-finance-chattel-mortgage) **Published:** February 27, 2020 **Author:** Publisher **Content:** With interest rates at current low levels, it could be a good time for you to consider a major purchase – car, cargo trailer financing, truck, boat or equipment finance to grow your business. Many people take a lot of time considering the details of what they are purchasing but not the same effort understanding how they purchasing that asset. Different types of commercial finance offer distinct benefits depending on your business structure. Understanding the type of finance options and making the right decision can be significant in terms of cost savings over the term of the loan. How often have you just signed the finance contract without reading and fully understanding the fine print? Many people do. They look at the monthly repayment, the balloon, the loan term and if they suit, they sign. Your Jade Finance Broker will explain the details of each to you and you should always consult with your accountant. But to give you the heads-up, we’re providing an overview of different types of finance. In this issue we’re focusing on Chattel Mortgage. ## Chattel Mortgage: Explained [Chattel Mortgage Equipment](https://www.jadeequipmentfinance.com.au/chattel-mortgage "Click to learn more about Chattel Mortgage Equipment") is the most popular and commonly selected type of commercial finance product as it suits many businesses that use a cash accounting method – self-employed, SMEs and large corporations. ‘Chattel’ is an old world word which refers to goods or possessions. In finance terms, it refers to the asset or the item you are purchasing. ‘Mortgage’ is the claim the lender puts on the loan. The lender takes a mortgage over the chattel while the borrower makes the repayments. A Chattel Mortgage works like this: the lender (bank or finance company) provides the finance for the purchase of the asset and holds a mortgage over the purchased equipment while the borrower, you, makes monthly repayments. When the purchase is made, the borrower takes ownership of, and has full use of, the asset while the lender holds security for the finance until all payments are finalised. While Chattel Mortgage is a commercial finance product, both individuals and businesses can take on a Chattel Mortgage. But, in the case of individuals, the asset being purchased – truck, car, or [Commercial Equipment](https://www.jadeequipmentfinance.com.au/ "Take a closer look at premium Commercial Equipment Financing.") – must be used primarily for business purposes. ## Features of a Chattel Mortgage Your Jade Finance Broker will structure your Chattel Mortgage to suit your business objectives, starting with our signature low interest rates. - The interest rate is fixed for the duration of the loan. - A monthly repayment is established in consultation with you and this is fixed for the term of the loan. - Monthly payments are not tax deductible. Only the interest component of the payment is tax deductible. - The term of the loan is fixed and depending on what you are purchasing can vary from 2 to 6 years. - The lender does not require a deposit, though the seller may require some form of security/holding deposit to confirm your purchase while you are arranging your finance. - A balloon or residual amount may be included in a Chattel Mortgage. This can be set at a fixed dollar amount or percentage of the purchase price and is due after the final monthly repayment. - While it is tempting to request a large balloon to reduce the monthly repayments, you should take into account the estimated value of the asset when it comes time to finalise the loan. - If you are registered for [GST](https://www.ato.gov.au/Business/GST/Registering-for-GST/), you can claim the GST on the full purchase price on your next BAS. GST is not charged on the interest on the loan but is charged on any fees. - At the end of financial year, the depreciation on the asset can be accounted as a tax deduction. - If you choose to finalise your Chattel Mortgage before the end of the loan term, extra costs are often incurred. The lender will give you a ‘pay-out figure’ on request. ## Sourcing a Chattel Mortgage Your Jade finance consultant will discuss the details of all our commercial finance products and advise that you consult your accountant for direction in regard to your specific business. The decision as to whether a Chattel Mortgage is the best option depends on how your business treats GST, tax deductions, depreciation, and the balance sheet. Additionally, they can also recommend reputable [equipment finance brokers](https://www.jadeequipmentfinance.com.au/broker "Unlock the expertise of equipment finance brokers here.") if needed. Chattel Mortgage is a flexible and highly workable finance option for many businesses as it suits the purchase of a diverse range of products and equipment. If you’re considering a business purchase, please call a Jade consultant for a confidential, non-obligation discussion in regard to a Chattel Mortgage for your purchase. *DISCLAIMER: THE INFORMATION PROVIDED IN THIS PUBLICATION IS INTENDED AS AN OPINION AND A GUIDE ONLY. IT IS NOT INTENDED AS FINANCIAL ADVICE. CONTACT YOUR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE ON YOUR SITUATION.* **Categories:** Buying Tips --- ### [Half-Yearly Budget Update: Finance Impacts](https://www.jadeequipmentfinance.com.au/blog/half-yearly-budget-update-finance-impacts) **Published:** December 21, 2021 **Author:** Publisher **Content:** With state and Federal 2021/22 budgets delivered in May-June, Governments deliver a half-yearly budget update at the calendar end the year. These updates are essentially a report card on what has occurred, commentary on the effects of changed economic conditions and reporting on any adjustments which may be necessary to the figures included in the budget. While not having a direct effect on interest rates on loans such as equipment finance the half-yearly budget update can provide insights to businesses as to opportunities ahead and the outlook for the economy from the Government’s perspective. On Thursday 17 December, Josh Frydenberg, Federal Treasurer, released the Mid-Year Economic and Fiscal Outlook and Matt Kean, the relatively new NSW Treasurer, also released that state’s half-yearly budget update to NSW Parliament. This all happening in the same week as the Omicron cases started their surge across multiple states and territories. The updates and the potential complications for the economy from Omicron together present a lot of information for business owners to get across. To simplify that process, we have selected a number of key points and comments from the RBA Governor in relation to these updates for our customers to consider. **MYEFO Key Points** MYEFO is a requirement under the Charter of Budget Honesty and is intended as somewhat of an accountability process for the government of the day. The complete MYEFO document runs to over 400 pages for those keen to get into the detail. For those seeking a quick update on the update, we have extracted a number of key points and included comments made by the Treasurer in the lead-up to the announcement. - The Treasurer described the current economic situation for 2022 as being ‘primed for lift-off’. - The rebounding of the economy is expected to be maintained and continue despite the emergence of the Omicron variant. The details around this variant which appear to be emerging from overseas studies suggest it will not hold back the economic recovery. - Unemployment is expected to continue falling. - Restrictions should continue to be eased. - Labour shortages in a number of industries should be addressed with returning international students and skilled workers. - Unemployment outlook: 4.5% during 2022; 4.25% by the June quarter in 2023. - Growth in real GDP for 2021/21 expected to be 3.75%. In 2022/23 to post 3.5% - Labour shortages being addressed with targeted measures From the equipment finance perspective, the indicators which the RBA has stated would trigger a rise in the official cash rate are inflation and unemployment so they are the figures to watch. Addressing labour shortages may present a particularly positive sign for businesses in some industries especially agriculture and hospitality. **Comments from Governor of RBA** Earlier in December the [RBA](http://rba.gov.au) Board announced its monthly rate decision and kept the official cash rate on hold at 0.1%. On 17 December, the day MYEFO was released, Dr Philip Lowe, Governor of the RBA was delivering an address to business people in NSW. Comments made by Dr Lowe on that day related to the potential effects of Omicron on the economy. He acknowledged the possible risk of Omicron but expected the economic rebound in Australia to continue. Reopening, easing restrictions and high vaccination rates are seen as underpinning the continued recovery in Australia. On the specific topic of interest rates, Dr Lowe was consistent with recent RBA decisions. Repeating that the Board was waiting for 2-3% sustained inflation and unemployment at lower than existing levels in order for them to consider a rate rise. He stated that these were not expected to be realised in 2022. Good news for those considering investing in equipment over the next year. **NSW Treasurer Half-Yearly Budget Update** The NSW state budget update was presented to NSW Parliament by Treasurer Matt Kean on 17 December with the significant impact caused by the winter lockdowns on the budget clearly evident. Treasurer Kean expects the jobs lost during the Delta lockdown to be recovered early in the new year and the bounce back to continue. For those interested in further information on the NSW Budget position, possibly on infrastructure investment, the documents are available at NSW Treasury. **Equipment Finance Update** The significance of the half-year budget updates for businesses can be to provide certainty and direction moving forward. For those not able to operate to full extent due to staff shortages, the outlook and measures to address these problems should be welcomed. If announcements in the half-yearly budget updates have provided you with the confidence to move on equipment investment decisions, speak with us about finance quotes. We have a comprehensive portfolio of [finance products](/overview-of-equipment-loan-products) at [cheap interest rates](/equipment-finance-interest-rates) available to finance a wide range of equipment. Final reminder – temporary full expensing is available for eligible asset acquisitions through to June 2023. Chattel Mortgage is considered the most suitable form of finance to appreciate the benefits of this accelerated asset depreciation measure. **Contact Jade Equipment Finance on 1300 000 003 to discuss cheap interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [Get Machinery Finance Approved for Henty Field Days purchases](https://www.jadeequipmentfinance.com.au/blog/get-machinery-finance-approved-for-henty-field-days-purchases) **Published:** September 11, 2023 **Author:** Publisher **Content:** The largest event in Australia for agribusiness is about to open its gates and celebrate 60 years. Henty Field Days for 2023 will be held from 19-21 September and is a ‘must-attend’ for operators in agriculture, farming, livestock and associated and support businesses. Henty Field Days showcases a large range of products including farm equipment and machinery, produce, country lifestyle products and service providers. With a huge list of exhibitors and suppliers, this annual event offers an ideal opportunity to order new machinery and equipment. Inspect new machinery and discuss the details with the representatives, compare multiple options in one location and make purchase decisions. Serious buyers can be well-prepared to order by having their machinery finance pre-approved through Jade Equipment Finance. We get fast approvals on financing for all types of agri machinery so buyers can confidently place orders to expedite delivery. ## Henty Machinery Field Days – Event Details For those in southern NSW and northern Victoria, [Henty Machinery Field Days](https://hmfd.com.au/ "Information for Henty Machinery Field Days Event") are an institution! For other operators across Australia, this event may well be worth travelling for, so it’s time to get organised. - Date: September 19-21 - Location: Henty, between Wagga Wagga and Albury Wodonga. - Hours: 8 am – 5 pm daily - Ticketing: Buy tickets online or at the gate - Entry Pricing: Until 18 September discount is $25 and a booking fee for adults; after 18 September $30 and a booking fee for adults. Refer to the Visitor Information for more details. ## Henty Field Days Exhibitors This is a real super event so it’s no surprise that there is a huge list of exhibitors covering all areas of the agricultural industry. Exhibitors include New Holland, Case IH, Komatsu, Toyota material handling equipment, Kubota, balers and accessories, Advisory services, agronomy services, alternative farming and alternative energy, earthmoving and heavy machinery, farm machinery, generators, hay and fodder equipment, irrigation systems, livestock feeding and handling equipment and more. If interested in a specific type of machinery or equipment from a particular manufacturer, it can be wise to contact them before seeing if an appointment time may be set. In addition to exhibitors, visitors should earmark a visit to the Innovation Hub with TekTalks on insights and tech in the industry. ## Agribusiness Machinery Finance Options Securing the right loan type for the business at the cheapest interest rates can be critical to achieving the expected outcomes with machinery acquisitions. Jade Equipment Finance assists agri operators looking to buy at Henty Field Days with pre-approved and post-event, individually negotiated machinery finance. Loans that are sourced to specifically suit the requirements of the operation and at the best possible [equipment finance interest rates](/equipment-finance-interest-rates "Equipment Loan Rates"). Operators in all sectors of the agricultural industry may select from the portfolio of machinery financing options:- - Farm [Machinery Leasing](/asset-lease "Lease Equipment") - Chattel Mortgage Equipment Financing - Commercial Hire Purchase - Rent-to-Own Agri Machine Loans Buyers can consider including accessories in their finances by ordering the extras at the same time and from the same supplier as the machinery. Speak with us about what extras we may be able to include in your loan. Low Doc and No Doc options are available for startup operations that do not have full financials. Competitive rates can be achieved on these options through our specialist non-bank lenders. ## Consider IAWO Option Instant Asset Write-Off (IAWO) is available for the 2023/24 financial year for businesses that have an annual turnover below $10m and for asset acquisitions costing $20,000 or less. This is not limited to one asset but may be claimed on several eligible assets over the financial year. This tax benefit may be of interest to eligible operators and is worth keeping in mind while inspecting machinery. To utilise accelerated asset depreciation measures such as IAWO, the asset must be depreciable. This refers to the asset being posted to the balance sheet which in turn relates to the financing product selected. Chattel Mortgage is considered best suited to IAWO for businesses that use the cash accounting method. ## Buying at Henty Field Days? Get Machinery Finance Pre-Approved For operators intending to order new machinery at the Henty event, finance can be approved before the date, including options for [low doc equipment finance](/no-docs-low-docs-equipment-finance "Minimal Documentation Equipment Loan"). Loans are processed and approved based on an estimated amount and with an indication of the machinery to be purchased. Buyers can proceed with their orders and our consultants will amend the loan with the final loan amount when the purchase price is confirmed. We act quickly to quit requests and loan applications. With not long to the Henty event, buyers are advised to get organised with their finances ASAP. Another tip for field day attendees – keep our Equipment Finance Calculator handy on your phone to calculate loan estimates while inspecting equipment. **Contact Jade Equipment Finance on 1300 000 003 for pre-approved financing before the Henty Field Days.** *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.* **Categories:** Buying Tips --- ### [Shutdowns and price squeezing highlight importance of cheap equipment finance](https://www.jadeequipmentfinance.com.au/blog/shutdowns-and-price-squeezing-highlight-importance-of-cheap-equipment-finance) **Published:** November 22, 2021 **Author:** Publisher **Content:** While the Greater Sydney building and construction sector was officially back on site and back on the tools after a shock shutdown, the reality was not totally positive as the sector continues to feel the pressures on several fronts. Jade Equipment Finance details how shutdowns and price squeezing highlight the important of cheap equipment finance. Many sites were unable to restart at full capacity after the 14 day shutdown as many of the trades and other workers remained under stay-at-home orders in the outbreak hot spots. Others will no doubt be counting the costs incurred and how that will affect matters moving forward. Shocked by the surprise shutdown order, many operators will likely be having a good hard look at many aspects of their operations and taking steps to shore-up their footings, aka finances, against any further unexpected interruptions. While the sector has been a highlight in a period of multiple lowlights, recent data reveals the growth experienced in recent times has started decelerating. The Australian Performance of Construction Index fell in June after reaching historic high levels just three months earlier in March. While still assessed to be in a phase of expansion, the growth trajectory is seen as stabilising. While industry-wide data is interesting and very relevant to some organisations, for SMEs and smaller operators, their main priority is their own sphere of activity. Maintaining profitability in what has become somewhat of a volatile scenario. Taking a whole-of-business review of costs can start with an assessment of current and future equipment financing arrangements. For many operators, their equipment and machinery is their business. Operating as contract owner-operators of dozers and other excavation equipment, cranes and other machinery. For these businesses, upgrading and renewing machines to be in pole position to win tenders and contracts is a recurring and ongoing part of managing the business. The costs of [financing that equipment](/earth-moving-equipment-loans) by way of the monthly loan repayments, can be the major single outgoing. **Containing and Reducing Finance Costs** Keeping a lid on finance costs starts with choice of lender when securing loans for new equipment. Choice of lender can ensure the [cheapest interest rate](/equipment-finance-interest-rates) is secured. This pivotal loan element determines the overall cost of the financing and can vary significantly across the equipment lending market. Banks and non-bank lenders set their rates for equipment finance based on a number of factors including their risk assessment of a sector, their interest in financing that industry and their own costs of funding as well as the [official cash rate](https://www.rba.gov.au/). Lenders that specialise in say construction equipment finance typically offer cheaper rates. But accessing these specialist finance sources often requires going through lenders such as [Jade Equipment Finance](/why-jade-equipment-loans). Some specialty non-bank lenders only operate through industry channels. Achieving the cheapest interest rate finance is a fundamental step in ensuring the costs of finance are kept to a minimum. The interest rate offered to individual businesses also include a risk assessment of that business. That includes a review of the credit score. So operators can take their own steps towards better loan offers by keeping their credit profile in good standing by making credit, loan, supplier and utilities payments in a timely way. One myth which persists in lending is that businesses that apply for [low docs and no docs](/no-docs-low-docs-equipment-finance) will have to pay more for their equipment finance. This is not necessarily or always the case. Low docs and no docs equipment finance applicants can be offered cheap interest rate loans if they have a good credit profile and meet other lender criteria. If you are in the market for this type of finance, please speak with us as to how we can assist you. **Structuring Finance to Hit Targets** How a finance deal is structured is fundamental to achieving the finance objectives of the business. Some will be looking for the lowest possible monthly repayments to keep pressure off cash flow while others will be seeking to reduce the debt as quickly as possible. Achieving both these objectives involves working with your lender or Jade consultant in structuring the deal effectively in relation to the finance term and any residual amount. The shorter the term the larger the monthly repayments will be but the faster the debt will be finalised. Opt for a longer term to achieve a lower monthly repayment but be aware that the total interest charged will be higher as the loan is taken over a longer timeframe. The residual also plays a part in increasing or decreasing the repayments. This is due to be paid at the end of the loan term and if that coincides with upgrade time, you would want the value of the equipment at that point to be in line with what is owed. **Refinancing Existing Contracts** If, on reviewing your existing equipment finance contracts, you can see opportunities to potentially reduce your loan costs, refinancing could be a potential solution. Interest rates are currently at historic lows and possibly lower than when you secured your current finance deal. When sourcing quotes for refinancing, your Jade consultant will point out any fees and charges associated with the changeover and our policy is not to recommend proceeding if the outcome is not of our benefit to our customer. Equipment finance contracts can be for as long as 7 years. On the back of what has been occurring lately across many industries, it is a timely reminder of the importance of securing the cheapest finance at the outset, when the equipment is acquired. This can be extremely important in containing outgoings for the ensuing years ahead and during unprecedented and unexpected periods when work is shutdown. **Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance.** *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.* **Categories:** Buying Tips --- ### [Glass Half Full View: where to with equipment interest rates?](https://www.jadeequipmentfinance.com.au/blog/glass-half-full-view-where-to-with-equipment-interest-rates) **Published:** November 22, 2021 **Author:** Publisher **Content:** In the middle of quite a grim situation in many areas of the country with COVID lockdowns, the [RBA](https://www.rba.gov.au/) Governor Philip Lowe provided a light-hearted conclusion to his appearance before an Economics Committee of the House of Representatives. Appearing via video link, Dr Lowe had provided the committee with a comprehensive explanation of the RBA’s Quarterly Statement on Monetary Policy which included rejecting suggestions that the extended NSW and other current state lockdowns would plunge the country into a recession. What could be taken as confirmation of his quite positive outlook, he showed his coffee mug to the committee members which was printed with the words ‘half full’. All watching will no doubt be hoping Dr Lowe’s positivity flows through to real returns for the economy. Jade Equipment Finance provides a viewpoint on where to with equipment interest rates. With the economy showing a remarkable recovery over the first half of 2021 and many businesses taking advantage of the budget tax measures to acquire new equipment, the new virus outbreaks and resultant lockdowns have been a shock to the system at a minimum. For those still to enact their equipment investment plans this financial year, one of the key questions is – what will happen with interest rates? Will Dr Lowe be right and a snap recovery quickly follow the snap lockdown? Or will this setback drive interest rates up? As always, we have reviewed the latest RBA Board statement and the quarterly monetary policy report and provide an update on what businesses may expect based on the Bank’s decisions and outlook. In addition we address a number of other concerns which we consider may be playing on the minds of many business operators across a range of industry sectors. **August RBA Decision on Rates** As per the usual scheduling, the RBA Board met on the first Tuesday in August, the 3rd, to discuss and deliver their decision on the official cash rate and monetary policy. But this was not the only input from the RBA that week, with the release of the banks’ quarterly statement on monetary policy and the mentioned above appearance by Dr Lowe at a committee on 6 August. The outcomes of all three events can be considered concurrently to provide a longer term outlook for economic activity. The August Board meeting resulted in an expected decision that the official cash rate was held steady at the historic low rate of 0.1% The Board has not moved on rates since November 2020 when the official rate was cut to the current level. In addition and to continue supporting the economy with monetary policy, the existing bond buying program would proceed as scheduled. The RBA further confirmed its intentions to not consider lifting rates until the rate of inflation was sustained in the 2-3% range and unemployment was below 4%. Inflation is currently sitting at 1.75% and unemployment 4.9%. As mentioned in statements over the past few months, the Bank does not expect this to occur until 2024. Doubt has been cast on the economy’s current good performance as a result of the significant COVID outbreaks that have caused lockdowns in multiple states. Dr Lowe stated that the RBA did expect the September quarter to show a decline in GDP growth but that other serious outbreaks (most likely referring to the Victorian experience) had resulted in a swift bounce back. He expected this to occur with the current situation. In opening comments to the [Economic Committee](https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics), Dr Lowe noted that not all areas of the country were impacted by current lockdowns and certain areas and sectors remained on an upward trajectory. When questioned in committee if the extended current lockdown would result in a nation-wide recession, Dr Lowe responded that that was not expected. It was expected that the economy would bounce back. The extent and timing was uncertain but before the end of 2021. Of course not all analysts, including some at the major banks, agree with the RBA’s outlook so the full outcome will remain to be seen. **Equipment Finance Outlook** While we always maintain a [cheaper interest rate](/equipment-finance-interest-rates) approach to equipment finance, with the official cash rate remaining at the current low rates, the August statements do not impact the rates we are offering on equipment finance. Lenders that source their own funding from international channels may have higher costs of funding as rates vary across the global finance market. To counter any increases in lending rates by any individual lenders, Jade Equipment Finance is well-placed with a large choice of lenders. We are accredited with a vast number of banks and non-bank lenders which enables us to source the cheapest rates on equipment acquisition loans. Relatively new and start-up businesses that are considering applying for [low docs and no docs equipment loans](/no-docs-low-docs-equipment-finance), may be wondering how the current outbreaks and lockdowns is impacting lender sentiment and how that may affect their loan prospects. During the 2020 crisis the banks did pull back on lending. But in this current situation, that general trend is not being seen. All equipment loan applications are considered on an individual basis and as noted by Dr Lowe, not all areas of the country are currently affected. In sourcing low docs/no docs equipment finance quotes we have access to specialist equipment finance non-bank lenders that are flexible and offer highly attractive loan deals. Another key concern may be for those requiring bad credit equipment finance. Will bad credit loans be more difficult to achieve? It is always advisable that loan applicants address their credit profile to fix any errors prior to application and to focus on maintaining and building as good a credit score as possible. That means not falling behind with existing payments and commitments. We have access to lenders that do provide finance to bad credit applicants and we welcome enquiries to pursue these avenues for your business. Along with many others in the finance sector, we will be closely watching the economic data over coming months to see if Dr Lowe’s half-full mug fills up and the RBA’s positive outlook is realised. Meanwhile, our [lending services](/why-jade-equipment-loans) are fully operational with business as usual. **Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance requirements** *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.* **Categories:** Buying Tips --- ### [When IAWO and Chattel Mortgage doesn’t suit – other tax deductible equipment finance](https://www.jadeequipmentfinance.com.au/blog/when-iawo-and-chattel-mortgage-doesnt-suit-other-tax-deductible-equipment-finance) **Published:** November 22, 2021 **Author:** Publisher **Content:** Since introduced in April 2020 and further expanded and extended through 2020 and in the 21/22 [Federal Budget](https://budget.gov.au/), accelerated asset depreciation measures may have been perceived as the only game in town in terms of equipment acquisition. Jade Equipment Finance provides an update on these and other tax deductible equipment finance options. Instant Asset Write-Off (IAWO) has been pushed and promoted heavily over the past 12+ months, as an incentive to purchase new plant, machinery and equipment in many industries. And for a lot of very solid reasons. Both IAWO and [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) present highly attractive tax deductibility elements for eligible businesses on eligible asset acquisitions. But, as lenders that deal with a wide range of businesses across all industries, we are fully aware that these measures are not for every business and every equipment purchase. There are many reasons why business can’t or don’t choose to utilise these taxation schemes. Primarily, accelerated asset depreciation requires the business to own the equipment as in have it posted to their balance sheet. In order to achieve this, the equipment needs to be either purchased outright or financed through a finance facility that enables this. That is seen as [Chattel Mortgage](/chattel-mortgage). When an asset is acquired with Chattel Mortgage, the borrower takes ownership immediately and as such the equipment is listed in their accounts as an asset/liability. This allows the business to depreciate the asset in line with current ATO guidelines. At the moment, those guidelines include temporary full expensing. But not all businesses necessarily want such a large value liability on their balance sheet and Chattel Mortgage only suits businesses that utilise the cash accounting method. Two key reasons why these measures just don’t suit everyone. For those, we offer a number of other finance options which also include attractive tax deduction elements. **Tax Deductible Equipment Finance** All business finance facilities do offer tax deductibility in some form. But how that tax break is realised does vary depending on the loan type. As broad-based lenders, we offer the full portfolio of equipment loan products. As alternatives to Chattel Mortgage, businesses can consider [Leasing](/asset-lease) and Rent to Own. Leasing and Rent to Own are not suited to asset depreciation but they do include tax deductions. With both these forms of finance, the ownership of the asset (plant, machinery, equipment) is retained by the lender. The borrower makes monthly leasing/rental payments while working towards ownership. As the borrower does not own the asset, they are not entitled to depreciate it. They are often referred to as ‘off balance sheet’ loan forms as the asset is not entered on the borrower’s balance sheet. The major tax deduction associated with Leasing and Rent to Own is realised with the monthly payments. These are seen as an operating cost and are fully tax deductible (subject to any individual business aspects). So the full repayment amount can be deducted. Over the up to 7 year loan term, that can amount to a significant tax benefit to the business. Where a residual or buyback is included in the finance contract, that is also tax deductible when paid out. GST is also treated differently depending on the type of finance. With Chattel Mortgage the business can claim the entire amount of GST associated with the purchase on the first BAS return following purchase. This can be a major win. With Leasing and Rent to Own the GST is applied to the monthly payments. As such, it can be claimed by businesses registered for GST, on the relevant BAS statements. GST is not charged on the interest portion of the repayments. So it is still deductible. For many businesses, especially those that use the accruals method of accounting, these off balance sheet finance facilities offer more attractive benefits than Chattel Mortgage while still providing tax benefits to the business. It should be stressed that regardless of ownership of the equipment, all these forms of finance to entitle the borrower to full use of the equipment from the time of purchase. The borrower is responsible for the ongoing expenses associated with the asset which may include rego, insurance, maintenance, repairs and servicing. **Low Docs and No Docs Options** Businesses seeking low docs or no docs equipment loans are eligible to apply for Leasing and Rent to Own. When starting up a new business, which many of these applicants are doing, it may be a more workable option than having the value of a large piece of machinery or equipment posted to the business accounts through a Chattel Mortgage. While our Jade consultants are specialists in sourcing and structuring finance, we recommend that business owners refer to the accountant or their financial advisor on decisions around the most suitable loan type. **Equipment and Industry Suitability** The industry you operate in and the type of equipment being acquired does not in itself determine which loan type is the most suitable for the purchase. Aspects of the business operation including financial objectives and the accounting method being used are major determinants. In some cases lenders may have a preference for which loan type they offer to some businesses. We operate across all industries and provide equipment finance for a wide selection of plant, machinery and equipment. Specifics around your particular application will be discussed and addressed on an individual basis when providing your briefing to our Jade consultants. **Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance options.** *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.* **Categories:** Buying Tips --- ### [Pandemic Priorities: Lower debt levels or lower equipment loan repayments?](https://www.jadeequipmentfinance.com.au/blog/pandemic-priorities-lower-debt-levels-or-lower-equipment-loan-repayments) **Published:** November 22, 2021 **Author:** Publisher **Content:** The COVID-19 pandemic continues to create uncertainties for business in regard to continuity of trading. The snap lockdowns, on and off again rulings, daily changes to movements, short-notice extensions and changing state border restrictions, while acknowledged as necessary measures to combat the spread of the virus, are creating a myriad of issues for many businesses. From our perspective as equipment finance providers, we’re specifically focussed on issues around finance and loan commitments. The priorities business have when taking our [new finance contracts](/industrial-equipment-finance) for new equipment and assessing existing contracts for suitability in a changed trading scenario. Under normal trading conditions, when sourcing new equipment finance, operators may be looking to keep the repayments at the lowest monthly level as possible to contain costs and improve productivity. But faced with the current state of play, would it have been preferable or is it now preferable to look at reducing overall debt more quickly with higher repayments? These two positions may appear to be polar opposites but with the effective sourcing of finance, both may be achievable. Jade Equipment Finance explores the priorities of lower debt levels or lower equipment loan repayments. We explain how paying off an equipment loan faster while still achieving a cost-effective monthly repayment level can be achieved. **Start with the Interest Rate** The most significant cost of any finance contract is the [interest](/equipment-finance-interest-rates) charged on the loan. There are loan established charges and other fees, but the interest component is by far the greatest. In order to minimise the total cost of the equipment finance deal, the lowest interest rate deal needs to be sought. The interest rate on equipment finance varies according to the type of finance facility and across the lending market. Lenders set their rates guided by the [RBA](https://www.rba.gov.au/) official cash rate. The [finance products](/overview-of-equipment-loan-products) available for equipment finance include: Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent to Own. Chattel Mortgage and CHP attract the cheapest interest rate compared with Leasing and Rent to Own. But in selecting a loan product, businesses need to consider the whole package of features and benefits offered by each product in regard to suitability to their individual business. This should be conducted in consultation with their accountant. Selecting a cheaper rated loan product will lower the overall cost of the finance but the features of say Chattel Mortgage may not suit that business. For example, with Chattel Mortgage, the ownership of the equipment is immediately transferred to the business. The equipment is then entered on the business balance sheet as an asset/liability. For some businesses, that is not an ideal situation and an off-balance loan facility such as Equipment Leasing or Rent to Own is preferred. We have provided an Interest [Rate Comparison Calculator](/equipment-finance-interest-rates) which allows users to immediately see the differences in estimated monthly repayments for the same amount across all our finance products. Variations in interest rates will be found across the banks and non-bank lenders offering equipment finance. Those that specialise in the general equipment financing or in a specific industry, tend to offer more competitive rates. Being in a position to canvass a wide spectrum of the lender market to unearth the lowest rate is facilitated with the use of a broker-style lender such as Jade Equipment Finance. Our accreditations with a vast number of lenders and with industry-specific and asset-specific non-bank lenders backed with our finance data resources, allow our consultants quick and extensive access to intelligence in regard to the lowest interest rate source for each client. In addition, our access to those that only operate at an industry level opens these exclusive channels for our customers. So achieving the cheapest interest rate and therefore lowering the overall cost of a finance contract can start with engaging with the right lender. **Structuring the Finance Deal** The overall structure of a finance deal should be considered in its entirety and with a view to achieving individual business objectives. While the interest rate determines the overall cost of the finance, the loan term and the residual/balloon will work together with the rate to determine the monthly repayment. How these elements work together can easily be seen by using our Equipment Finance Calculator. Enter your loan amount then vary the loan term and balloon amounts separately, to see how these changes impact the repayments. Which brings into focus which is the highest priority at this time for your business – reducing debt by paying out the loan faster with a shorter loan term and higher repayments, or achieving a lower repayment over a longer loan term and carrying the debt for longer? If inconsistent cash flow is an ongoing issue and amplified during the pandemic then the lower repayment may be preferable. Alternatively, the pandemic may have amplified a greater need to be operating the business with lower debt levels. This is a decision for individual businesses to make but your Jade consultant can assist at every stage with structuring your deal to your specifications. **Refinancing to Achieve Priorities** While achieving our customer priorities is our focus with requests for new equipment finance, we may also be able to assist those with existing commitments. If this article has you reflecting on your current equipment finance contracts and looking at ways to improve your situation, speak to us about how we can assist with a refinancing solution. Whether during a pandemic or in normal trading circumstances, when considering equipment finance, astute businesses will be carefully identifying their priorities and sourcing loans to meet their specific objectives. **Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance requirements** *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.* **Categories:** Buying Tips --- ### [National Science Week: Finance for Tech-Driven Equipment](https://www.jadeequipmentfinance.com.au/blog/national-science-week-finance-for-tech-driven-equipment) **Published:** November 22, 2021 **Author:** Publisher **Content:** Australia’s annual celebration of science and technology, [National Science Week](https://www.scienceweek.net.au/), runs from 14-22 August 2022 with predominantly virtual events this year. Billed as an event for everyone to talk science, it presents an ideal opportunity to reflect on how your business could benefit by embracing the science and investing in the latest equipment. Science and technology is at the core of the ongoing advances and development of the majority of all equipment, plant and machinery used across multiple industries. Consider the breakthroughs in more efficient plant and machinery for manufacturing and engineering, more fuel efficient machinery for construction and mining, safer equipment for workers across multiple sectors, equipment that improves productivity and output and delivers more for business, its workers, customers and the wider community. Agriculture and horticulture are great examples of how science is assisting producers. The sector is renowned for listening to the science in regard to water usage, improved crop yield, enhancing soil quality, the benefits of land diversification and mitigating the risks of climate change through breakthrough processes and systems. The construction sector continually benefits by improved building materials and systems which provide for safer construction, more cost-effective building techniques and delivering more efficient and, in many instances, safer and more power-efficient buildings. On the tech side of science, all businesses have benefited, including ours, with improved digital delivery services, electronic connectivity and productivity. In the lending sector, the technology developments has allowed us to continue further expansion of our equipment finance services to our customers both in normal times and during a pandemic. Celebrate National Science Week by investing in the latest equipment with the assistance of cheap finance, to boost your business. During National Science Week we remind businesses that Jade Equipment Finance offers cheap interest finance for tech-driven equipment. **How we can assist you invest in the science** Our take on embracing and investing in ‘the science’ is investing in equipment assets which incorporate advanced features to drive productivity and profitability. From our perspective, the tech developments have made it easier and more efficient for our consultants to source the best equipment finance from across a wide lender selection. If you’re held back from moving forward in this space by the lack of financial resources, we may be able to assist with cost-effective finance. If you’re business is in the science business, we may be able to assist with finance to upgrade your technical equipment to further advance your work. Providing finance for research and development equipment and facilities is an important part of our business. Medical science is at the forefront of all our lives at present. We have seen, not in our lifetime but in just one year, the development of vaccines and treatments on a massive, global scale. The advances and breakthroughs we’re witnessing and benefitting from are made possible in part by effective financial support for the equipment and facilities involved in the vaccine development and the large-scale manufacturing process. In addition there is the associated equipment required to transport, store and administer vaccines. While you’re equipment acquisition may not be of such a high profile nature, if it’s important to your business, then it’s important to us that we secure you the cost-effective finance for its purchase. **Finance Facilities Available** Your science and tech driven equipment may be the latest fuel-efficient backhoe or excavating machine, a safer operating tractor, a computer-operated engineering machine for more precise work or an alternative energy powered plant. It may be invested in new tech and IT systems for your entire operation. We provide the [full portfolio of finance facilities](/overview-of-equipment-loan-products) for the acquisition of a vast range of equipment across all industries:- - Chattel Mortgage for Equipment - Equipment Leasing - Commercial Hire Purchase for Plant and Machinery - Rent to Own for Equipment, Plant and Machinery All business finance products include tax-effective elements which do vary across the types of loans. Consulting with the business accountant is advised to arrive at the decision as to which finance product will deliver the best outcomes for the business. For those seeking to take advantage of the additional benefits presented by the [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) measure, Chattel Mortgage is considered the most suitable form of loan. Refer to the features of each of these finance facilities on our web pages and use our Interest Rate Calculator to see how estimated equipment finance repayments vary for each product. **Enabling Business to Embrace the Science** We are supporting businesses to embrace the tech and science in their sector with cheap interest rate finance and a comprehensive service delivery to save business owners time and contribute to their individual efficiency. The science of finance is straightforward:- Cheap interest rates = lower overall finance costs = productivity and profitability. Engage with the science through equipment, plant and machinery acquisitions with cost-effective finance to grow and develop your business. **Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance options.** *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.* **Categories:** Buying Tips --- ### [Tractor Sales Up but Tractor Loan Interest Rates Remain Low](https://www.jadeequipmentfinance.com.au/blog/tractor-sales-up-but-tractor-loan-interest-rates-remain-low) **Published:** November 23, 2021 **Author:** Publisher **Content:** Highs and lows are an accepted part of life in the agricultural sector. Resilient operators flow with the punches, pushing through low rainfall drought seasons, appreciating the cycles of high produce prices, while always preparing in readiness for what nature and the market may throw at them. In the current COVID environment which is crippling many businesses in both urban and regional areas, the ag sector appears to have reason for positive vibes. The [Tractor and Machinery Association of Australia](https://www.tma.asn.au/) (TMA) has reported that July sales figures in tractors continue the positive growth of the 2021 calendar year so far. The TMA put much of the increase in sales down to the Government tax measure, [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/), and good rainfall in many regions. But as key equipment lenders, we also add in the current low interest rate environment as a contributing factor to continued high machinery sales across the industry. While tractor sales continue to be high, Jade Equipment Finance tractor loan interest rates on equipment finance remain low. **Solid Sales across All States** The TMA reports that all states have recorded increases compared with July 2020. While figures are early in the current NSW lockdown, that state had a 28% increase, closely followed by South Australia at 25%, Tasmania 19%, Victoria 11%, Queensland 16%, Western Australia 8% and the Northern Territory recording an 11% increase in sales for the month. The TMA also notes that higher horsepower category, the larger machines, have been extremely popular as operators can write off the full purchase price in the financial year of purchase under the temporary full expensing measures. While sales have been positive, global supply chain issues especially in regard to the shortage of computer microprocessor chips, is highly likely to impact supply at some point for some manufacturers. It is already hitting the motor vehicle and other manufacturing sectors overseas hard, with Toyota one of the biggest manufacturers to announce a 40% reduction in production due to the issue. Tyre supply is also impacting the supply of wheeled goods in many sectors. **Tax Incentives Driving Sales** For those still contemplating whether or not to invest in new machinery at this point in time, we present the case for moving now to secure current stock and capitalise on the highly attractive tax measures and interest rates. Temporary full expensing, an expanded and extended version of Instant Asset Write-off, is no doubt driving investment in plant, machinery and equipment across many industries. That was the purpose of the Federal Government introducing the measure in April 2020 and extending it in the Federal Budgets in October 2020 and again in May 2021. For those not across the detail, these are accelerated asset depreciation measures which enable eligible businesses to claim the full value of eligible asset acquisitions as tax deduction in the same year as purchased. To be eligible an asset must be depreciable. Under normal tax rulings, businesses can claim a percentage of the value of assets each financial year as a tax deduction. Depending on the price/value of the equipment, it can take many years to realise the full tax deduction on a piece of machinery. Under temporary full expensing, the full amount can be expensed or written off in the year the asset was acquired. A major boost to taxable income and hence tax payable. This measure is available for eligible businesses through to June 2022. That’s this financial year so the time to make that purchase is moving along. To check the eligibility of your business and your proposed tractor purchase for this measures, refer to the [ATO](http://www.ato.gov.au) or speak with your accountant. **Finance Drivers** In order to be a depreciable asset, the tractor needs to be acquired using a finance facility which allows for the equipment to be depreciated. That facility is widely recognised as being [Chattel Mortgage](/chattel-mortgage). Also referred to as Equipment Loan by some of our lenders, this is a highly versatile form of finance. The format and structure is relatively straightforward in that the equipment is used as the security against the loan, the borrower takes immediate ownership of the asset and repays the loan in equal monthly repayments over the fixed loan term. A balloon is optional and can be used effectively and strategically to achieve the desired repayment level. Use our tractor equipment loan calculator to easily see how a variation in the balloon amount impacts the repayment. While being able to write off the value of the tractor in this financial year is a big incentive to purchase, the bottom line still has to add up. The cost of the finance still has to be affordable. That means the cheapest interest rate Chattel Mortgage deal needs to be achieved. While the official cash rate has been held at historic lows for some time, equipment lenders such as ourselves have been able to sharpen our pencil even further in delivering cheaper interest rate loans. And these rates and cheap loans are available across the full range of tractor categories. With our tractor loans, the interest rate doesn’t go up with the horsepower or the price of the tractor. Our same [cheap interest rate](/equipment-finance-interest-rates) deals are available across all brands and all sizes of tractors and other agricultural machinery. **Alternatives to Chattel Mortgage** While it is widely agreed that temporary full expensing is driving sales in both the tractor and other equipment markets, not all businesses are suited to Chattel Mortgage as a form of finance. There are those that do not choose to have the full value of a new tractor on their balance sheet as a depreciable asset. While not suited to accelerated asset depreciation measures, we offer tax-effective alternatives to Chattel Mortgage. Our [Tractor Leasing](/asset-lease) and Tractor Rent-to-Own finance deals are priced at low interest rates and include tax deductible elements. With these off balance sheet types of finance, the monthly repayments are considered a tax deduction. So there are options for all operators to acquire new tractors and take advantage of the low interest rate scenario. **Contact Jade Equipment Finance on 1300 000 003 to discuss a cheap interest rate tractor loan.** *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.* **Categories:** Buying Tips --- ### [While preparing for full re-opening, the TFE temporary full expensing clock is ticking.](https://www.jadeequipmentfinance.com.au/blog/while-preparing-for-full-re-opening-the-tfe-temporary-full-expensing-clock-is-ticking) **Published:** November 23, 2021 **Author:** Publisher **Content:** As state leaders, health authorities, decision-makers and much of the population focus on the daily first dose and full vaccinated percentages, businesses need to not only start thinking but enact investment plans for business reopening. Consider how they will be operating when that 70-80% fully vaccinated level is achieved and the economy is supposed to re-open. Whether or not all jurisdictions will adhere to the National Cabinet decision remains to be seen. But regardless of the exact nature of the outcome, it is fairly certain that the economy will be operating a lot more freely than under the current scenario. Rather than wait for decisions to be formally announced, smart operators are acting to ensure they are ready to capture their large share of the trade. Have you been hibernating your business, even to a small degree? Possibly holding back on equipment investment decisions in a cautious wait and see approach? Understandable but is that going to leave you behind the competition with your bottom line dragging? Apart from the pressing and serious COVID-19 situation, other factors need to be considered at this time also. Just as the countdown to reopening is happening, other clocks are ticking which are making buying decisions more of a priority. [Temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) runs through to June 2022 BUT issues with global supply chains are impacting the availability in the Australian market of a wide range of plant, machinery and equipment across many industries. Leave that buying decision till EOFY is imminent, and you could miss out entirely. Jade Equipment Finance reminds business that the temporary full expensing clock is ticking and we are ready to assist businesses to both take advantage of accelerated asset depreciation measures and be ready to re-open at full capacity with their equipment acquisitions. **TFE Countdown is ON!** Temporary full expensing has been a great assistance to many businesses over the past 18 months or so. Enabling even small operators to claim the full value of eligible equipment purchases as tax deductions in the year of purchase. By realising this measure, many are also able to take advantage of Loss Carry Back to receive a cash refund on tax paid in earlier years. But TFE is only available through the end of June 2022. We’re already on the verge of the second quarter of FY21/22 and the countdown is well and truly on. We all know how the Christmas-NY holiday period can distract and disrupt so before you know it, it will be February. While for many that may seem a long way off, there are other factors to consider. At the moment interest rates are at historic lows and while the [RBA](https://www.rba.gov.au/) has repeatedly stated it does not intend to lift rates until around 2024, international markets may react differently. Lenders sourcing funding at higher rates on global markets may face different costs which may need to be passed on. The other major global considerations are computer chips and other component supplies. With advances in most equipment and machinery, microprocessors are an integral component of the manufacture. The shortage across the globe has caused many large manufacturers to cut back on production which is causing delays in equipment reaching the Australian market. It may be advisable to check delivery and availability with your preferred equipment dealer or proceed now with purchasing stock that is available right now. Our Jade Equipment Finance team responds immediately to requests for finance and can expedite applications for quick approval and prompt settlement. **All Options on the Table** As we have covered in multiple articles, [Chattel Mortgage](/chattel-mortgage) is seen as the most appropriate form of finance for businesses seeking to take advantage of instant asset write-off and temporary full expensing. This is a very versatile finance product which can be used to purchase a wide range of business equipment from the most sensitive engineering and medical diagnostic equipment, through to the basics in computing and printing needed by most offices to the tough and rugged machinery used in mining and construction. But while Chattel Mortgage is suited to a wide selection of equipment it may not be suited to every business. With this form of finance, the asset is posted to the balance sheet and not all businesses are in a position to carry a large-value asset on their books. So we have all finance options on the table. While not seen as ideally suited for accelerated asset depreciation, [Leasing](/asset-lease) and Rent-to-Own do suit many business set-ups and do have significant tax deductibility features. Whatever your business set-up and whatever equipment you need to acquire, we can assist with a quote for cost-effective finance at the cheapest interest rates. Use our Interest Rate Comparison Calculator to calculate repayment estimates on the equipment you need and see instantly what repayments we may be able to achieve for you across our portfolio. Our consultants are ready to assist all businesses prepare for reopening with new equipment and take full advantage of the tax measures available. **Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance requirements** *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.* **Categories:** Buying Tips --- ### [When all eyes are on the percentages. Interest Rate Update](https://www.jadeequipmentfinance.com.au/blog/when-all-eyes-are-on-the-percentages-interest-rate-update) **Published:** November 24, 2021 **Author:** Publisher **Content:** Percentages are an integral part of many aspects of business and private life. But right now, they seem to have reached a new level of significance. Watching the share market percentage fluctuations, the monthly unemployment rates, assessing quarterly GDP growth rates, keeping an eye on house price rise increases and more currently, closely following COVID-19 vaccination rates across the globe. In Australia, many are waiting (im)patiently each day in lockdown for the latest vaccination percentages as they edge, or race depending on your state, to those magic targets. Targets which should signal the reopening of the economy and your chance to either get back to working in your business full-on or to start implementing those business growth plans. Percentages are a big part of business in many ways. Achieving that ideal balance of income to outgoings to deliver a positive bottom line is key to profitability and success. Productivity and performance percentages provide indications as to how our businesses are achieving targets. And then there is what we consider the most significant percentage – the interest rate percentage. As business finance lenders, percentages our business. Interest rate percentages specifically. If you’re a business owner looking to invest in new plant, machinery and equipment, then your eyes should also be fixed on the interest rates on equipment finance. Jade Equipment Finance has all eyes on the percentages with this interest rate update. The [Reserve Bank of Australia](https://www.rba.gov.au/) (RBA) set the official cash rate in Australia based on its assessment of the Australian economy. This rate then essentially determines how the banks and other non-bank lenders in our market establish their interest rates across their lending sectors. The RBA board meets each month with the exception of January to determine any moves in the cash rate and the business community amongst many others keenly watch for the announcement. **Significance of Small Increments** Currently the RBA has left the official rate on hold at 0.1% since November 2020 when it cut the rate from 0.25% Interest rates vary across different loan types, in different sectors and across the lending market. Lenders set their individual rates to be competitive but also to reflect their assessment of the risk of a particular industry or sector and their preparedness to lend in that area. When comparing interest rates say from one lender to another, that small incremental difference may appear on the surface to be inconsequential. But as the classic Paul Kelly song goes along the lines that big things from little things. A seemingly little difference in interest rates from one lender to another can grow into a big difference in total interest paid over the term of loan on even a medium priced item of equipment or machinery. To see exactly how small incremental differences in interest rates may play out in regard to the item of equipment you are currently considering, use out [Equipment Finance Calculator](/equipment-finance-interest-rates). Enter the interest rate we are currently displaying for equipment finance with the price of the equipment and the balloon and term you would prefer. Note the repayment amount. Now, keep loan amount, term and balloon the same and input a higher interest rate you may have sourced from another source and see how the repayments increase. Multiplied over the full term of the loan and you’ll quickly realise the huge significance of achieving even the smallest interest rate reduction on equipment finance. It is this significance, the benefits to business in achieving cheaper finance, that drive our team to negotiate hard on interest rates with our lenders to ensure we deliver the cheapest rate possible. **Equipment Finance Interest Rates** The rates offered for equipment, plant and machinery finance will vary across different industries and across the types of [finance products](/overview-of-equipment-loan-products). The cheapest rated finance products are typically Chattel Mortgage and Commercial Hire Purchase. Leasing attracts a slightly higher rate and Rent to Own higher again. These variations reflect the ways these different products are structured. This a standard trend across the lending sector and not a feature only of Jade Equipment Finance loan products. To see the difference interest rates we are currently achieving on equipment finance, please refer to our Interest [Rate Comparison Calculator](/equipment-finance-interest-rates). This clearly shows the rates for a range of business finance products. While we have stressed the significance of small incremental differences in interest rates to the overall cost of a loan, it should also be noted that the cheapest rated finance product, that is Chattel Mortgage and CHP, are always suited to all businesses. There are a range of issues to consider when selecting the most appropriate loan type for a business and for the purchase of a particular piece of equipment. These include, but are not limited to, the overall financial objectives of the business and the accounting method that the business implements. Which is why we strongly recommend that our customers consult with their accountant when selecting a loan product. **The Importance of Low Interest Rate Equipment Finance** When Australia does reach those vaccination targets and the economy is back into full swing, the percentage-watch will still need to continue. Not only watching but actually being offered the cheapest interest rate percentage on finance required to acquire new equipment. The cost of finance can be a major expense to business and keeping that cost to a minimum can be critical to the success and long-term viability of the operation. Regardless of the loan type selected, cheap interest rate finance can be achieved by all types of businesses. Be assured that low interest rate equipment finance is not the privilege of large operations. Our customers include all sized businesses including micro and SMEs and even new start-ups. We keep on top of the percentages on interest rates to assist our customers achieve the percentages they are seeking on their bottom line. **Contact Jade Equipment Finance on 1300 000 003 to discuss low interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [Reasons to Invest in New Equipment: Infrastructure Update](https://www.jadeequipmentfinance.com.au/blog/reasons-to-invest-in-new-equipment-infrastructure-update) **Published:** November 24, 2021 **Author:** Publisher **Content:** Infrastructure projects have been crucial to the Australian economy throughout the coronavirus pandemic with state, federal and local governments investing significantly in a wide range of works. While some NSW projects were shut down for a period during that state’s lockdown, multiple projects continue to roll out at various stages across the country. Road works and rail projects have tended to dominate the schedule with a particular focus on regional roads by the Federal Government. These projects represent significant work opportunities for a vast range of business operators. Both large and small operators in earthmoving, civil works, road building, general trades, materials suppliers and transporters and many, many others can take advantage of the work on offer – if they are well-placed to do so. Many are long-term which can provide a degree of certainty around workflow in coming months and years. Something that can be highly valued in the current economic climate. While the opportunities are there, operators need to be well set up in order to win the highly competitive tenders and contracts. That presents plenty of reasons for operators to review their fleet of machinery and consider upgrades. Jade Equipment Finance can provide support and assistance to businesses seeking to invest in new equipment with cost-effective equipment finance for infrastructure project work. **Projects Update** While regional roads have been a big focus of the [Federal Government’s infrastructure program](https://investment.infrastructure.gov.au/), a leading infrastructure research and advisory group has released reports which may lead to a change in thinking. The group’s statement sets out why the approach to infrastructure projects may need to be modified to accommodate changes in the way Australians live caused by the pandemic. For example, the exodus from cities as many people move to regional areas is a key point raised. While the ideas and roadmap put forward by IA may come to fruition in future years, there are many key infrastructure projects proceeding right know, in a COVID-safe way that may represent business opportunities for your operation. August media releases from the Assistant Minister for Road Safety and Freight Transport, Scott Buchholz covers a number of funding announcements which may be worth consideration. The funding announcements include: - Nine new sites in the Northern Territory to receive attention under the Black Spot Program. - Joint funding with the NSW Government for 141 critical road upgrade projects in both regional and metro areas which are described as life-saving and designated for completion in 2021/22. - Another nearly 50 projects in Queensland to receive fast-tracking over the next 12 months with a $174m package. - Victoria and Federal funding for an additional 29 projects of life-saving regional and rural road works. - Fast-tracking of 570 kilometres of works in South Australia. - Western Australia to receive fast-tracking of 58 road projects as a result of a joint state-federal funding program. These are just a few of many ongoing and new infrastructure projects which can present lucrative and long-term work prospects for contractors. **Support for Businesses Looking to Upgrade** As lenders to a wide range of industries we fully appreciate the value that these opportunities can present to our customers. But is your operation ready to take advantage of what’s on offer from infrastructure projects in your area? To be granted contracts for work on major projects, businesses usually have to enter a competitive tendering or application process. This may be conducted through the government or statutory body overseeing the project or through the main contractor. To be successful, operators need to present a winning bid and that may include having a top shelf fleet of machinery and equipment ready to work. If you’re fleet is not up the scratch, not ready to take on a gruelling, long-term but rewarding project, it could be time to consider new acquisitions. At Jade Equipment Finance we support our customers by working hard to ensure the equipment required is acquired with the [cheapest interest rate finance](/equipment-finance-interest-rates) possible. It’s one thing to be awarded a lucrative contract, it’s another thing to ensure the outcome is profitable. Productivity can be key to a successful financial outcome from these contracts and cheap finance can be critical to achieving productivity targets. The timing of the increase in government infrastructure spending coincides with a number of other issues which further increase the appeal of buying new equipment – historic low interest rates and accelerated asset depreciation measures – Instant Asset Write-Off and temporary full expensing. We can make equipment acquisitions both cost-effective and affordable propositions with our cheap interest rate finance and our time-saving finance sourcing and structuring service. To get a rough idea of what monthly repayments may be on the equipment you need, refer to our [Interest Rate Comparison Calculator](/equipment-finance-interest-rates). This calculator lists the current rates we are achieving across our portfolio of loan products which include Chattel Mortgage, Rent to Own, Leasing and Commercial Hire Purchase. This can be a great tool to assist buyers comparing different makes and models as well as for comparing the different finance products also. While many lenders either exclude or at minimum make finance applications difficult for new businesses, we provide a specialised service to assist these operators with [Low Docs and No Docs Equipment Finance](/no-docs-low-docs-equipment-finance) options. While infrastructure projects continue to be an important contributor to the national economy they also represents a very significant source of work and income for many business operators. Offering plenty of reasons to review and re-assess your equipment and consider upgrading. **Contact Jade Equipment Finance on 1300 000 003 to discuss your equipment finance requirements** *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.* **Categories:** Buying Tips --- ### [Mental Health in Focus: reducing the stress of financing new equipment](https://www.jadeequipmentfinance.com.au/blog/mental-health-in-focus-reducing-the-stress-of-financing-new-equipment) **Published:** November 25, 2021 **Author:** Publisher **Content:** Running a business under even boom conditions can have its worries, concerns and stressful situations. The pressures of work and business are acknowledged as major issues that can affect wellbeing and mental health of even the strongest and most formidable individuals. With the economic uncertainty associated with the COVID-19 situation of the past 2 years that stress has been intensified for many operators. Jade Equipment Finance works with our customers in reducing the stress of financing new equipment. For those in essential services, delivery and transport sectors the increased and demanding workload caused by the pandemic may also create pressures to meet deadlines and schedules. These types of pressures can build up and result in serious mental health outcomes. Mental health has been acknowledged as a serious issue with the pandemic and authorities urge anyone experiencing symptoms to reach out for medical or support services. As a long-term lender to the business sector, we are fully aware that finance and major investment decisions are a major source of worry and pressure for owners and decision-makers. - Worried about being approved for finance as a new business? - Cash flow pressure creating an urgency to source a lower repayment loan? - Confused by the large number of different types of loans and lenders and don’t know which way to go? - Stressing out about finding sufficient time to effectively cover off on finance companies and banks for loan quotes to compare? - Infuriated by the lack of follow through and the endless waiting for call backs on finance quotes? - In a bad credit situation but urgently require finance for new machinery to keep the business operating? - Been loyal to the bank but annoyed at their inflexibility in negotiating on interest rates and loan conditions? Even the seemingly smallest issues can gnaw away at our frame of mind and start to effect health and wellbeing. To ease the stress associated with sourcing equipment finance, Jade Equipment Finance has established a highly effective, widely accessible and streamlined lender service. A lending service that is available to all types of businesses operating across all industries for the acquisition of a wide range of equipment, plant and machinery. **Comprehensive Lender Service** Our [finance broker service](/why-jade-equipment-loans) allows business owners to hand over the task of sourcing equipment finance to our team of experienced and highly skilled finance consultants. We handle loans for the smallest sole traders and the most complex multi-million dollar machinery investments for large corporations. Don’t think you are excluded from reaching out for assistance in sourcing loans by the size of your business or how long you have been operating. Our services are available for SMEs, sole traders, family enterprises, partnerships, microbusinesses and large corporations. For businesses that are just starting up, sourcing finance to acquire equipment can be a major challenge and a major concern. Circumstances which can cause stress right at a time when business owners want to be dealing with a myriad of setting-up matters. Many banks in particular have loan approval criteria which require a business to have been trading for 12-24 months in order to be eligible for equipment finance. We do have accreditation with lenders that will offer finance to new businesses and at very attractive interest rates. These are known as [Low Docs and No Docs](/no-docs-low-docs-equipment-finance) Equipment Finance and it is an area in which we specialise. Those with bad credit can be especially prone to experiencing stressful situations when sourcing finance. This can be exacerbated by attempting to source loans on their own, applying to bank after bank and lender after lender. Guided possibly by the misconception that assistance through our broker-style services are not accessible for bad credit finance. We do handle [Bad Credit Equipment Finance](/bad-credit-equipment-finance) and work hard to achieve a workable solution through our specialist non-bank lender base. The equipment requiring finance can cover a broad range including plant and machinery, yellow goods and wheeled goods used in construction, sensitive and delicate medical and engineering equipment, standard business equipment such as IT, computers, copies and many more. **How we assist to ease the stress** We can ease the stress of sourcing finance for many business owners with a complete quote through to settlement approach. You hand over the complex tasks to our consultants but you still make those critical final decisions. We handle the sourcing, negotiating and loan structuring while the business owner retains control. The business owner determines the type of finance product required, preferences as to how the finance deal is structured in regard to loan term and final acceptance or rejection of any loan offers presented. **What we offer for those seeking equipment finance** - Full range of commercial [finance products](/overview-of-equipment-loan-products): Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent-to-Own - Support resources to empower customers to handle pre-planning at a time of their choosing: online calculators, interest rate comparison tables and extensive library of ideas and tips around finance. - Professional consultants to handle the entire finance deal from the initial brief through to final settlement. - Skilled negotiators with extensive bargaining power to achieve cheaper interest rates. - Individual consultants assigned to each customer to ensure continuity of communications and ease of contact. - Access to a vast number of lenders including major banks, non-bank lenders and specialist lenders for key industries and specific types of equipment. Keeping stress levels down can be significant in maintaining good mental health and a clear head and better frame of mind to run a business operation. Handing over the sourcing of your equipment finance requirements to us, could be one of the best things you do for yourself and for your business bottom line. **Contact Jade Equipment Finance on 1300 000 003 to discuss how we can assist reduce the stress of acquiring cost-effective equipment finance for your 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.* **Categories:** Buying Tips --- ### [Investing in the Latest Ag Equipment: Finance for John Deere Releases](https://www.jadeequipmentfinance.com.au/blog/investing-in-the-latest-ag-equipment-finance-for-john-deere-releases) **Published:** November 25, 2021 **Author:** Publisher **Content:** Facing issues around labour shortages due to COVID-19 border issues, there is some good news for some operators in the agricultural sector with many growers facing a bumper harvest season. According to reports, the forecasts are for above average winter crops with the [Agricultural and Resource Economics and Sciences](https://www.awe.gov.au/abares) report for June forecasting up to 13% increase on the 10 year average for production. To take advantage of the scenario, many producers will no doubt we eyeing off investments in new equipment and Jade Equipment Finance can assist with finance for [John Deere](https://www.deere.com.au/en/index.html) new releases of equipment. Investing in new machinery at this time could be a shrewd decision with interest rates remaining at historic lows and our fixed interest rate finance ensuring that cheap rate extends over the full life of the finance contract. An added attraction are the tax benefits on offer through temporary full expensing for eligible businesses on eligible acquisitions. Before getting into the finance options, let’s take a quick look at what John Deere has recently revealed. **Cotton Picker and Stripper Launched** In case you missed it, back in early August John Deere unveiled their CP770 Cotton Picker and CS770 Cotton Stripper which the company says are packed with features to deliver precision and power. Deere report these machines as their most productive harvesters, built to meet the demands of the industry. These units come equipped with a comprehensive range of precision tech, more space and comfort in the cab and their 13.6 litre PowerTech engine which can increase fuel efficiency by an impressive 15-20% depending on the machine. The company describe the overall package presented by these machines as an industry-leading cotton harvesting platform. Built to increase productivity with the capability to harvest a greater number of hectares each hour. The CP 770 and CS 770 include the company’s Generation 4 Display which connects to their JDLink technology. To read all about these units and see if they would suit your operation head to the John Deere website **X-Series Unveiled to Assist Growers** To coincide with the prospect of a bumper harvest, John Deere has unveiled their X-Series combine harvester with orders now open. This is seen as game-changing in terms of tech and power for grain growers as a major step-up in delivering harvesting capacity. The X Series Dual Separator has the largest separation and threshing capacity ever offer by Deere with impressive features which can deliver increased capacity with higher fuel efficiency. The X Series is considered as complemented the existing S Series to create a complete solution for harvesters. Working hand in hand, these machines offer a complete solution for many growers. Next generation platforms such as the Rigid Draper, Hinged Draper, Corn Heads and Belt Pick up are available on both series. For full specs and features on the new X Series, refer to the equipment information on the John Deere website **Financing New Deere Machinery** While growers in many regions face a bumper harvest, in some ways it could said that the equipment finance sector is also in a position to offer bumper finance deals. At its September meeting, the RBA Board kept the official cash rate steady which enables lenders such as us to keep our equipment finance rates at current low levels across our portfolio for new machinery acquisitions. We are accredited with specialist agricultural machinery lenders so we are well-placed to offer better [interest rates](/equipment-finance-interest-rates) and negotiate the most cost-effective and workable solutions for our customers. Adding to the appeal of the current low interest rate climate is the availability of accelerated asset depreciation programs still available through the current financial year. Instant Asset Write-Off and temporary full expensing may suit many ag operators looking at acquiring the latest John Deere machines this year. These initiatives allow for the full amount of the machinery purchase to be depreciated, ie written-off or deducted as an expense, in the year of purchase. This can also be used effectively with the Loss Carry Back initiative to derive an additional benefit. Eligibility criteria apply to both the business and the equipment being purchased. Review [criteria](http://www.ato.gov.au) **Selecting the Most Productive Finance Product** Key to deriving the optimum productivity from any machinery acquisition is cost-effective finance. Pay too much for your loan in terms of interest rate or untenable loan conditions and the full benefit of the machinery may not be realised. Selecting the loan type that best suits the objectives of an individual business is the first step and should be discussed with the business accountant. We offer a full range of [finance products](/overview-of-equipment-loan-products) for the purchase of John Deere machinery:- - Chattel Mortgage for Agricultural Machinery - Equipment Leasing - Commercial Hire Purchase for Plant and Machinery - Rent-to-Own Equipment Finance While the interest rates vary on the different types of finance products, our consultants negotiate the cheapest rate possible for individual customers. Finance is available for both single units and multi-unit machinery purchases. Speak with us about including the purchase of say both S Series and an X Series machines into the one finance deal. This provides the convenience of a single monthly repayment which may ease pressure on cash flow, a particular concern for seasonal growers. **Get the most from your bumper harvest season with cost effective machinery finance through Jade Equipment Finance. Contact is for a quote 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.* **Categories:** Buying Tips --- ### [National Safe Work Month: consider investing in equipment to improve the workplace](https://www.jadeequipmentfinance.com.au/blog/national-safe-work-month-consider-investing-in-equipment-to-improve-the-workplace) **Published:** November 25, 2021 **Author:** Publisher **Content:** Nothing is surely more important in the workplace than the safety of both workers and visitors. Whether that be a construction site, a mine, manufacturing facility, logistical and distribution centre, office environment, medical facility, hospitality venue or any other business, safety is a priority. To place the focus on safety in the workplace, Safe Work Australia nominates October as National Safe Work Month. An ideal time for businesses to assess their work practices and build a safer and healthier workplace by investing in equipment to improve the workplace. [Safe Work Australia](https://www.safeworkaustralia.gov.au/) (SA) was established in 2008 and is a statutory body with an agenda to develop national policy in relation to WHS and to workers’ compensation. The body does not regulate the WHS laws but works with employers, employees and governments to drive development of national policies. So what can you do in National Safe Work Month in your workplace and how can we assist you in investing in the required machinery and equipment to improve the safety in your business? We provide this valuable information for your consideration. **National Safe Work Month** For 2021, the theme for the annual National Safe Work Month is ‘think safe. work safe. be safe.’ Businesses are encouraged to plan and implement procedures to work safely. This year’s event may be particularly relevant against the backdrop of how workplaces have had to and continue to deal with COVID-19. Most businesses and workplaces have faced challenges in adapting processes and procedures and in many cases making significant changes to manage health and safety alongside the coronavirus pandemic. The month of October and the resources provided by Safe Work Australia, provide a mechanism to raise awareness of the issues and to highlight and understand the potential issues in individual settings. The organisation provides these points for consideration:- - Think Safe: planning and the thought that owners, operators and managers must undertake in identifying risks and maintaining a safe workplace. - Work Safe: implementing measures to manage and reduce the risks. - Be Safe: managing and monitoring on an ongoing basis of the risks. While the risks and issues will vary from workplace to workplace, the topics presented by the body for consideration by businesses include occupational lung disease, mental health, sexual harassment and extreme weather working. The month-long event represents a timely opportunity for businesses to review their workplace safety policies and the procedures and consider how they can invest in making improvements. Review the resources and [more information](https://www.safeworkaustralia.gov.au/national-safe-work-month) on what you can do. **Investing in Safety – How We Can Assist** Operating a safer and healthier workplace is not only morally, ethically and in many instances lawfully the right thing to do, it can also present sound business sense in terms of financial and reputational benefits. These benefits may extend to attracting and retaining a quality workforce which is a hot issue right now with labour shortages reported across many sectors. Safer environments can lead to improving productivity and hence output as well as brand and company image and reputation enhancement with customers and stakeholders and reducing sick leave which can be a major cost to business. So how can we assist you to improve your workplace safety? By providing cost-effective, low interest rate finance to invest and upgrade machinery, plant and equipment to safer options. Consider if your old and outdated machinery and equipment may represent a safety risk in the workplace. Equipment manufacturers focus heavily on continually upgrading the operational safety features of a wide range of machines, with industry leaders spending heavily on R&D in this space. We operate [across all industries](/why-jade-equipment-loans) and can provide finance for a myriad of different types of machines and equipment, including for example:- - Forklifts and materials handling machines. - Engineering and manufacturing [machinery and plant](/industrial-equipment-finance). - Scaffolding and earth moving equipment. - Mining equipment and machinery. - [Yellow and wheeled goods](/civil-construction-equipment-finance) used in construction and other sectors. - And many more Our low interest finance products encompass the full range of [business finance](/overview-of-equipment-loan-products): - Chattel Mortgage - Leasing - Rent to Own - Commercial Hire Purchase Each loan product has its own set of features and benefits including tax deductible elements. The interest rates are different for each loan type and achievable rates vary across different equipment types and industry sectors. Refer to our Equipment Interest Rate Comparison Calculators for specifics. Our consultants work closely with our customers to source, negotiate and structure finance packages which suit the individual business objectives and deliver cost-effective solutions over the term of the loan. We provide services and low interest loans to all types of businesses include those that are just starting out. For new businesses, our Low Docs Equipment Finance may be a workable solution for your operation. With low interest rate loans and a range of finance options to suit all businesses, Jade Equipment Finance make sourcing finance to acquire new equipment to upgrade workplace safety a streamlined and time-saving process. **Contact Jade Equipment Finance on 1300 000 003 to discuss how we can assist you improve your workplace safety with the acquisition of new 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.* **Categories:** Buying Tips --- ### [Equipment Finance for Reopening, Recovery and Resurgence](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-for-reopening-recovery-and-resurgence) **Published:** November 25, 2021 **Author:** Publisher **Content:** We thought we there and then we weren’t. But now it seems we are. The COVID-19 experience for Australian businesses has been a disruptive period and for many quite drawn out and unpredictable. But after a fantastic vaccination take-up in the past few months, we’ve finally achieved those key target percentages that trigger the next phases of reopening. While different states are currently at slightly varying stages, overall, the nation has reached a magic 70% double dose and hopefully, that means widespread lockdowns are no longer an option. While reopening the economy and the country is a staged process, business owners that have been in pause, closed or slow mode for some time, will no doubt be eager to supercharge their own recovery process. Is your business ready and well-equipped for a resurgence? We update you on the latest thoughts and conversations around the economic outlook and most importantly interest rates and lending for those looking to invest in new equipment. Specifically the loan products and interest rates on equipment finance for reopening, recovery and resurgence post-pandemic. **Economic Outlook** Gauging the overall and general economic outlook is equally straightforward and complex. Experts, analysts and politicians have similar but varying opinions and it is astute to consider commentary in context with individual business and industry sector situations. As Dr Philip Lowe, Governor of the [RBA](https://www.rba.gov.au/), noted in the October Monetary Statement, the impact of the Delta outbreak is uneven. Some businesses and sectors feeling the effects more severely than others that appear to continue to grow strongly. As was expected, unemployment increased in the September figures but only by 1% to 4.6%. This reporting period does not cover the entirety of the NSW and Victorian lockdown periods. But of more importance is the increase in those no longer looking for work and in work hours lost. Regardless of the latest figures, there is a sense of optimism that the economy will bounce back well. How quickly that will happen does come with uncertainty. There has not been as much support to business from the Federal Government during the 2021 Delta outbreak as there was in the initial pandemic in 2020 but the states appear to have stepped up with significant business recovery packages. Another doubt will be – did we open up too soon? This is a question that only time will reveal. Lockdown has left consumers with strong balance sheets which should result in strong consumer spending over coming months. Good news for those operating in the B2C sector or supplying consumer goods. Shortages in some labour markets pose a problem to many businesses but with international students and then skilled migrants being allowed entry in the not so distant future, that should fill many of those positions vacant. Keeping an eye on the unemployment rate is significant to us as lenders as it has been earmarked by the RBA as one of the indicators, along with inflation, that they are watching in regard to increasing interest rates. **Interest Rate Update** While it’s been a terrible time on so many fronts, in regard to lending interest rates it has been historically very good. The RBA cut the official cash several times in 2020 as a monetary policy measure to support the economy during the pandemic and has kept the rate on hold at 0.1%, the lowest ever, since November 2020. At their most recent meeting in October, the RBA Board repeated early statements that it was looking to inflation to be sustained at 2-3% (currently 1.75%) before raising rates. They still expect that timeframe to be around 2024. Good news for businesses looking to upgrade equipment to capture all the opportunities available to expedite their own recovery. **Equipment Lending Update** As specialist business finance lenders, equipment finance is one of our major markets and the low interest rate climate allows us to offer even more attractive, cheap rate and cost-effective solutions to our customers. Our current rates across our [finance portfolio](/overview-of-equipment-loan-products) – Chattel Mortgage, Commercial Hire Purchase, Leasing and Rent to Buy, continue our signature cheap rate story. The Interest Rate Comparison Calculator allows you to easily see and compare rates and estimated repayments on equipment you are considering across different loan types. Chattel Mortgage continues to be a highly sought-after loan type as it is best-suited for those looking to utilise the temporary full expensing measure with their asset acquisitions. This accelerated asset depreciation measure is available for eligible assets by eligible businesses through this and the next financial year and presents significant tax write-offs. **Upgrade to Keep Up** Reopening and recovering from the effects of the pandemic will come with its own set of challenges for different businesses. A priority for many will be ensuring they are well-resourced and equipped to power forward as quickly and successfully as possible. Staying ahead rather than just keeping up. Investing in new machinery, plant and equipment may be key to a resurgence. Acquiring cheap equipment finance is key to ensuring that resurgence is profitable. Our consultants work with all types of business – SMEs, family enterprises, sole traders, ABN-only operators and large companies across all industries to secure cost-effective and tailored equipment finance solutions. Don’t be left behind in the recovery race. Speak with us about cheap equipment finance to facilitate your business resurgence. **For cost-effective equipment finance, speak with a Jade Equipment Finance consultant. Contact us for a quote 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.* **Categories:** Buying Tips --- ### [RBA November Decision: Where to with interest rates?](https://www.jadeequipmentfinance.com.au/blog/rba-november-decision-where-to-with-interest-rates) **Published:** November 26, 2021 **Author:** Publisher **Content:** You don’t have to be a financial expert or analyst to appreciate the interest in interest rates in Australia. There seems to be regular mentions in the media of rates and lenders are continually promoting their loan products. While much of this attention is in regard to home mortgages which are structured differently from say business equipment finance, all interest rates do share a common foundation – the official cash rate. The cash rate is set by the [Reserve Bank of Australia (RBA)](https://www.rba.gov.au/) at their monthly Board meetings. Up until recently these meetings were highly anticipated. But the after cutting rates 3 times in 2020 in response to the economic crisis of the pandemic, the RBA has left the rate steady for the past year, since November 2020. The cuts to the rate were part of the RBA’s monetary policy to support the economy during the crisis. In concert with the Federal Government’s fiscal policy measures, including the much appreciated accelerated asset depreciation measures, it appears to have been successful. But after a full year with the cash rate at 0.1% and businesses and individuals taking advantage of the subsequent historic low lending rates, how long will this rate party go on for? With the housing market posting record high prices, there have been calls from some circles for the RBA to increase rates to cool the market. So where to for interest rates? If the RBA does increase rates before their expected 2024 target, what will it mean for equipment finance? As specialist equipment finance lenders, our Jade Equipment Finance team stay across what is happening with interest rates so we can continue to offer the cheapest rates. Jade Equipment Finance brings you up to speed with the latest RBA November decision and possibilities for you to take advantage of the current historic low rates. **RBA Statement** The November 2021 meeting of the RBA Board marked somewhat of a milestone – 12 months of a historic low cash rate of 0.1%. Since cutting the rate to 0.1% in somewhat of a surprise move in 2020, the Board has continued to keep the rate steady and repeatedly forecast 2024 for a rise. That rate was kept again at the recent meeting but there was a slight shift in monetary policy in regard to the bond buying program. In the monthly statement, the RBA Board noted that it expected the economy to quickly recover from the recent Delta outbreak, though future health-related issues still remained an uncertainty. Previously it had set a target for inflation in the 2-3% sustained region and unemployment lower than current levels, to trigger a rate rise. Recent increases in inflation have led to a rise to 2.1%. However, the RBA notes that this is still low. It is expected to reach 2.2% in 2022 and then up to the 2.5% in 2023. But while the RBA remains relatively consistent with its forecasts and intentions moving forward, not all in the finance community agree. Just this week many analysts from leading banks and other organisations posted their predictions for a rate rise. Some even saying it could come in 2022 and prior to the next Federal election – which is scheduled for next year. For those planning the purchase of new equipment in coming years, it may be highly advisable to keep interest rates top of mind and possibly bring forward any acquisitions to ensure you secure the cheapest, current rate available. To review the interest rates we are currently offering across our equipment finance portfolio, please refer to our [Interest Rate Calculator](/equipment-finance-interest-rates). **New Equipment Acquisitions** Our interest rates are currently highly attractive for new equipment acquisitions. Rates for [Chattel Mortgage](/chattel-mortgage), Leasing, Rent to Own and Commercial Hire Purchase are the cheapest in years. While the interest rate offered may vary across different industries, we provide finance for all types of business machinery, plant and equipment across all sectors. With loan terms up to 7 years available, that is a significant timeframe to enjoy the current historic interest rates. If a purchase is put off to a time after a rate rise comes into effect, even a small increase in the interest rate can mean a significant increase to the overall cost of the finance. To see exactly how say a 0.1% or even 0.05% increase in equipment finance rates could affect an equipment loan, head to our [Equipment Finance Calculator](/calculator). By varying the interest rate entered the difference in the repayment estimate can be easily seen. Multiply the difference over the 84 months of a 7 year finance term and the cost is quickly appreciated. **Consider Refinancing** [Refinancing](/equipment-refinancing) is another consideration. While interest rates are at the current lows, it may be worthwhile to review current business equipment finance contracts with a view to possibly restructuring and refinancing. There are of course costs involved in refinancing which our consultants will explain fully and should be taken into account. However, this may be a move worth considering to lock-in cheap interest rate equipment finance for the years ahead. With current interest rates across the finance markets at these historic low levels, there’s no doubt that an increase will come at some stage. When exactly? That is unclear. What is clear is that we can provide better interest rate finance right now that can be locked-in over a full finance term to provide assurance and confidence for your business moving forward. **Contact Jade Equipment Finance on 1300 000 003 to discuss cheap interest rate equipment finance** *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.* **Categories:** Buying Tips --- ### [Machinery Supply Chain Issues Signal Warning to Expedite Acquisitions](https://www.jadeequipmentfinance.com.au/blog/machinery-supply-chain-issues-signal-warning-to-expedite-acquisitions) **Published:** November 26, 2021 **Author:** Publisher **Content:** Regardless of the industry you operate in, chances are you are aware of the serious situation in regard to supply chains on a global basis. Throughout the 18+ months of the coronavirus pandemic, there have been noticeable issues in delay of stock in many areas – cars, trucks, equipment amongst others. The situation was identified early in the pandemic in 2020 and most recently, consumers being warned to order early for Christmas so as not to be disappointed. Major retailers have reported having to place orders for stock 12 months ahead to ensure stock on shelves, which is totally unprecedented for the sector. So what’s causing the problem, how long will it last, how could it impact your business and why should you acquire new equipment now? We have identified a number of key reasons as to how the global events can and are impacting local operators with machinery supply chain issues and why this could be a signal to expedite acquisitions. The reasons behind the serious disruption to supply chains globally are actually multiple and multiplying. Computer chips, Suez Canal blockage, factory closures due to the pandemic, shipping delays and even a shortage of pallets are amongst some of the major reasons. For some time a shortage of computer chips has held up and in some cases stopped production of many goods including equipment used in many sectors. Adding to the shortage of the key components required, manufacturers are also facing increased costs for materials, freight and energy. An emerging and urgent issue is in regard to shipping – soaring shipping costs, availability of space on container ships and congestion at the ports. Securing the equipment now that you need and will need moving forward to keep your business operating and profitable may be a key priority. **Solid Reasoning to Expedite New Equipment Purchases** While global supply chain issues are of major concern to the supply of an ease of acquiring new equipment in some sectors, there are a raft of other reason to back a decision to bring forward purchase plans. To ensure your business continues to operate at peak performance and productivity we present a number of key reasons to expedite the purchase of new machinery, plant and equipment:- - To take advantage of new contracts. The infrastructure boom is continuing with many states issuing new contracts for major projects very recently. Increased investment in infrastructure was a major stimulus strategy for state governments and the projects continue to roll out. Well-equipped tenderers may be better-placed for success. - The construction sector has bounced back strongly recently with activity in commercial, apartments and infrastructure posting good results in the most recent industry-released figures. Having a quality fleet of construction equipment ready to go can place contractors in an ideal position to capitalise on the opportunities available. - Gain the competitive edge on the competition. While competitors may bypass the decision to upgrade, astute business owners can take the leading position by upgrading to the latest tech and more efficient machinery. - To revive your business for restart after lockdown. Customers at gyms, beauty salons, retail and hospitality are finally returning after months of restrictions. What better way to welcome them back than with fresh, new equipment to revive their interest in your business operation. - To be ready to adapt to changes to the way business operate in the post-pandemic economy. Those that are well-equipped may be better-placed to recover and thrive faster. Some COVID-related restrictions will be in place for some time and that may mean an investment in new business equipment. - New, more efficient machinery may be a key to overcoming labour shortages. Labour and skills shortages have been identified in many sectors. Possibly pivoting to new equipment and machinery may be a solution to at least part of the problem for your business. - To capture stock of the equipment required that is currently in showrooms and dealerships ready for delivery. Stock is low in some areas so acting fast could be advisable. - Upgrade now to prevent costly breakdowns and repairs on existing machinery which could cause delays down the track. Indirectly related to the supply issues is of course the current low interest rate scenario. As demand pushes up prices, inflation will subsequently rise and edge closer to the trigger point for the [RBA](https://www.rba.gov.au/) to act on rates. **Finance for New Equipment** There may be supply issues in equipment, but fortunately these issues are not impacting the ability of Jade Equipment Finance to provide [cheap interest rate equipment finance](/equipment-finance-interest-rates). We can assist businesses to quickly upgrade equipment, plant and machinery:- - Lock-in current cheap interest rate finance while rates are still at historic levels. - Plan well ahead with our 7 year loan terms. - Preserve cash funds with no deposit finance. - Take advantage of accelerated asset depreciation measures including temporary full expensing. - Pre-approved finance to confidently place an order. Our finance products available for the purchase of a wide range of machinery, plant and equipment include:- - [Leasing](/asset-lease) - Rent to Own - Commercial Hire Purchase - [Chattel Mortgage](/chattel-mortgage) Global supply chain issues are forecast to continue for some time in some sectors. Capturing the equipment available in dealerships now, could put your business in a more favourable position to grow and thrive moving forward. **For cost-effective equipment finance, speak with a Jade Equipment Finance consultant. Contact us for a quote 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.* **Categories:** Buying Tips --- ### [New Machinery, 2022 Field Days, Equipment Finance Rates: Time to Buy](https://www.jadeequipmentfinance.com.au/blog/new-machinery-2022-field-days-equipment-finance-rates-time-to-buy) **Published:** November 26, 2021 **Author:** Publisher **Content:** With equipment finance interest rates remaining at record lows for the moment and investment incentives on the table, buyers especially in the agricultural sector would be keen to see what is on offer so they could make those critical investment decisions. But with many field days cancelled in 2021, the opportunities to inspect new machinery in person have been limited. Jade Equipment Finance provides an update on what channels are available to see new equipment, what is new to the market, what’s happening in 2022 and how buyers can take advantage of the current cheap equipment finance interest rates. Find out about new machinery, 2022 Field Days and the latest on buying with cheap equipment finance rates. **Virtual Field Days 2021 – New Machinery Revealed** As did many industries, the ag sector also pivoted to virtual events as a result of COVID-19 in 2021. Farmmachinerysales conducted a [virtual event](https://www.farmmachinerysales.com.au/editorial/details/introducing-the-farmmachinerysales-virtual-field-days-2021-131774/) so buyers could connect in this way with the new machinery planned for release. Some of the new equipment featured on the platform include:- - Ashland 1410E Scraper earthmoving equipment: fastest in class, capacity 10.7 cubic metres. - [John Deere](https://www.deere.com.au/en/index.html) X Series Combine Harvester: greater efficiency, capacity and tech to assist producers. - John Deere HDR Rigid Cutterbar Drapers: maximises harvest capacity. - New Holland Twin Rotor CR Combine Harvester: feature innovative new technology. - Claas Quadrant Evolution Balers: upgrades deliver new features and performance. - Krone Varipack Round Balers: capability for dry material baling. - Case High Density Square Baler: 15% denser bales on offer. - JCB Loadall Telescopic Handlers: up to 5.5 tonne lifting capacity. To work up repayment estimates on finance for any of these new machines, use our finance calculator or just request a quote. **2022 Field Days** With 2021 a disappointment for many operators keen to catch up and participate in the annual field days, many will be looking ahead and planning for the 2022 events. While not all event dates have been released, there are a number already advertised to note in the diary. [Australian Farmers and Dealers Journal ](https://afdj.com.au/events/)have posted a series of events to note:- - March 18-19 2022: South East Field Days, Lucinda South Australia - March 25-27 2022: Farm World, Warragul VIC - April 8-11 2022: National Diesel, Dirt and Turf Expo, Eastern Creek, Sydney NSW - July 8-9 2022: Mudgee Small Farm Field Days, Mudgee NSW Also note the date for one of the biggest events on the calendar, the [**Henty Field Days**](https://hmfd.com.au/) scheduled for 20-22 September 2022. [**Australian National Field Days**](https://anfd.com.au/) had to cancel the 2021 event, which was scheduled for Orange NSW in October, due to COVID-19. The event is set for 20-22 October 2022. We’ll stay across further event dates for 2022 and report updates in our news and tips. **Farm Machinery Finance Rates and Incentives** With COVID restrictions finally easing and hopefully solutions imminent for labour shortage issues, the ag sector can hopefully look forward to a good harvest and even better season ahead. On the finance front, the conditions for investing in new machinery are definitely extremely favourable. The RBA has kept the official cash rate steady at the historic low level of 0.1% since November 2020. In the most recent statement, the Board outlined the reasoning behind its Monetary Policy decisions and its expectations for the economy. It expects the economy to recover from the recent COVID outbreaks with GDP posting an increase in the December quarter following a dip in the September quarter. While a small increase in inflation has been recorded, the RBA does not expect Australia to experience the spikes that have been seen in some other countries. Wages growth is still subdued. The expectation is that the conditions for a rate hike would not be in place until around 2024. There is ‘chatter’ in analyst circles that a rate rise could come sooner than the RBA is currently expecting. Some even predicting a rate rise prior to the next Federal Election which is due in 2022. Though the RBA notes that it is working on the figures – inflation, unemployment and wages growth, not to a calendar, when it comes to rate rises. This is all good news for machinery and equipment buyers with our current rates across our [finance portfolio](/overview-of-equipment-loan-products) extremely attractive. Machinery finance contracts can extend over up to 7 years so securing a fixed interest rate loan at our current cheap rates would cover you from any increase in the official cash rate during that finance term. The [interest rate](/equipment-finance-interest-rates) varies across the finance products so refer to our Interest Rate Comparison Calculator to see which option would work best for your operation. Further improving the ‘time to buy’ scenario are the Investment incentives still available through temporary full expensing for eligible acquisitions for eligible businesses. Temporary full expensing is best suited to Chattel Mortgage which attracts the lowest interest rate of equipment loan types. A double win! If the current finance and operating conditions are ideal for you right now, contact us to discuss arranging a cost-effective finance quote for your machinery acquisitions. **Contact Jade Equipment Finance on 1300 000 003 to discuss machinery finance.** *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.* **Categories:** Buying Tips --- ### [Inflation, Interest Rates, Supply Chains: Finance Forecasts](https://www.jadeequipmentfinance.com.au/blog/inflation-interest-rates-supply-chains-finance-forecasts) **Published:** November 27, 2021 **Author:** Publisher **Content:** Taking a broad-based view and assessment of the factors that affect economic activity can assist business in forming their own ‘finance forecasts’. Forecasts and outlooks as to what pressures their business may face in the coming years. This may be particularly useful when planning major investments in new machinery, plant and equipment and can particularly focus on interest rates and supply chains. The current scenario is somewhat complex and far from straightforward for those trying to establish a view on the future on which to make business and investment decisions. The pandemic has created many, varied and differing scenarios, some playing out locally and some impacting as a result of global issues. Jade Equipment Finance draws attention to a number of key economic factors which have the potential to impact interest rates on equipment finance. Factors which are playing out in both the domestic Australian economy and further afield in the wider global economy. Inflation, interest rates and supply chains are all key elements of forming finance forecasts and may assist business planning. **Timeframes** In the quest to remain competitive and gain an edge over the competition, smart business operators are always searching for the most cost-effective purchases, investments, systems and processes. That cost-effectiveness may be achieved through bargaining on purchase price or it may in the timing of the acquisition. The timing in terms of securing equipment finance is important in relation to what [equipment lending interest rates](/equipment-finance-interest-rates) are on offer at a particular time and what the forecast is for any change in those interest rates. Specifically, if and when the rate and hence the cost of the finance will go up. Even the smallest variation in the interest rate can end up adding a significant cost to the purchase of large items of machinery and equipment. This can easily be demonstrated by using our equipment finance calculator. Keep all values constant and vary the interest rate entered to see how much that can increase the cost of the equipment over the years of the finance term. Interest rates are determined by a number of elements primarily by the official cash rate as set by the [RBA](https://www.rba.gov.au/). Australia has enjoyed historic low interest rates for what is viewed as an extended period. So much so, that some may overlook the fact that interest rates can go up. When will interest rates rise? The RBA is saying 2024. But their decision will be made based on economic data and that will depend on the outcome of multiple pressures. **Pressures on Interest Rates** Some financial analysts have been commenting for some months that the RBA should move on interest rates in response to soaring prices in the housing market. The RBA has so far held steady. Some banks have already raised their fixed interest home mortgage rates despite the RBA holding rates at the historic 0.1% The RBA has indicated they are seeking a sustained inflation level in the 2-3% range to trigger a rate rise. The Australian economy has seen a lift in the inflation rate but not sufficient at this stage to reach the sustained target levels to trigger a RBA rate hike. Unemployment is another indicator being watched closely by the RBA. This rose significantly in the October figures. While a rise was expected, the amount was higher than most anticipated. Lower unemployment rates are required before a rate rise would be considered. Supply chains continue to place pressure on many sectors of the economy and are seen as a potential impact to increasing inflation. Consumers have been warned of price increases in many areas as a result of the pandemic and global issues. Low supply and high demand technically can lead to higher prices as consumers compete for limited quantities. The global scenario adds interesting twists to attempts to forecast finance. The US is experiencing surge inflation but the RBA stated in its November statement that it did not expect the Australian economy to experience the same inflation surge has is occurring in some other countries. International shipping charges are predicted to have upward pressure on the prices of a wide range of goods and services. Ports are congested across the world and containers are even in short supply. Seemingly, post-pandemic, consumers are making up for lost time with demand soaring. Labour shortages in Australia are also a potential impact on inflation. Border closures have kept international students out and their jobs are being hard to fill as business as reopening. Businesses are offering many tempting perks to attract staff. As the competition for the limited talent pool hots up, we could see wages growth in some sectors. The RBA views wages growth as sluggish and not expected to increase significantly in the near term. When wages go up then prices can follow as business factor in these operational costs into their pricing structure. The inter-connection between inflation, unemployment and supply chains is significant to interest rates as they are key economic drivers. Businesses can assess their own individual exposure to the pressures as to how these will impact their operation in terms of supply and material cost increases which could create the need to increase prices. **Avoiding Interest Rate Rises** So interest rates will eventually go up, exactly when is not known. If planning an equipment acquisition, then avoiding the additional cost of a higher interest rate could be part of the strategy. Securing equipment finance at the current low rates, can safeguard a business from rises in lending rates in the next few years. We provide equipment finance over an up to 7 year loan term. A 7 year equipment loan taken out in 2021 would be due to be finalised in 2028. The RBA has predicted any rate rise to be in 2024. Some analysts consider it could be sooner. Putting off a major equipment acquisition by say 2 years, could result in equipment finance at a higher interest rate. As noted earlier in this piece, even a small variation in the interest rate can add up to a significant additional cost over the say 7 year finance term. Jade Equipment Finance secures equipment loans at fixed interest rates. Fixed interest rates on machinery and equipment finance mean the rate is locked-in for the full term of the loan. This differs from fixed interest rate home mortgages where the fixed period may be only a few years of the total mortgage term. This is across our [portfolio of equipment finance products](/overview-of-equipment-loan-products): Rent to Own, Leasing, Chattel Mortgage and Commercial Hire Purchase. To see how our cheap interest rate refer to the interest rate comparison chart. Planning equipment purchases based on finance forecasts can be complicated. Securing equipment finance at the cheapest interest rates is not when you engage Jade Equipment Finance to source the loan. **Contact Jade Equipment Finance on 1300 000 003 to discuss cheap interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [Business Finance for the Changing Landscape](https://www.jadeequipmentfinance.com.au/blog/business-finance-for-the-changing-landscape) **Published:** November 27, 2021 **Author:** Publisher **Content:** Is it too soon or too optimistic to talk ‘post-pandemic’ era? If not now, then when? Smart business operators are already implementing plans for ‘now’ and to set themselves on a positive trajectory through the so-called ‘recovery phase’. While the [RBA](https://www.rba.gov.au/) notes in its monthly monetary statement of November 2021, the economy is expected to bounce back quickly following the extended lockdowns. But despite this positive outlook, the recovery process could be uneven across the nation and the economy. Some business continue to face challenges, especially in sourcing cost-effective business finance for the changing landscape to support their recovery and resurgence. As specialist business machinery and equipment lenders, Jade Equipment Finance recognises the changes to the business operating landscape and provides a range of financial solutions to support businesses facing challenges in sourcing loans. The COVID pandemic has resulted in some significant changes in the business landscape. Changes to how businesses operate, how they engage with customers and in some sectors, how their people carry out their work and how some individuals actually derive their income. Some pandemic pivots have become permanent and others have been adapted and absorbed into new ways of operating. Some of these shifts have flowed onto major operational and structural changes and adjustments for individual businesses and for individual workers. The negative side sees some business struggling to meet their financial commitments with reduced cash flow and demand which has flowed on to bad credit problems. On the positive side, changes in the workplace have led to many workers opting out of employment and into their own enterprises. Whether looking for finance to sustain a business with bad credit or seeking loans for equipment for a new start-up businesses, the challenges can be similar. Primarily, finding the right lender that can provide a comprehensive service in sourcing cost-effective equipment loans. We explain how we assist businesses with issues sourcing business equipment finance. **Credit Issues: [Bad Credit Equipment Finance](/bad-credit-equipment-finance)** Operating a business, especially a SME, profitably and productively at any time can be rewarding but with its ongoing challenges. During and following a pandemic, the challenges are even greater. Many businesses are still facing restrictions and limitation to their operations even with lockdowns lifted. The density quotients limiting the number of customers permitted in a premises can have a serious impact on turnover which flow on to the ability of the business to meet their own bills. Some industries including travel and tourism, are yet to reach anything like normal turnover and await full resumption of international visitations. When turnover is on the downturn but costs and bills are on the upturn, a business can fall behind in payments and develop a poor credit rating or bad credit. When it comes time to source finance to upgrade or replace equipment, it can be extremely difficult to source loans at affordable interest rates and repayments. Jade assists businesses with bad credit by providing access to specialist non-bank lenders that are open to considering bad credit loans. Our consultants work with customers to structure the application and we handle those sometimes tricky negotiations on interest rates and finance conditions. Our goal is to achieve a workable solution for our customers. Bad credit equipment finance at workable rates can be a reality for many operators. All applications are considered on an individual basis. Bad credit does infer a higher risk assessment and a higher interest rate usually applies. Other possible loan conditions may include the lender requested other security beside the equipment as a guarantee; the business owner providing personal guarantees; and a small lower loan amount approved. **New Start-ups: Low Docs and No Docs Equipment Loans** There is a newly coined phrase in this post-pandemic environment – the Great Resignation. Originating in the US but being felt in many countries, this refers to individuals that due to conditions around the pandemic, they have chosen to change their career or job or even leave full-time employment. This can include the many individuals that have set up their own small operations. Great initiatives but this type of change can have issues. Specifically of interest in our sector is that start-ups face their own set of obstacles in sourcing much-needed loans. Banks and most lenders require loan applicants to meet a set of criteria which newly started business struggle to fulfil. These often include having traded for a minimum of 12-18 months and have financial records and documentation to support the loan application. For those businesses that do not have all these financials, we provide Low Docs and [No Docs Equipment Finance](/no-docs-low-docs-equipment-finance). These loan categories can be sourced through our specialist non-bank lenders and can be secured at very attractive and cheap interest rates. Speak with one of our consultants regarding the prospects for cost-effective finance for your business. **Equipment Finance Available** To meet these changes in the business landscape, we offer a complete portfolio of finance products:- - Bad Credit Equipment Finance - Low Docs and No Docs Equipment When an application is approved, both of these can be used for:- - [Chattel Mortgage](/chattel-mortgage) - Leasing - Commercial Hire Purchase - Rent to Own To put your business on an upward trajectory in the post-pandemic landscape, speak with us about an equipment finance solution. **For all equipment finance requirements speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Get the Jump on 2022: Gear Up Now with Cheap Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/get-the-jump-on-2022-gear-up-now-with-cheap-equipment-finance) **Published:** November 28, 2021 **Author:** Publisher **Content:** It’s an understatement to say the past 18+ months have been challenging. We all know, we all get it! So as vaccination rates reach those critical percentages and millions of Australians get to celebrate their much-valued freedoms it’s tempting to give yourself the usual end-of-year break from the business grind. But before you shut down and log off, Jade Equipment Finance highlights reasons why business operators should be upgrading equipment and machinery now to get the jump on 2022 with cheap equipment finance. The economic uncertainty of 2020 and 2021 has seen many businesses make decisions to invest in new equipment on the back burner. Taking a cautious ‘wait and see’ approach to major acquisitions. But there has been and continues to be a lot happening in both the supply of equipment and the lending scene which warrant revisiting and acting on those purchase decisions with a sense of urgency. The time to ‘wait and see’ has been replaced with getting on with it an act. The lockdown of the construction sector first in NSW and then in Victoria was a pandemic surprise that pretty much no one saw coming. It hit many hard and one major take-out from the experience has to be the need for preparedness. Businesses need to be ready and well-equipped across their operation. That can mean not hanging around and waiting any longer to upgrade your equipment and machinery. **Interest Rates in General** Businesses in Australia have enjoyed historic low interest rates since the [RBA](https://www.rba.gov.au/) started cutting the official cash rate as a stimulus measure in April 2020. Since dropping the rate to 0.1% in November 2020 and constantly repeating it did not expect conditions to trigger a rate rise until 2024 the RBA message has remained consistent. But there are loud mutterings and expert commentaries as well as changes in key indicators that may signal an earlier than expected rise in the official cash rate. Inflation and wages growth are both key indicators for an RBA rate change and both these data have posted recent increases. Not in the region set by the RBA but moving in the upward direction. While the official cash rate is a base for most banks and lenders to set their own interest rates, the lending market does have other factors to take into account. Especially their own costs of borrowings which can be impacted by global economic conditions. In what is thought to be a response to this issues, some home mortgage lenders have already lifted their rate on 2 year fixed home loans. While different from equipment finance rates, the same borrowing costs do have the potential to affect equipment lenders also. **Equipment Finance Interest Rates** As we base our entire business on cheap and better equipment finance interest rates, we continue to offer [cheap rates](/equipment-finance-interest-rates) across our portfolio. Finance products can be secured at a fixed rate of interest over the full finance term. With finance terms of up to 7 years available, businesses have the opportunity to achieve peace of mind moving forward, with a cheap equipment loan locked in now at current cheap rates. **Gearing Up to Capture Opportunities** Upgrading machinery, plant and equipment now, has the potential to place a business in an improved position to capture new business, work and market opportunities as they emerge in early 2022. We point out a few factors for consideration to back up this statement. - Governments at all levels continue to invest heavily in infrastructure projects. The stimulus projects continue to roll out and reach new stages and new opportunities in addition to new major initiatives being announced on an ongoing basis. - Issues overseas that are affected the supply chain can have a beneficial side effect for some loan manufacturers. Those that are well-equipped to step back and fill the void for goods left by lack of international stock reaching Australian customers. - The construction sector has already shown signs of recovery and those with machinery and equipment in good condition can be in a more favourable position to win highly prized tenders and contracts. - It’s Election time! A number of state bi-elections are scheduled in NSW and the Federal Election is due in the relatively near future – probably within 6 months. That signals policy roll-outs and usually work opportunities for many. - Increase profitability through improved productivity of new machinery and equipment. - Realise cost savings in more energy efficient machines. - Take advantage of [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) and loss carryback ASAP and in this current financial year. **Stock Supply Issues** The global supply chain is an ongoing issue for numerous reason. Computer chip shortages shut down many factories, COVID caused slow-downs and delays and now spiralling shipping costs and delays are causing more problems. A potential further set-back could be experienced from the flow-on effects of a fourth COVID wave currently breaking in some European countries. Austria is the latest to impose new lockdown restrictions on its population. If this outbreak expands and grows further, we could see more manufacturing shutdowns which could further delay delivery of machinery and equipment to the Australian market. Buying now from what stock is available in local dealerships can be a wise decision. **Sourcing Equipment Finance to Make that Purchase** We’ve presented a range of factual and compelling reasons for business operators to just hold off on clocking off this December. Instead, proceeding with the purchase of new equipment to be ready to ‘seize the year’ when industry gets back to work in January 2022. [Our team](/approval) at Jade Equipment Finance is readily available to handle your equipment finance requirements with finance products at cheap interest rates to suit all types of equipment and all types of business operations. **Contact Jade Equipment Finance on 1300 000 003 to discuss securing finance for an end of year equipment acquisition.** *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.* **Categories:** Buying Tips --- ### [Impact on Equipment Finance of Forecast Boom in Infrastructure and Housing](https://www.jadeequipmentfinance.com.au/blog/impact-on-equipment-finance-of-forecast-boom-in-infrastructure-and-housing) **Published:** November 28, 2021 **Author:** Publisher **Content:** A leading construction industry form, the [Australian Construction Industry Forum](https://www.acif.com.au/) (ACIF) released data forecasts in early November which tip a boom for both housing and infrastructure in 2022. This article, posted on the ACIF website, feeds in perfectly with our recent piece on businesses being well-equipped and ready for the opportunities ahead in 2022. We present a view on the impact on equipment finance of the forecast boom in infrastructure and housing and how businesses can secure cheap equipment finance. Operators that are geared up with the latest, most efficient machinery and equipment can be ideally placed to capture the opportunities as they arise in their particular area. Acquiring that equipment with cost-effective finance at cheap interest rates can position a business to realise greater profitability and an improved bottom line. So what does the ACIF see ahead for the construction sector? We provide this overview. **ACIF: Overview** First a quick explainer of who the ACIF is. According to the forum’s website it is a voice of the construction industry with members including associations covering the full asset creation area including feasibility, cost planning, design, building, management and construction. The panel that comprises the group’s forecasting council includes economist and industry leader with a role to both provide the input and review the data that then forms the forecasts. **ACIF Forecasts** Released in early November, the ACIF forecasts a ‘twin boom’ for construction in both the housing and the infrastructure sectors. The enthusiasm however is curbed with the potential of both material and labour skill shortage as well as the pressures of increased costs to impact the industry. Overall it is expected that the industry could contribute in a major way to economic recovery with a projected 6% increase and construction of infrastructure growth of 7.5% through 2022. Infrastructure growth is of course supported by the extensive initiatives and programs implemented by both federal and state and territory governments. These projects are expected to carry into 2023 and 2024. Strong demand for residential housing is seen as being driven by government policy incentives including [HomeBuilder](https://treasury.gov.au/coronavirus/homebuilder) and the low housing interest rate climate. The costs of building houses are also rising which the ACIF see as putting extra pressure on inflation. On the infrastructure front, the ACIF report notes the surge in Government projects in transport, water and energy as well as health, cultural and education buildings. The shortages in the labour market for trades and material shortages exacerbated by global supply chains is seen as major challenge for this ‘full pipeline’ of project work available. The residential sector is expected to continue its growth in the coming 2 years as builders and tradespeople complete the backlog which has built up as a result of the surge and materials shortages. The Chief Forecaster for the ACIF, Kerry Barwise, commented that the twin book indicates that the building and construction sector will lead the recovery of the economy. However, this optimistic outlook is tempered by several mentions of shortages and cost increases which will present challenges for operators. In the non-residential sector, a decrease is expected to continue over the coming 2-3 years. Specifically in commercial offices, retail, entertainment and accommodation buildings. But the heavy industrial sector such as mining is projected to experience significant growth of >20% in the coming 3 year period. **Preparing for the Twin Boom** For businesses in the construction and building sector looking to take full advantage of this forecast boom, we provide a full [range of finance options](/overview-of-equipment-loan-products) to facilitate upgrading to new machinery and equipment. Types of finance available include:- - Chattel Mortgage - Equipment Leasing - Equipment Rent to Own - Equipment Commercial Hire Purchase Selecting which is the most suitable type of loan for your business requires consideration of the accounting method used by the business; the approach to the balance sheet; and general financial objectives. A discussion with your accountant should assist with this process. We also mention and remind business owners that the [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) investment incentive is available for eligible businesses and eligible asset acquisitions through to EOFY 2023. To take advantage of this measure, Chattel Mortgage is considered the most appropriate finance product. **New Business Loans** For individuals considering a work change and setting themselves up as an owner-operator/sole trader in the construction and building sector, we offer specialised loans for equipment purchases. When seeking finance, new businesses are often hamstrung by the application criteria required by most banks and some lenders. We are accredited with non-bank lenders that are open to providing finance for new businesses through our Low Docs and No Docs Equipment Finance. Applications will require an ABN, ID and while full financial documentation is not essential, the more financial records and business plans etc provided, the more attractive the application. [Low Docs and No Docs Loans](/no-docs-low-docs-equipment-finance) can be achieved at cheap interest rates and our Jade consultants do all the hard work in sourcing the cheapest quotes and negotiating on terms and conditions to deliver the most suitable outcome for our customers. To be ready to participate in what the ACIF see as a twin boom for the construction sector, speak with us about cheap finance to acquire the equipment you require. **For all equipment finance requirements speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Lower Equipment Maintenance Costs on New CAT Wheel Loaders](https://www.jadeequipmentfinance.com.au/blog/lower-equipment-maintenance-costs-on-new-cat-wheel-loaders) **Published:** December 1, 2021 **Author:** Publisher **Content:** Realising any advantage in the highly competitive civil construction sector is highly sought after. Acquiring machinery which can lower costs and increase productivity can be key to achieving a better bottom line and boosting profitability. For contractors seeking an edge on winning jobs, take a look at the new CAT wheel loaders with features that claim to lower maintenance costs and are available with cheap equipment finance. In a media release, CAT launched their new 980 and 982 medium wheel loaders that can deliver up to 12% lower maintenance costs compared to some previous models and are up to 10% more productive. Increased performance and improved efficiency in these new machines is achieved through the inclusion of an expanded technology platform. Could these new CAT machines, acquired with cheap interest rate finance be a solution to your business realising greater productivity and profitability? Read on for more information. **New CAT Wheel Loaders: Overview** Features of the new CAT 982 and [980](https://www.cat.com/en_AU/products/new/equipment/wheel-loaders/medium-wheel-loaders.html) series wheel loaders include:- - Technology that delivers actionable information in real time such as an accurate weighing of the payloads in the bucket to facilitate easier loading to target dad. Includes low-lift weighing and manual functions for tip-off. - The software is compatible with other scale house systems with functionality including Lists Management, Multitask and Manual Add Modes. - Tyre slip and loading time is reduced with the auto set tyres which automate the bucket loading cycle. Claimed to achieve up to 10% increase in productivity. - Application Profiles set multiple parameters with just the press of a button to allow ease of operation. - Easier cab access with grab rails and stair style steps and additional legroom once inside. - Adjustable seat with heating and cooling options. - High res touchscreen display on the new dashboard with intuitive loader control which is user-friendly and enhances performances. - Precise control with the seat-mount joystick steering system. Conventional steering available on some models. - Improved visibility with the floor to ceiling windshield, rear vision camera as well as convex and spot mirrors. - Maintenance savings achieving through extended maintenance intervals on hydraulic systems. - Easy access to electrical and hydraulic service centres. Faster servicing with lube points grouped. - Remote service technologies can reduce trips of the service team to site. - Quick bucket changes can be achieved without having to leave the cab with the optional Quick Coupler. CAT offers several special configurations to optimise performance and deliver better durability in tough working environments. Suitable for industrial and waste applications, in foresty and steel mill sectors and many others. Full details on the new CAT 980 and 982 wheel loaders. **Cost-Effective Finance Options for CAT Machinery** While CAT have incorporated outstanding new features to reduce maintenance costs and improve productivity on the new 980 and 982 series, even greater savings and productivity gains can be realised with [cheaper equipment finance](/equipment-finance-interest-rates). Acquiring a new CAT wheel loader with a cheaper interest rate loan can mean significant savings over the term of the loan compared with higher interest loans. As a specialist equipment finance lender, Jade Equipment Finance is ideally positioned to provide cheap machinery finance. Our comprehensive portfolio of [finance products](/overview-of-equipment-loan-products) allows business owners to select exactly the loan type that will deliver the optimum outcomes for their operation. The selection includes:- - Chattel Mortgage, which is sometimes referred to as Heavy Equipment Loan - Rent to Own - Equipment Leasing or Asset Lease - Commercial Hire Purchase While many banks and lenders also offer this selection of finance products, we also offer a wide range of lender options including specialist non-bank lenders that specialise in heavy equipment finance. These lenders can be more flexible and amenable to negotiating on loan conditions and the all-important interest rate. Don’t worry, you’ll not be left to do those tricky negotiations, our consultants handle the entire finance process for you. A service which is saving you time while delivering potentially cost-savings through cheaper interest rate over the full fixed finance term. **Comparing Repayments on Different Models** If considering different models and configurations of the CAT 980 or 982, comparing finance repayments could be useful in the process. We provide fixed monthly repayments at a fixed interest rate, so calculating estimated repayments ahead of purchase is easy. Use our [interest rate comparison calculator](/equipment-finance-interest-rates) to compare repayments for different loan types and the finance calculator to calculate repayments while planning the finance structure. After several years of disruption and challenges with the pandemic, realising improved productivity and profitability is a high priority for many operators. Consider achieving those objectives with a CAT 980 or 982 purchased with our cheap interest rate finance. **Contact Jade Equipment Finance on 1300 000 003 to discuss a finance quote on the new CAT wheel loaders.** *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.* **Categories:** Buying Tips --- ### [Reduce Operating Costs through Refinancing Equipment Loans](https://www.jadeequipmentfinance.com.au/blog/reduce-operating-costs-through-refinancing-equipment-loans) **Published:** December 1, 2021 **Author:** Publisher **Content:** One of the key take-outs from the economic effects of the pandemic for many businesses has been the need to stay across their financial situation. To be agile, flexible and most importantly to keep costs under control and workable with cash flow. To achieve a more workable cash flow situation post-pandemic, businesses may consider the current low interest rate situation as an opportunity to reduce operating costs through refinancing equipment loans. With the [RBA](https://www.rba.gov.au/) holding rates at the historic lows, the prospect of refinancing at the current rates can be very attractive. Jade Equipment Finance works with customers across many industries to explore the options and benefits that refinancing might present by providing refinance quotes and offers on a wide range of machinery, plant and equipment loans. **Why refinance?** There are a wide range of reasons as to why would a business may consider refinancing their existing loan arrangements. These include but are not limited to:- - Change in the business structure. In the situation where a business partner has exited the business and that person was attached to the security of the loan when it was set up. The loan may have been secured based that person’s credit profile or assets. - The loan was secured initially at a time when interest rates were significantly higher than current rates and a lower rate loan is sought. - A general review of the business financial situation is being undertaken. - Seeking to reduce repayments to reduce pressure on cash flow. - Seeking to alter the loan term to reduce the debt faster. - Generally seeking to reduce operating costs through cheaper loan options. - Initial loan secured as bad credit but the situation and credit profile has improved and a better finance deal is sought. - Desire to change to a different type of loan from say Lease to Chattel Mortgage. - Paying out a leasing residual or Chattel Mortgage balloon at the end of a finance term. **Refinancing Explained** Before committing to a refinance arrangement, it is important to understand what the process involves and particularly what costs may be incurred. Key points:- - Refinancing is the process of actually replace one loan with another. That is a totally new finance arrangement. - While the equipment may have been new when originally purchased, after several years of use over the loan term so far, the goods would now be considered as used. This may attract a different interest rate to new goods and may attract special conditions or consideration by lenders. - The cost of establishing the new ‘refinanced’ deal needs to be taken into account and balanced against the benefit gained. - The application for refinancing would be assessed based on the same guidelines as normal finance applications. - Refinancing may mean paying out the existing loan early which may attract payout fees by the lender. - The refinanced loan can be with the same or a different bank or lender. - The refinanced deal may be with the same or a different loan product. [Loan products](/overview-of-equipment-loan-products) available for refinancing include:- - Chattel Mortgage - Lease - Rent to Buy - Commercial Hire Purchase **Refinancing Mid-Loan Term** When refinancing is sought at some point during the loan term, the targeted outcome may be to achieve a different finance term and/or to achieve a lower monthly repayment. This objective may be achieved with a new loan arrangement. A lower repayment may be achieved by changing the loan term – longer term lower repayments. Or by achieving finance at a lower interest rate while retaining the loan term balance on the existing loan. For example if there is 4 years remaining on the loan a refinanced deal may be structured over 4 years but secured at a lower interest rate which would result in a lower monthly repayment. As mentioned above, the costs attached to refinancing should be taken into account. Also as mentioned above, the goods would be considered as used not new. **Refinancing Residual and Balloon Payments** One of the most common uses for refinancing is to fund the payout of an equipment finance balloon or residual. A balloon [(Chattel Mortgage)](/chattel-mortgage) or residual (Lease) is structured into the finance when originally established. This percentage of the loan amount is due for payment when the final repayment is made. Businesses seeking to conserve the existing funds very often seek to refinance this balance. Refinancing a balloon/residual may be done with the same or a different form of loan and may also include a balloon/residual. The same selection of loan products is available for refinancing a balloon as for establishing a new equipment loan. As balloon refinancing occurs at the end of the loan term, no break fees or payout charges should apply. New loan establishment charges would apply as with all finance. **Refinancing Interest Rates** As mentioned above, by its very definition refinancing implies the finance for goods which have been in use over a time period. As such, the interest rate applicable would be for used goods. This may differ depending on individual lenders. Your Jade consultant will source the cheapest refinancing interest rate from across our lending panel. Refinancing can be an effective strategy to reduce operating costs and set up a business with a more workable cash flow situation and open opportunities for growth and expansion. **For all equipment refinancing speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Why use specialist equipment lenders?](https://www.jadeequipmentfinance.com.au/blog/why-use-specialist-equipment-lenders) **Published:** December 7, 2021 **Author:** Publisher **Content:** The acquisition of a major piece of equipment, plant or machinery is typically a considered business investment usually requiring finance. Regardless of how many previous equipment loans you may have had, the choice of which is the best lender to approach is always a key part of the finance process. With the Australian finance sector enjoying a wealth of options with competition amongst banks and lenders and with the historic low interest rate situation, choice of lender is significant. In the search for the best finance, business owners should consider the benefits and the reasons why they should use specialist equipment lenders. Many operators simply contact the bank with which they hold their accounts when requiring a loan. The thought process may be that this must be the most convenient way to arrange finance – just go direct and apply. It appears time saving and that can mean dollars for many operators. Others may go the opposite route. They shop around to multiple banks and finance companies to get multiple quotes to (try) to wade through and compare rates, terms and other conditions. Both these approaches can overlook a very significant segment of the business finance market – the specialist non-bank equipment lenders. [As specialists in the field](/why-jade-equipment-loans) we outline compelling reasons as to why business owners should use specialist equipment lenders with details of the benefits which can be realised in the process. **Varying Approaches to Lender** The major banks are without doubt the dominant force in the Australian finance sector. But their status as banks requires these organisations to adhere to strict guidelines in regards to both consumer and business finance. Yes, all lenders including non-bank lenders that are [licensed credit providers](https://asic.gov.au/for-finance-professionals/credit-licensees/), including Jade Equipment Finance, must follow the law and rulings. But non-bank lenders tend to have greater flexibility when it comes to discussions around certain finance deals. This approach can result in a lower interest rate and more workable finance terms and conditions which can deliver a more tailored and ultimately more cost-effective finance solution. This flexibility is of particular importance to new businesses requiring no docs and low docs equipment finance and those that have credit issues and need consideration for a bad credit loan. While the major banks offer a very extensive range of loan products, within the non-bank lending sector there are lenders that specialise in specific industries and/or specific types of heavy equipment, plant or machinery. It is this specialty that can deliver significant benefits to business. These specialists by the nature of the business, attend to possess resources and more extensive information and understanding of their sectors. This can lead to a more negotiable approach to finance and result in more tailored finance products for individual businesses. They know the players, the challenges and the opportunities and outlook within their key industries. They have a proven interest in that industry and can be extremely more competitive. The next segment of the specialist lender market is the brokers and broker-style lenders like Jade Equipment Finance. We are accredited with both the major banks and an extensive selection of non-bank lenders. Providing our consultants with access to a wide choice of lenders from which to earmark exactly which will offer our customer the most suitable and cheapest equipment loan. For businesses that think going directly to the bank is time-saving, they may think adding another layer to the process – going through us, as an unnecessary and time-consuming step. The reality can be vastly different. We save you a lot of time and with direct channels and the knowledge as to who to approach for a quote, the process can be much faster and may deliver a better outcome. **Accessing Specialist Equipment Lenders** One of the obstacles that businesses face when trying to source and access specialist lenders is their exclusivity. Many of these types of lenders operate via industry channels only, working through a network of selected brokers like Jade. Your Jade Equipment Finance consultant can provide access to specialist lenders to source quotes and structure tailored finance for your requirements. **Finance Products** While the lending sector may appear complex and vast, the types of equipment finance products offered by all lenders tends to be uniform across the market. The [finance products](/overview-of-equipment-loan-products) available for plant, machinery and equipment acquisitions include:- - Equipment Loan which is also referred to as Chattel Mortgage. As this follows quite a straightforward secured loan style structure, many banks and lenders are tending to refer to this type of finance simply as Equipment or Heavy Vehicle Loan. - Equipment Lease or Asset Lease - Hire Purchase or Commercial Hire Purchase, both these terms are interchangeable. - Rent to Buy or Rent to Own, also referred to as Equipment Rental. There are a number of variations across lenders of this type of finance which your Jade consultant will explain. **Sourcing Cheap, Competitive Equipment Finance** There are many benefits to be realised for business through specialist lenders. For access to this lender segment and a quote for your requirements, simply contact us to discuss what you need. **Contact Jade Equipment Finance on 1300 000 003 to discuss specialist equipment lenders** *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.* **Categories:** Buying Tips --- ### [Upgrading Workplaces for People with Disability](https://www.jadeequipmentfinance.com.au/blog/upgrading-workplaces-for-people-with-disability) **Published:** December 7, 2021 **Author:** Publisher **Content:** As the world celebrated [International Day of People with Disability](https://www.idpwd.com.au/) on 3 December, it is an ideal opportunity for industry and individual businesses to consider upgrading workplaces for people with disability. Embracing inclusion and diversity and opening up the opportunities of bringing the skills and talents of people with disability into the workplace. The day is observed globally, by the United Nations and in Australia has the support of the Australian Government and many other organisations. The key aims are to increase the awareness in the public domain and to create a greater understanding and acceptance of people with disability and of course, promote inclusivity. While many businesses have already embraced the inclusion of people with disability into the workplace, many others still need to make modifications to their operation. Adapting and modifying workplaces for this purpose may involve a wide range of requirements including specialised machinery, office fit-out and fixtures alterations and possibly changes to processes. All investments which may require finance. Jade Equipment Finance provides loans for a wide range of purposes to allow businesses funds for upgrading workplaces for people with disability. When considering what needs to be done in a specific workplace it is worth noting that there is legislation around this in Australia with the Disability Discrimination Act. This Act covers issues when a person receives less favourable treatment or is not provided the same opportunities as others due a disability. Details can be [reviewed](https://humanrights.gov.au/our-work/employers/access-all-improving-accessibility-consumers-disability) which may assist forming ideas and plans for your workplace modifications. **Range of Equipment and Purposes Financed** In considering how a workplace could be adapted for people with disability, consider the needs of customers and visitors as well as those of workers. The requirements for customers may differ and relate to front of house as opposed to the engine-room of the operation. To assist and support business to make workplaces suitable for people with disability, we provide finance for a multitude of purposes:- - Purchase of [all types of equipment, plant and machinery](/industrial-equipment-finance) used in many industries. - Specialist vehicles for operators with disability – forklifts, warehouse and logistics equipment and other machinery. - Adapting and modifying machinery for use by persons with mobility and other issues. - Office and retail fit-outs and refurbishments. May include ramps and widening access points for wheelchair access. - Wayfinding and signage for the vision-impaired. Braille signage is available for this purpose. - Adding enhance audio elements to announcements, alerts and other cross-workplace systems. - Investing in IT and computers specifically designed for vision or hearing impaired and for those with mobility issues. - Systems and processes may need to be adapted. This may involve retraining and/or the involvement of consultants to develop and implement new systems around WH&S and other issues. - External specialist consultants may be required to advise on what is required. This list is far from complete as the equipment and other purposes may be quite specific and will vary greatly for different types of businesses. If you are in doubt as to whether or not the modifications and adaptations you are considering can be financed, [just give us a call](/contact-us). Finance is available for both new and second-hand stock items and customised equipment and solutions. **Types of Finance Products Available** The type of finance required will vary depending on the actual expenditure – specifically asset acquisition or non-asset expense. We offer a wide range of loan types so we can cover both categories. [Asset acquisition finance](/overview-of-equipment-loan-products) to purchase equipment and machinery includes:- - Chattel Mortgage or Equipment Loan - Equipment Lease - Rent to Own - Hire Purchase These loan types are used for purchases of actual items of machinery or equipment which can be offered as security against the finance extended. Deciding which loan type is best-suited to a business should involve a conversation with the business accountant. For investments and purchases where an asset suitable to be used as security against the finance is not involved, we offer a range of finance solutions:- - [Secured and Unsecured Business Loans](/unsecured-business-loans) - Lender Overdrafts for smaller expenses which can be covered by cash flow in a small-medium timeframe. These loan products can be used for purposes such as some fit-outs which are not covered by asset finance; modifying systems requiring external consultants and suppliers; small priced items which may be below the loan threshold for asset finance; cost of consultants, training and other purposes. **Comparing Rates and Repayments** To start formulating a budget for implementing the changes required in your workplace, use our finance calculator and the [interest rate comparison calculator](/calculator). Both provide an easy way to get rough repayment estimates which can be used for comparing different items and for planning purposes. Where the project involves a number of elements, your Jade consultant can work with you and our lenders to structure a finance solution tailored to specific needs. **To discuss finance to adapt a workplace for people with disability, speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [What the RBA December Rate Decision means for Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/what-the-rba-december-rate-decision-means-for-equipment-finance) **Published:** December 14, 2021 **Author:** Publisher **Content:** For businesses considering investing in new plant, machinery and equipment there are numerous factors, conditions and issues to stay across to arrive at an informed decision around timing and finance. These include the general economic conditions and outlook, your own forecasts for growth and what is happening in your sector. For those that have pivoted into new directions and/or expanded into different markets as a result of COVID questions will exist around whether as the pandemic situation eases, the current level of turnover can be sustained with the changed settings? In other words, what’s happening you’re your customer base and demand for your goods and services. But topping the considerations list is what’s happening in regard to interest rates. Jade Equipment Finance addresses the question of what the [RBA](https://www.rba.gov.au/) December rate decision means for equipment finance moving forward. Interest rates are by far the most significant element of equipment finance. In conjunction with the finance term the rate determines that all important repayment amount. Over 2020 and 2021, interest rates across lending sectors dropped to historic low levels due primarily to cuts in the official cash rate made by the Reserve Bank of Australia. These cuts have led to extremely accommodative lending conditions. With several surprise rate cuts in 2020, the RBA decisions are often highly anticipated and awaited. We cover off on what decision the Board arrived at, on what basis the decision was made and what the RBA’s outlook is for the Australian economy and interest rates. **RBA Board Announcement: December 2021** Tuesday 7 December was the final RBA board meeting for 2021. Over the past year since it last cut the official cash rate the Board has remained unwavering in its target indicators in order to trigger a rate rise. Resisting pressures and even publicly fending off calls to lift rates amidst the soaring housing market. The statement issued announcing the 7 December Board decision followed a well-trodden path and provided its outlook moving forward. Here are the key take-outs from that statement:- - The official cash rate was held steady at the historic rate of 0.1% or 10 basis points. - The economy is seen as in recovery mode after the setbacks caused by the Delta variant outbreak earlier in the year. - The recovery is underpinned by the policy support being provided and the high levels of vaccination of the population. - Household spending is on the rebound. The RBA has often stated in recent months that household balance sheets are in good shape following months in lockdown. - There is an improving outlook in regard to the investment prospects for business. - The Omicron emergence comes with a level of uncertainty however it is not expected to disrupt the economic recovery process. - The first half of 2022 should see a return to the pre-Delta economic growth path. - A strong recovery in the labour market is being indicated by the high job ad levels and challenges in filling job vacancies in some sectors. - An increase in wages growth has been seen but it is low in comparison with the levels posted prior to the arrival of the pandemic. Tightening in the labour market could contribute to a pick-up in growth of wages. - Wages behaviour is uncertain as a result of return to significantly low levels of unemployment. - The key indicator of inflation remains low – that is underlying inflation as opposed to CPI inflation. Underlying inflation is at 2.1% and the CPI rate 3% But the CPI rate is being impacted by petrol prices, issues in global chains of supply and other costs increases. - The In 2023 the underlying inflation is expected to reach 2.5% The RBA Board retains its goal of underlying inflation sustainable in the range of 2-3% and unemployment in lower rates before a rise in the official cash rate would be required. In concluding the statement, the Board stated that this would require wages growth and that is expected to take some time. The RBA is prepared to be patient in waiting for these conditions to eventuate. **Equipment Finance Scenario** The official cash rate is significant to [equipment finance](/equipment-finance-interest-rates) as lenders use this rate as a base cost in securing their funding and then determining their rates. With the official rate holding steady it could be expected that lender rates will also remain highly competitive and at attractive levels. But rates vary from lender to lender and some may face higher funding costs due to increases in interest rates in global markets. Jade Equipment Finance is [accredited](/why-jade-equipment-loans) with banks and non-bank lenders which provides our customers with access to a vast selection of lenders and the ability to secure the cheapest loan offer. A key consideration for buyers will be the rate variations across the different [finance products](/overview-of-equipment-loan-products) also: Chattel Mortgage, Commercial Hire Purchase, Lease and Rent to Own. The interest rate should be considered in the context of the tax and other benefits for a business that a particular loan product represents. With an increase in the official cash rate, which will then most likely flow into lending markets, due by 2024 and possibly earlier, buyers can avert rate rises with a fixed interest rate loan. Fixed interest rates on equipment finance remain fixed over the full term of the loan. So when rates do rise in say the 7 year timeframe of the loan, the repayments on a fixed interest rate equipment loan will not change. **Contact Jade Equipment Finance on 1300 000 003 to discuss cheap interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [For International Civil Aviation Day: Aviation Finance Update](https://www.jadeequipmentfinance.com.au/blog/for-international-civil-aviation-day-aviation-finance-update) **Published:** December 14, 2021 **Author:** Publisher **Content:** The International Civil Aviation Organisation has been commemorating December 7 as [International Civil Aviation Day](https://www.un.org/en/observances/civil-aviation-day) and in 1996 the day was officially proclaimed by the United Nations General Assembly. In Australia, we noted the day received a mention by organisations such as the [Bureau of Meteorology](http://www.bom.gov.au/). With over 4 billion passengers carried on the international network each year and supporting in excess of 65 million jobs globally it is a critical part of both the Australian and global economy. To focus on the contribution of the sector and support available for businesses in aviation we provide an update on the opportunities and options available for aviation finance. Civil aviation encompasses both commercial and private aviation, essentially all non-military operators, and Jade Equipment Finance provides [lending services](/transport-equipment-finance) in the sector for a wide range of aircraft and ancillary equipment.. In Australia, with both international and interstate border closures due to COVID-19, the commercial aviation sector has taken a bigger hit than many other industries over the past few years. The commercial sector comprises both the major airlines and the myriad of smaller operators active in tourism, transport, freight, pilot training and similar areas. **International Civil Aviation Day** According to the United Nations, the purpose of this day is to generate and further reinforce an awareness on a worldwide basis, the importance of the sector to the economic and the social development of countries and globally. In addition it recognises the role of the International Civil Aviation Organisation to foster cooperation to realise a global transport network as a service to all of mankind. Each five years a new theme for the day is adopted and the current theme is Advancing Innovation for Global Aviation Development. **Investing in New Aircraft and Equipment** Hard-hit by the pandemic, in order to invest in aviation innovation to develop their business, many operators will require a cost-effective, low-rate and reliable source of finance. Jade Equipment Finance supports aviation operators with our comprehensive range of finance products and broker-style lender services. With the diverse lender market in Australia, businesses can benefit greatly in terms of cheaper finance, by having knowledge of and access to specialist lenders in their particular sector. Jade Equipment Finance facilitates this access to specialist aviation finance lenders as we are accredited with a vast range of both banks and non-bank lenders. While business can approach many lenders directly themselves, there are non-bank lenders that are not directly available to customers. Access to these is via finance industry channels and specialists including lenders like Jade. In addition to providing these access, our consultants source the cheapest aviation finance deal from across our network of lenders and provide specialist expertise in structuring what is sometimes complex loans by handling the negotiations with the lender. For those considering investing in new aircraft or additional equipment to support operations, engaging us to handle the finance can reap significant benefits. We provide finance for aircraft, terminal equipment, loading and unloading equipment for freight and passengers, IT and technical equipment both in the aircraft and in the business as well as the myriad of other types of equipment required by aviation operators. **Finance Interest Rates** Interest rates are key to achieving the cheapest aviation finance possible. At the December board meeting, the RBA once again left the official cash rate on hold. For businesses seeking finance, that means a continuation, at least for now, of very attractive borrowing rates in many sectors. The [interest rate on equipment finance](/equipment-finance-interest-rates) will vary across industries and across finance products. While many banks may not be totally negotiable on rates due to the guidelines associated with their lending status, many of our specialist non-bank lenders are quite flexible in this regard. **Aviation Finance Products** We appreciate that aircraft are acquired by both businesses for use in commercial operations and by private individuals for recreational and personal transport. As such we provide both business finance products and personal aircraft loans. Business aviation [finance products](/overview-of-equipment-loan-products) include: - Chattel Mortgage - Lease - Commercial Hire Purchase - Rent to Own The interest rates do vary across the range of equipment finance and those seeking a rough estimate of possible repayments prior to selection of loan type can refer to our Interest Rate Comparison Calculator. For more detailed planning, refer to our Equipment Finance Calculator which also allows for the inclusion of a balloon in the calculations. Personal loans for the acquisition of private aircraft include Secured Aircraft Loans. As Jade Equipment Finance primarily deals with business finance, this loan type is not detailed on this website but can be arranged through our consultants. **Bad and Poor Credit Finance** One of the major disappointments for many in the general aviation and tourism sector has been the significant impacts on their business finances. While Government support may have been helpful to keep many afloat, there will be some that have been left with poor credit ratings and outcomes. Bad and poor credit can seriously impair the prospects of a business securing cost-effective finance. While many lenders do not offer Bad Credit Aviation Finance, Jade Equipment Finance will assist businesses with sourcing possible solutions through our specialist lender channels. We acknowledge the critical role played by the civil aviation sector and support businesses with cheap and workable finance solutions to invest and upgrade equipment in their operations. **To discuss aviation finance options for your business, speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Cheap Construction Equipment Finance to Support Industry Recovery](https://www.jadeequipmentfinance.com.au/blog/cheap-construction-equipment-finance-to-support-industry-recovery) **Published:** December 21, 2021 **Author:** Publisher **Content:** The construction sector is a considerable contributor to the Australian economy in terms of workforce participation and economic activity. Over the past few months the industry has posted strong performance figures though still faces challenges around job vacancies and material supply shortage and the ongoing threat around the coronavirus. After shutdowns in major states in October, the industry is reportedly showing good signs of recovery. For businesses looking to upgrade equipment to better take advantage of the sector recovery, cheap construction equipment finance is available. Cost-effective, affordable equipment finance which is tailored to specifically suit the needs of an individual business, can be critical when tendering for major contracts in a sector where margins can be tight. **Industry Performance Reports** We refer to the latest report of the [Australian Performance of Construction Index](https://www.aigroup.com.au/resourcecentre/research-economics/PCI/), which is compiled and provided through the Housing Industry Australia (HIA) and the Australian Industry Group (Ai). The report reveals that on the back of the September rebound, the Index remained high during November but at a slightly decelerated rate. The 57 point Index posted for November indicates a strong expansion pace overall. Individual sectors posted varying outcomes with the apartment sector falling, commercial up and engineering dropping. Reportedly, builders have noted the necessity for increased staffing and the need for greater investment in equipment and machinery in response to the positive uptick in the market. With international borders now reopened to allow skilled workers to return and other targeted measures by government to address labour shortages in key sectors, contractors will no doubt be looking to fulfilling job vacancies to take advantage of these peak performance conditions. **Improving Productivity** While cases of Omicron continue to rise, uncertainty remains a risk as noted by the Governor of the [RBA](http://rba.gov.au), Philip Lowe recently and is a prevailing sentiment across the wider community. The NSW Premier recently stated that in hindsight, shutting down the construction sector for 14 days during the NSW lockdown was a mistake. Can this be taken as some form of assurance that lockdowns won’t be reinstate in response to the new variant? Time will see. Setting the risk of lockdowns aside, the possibility of workers being forced into isolation as Omicron cases rise is a very real threat. A situation which could leave contractors short-staffed and unable to operate at optimum levels. Improving productivity through the acquisition of more efficient machinery may be consideration. Upgrading machinery and equipment to new, more fuel efficient and easier to operate models may provide productivity gains. Acquiring that equipment with cheap interest rate finance can further enhance the benefits to the business. **Equipment Financed** Jade Equipment Finance provides cheap interest rate finance for a wide range of machinery and equipment used in the building and construction sector, purchased as one-off units or in a large-scale fleet upgrade. These included yellow goods, wheeled good, excavators, dozers, cranes, earthmoving and civil equipment, drilling machinery, generators, site lighting, specialist trade tooling and equipment and others. **Tax-effective Finance Products** Selecting which is the most suitable [type of finance](/overview-of-equipment-loan-products) for an individual business will depend on a number of factors. While many will immediately be drawn to the loan types that attract the lowest interest rates – Chattel Mortgage and Commercial Hire Purchase, the full scope of the benefits of each product should be assessed in the context of the individual business objectives. It is highly advisable for business owners to consult with their accountant on this matter as many of the features relate to accounting methods, practices and preferences. Jade Equipment Finance provides a comprehensive selection of construction equipment finance products, including:- - [Chattel Mortgage](/chattel-mortgage) - Equipment Lease - Commercial Hire Purchase - Rent-to-Own Each type of loan includes tax deductible elements but the way both GST is treated and when and how a tax deduction is realised, varies across the range. Interest rates also vary and this is a consistent across the lending market. What is not so consistent, realisable and accessible is the [cheap interest rates](/equipment-finance-interest-rates) achieved on construction equipment finance by Jade Equipment Finance. Achieving a cheap interest rate on equipment finance is key to the overall cost-effectiveness of the loan and how it works with cash flow and facilitates a positive contribution to the business by the equipment acquisition. **Specialist Finance Services** As an integral part of our support for the construction sector, we provide specialist lender services to assist new contractors, those operating with ABN-only and those that find themselves in a position of needing a bad credit loan. These services include sourcing [No Docs and Low Docs Equipment Finance](/no-docs-low-docs-equipment-finance) for those starting out in the sector. This type of finance is available across all loan types and can be secured at cheap and affordable interest rates. All loan enquiries and applications are handled by our consultants on an individual and very personal basis with solutions tailored specifically to needs. Bad credit loan applications are also handled on an individual basis and our consultants strive to deliver a workable outcome for operators requiring this type of finance. Not readily available through major banks, bad credit equipment loans can be sourced through a selection of our non-bank lenders that specialise in this type of finance. As a specialist in equipment finance, Jade continues to support the recovery of the sector and assist with facing the challenges through providing cost-effective, cheap interest rate loans for new equipment and machinery. **To discuss construction equipment finance to support your business to participate in the sector’s great performance, speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Assessing and Comparing Equipment Finance Lenders and Loans](https://www.jadeequipmentfinance.com.au/blog/assessing-and-comparing-equipment-finance-lenders-and-loans) **Published:** December 30, 2021 **Author:** Publisher **Content:** Business operators have learnt a lot of lessons over the past few years courtesy of the COVID-19 pandemic. Some unfortunately learnt the hard way, some through opportunity and some through noting and avoiding the mistakes of others. One stand-out lesson has been the need for workable finance that is sustainable and supportive for a business in both good and challenging trading times. When buying new equipment, smart operators will be closely assessing and comparing equipment finance lenders and loans and ways to access the cheapest interest rate loans. If it’s been a while since you embarked on this process, you will hopefully benefit from this snapshot of the lending market which our team at Jade Equipment Finance has prepared. **Assessing the Equipment Finance Sector** While the major banks remain the largest lenders in Australia, loans for business equipment are available through a number of sources, providing businesses with a range of options to acquire the cheapest deal. There are positives and not so positive aspects to each lender category with the decision based on which best meets the needs of the individual business and the equipment being purchased. - The major banks are by far the most popular lenders but their banking status and the guidelines and regulations that come with that position don’t necessarily provide the best lending option for all businesses. The criteria they have for business finance approvals can include minimum trading periods and other conditions which preclude new businesses from applying. While competitive on rates, they are not always amenable to negotiating on loan conditions which can be a deal-breaker for many operators. - General finance companies do promote heavily and that can attract many to what appears to be a quick and easy way to equipment finance. It can be but checking the detail and getting alternative quotes is advisable. Many may end up having similar corporate structures to banks. Those that operate in both consumer finance and in business finance may not be as suitably targeted to the needs of business as other more specialised non-bank lenders. Worth checking out other alternatives as well. - Lenders that specialise in particular sectors can be a great source of equipment finance. These types of non-bank lenders often exclusively work with say heavy equipment finance and as such, they know the industry and can bring that insight and expertise to the negotiating table. One obstacle can be access. Working through a broker-style lender like Jade Equipment Finance can be the channel necessary to access specialist lenders. - Manufacturer finance and dealer loans is an area of finance which has been around for a long time but is definitely on the rise. Buyers can lock-in their loan at the point of purchasing equipment. A convenience? Possibly. You’ll still have to deal through their finance arm and go through the same loan application processes as with other lenders. The best and cheapest finance deal attainable? You’d have to get other quotes to find that out. Worth reading the contract closely for any hidden costs or conditions and yes, getting another quote. Or use our Equipment Finance Calculator to check what we can possibly achieve for you on the same purchase. - Broker-style lenders, Jade Equipment Finance included, offer a comprehensive and attractive alternative to banks, dealer and finance companies. With access to all these lenders – banks and specialist non-bank lenders, we cover off quickly and easily on all the options available to arrive at the cheapest deal to suit individual requirements. **Equipment Finance Interest Rates** Getting the [cheapest interest rate](/equipment-finance-interest-rates) is the first step and the critical factor in achieving the cheapest equipment finance. While all lenders use the official cash rate as established by the [RBA](https://www.rba.gov.au/) as the basis for setting their own rates, interest rates on equipment finance will vary across the lending market. This reflects the individual lender’s own costs of acquiring funding, their interest in lending to a particular industry sector, their internal guidelines and approach to lending and other factors. While all will advertise rates for different loan products, the actual rate offered will be dependent on the credit profile and risk assessment of the individual loan applicant. Businesses can improve their prospects of a better interest rate by addressing any issues with their [credit rating](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) and possibly reducing other debt commitments before making application for new finance. Lenders advertised interest rates typically apply for the purchase of new equipment unless otherwise stated. The interest rate applicable for used and second-hand equipment may vary. **Equipment Finance Products** The range of finance products available for business equipment is quite uniform across the market. However, different names can be used for the same loans by different lenders. Also keep an eye out for lenders that create special titles for their loans. - Equipment Loan is usually the same finance product as [Chattel Mortgage](/chattel-mortgage). - Equipment Lease can be Operating Lease or Leasing. - Hire Purchase is the same as Commercial Hire Purchase. - [Equipment Rental](/equipment-rental-finance) is usually the same as Rent to Own and Rent to Buy. Each finance product has a different interest rate, tax deductibility of different elements and varying features and benefits. Primarily these relate to accounting practices and businesses should refer to their accountant when making a decision. To be in a position to claim the benefits offered through IAWO and temporary full expensing, Equipment Loan/Chattel Mortgage should be selected. Refinancing can be usually be achieved with the business’ choice of finance product. Refinancing is replacing the existing finance with a new deal. Pay out fees and charges can apply to finalise the existing deal and many businesses look to our expertise in sourcing and structuring refinancing. There are real opportunities to secure workable, affordable equipment finance at cheap interest rates at the moment. So if you’re looking to invest in new plant, machinery or equipment take a few minutes to ask what Jade can do for you. **Contact Jade Equipment Finance on 1300 000 003 to discuss cheap interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [Equipment Finance and Refinancing Options to Tackle ‘22](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-and-refinancing-options-to-tackle-22) **Published:** December 30, 2021 **Author:** Publisher **Content:** What’s on the horizon in 2022 for your business? If you’re feeling uncertain at the moment, one thing is certain – you’re not alone. The emerging Omicron situation has many business owners on edge right at the time when it the economy was showing great signs of recovering from a woeful two years. There are sure to be challenges to be met and opportunities to capture in the coming year. Many businesses will face the question of whether to proceed with equipment investment plans or postpone till conditions are more certain and stable? Having access to cheap equipment finance could be influential in making that decision. We outline the cheap equipment finance and refinancing options are available to take on 2022 and allow business operators to realise their true potential and take advantage of the opportunities available. **Improving Productivity** One of the big problems which has already emerged for many businesses in multiple sectors as a result of the fast-spreading Omicron variant is staffing issues. We’re already seeing many businesses having to shut down, slow down or limit operating to full capacity because so many of their staff are isolating due to the virus. Addressing productivity across a business operation at this time and looking for ways to improve those levels could be advisable. New machinery and equipment could be a possible solution to improve productivity and provide greater flexibility in dealing with what could be a time of challenging staff rosters. Easier to operate equipment or machinery may provide for more flexible allocation of staff across a facility to fill absenteeism gaps due to COVID. Looking to upgrade to a machine model which can be operated by a number of staff with minimal instruction could be worth considering. Manufacturers focus heavily on developing equipment and machinery that delivers greater efficiencies to improve profitability and productivity. But realising the full potential of those benefits can be compromised if the equipment is acquired with expensive finance. If you’re paying over the odds in monthly repayments due to a high [interest rate loan](/equipment-finance-interest-rates), then any gains in productivity may be lost with a drop in productivity. Ensuring new equipment is purchased with the cheapest interest rate finance as possible is critical. Check out our current interest rates across our equipment finance portfolio to see how low repayments could be on a prospective equipment investment. **Construction Cost Increases** Global supply issues, materials shortages and shipping delays are some of the reasons being put forward for the increase in costs in areas of the construction sector. The sector is experiencing an uptick but sadly, also are some of the material costs. Hitting the margins of many businesses in the industry. This is highlighting the need to keep other business costs, including the cost of finance, down in order to maintain a profitable margin especially on jobs already quoted. If purchasing new equipment, then sourcing cheap finance will be, as always, a high priority. If cost increase situation is considered as potentially ongoing for the medium to long term or your business is particularly vulnerable, refinancing equipment loans could be an option to consider. Jade Equipment Finance provides specialist expertise in sourcing and structuring refinancing. The process involves sourcing a new loan arrangement to replace the existing loan or to bundle several loans into the one to streamline commitments. Businesses can select from the [portfolio of finance products](/overview-of-equipment-loan-products) when refinancing. These include Chattel Mortgage, Leasing, Rent to Own and Commercial Hire Purchase. Costs associated with paying out an existing loan need to be factored into the overall cost of the process but if reducing regular outgoing is the main objective, this is a very workable and commonly-used strategy. **Reconfiguring Spaces and Places** 2022 could see a new phase for office-based businesses. Staff who have been working from home for most of the past 2 years may be looking to return to the office this coming year. Offices and other workplaces may need to reconfigure their floor plans to better cater for working under COVID restrictions and to provide greater workplace safety. Issues which may also contribute to improving worker satisfaction and performance. We provide cheap interest rate finance for office equipment, furniture and fit-outs so the cost of making these changes could be more workable and affordable than you imagine. Use our Equipment Finance Calculator to estimate repayments when preparing your budgets for the project or request finance quotes on specific items of equipment for a more exact estimation. **Don’t Miss out on the Tax Opportunities!** While the current focus is sadly once again on COVID, businesses are reminded not to overlook the lucrative tax measures which are still available for machinery and equipment acquisitions for eligible businesses. [Temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) is available to eligible business through to June 2023. But if you are wanting to realise the depreciation of new equipment in this financial year, it will need to be purchased and in operation by June 2022. Interest rates across our equipment finance portfolio remain at our trademark cheap levels which reflect both our own approach to achieving better rates and the current historic low official cash rate. To set up your business with new equipment to capture opportunities and overcome challenges, speak with us about the cheap equipment finance we have available. **To discuss equipment finance to support your business in 2022, speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Can cheaper equipment finance be negotiated?](https://www.jadeequipmentfinance.com.au/blog/can-cheaper-equipment-finance-be-negotiated) **Published:** January 4, 2022 **Author:** Publisher **Content:** When requiring a loan to purchase new equipment, business operators will typically be seeking to secure cheaper equipment finance. The cheapest loan possible to ensure the acquisition is cost-effective and delivers a benefit to the business. With most banks and lenders clearly displaying their interest rates and terms for equipment finance, many operators may be wondering if these are set in stone or up for negotiation? Is it possible to actually negotiate a better deal on equipment finance? While many operators would consider themselves fairly shrewd at negotiating contracts, tenders and pricing for their projects, negotiating with the major banks is a totally different scenario. Engaging the services of a specialist equipment finance broker rather than handling the task alone can result in cheaper equipment finance for a business. Understanding the equipment lending market may provide greater insight into why it is possible to negotiate cheaper finance when the right strategic approach is adopted. **Equipment Lending Market** The range of lenders in the equipment finance market is quite large but not all are amenable and flexible to negotiation due to their structure and approach to lending. The market comprises the major banks, minor or second tier banks, finance companies and non-bank specialist lenders. While there continues to be new lenders entering the market, the big banks remain the largest overall group of lenders for business and consumer finance. Most businesses will automatically turn to the bank where they hold their transaction account when requiring finance. Under their status as banking institutions, the banks must operate to certain guidelines which are also determined at least in part by their size and corporate structure. Guidelines in regard to loan approvals are set and the team are typically required to abide by these guidelines. While not having banking status, many finance companies are also large corporations and regardless of the image portrayed as workable and approachable, many still have their corporate processes and their procedures to be followed. Offering discounts on rates and waiving certain loan conditions for small business especially is not usually achievable when a business operator enters finance negotiations with a bank. They do however have business managers that do work to structure finance deals for their customers. Lenders that do tend to have greater flexibility when it comes to negotiating cheaper finance are the specialist, non-bank sector. Some of these lenders that Jade Equipment Finance are [accredited](/) with, have set up with the specific objective of assisting businesses to achieve cheaper and more workable finance. Great news for business owners except how do operators find and connect with these lenders? Many operate to an industry-only model. They select certain finance brokers such as Jade and deal through them to provide finance to businesses. Business owners can access many of these specialist equipment finance companies through their Jade consultant. **Structuring the Finance** Being in a position to negotiate cheaper finance requires having a level of bargaining power. Power that in many instances, even longevity and large transaction accounts don’t necessarily provide when it comes to talking finance. As a broker-style lender, Jade Equipment Finance has bargaining power with a range of lenders derived from the quantity of equipment finance business that we conduct with those lenders. So what can be negotiated and what should businesses be considering in the quest to acquire cheaper equipment finance? The [interest rate](/equipment-finance-interest-rates) is the key to the overall cost of finance. The rates set on finance for different types of equipment and for different loan types will vary across the lending market. While the official cash rate is set by the [Reserve Bank of Australia](https://www.rba.gov.au/), individual lenders then set their rates based on their costs and their specialist interest in a particular industry sector. Jade consultants work hard to negotiate cheaper rates for our customers, but business owners can also take steps towards achieving better finance through keeping a good credit rating. While many businesses may see getting a cheaper interest rate as the only way to get a more workable there are other aspects to the loan which can also be addressed to achieve a cost-effective outcome. The finance term can be critical to achieving the repayment levels that work with the business cash flow. Negotiating a longer term can reduce repayments. For those wanting no deposit equipment finance, seeking approval for a larger loan total may be a means to more cost-effective finance. Lenders may also apply certain conditions on equipment finance that through expert negotiating may be eased and result in a better overall outcome for the business. Businesses requiring low docs, no docs and [bad credit equipment finance](/bad-credit-equipment-finance) can benefit greatly from engaging with a finance broker. These are specialist loan categories which are not serviced by all banks and lenders. Specialist lender services may be required to source this type of loan. Jade Equipment Finance provides these services. **Achieving Cheaper Equipment Finance** Achieving cheaper equipment finance is a real possibility for many operators, especially when the right strategies are adopted. Handling the process on your own can present challenges and can be extremely time-consuming. Time which effectively should be included in the cost of the finance. Engage with Jade Equipment Finance to reduce that wasted time and negotiate better and cheaper equipment finance that works for your business. **Contact Jade Equipment Finance on 1300 000 003 to discuss negotiating cheaper equipment finance.** *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.* **Categories:** Buying Tips --- ### [New for ’22? No Docs Equipment Loans for New Operators, New Machinery](https://www.jadeequipmentfinance.com.au/blog/new-for-22-no-docs-equipment-loans-for-new-operators-new-machinery) **Published:** January 4, 2022 **Author:** Publisher **Content:** To move on from the challenges of the past few pandemic years presents a number of options depending on individual circumstances. For those that want a totally new way to earn, that means setting up their own business by acquiring machinery or equipment to operate as a sole trader, owner-operator or contract out to large contractors. With a wealth of infrastructure projects currently at different stages of construction, there are many opportunities available. But new business operators will typically require no docs equipment loans to purchase the equipment to get their business started. The decision to make the change to self-employment is admirable and exciting. But the logistics and practicality of the process is not always that exciting especially when it comes to getting loans. Sourcing cost-effective equipment finance for new businesses with no docs equipment loans can be achieved through specialist equipment lenders. Jade Equipment Finance is such a [specialist lender](/why-jade-equipment-loans) and we explain what is available to those setting up a new business and the services we can provide to assist new operators achieve workable equipment finance. **No Docs Loan Criteria** [No docs and low docs](/bad-credit-equipment-finance) are descriptions used for loan applicants and are not actual finance products in their own right. The reference to ‘docs’ is to the amount of financial documentation that the business applying for the loan can provide in their application. When applying for equipment finance, lenders will typically require the business to provide a range of records or documents to validate the financial position and outlook. These records may include tax returns, BAS, the accounts for the past years, profit and loss statements, bank statements and similar documents. Obviously a business that is in the initial phase of setting up won’t have accrued those records. Many operators will actually need the loan to purchase the equipment which will essentially become the business. In addition to the financial records, some banks also require that a business has traded for a minimum period to be eligible for a standard business loan. The minimum period may be as small as 12 months but some stipulate as much as 24 months to be eligible. Once again, a clear impossibility for a new start-up. No docs equipment loans have been explicitly structured to meet the needs of new businesses that do not meet the criteria for standard business loans set by many banks and other lenders. These loans are not available through all lending sources. Businesses requiring no docs finance will need to engage with a specialist lender such as Jade or a finance broker to access these loans. There are some basic criteria to be eligible for no docs loans and they include:- - ABN holder - Verifiable identification - Being [registered for GST](https://www.ato.gov.au/general/aboriginal-and-torres-strait-islander-people/tax-for-businesses/registering-for-gst-and-other-taxes/) is not essential, but can be viewed favourably by some lenders Small one-owner businesses may also have their personal finances assessed as part of the loan approval process. If in this category, business owners should address their personal [credit rating](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) and score and take steps to fix any errors which may appear on the report. The difference between no docs and low docs is the amount of finance records etc that can be provided to support the application. Even simply-prepared income/expenses records may assist the application. A business plan may be requested and these can be quite simply prepared using templates which are readily available online. **No Docs Loan Products** Once a business has a loan application for no docs finance approved, they may select from the range of equipment finance products available to all businesses. Unless the lender stipulates the approval is for a specific loan type. When selecting the type of loan, businesses should consider the full package of features and benefits in their context of their individual operation and objectives. As many of the features of finance products relate to accounting issues, it is strongly advised that a new business connect or consult with a bookkeeper or accountant to assist. Jade Equipment Finance consultants will handle the finance sourcing, application and settlement process but it is not our role to advise customers on finance product selection relevant to their needs. No docs equipment [loan types](/overview-of-equipment-loan-products) include:- - Equipment Leasing - Equipment Rental or Rent to Buy - Chattel Mortgage or Equipment Loan - Hire Purchase or Commercial Hire Purchase **Applying for No Docs Equipment Loans** The process for applying for No Docs Equipment Loans is the same as for standard, fully documented business loans. Contact us to brief our consultants on your requirements or connect via our online channels. Pre-approved no docs loans are available and these can be extremely beneficial. Allowing new businesses to know they have the finance approved prior to discussing equipment acquisitions with dealers. If it’s new in ’22 for your business, connect with Jade Equipment Finance to discuss no docs equipment loans to get you started. **To discuss no docs equipment finance, speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Difference between low docs and bad credit equipment finance](https://www.jadeequipmentfinance.com.au/blog/difference-between-low-docs-and-bad-credit-equipment-finance) **Published:** January 11, 2022 **Author:** Publisher **Content:** Many of the terms used in the lending sector can lead to confusion and misunderstandings for business owners. Misunderstandings which can result in a reticence to even apply for finance for fear of being only eligible for extremely high interest rate loans. One of the common misconceptions is around low docs and bad credit loans. There is a clear difference between low docs loans and bad credit equipment finance in the definition, the conditions around the loan and the interest rate which can be expected. As specialists lending for all types of business equipment, Jade Equipment Finance provides both Low Docs and No Docs Equipment Finance and can assist in many instances, businesses with bad credit. We set out the details around each of these loan categories including eligibility and what loan applicants may expect to be offered in a loan from our lenders. **Low Docs and No Doc Loans** No Doc and [Low Docs Equipment Finance](/no-docs-low-docs-equipment-finance) describes essentially the position of the business that is applying for the loan. It means the business does not have all or any of the financial documentation and trading records that are required to complete a standard business finance application. This documentation or docs can include records such as BAS statements, business tax returns, profit and loss statements, business accounts such as an accountant would prepare annually and possibly trading forecasts. Businesses that have been operational for some time, even as low as a year, will have acquired these documents. Businesses that are just setting up or have only been operating for a short time would not have these records. New and start-up businesses are the types of operations that typically seek low doc and no doc equipment finance. But just because a business is relatively new does not by definition mean that business has bad credit or a poor credit score. Consider a few examples:- - It the business is being established as an owner-operator, sole trader or a 1-2 director business, the [credit profile](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) of the business owners can be assessed by lenders. The business owners may have stellar credit scores and with a condition of the loan being a guarantee by the owners or additional security provided by the owners, a good interest rate loan can be achieved. - A new business may be being established by an individual that previously owned and operated very successful enterprises with good credit rating. Possibly those previous businesses were closed or ceased operating while in a good credit position. The business may have been sold, a partnership dissolved or the owner closed due to a desire for a change of direction. These are just two examples of businesses that may require a low docs or no doc equipment loan but have good credit. While some of our lenders can include additional conditions on these types of loans such as requesting additional security to the goods being acquired or limiting the total loan amount, the loans can be achieved at cheap interest rates. **Bad Credit Equipment Finance** [Bad credit finance](/bad-credit-equipment-finance) is sought by business owners that have a poor credit profile or bad credit rating. While being in this bad credit position, the business may have all the financial records and docs to fully complete the standard business finance application. To have acquired a bad credit rating in many ways presumes the business has been operating for a period of time. They have all the docs so they don’t need a low doc or no doc loan. Bad credit is a challenging position for a business as it does raise barriers and obstacles to lending. Not all banks and lenders will offer bad credit equipment loans in their portfolio. Assessing the applicant as a bad or poor risk and advising that the application is rejected. Typically and very commonly, those in this position will apply to many lenders, over and over, in an attempt to be offered a loan. This practice unfortunately can worsen the situation. All those loan applications are reported to credit agencies and can appear as a negative on a credit profile. Out of desperation, some will be enticed into exorbitantly high interest rate loans which are simply not sustainable for the business. Resulting in eventual default and a furthering worsening of the credit rating. The situation or circumstances which led to the bad credit position can be significant to the lender when assessing an application. Lenders may be understanding of the circumstances and applicants may improve their prospects by having full documentation or records to validate their reasons. Engaging with a broker-style lender such as [Jade Equipment Finance](/why-jade-equipment-loans) can be of great benefit for business requiring bad credit finance. We are accredited with a selection of specialist non-bank lenders that can be more flexible and negotiable when assessing bad credit equipment loan applications. We have the negotiating skills and bargaining power and the connections required to assist those seeking bad credit finance. While not all applications are successful, not all are rejected. If made a loan offer, bad credit equipment finance applicants can expect that offer to be at a higher interest rate than the advertised rates due to the higher risk assessment. There may also be additional conditions attached to the finance including additional security required, limits on borrowing amounts and terms and possibly regular reviews. **Finance Products Available** When approved for finance, both bad credit and low doc loans are available for:- - Chattel Mortgage - Lease - Hire Purchase - Rental Businesses seeking either bad credit or low doc finance are still welcome to use our repayments calculators but with the awareness that the rate offered may differ from our current rates. There is a significant difference between bad credit and low doc loans but both are achievable and our consultants are available to assist businesses requiring these types of finance. **Contact Jade Equipment Finance on 1300 000 003 to discuss bad credit or low doc equipment finance.** *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.* **Categories:** Buying Tips --- ### [Benefits of Fixed Interest Rate Finance for Equipment](https://www.jadeequipmentfinance.com.au/blog/benefits-of-fixed-interest-rate-finance-for-equipment) **Published:** January 11, 2022 **Author:** Publisher **Content:** Interest rates are an extremely popular topic of conversation and most business operators and home owners will be well aware of the current scenario pertinent to their situation. Many business operators may also be mortgage holders and are across the fixed v variable rate home loan situation. But in the equipment finance lending sector, loans are structured differently from home mortgages with fixed rates applied differently. With complacency setting in around the long-running historic low interest rate situation, businesses can be smart to consider the benefits of fixed interest rate finance for equipment acquisitions and lock-in low rates now. Business seeking finance to acquire new equipment can lock in the current low rates across all the years of their loan term. We explain how businesses can lock in low rates. **Current Interest Rate Situation** It is widely known that the [RBA](https://www.rba.gov.au/) has kept the cash rate on hold at the 0.1% historic low since November 2020. Long enough for many to become blasé about being able to get cheap interest rate finance. But there have been calls from economists and analysts for the RBA to lift rates to cool the housing sector. Calls which have so far been rejected by RBA Governor Philip Lowe. But the RBA will hold its first meeting for 2022 on 1 February to discuss interest rates and monetary policy. Prior to the emergence of Omicron the economy was bouncing back well after the Delta-driven lockdowns. Unemployment was trending downward and inflation edging upwards. The RBA has stated targets of 2-3% sustained inflation and unemployment sub or around 4% as key conditions to trigger a rate rise. These conditions were not expected to occur until around 2024. The bank’s view on the economic effects of Omicron and how it sees this impacting the economy’s growth moving forward will no doubt be revealed in the statement made on 1 February. While the RBA does not expect to raise the cash rate until 2024, we are already seeing home loan lenders edging their rates up in anticipation. Could equipment finance lenders do the same prior to an official rate rise? Lenders source their funding from various sources and if global rates rise and cause a rise in their own funding costs, then it is of course a possibility. **Locking in a Low Rate** Businesses can avoid an interest rate rise by locking in a fixed interest rate loan now at the current low rates. We offer fixed interest rate finance across our [portfolio](/overview-of-equipment-loan-products) of Lease, Rental, Chattel Mortgage and Hire Purchase. Unlike home mortgages where a fixed rate may only be applicable for a few years, with fixed rate equipment finance that fixed rate is applicable to the full loan term. With equipment finance available with terms of up to 7 years, that means a business taking out a loan today over 7 years will still be enjoying current low interest rates at the start of 2029. Years after the RBA is expected to increase rates. **Realising the Benefits** The key benefits of fixed rate finance include paying less in total interest on the loan. Meaning the finance will cost less. And also achieving lower finance repayments. Both key objectives for most businesses seeking cost-effective ways to invest in new equipment. In addition, fixed rates provide assurance and confidence for the business moving forward. Budgeting and forecasting can be made based on the knowledge that at least the loan repayments will be constant and unchanged over the loan term period. This can be of significant assistance when making other investment decisions. After the disruption and uncertainty of the past few years, any certainty for business will no doubt be extremely welcome. **Refinancing** With the drop in interest rates over the past few years, businesses with loan arrangements made prior to the rate cuts and at higher than current rates, may consider refinancing. Refinancing can enable a business to secure a new fixed rate loan at current low rates to replace existing loans. While refinancing is achievable at [low interest rates](/equipment-finance-interest-rates), the costs involved in the process need to be factored into the decision. Paying out existing loans early can attract fees from lenders. Jade Equipment Finance offers expertise and services to source and structure cost-effective refinancing at cheap and fixed interest rates. This may be done on a single loan or to combine several finance contracts into one loan arrangement. **Structuring Fixed Rate Finance** To start formulating how you would like your fixed rate equipment loan structured, use our Equipment Finance Calculators. We offer two devices which are both easy and free to use. The Interest Rate Calculator shows the different interest rates we are currently achieving on different types of loans. The [Equipment Loan Calculator](/calculator) allows users to vary the loan amount, term and the balloon. Both reveal estimated repayments based on the data entered. Business owners can get a good idea of what loan term they will be seeking, what percentage balloon they prefer and whether or not to opt for no deposit finance. There are significant benefits to be realised with fixed interest rate equipment finance and locking that in with our current very cheap rates can further enhance those benefits. **To discuss fixed interest rate equipment finance, speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Time a Costly Factor in Securing Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/time-a-costly-factor-in-securing-equipment-finance) **Published:** January 19, 2022 **Author:** Publisher **Content:** When seeking finance to acquire new equipment, regardless of the industry sector or the particular business set-up, most operators will be expecting to incur certain costs associated with the loan. The costs of taking on finance to purchase business equipment are generally considered as the interest charges on the loan and the fees and charges of the lender. While variations across the equipment finance market do exist, both of these cost components are standard inclusions in a finance contract. But time can also be a costly factor in securing equipment finance and operators can utilise [lender services](/why-jade-equipment-loans) and resources to significantly reduce that expense. There are a number of aspects to our time-cost perspective on securing finance which we offer for consideration. Global supply issues especially around shortage of micro-processors and shipping as well as the pandemic have caused shortages of some equipment in the Australian market. When that equipment is vital to an operation, it needs to be acquired quickly. For businesses to snap up what stock is available, they will be wanting to be prepared to act and that means quickly securing finance. But the major time cost factor can be incurred when business owners decide to handle the entire process of sourcing and securing equipment finance on their own. While finance company adverts and online offerings present a picture of easy-access loans, there is still a lot of time involved for those that choose to fly solo on this. - How many hours or days are you willing to spend on sourcing finance? - What dollar figure in lost production or foregone working hours and income does that represent as a cost to your business? - How much is all this time adding to the standard costs of the loan? Efficiency and productivity can be key to business success and that means maximising and optimising income-generating time available. Utilising services and resources to streamline business processes and procedures. And that includes the finance process. Jade Equipment Finance provides the resources and services to assist business owners to cut the time and many other costs associated with equipment finance. **Adding up the Time Costs** So how, why and where is this time going to add up and start costing a business in sourcing finance? Here’s a few scenarios to consider:- - Sourcing multiple quotes. Businesses will want to get the cheapest loan and that means getting quotes from a number of different banks and lenders. While ‘quick quotes’ are readily available, there are set processes and procedures required by many lenders to complete business loan applications in order to secure a confirmed quote. To get enough quotes to make an informed comparison, that process may need to be repeated multiple times – clock ticking! - The pandemic has sadly seen a lot of businesses struggling with many getting through primarily due to Government support packages. This may cause lenders to tighten application processes, not necessarily criteria and eligibility, but take more time in assessing loan applications. When a business goes through that multiple times they have both increased their time-consumption and possibly extended delays in getting approvals and purchasing limited stock equipment. - Contacting multiple lenders for quotes and waiting for callbacks can take an operator off the site, out of the workshop and away from income-generating activity. A drop in income that can be considered an expense. - Cutting through the confusion that can arise around the wide range of lenders available can take time. Equipment finance is available through banks and non-bank lenders and sourcing which lender is best suited to your industry can be time-consuming. - Understanding interest rates can also be time-consuming. The [RBA](https://www.rba.gov.au/) sets the cash rate and then lenders set their rates depending on the markets they operate in. The interest rates for equipment can vary for different industries. - Differentiating the [different finance products](/overview-of-equipment-loan-products) to select the one that will deliver the right solutions for your operation. There are four main types of commercial finance products – Chattel Mortgage, Lease, Hire Purchase and Rental. Businesses need to determine which is best suited to deliver the best outcomes for their particular operation. Now we’ve detailed the problem, we’ll offer a solution. **Solutions to Cut Time and Costs** Business owners can significantly cut the time and costs of securing equipment finance by using a broker-style lender to handle the process. Jade Equipment Finance has accreditation with numerous banks and non-bank lenders including specialists, so we can quickly survey the market and source the cheapest offer to meet the requirements of a particular business. Our consultants have the expertise to negotiate on those sometimes tricky loan conditions and achieving the loan term and repayment level preferred by our customers. All this time, while we source, negotiate, structure and finalise your finance, you are productively working in your business. In addition to cutting the time cost of acquiring finance, our services can also cut the interest costs by achieving [cheaper interest rates](/equipment-finance-interest-rates). There are a number of actions that business operators can do to quicken the process:- - Calculate repayment estimates using our [finance calculator](/calculator) prior to decide how you want your finance structured. This allows you to quickly brief our consultants on your requirements. - Address any [credit rating issues](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) to reduce the follow-up queries from lenders and to enhance prospects of a cheaper interest rate. - Prepare documents in advance to reduce any delays. Time can be a significant cost in sourcing finance when the process is done by the business operator. Jade Equipment Finance assists business owners to reduce the time and the costs of securing equipment finance. **Contact Jade Equipment Finance on 1300 000 003 to discuss how we can save you time and costs in securing finance.** *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.* **Categories:** Buying Tips --- ### [Workable Finance for New Loaders](https://www.jadeequipmentfinance.com.au/blog/workable-finance-for-new-loaders) **Published:** January 19, 2022 **Author:** Publisher **Content:** Investing in new equipment such as loaders can deliver significant benefits to an operation in terms of increased efficiency and productivity. Achieving workable finance for new loaders at the cheapest interest rates can be crucial to improving productivity and increasing profitability. Two leading construction equipment manufacturers, Komatsu and CAT, have recently released new loaders onto the market to offer efficiency gains to operators. We cover off on these new loaders and the finance options available for those looking to acquire this new equipment. **New Komatsu Underground Loaders** In response to the need of miners for greater operational efficiency, [Komatsu](https://www.komatsu.com.au/company/news-media/news/komatsu-makes-major-commitment-to-hard-rock-mining) has launched a suite of underground loaders as its entry into the hard rock mining sector. The company says this is a ‘converted hard rock mining solution’ and has been developed with the specific challenges of the Australia’s mining operators in mind. This entry of Komatsu into the sector is with two large capacity, tech-leading, hybrid electric loaders plus two smaller machines for narrow vein operations which are powered conventionally. In a statement accompanying the launch, Komatsu states the hybrid loaders can achieve up to a 20% increase in the tonnage moved when compared with conventionally-powered loaders and up to a 20% cut in fuel costs. Results are based on their operating trials. The new narrow vein loaders have been designed to deliver maximum productivity with an improved chassis, improved power train and an improved operator environment in the cabin. The larger fuel tanks, at 234 litre capacity with the WX07, offer longer operational times before the need to refuel. **New CAT Loaders** Above ground operators may like to consider the next generation of wheel loaders which were recently launched by [CAT](https://www.caterpillar.com/). The 966 and 972 have been updated and include number technologies as standard features to increase efficiency for operators. The upgrades to these 9 and 7 tonne wheel loaders are aimed at improving productivity for businesses and increasing operator comfort while achieving lower operating costs. The tech which is now standard include the CAT Payload with Assist for accurately weighing payloads and a new Autodig function to assist in delivering consistency in high bucket fill. This is achieved by automation of the loading and this improves bucket fill factors while it decreases the loading time. In addition to the standard inclusions, there are also optional technologies which operators can select when purchasing these new CAT loaders. Options such as Advanced Payload with Assist. These new loaders also offer extended maintenance intervals for the hydraulic system due to a redesign. More time working between visits to the maintenance shed means improved productivity and potentially increase profitability. Daily maintenance is also reduced with the Autolube option. Tech inclusions are available as well to ensure that the maintenance is much easier. Comfort and safety have also been addressed in these latest upgraded wheel loaders. **Finance Options** To truly maximise the productivity of any investment in new equipment, the machinery must be purchased with cost-effective finance. Paying too much in interest rates on equipment finance can increase monthly repayments. Unworkable finance repayments can put pressure on cash flow and cut into profits. In addition, the choice of finance product can also be critical to optimum cost-effectiveness of the loan. There are a number of different loan types available for the purchase of business equipment. Each has a combination of features and benefits which will suit the varying objectives and structure of different operations. In consultation with their accountant, business owners should review the complete package of each loan type to arrive at the decision as to which will deliver the overall best outcome for the business. The [selection of finance products](/overview-of-equipment-loan-products) we offer to purchase new Komatsu and CAT loaders include:- - Chattel Mortgage - Equipment Lease - Equipment Hire Purchase - Rent to Own Each of these does include a tax deductible element but that deduction is realised through varying loan elements and at different times. The method of accounting implemented by the business will also play a part in the decision. Chattel Mortgage for instance is suited to businesses employing the cash accounting method and Lease for businesses using the accruals method of accounting. The interest rate also varies across the range of loan types. Operators can easily calculate estimated repayments for equipment by using our finance calculators. Utilising Government incentives including the accelerated asset depreciation measure, temporary full expensing, can further increase the cost-effectiveness of the finance on new loaders and other business equipment for eligible businesses. This measure allows for the full purchase price of the new equipment to be depreciated in the year of the purchase rather than in smaller increments over multiple years. To utilise temporary full expensing, buyers should be considering [Chattel Mortgage](/overview-of-equipment-loan-products) for their finance. To increase efficiency and productivity of your operation with the purchase of these new Komatsu and CAT loaders, speak with Jade Equipment Finance to secure cheap interest rate finance. **For a finance quote to purchase new loaders speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [The Growing Appeal of Chattel Mortgage Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/the-growing-appeal-of-chattel-mortgage-equipment-finance) **Published:** January 24, 2022 **Author:** Publisher **Content:** As equipment lenders, we are regularly asked by customers which is the best or most popular form of finance. To finance new equipment, businesses can select from a number of different types of [commercial loans](/overview-of-equipment-loan-products). These include Equipment Lease, Equipment Hire Purchase, Rent to Own and Chattel Mortgage Equipment Finance. Arriving at a decision as to which of these is the most appropriate for an individual operation involves a range of considerations including the financial goals of the business, balance sheet strategy and accounting methods and practices. An accountant or financial advisor that has a close understanding of the business operation is best-placed to assist with this decision. What works for one business may not suit the goals of another. While our role as lender is not to advise business owners on the choice of loan type, we can share that [Chattel Mortgage](/chattel-mortgage) is definitely one of the most popular forms of equipment finance for Australian businesses. While already suited to many operations, Chattel Mortgage Equipment Finance has a growing appeal and up-take as businesses seek to realise the tax benefits of accelerated asset depreciation measures. We explain some of the reasons why Chattel Mortgage is so popular for equipment finance right now and how this form of finance can present a workable proposition for businesses of many types and sizes. ### **Chattel Mortgage Equipment Finance: Key Features** By definition, the equipment or goods are the chattel and the loan is the mortgage. A number of banks and other lenders refer to Chattel Mortgage as Equipment Loan or Heavy Equipment Loan. This is the same loan type as Chattel Mortgage, just a more simplistic description. The finance structure is quite straightforward – the equipment being acquired is used as the guarantee or security for the loan and the borrower repays the finance over a fixed loan term in fixed monthly repayments. On settlement of the finance contract and purchase, the business accepts ownership of the equipment both physically and in accounting terms. That means, the equipment is posted to the accounts/balance sheet of the buyer. This is the key aspect which differentiates this form of finance from say Lease and which makes it suitable for accelerated asset depreciation measures. As with other commercial finance products, a balloon is an option. To see how a balloon works to vary the repayment amount, use our [Equipment Finance Calculator](/calculator). Leave all figures constant and change the balloon amount to see how that effects the repayment level. ### **Appeal of Lowest Rate of Interest** One aspect of Chattel Mortgage which is sure to attract much attention is the interest rate. This form of finance attracts the lowest interest rate compared with Lease and Rent to Buy. This is consistent across the equipment finance sector and reflects the secured loan format of this type of loan. The [RBA](https://www.rba.gov.au/) has kept the official cash rate on hold at the historic low rate of 0.5% for over a year and that has further enhanced the overall appeal of investing in new equipment. While business owners may think opting for the lowest interest rate finance is a no-brainer decision, the entirety of the benefits to a business of each of the finance products should be considered in detail. For example, while Chattel Mortgage has the lowest interest rate, this form of finance requires the equipment to be entered on a business balance sheet as an asset/liability. Some businesses may choose a different balance sheet strategy with Lease or Rent to Buy more suitable to achieve their objectives. Use our [Compare Interest Rates Calculator](/equipment-finance-interest-rates) for a rough estimate on the difference in loan repayments when different finance products are used. ### **Accelerated Asset Depreciation Measures** Since being first introduced in April 2020 and then revised and amended several times, Instant Asset Write-Off and [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) have certainly contributed to the take-up of Chattel Mortgage Equipment Finance. When claiming this tax measure, businesses can deduct the full purchase cost of eligible equipment in the same year it was acquired rather than having to realise only a small portion as a tax deduction each year through normal depreciation. In order to be a depreciable asset, equipment must be on the balance sheet of the business meaning they must have ownership. This is the case with Chattel Mortgage but is not the case with Lease and Rent to Buy. With Lease and Rental, the asset/equipment remains under the ownership of the lender until the loan is finalised. This is an attractive benefit to businesses that are seeking to improve the appearance of a business balance sheet. But it means the equipment is not depreciable by the business. Temporary full expensing is currently available for eligible business through this and next financial year. ### **Widely Suited and Flexible Finance** Many different types and sizes of operations and business structures are suited to Chattel Mortgage as a form of finance. This form of finance suits businesses that use cash accounting methods which includes a vast majority of Australian businesses. It can be selected as a form of finance by SMEs, large corporations, family enterprises, partnerships and even new operators. For start-ups and ABN holders, Jade offers Low Docs and No Docs Equipment Finance options. Chattel Mortgage can be used for the acquisition of a wide range of equipment, machinery and plant across all industries, which further adds to its appeal as a versatile form of finance. **Contact Jade Equipment Finance on 1300 000 003 for a quote on Chattel Mortgage finance for your equipment acquisition** *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.* **Categories:** Buying Tips --- ### [Tips to Achieve Cheaper Interest Rate Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/tips-to-achieve-cheaper-interest-rate-equipment-finance) **Published:** January 24, 2022 **Author:** Publisher **Content:** The interest on a loan is certainly the main contributor to the overall cost of equipment finance. For businesses looking to reduce the cost of their loans, the main focus is sourcing cheaper interest rate equipment finance for acquisitions. For businesses in difficult circumstances for securing affordable finance such as having bad credit or in the process of setting up a new business this can be a major challenge, but not insurmountable. But even for businesses with good credit situations there are still ways that they can secure an even cheaper interest rate. The objective of securing cheaper interest rate equipment finance can be achieved if business operators consider a range of strategies prior to submitting a loan application. ### **Equipment Finance Interest Rates** Timing acquisitions can definitely play a part in achieving a cheaper interest rate. The current scenario is very good for businesses looking to invest in new plant, machinery and equipment at cheap rates. The cash rate is at the lowest level ever set by the RBA and that has flowed through to most lending markets. But delaying acquisitions could result in not achieving as low a rate as acting now. The latest figures have revealed another drop in the unemployment rate and inflation is edging up. These are the two key indicators noted by the RBA to trigger a rate rise. Some analysts have bolded predicted that rates could rise much earlier than previously indicated by the RBA. Whether that will eventuate and exactly when rates will be increased is not a known at the moment. Tip: don’t let complacency reduce your prospects of the cheapest interest rates. Rates will go up at some point in the coming years. We offer [fixed interest rates on equipment finance](/equipment-finance-interest-rates) so a loan acquired now at the lowest rates can be enjoyed over the full term of the finance up to 7 years. ### **Choice of Equipment** Unless specifically indicated otherwise, the interest rates advertised by lenders are for new goods and for businesses with good credit rating. The interest rate offered on finance for used equipment may be higher than for new. Tip: weigh up the option buying new compared with buying second-hand. We can provide a quick quote for both options to provide you with a basis for comparison. While the purchase price of new will definitely be higher than for used, when all the costs, including the interest on the loan, as well as the other benefits are considered, it may be a smarter move to go new. Considerations may include the reduced maintenance and potential down-time from new equipment; fuel and operational efficiencies offered by newer models; improved productivity; and the ability to take on projects not as suited to used, less-reliable equipment. ### **Choice of Finance Lender** From our standpoint as a broker-style lender, the choice of which lender a business selects for their finance can be critical to getting a cheaper interest rate. This decision also takes in the choice of whether a business sources their own finance or elects to enjoy the benefits of engaging a lender such as Jade Equipment Finance. DIY is incredibly time-consuming and contacting a number of banks and lenders for quotes can hamper the chances of a cheaper rate as multiple applications can be recorded on a credit report. Jade handles the loan sourcing so our customers have a huge area of the lending market covered, professionally, quickly and efficiently. Interest rates and equipment finance conditions vary across the lending market. Especially in the area of heavy equipment, tapping into the specialist non-bank lender sector can be extremely advantageous in securing a cheaper interest rate. Tip: not all specialist non-bank lenders deal directly with businesses. They operate through their selected broker network. We have accreditations with these specialist lenders and provide access to this market. ### **Choice of Finance Product** The interest rate varies across the range of equipment finance products. [Chattel Mortgage](/chattel-mortgage) (Equipment Loan) and Commercial Hire Purchase (Hire Purchase) offer the lowest, then Lease and Rent-to-Own (Equipment Rental) is the highest. While the full scope of benefits of a finance product should be assessed against the objectives of the business, the interest rate may also influence the decision. Tip: use our finance calculator to see the difference in loan repayment estimates for the different finance products. ### **Improving Finance Application** This is a very important step and particularly for new businesses just starting out but equally relevant for those that have been in operation for a long time. The [credit score](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) or profile forms an important part of the loan approval process. For new businesses, the credit profile of business directors and owners can be included as part of the loan application assessment process. Tip: businesses and individuals can get a copy of the credit profile and look to fixing any errors which it may have. Another way to improve the loan application in order to achieve a cheaper interest rate is to improve the business balance sheet. This may involve reducing debt levels by paying out other loans prior to making application for new finance. ### **The Bottom Line** Achieving cheaper interest rate equipment finance is attainable and at Jade Equipment Finance we make it accessible to all types of businesses across all industries. **To secure cheaper interest rate equipment finance speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Achieving Optimum ROI: Timing Machinery Purchases and Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/achieving-optimum-roi-timing-machinery-purchases-and-equipment-finance) **Published:** January 31, 2022 **Author:** Publisher **Content:** When acquiring new plant, machinery and equipment, business owners will be seeking to achieve an optimum return on their investment. Generating improved productivity, increasing efficiency in production and output and increasing profitability. While buying at the right price and securing finance at the cheapest interest rate can be key to achieving these goals, there is one other factor to consider. The timing of when the machinery is acquired and when the equipment finance is secured can affect those costs and impact ROI over the working life of the equipment. Currently there are a number of issues on both the local and global scene which are making the timing of procurements of finance and machinery and finance even more relevant. Issues which are indicating that the short term could be looking like a better timeframe to make those all-important investments in new plant, machinery and equipment. As the pandemic continues to have impacts on many sectors of the Australian economy, it is understandable that many business owners would want to take a cautious approach to undertaking major asset investments at this time. But considering the bigger picture may provide reasons for a rethink and spur many to bring forward their upgrade plans. We explain the factors that we see as being valid reasons to enact those plans to secure equipment finance for machinery acquisitions. **Equipment Finance Interest Rates** Lending interest rates across the markets have been at historic low levels for quite a long time but this is no time to get comfortable with that situation. The [RBA](https://www.rba.gov.au/) cut the official cash rate to the historic 0.1% in November 2020 as a response to the economic effects of COVID-19. After several rate cuts in 2020 the November one came as quite a surprise to many. But many have taken advantage of the situation to secure cheap interest rate finance. Banks and lenders essentially use this cash rate as a starting point from which to establish the rates they will charge on finance and loans across their own markets. Interest rates vary in different lending markets, from lender to lender and across the different commercial finance products. Throughout 2021 the RBA has kept rates on hold and has strongly indicated that it would be patient in waiting until the economic conditions were at appropriate settings before increasing the cash rate. While many pushed for specific timings and the RBA indicated it did not expect these conditions to emerge until around 2024, it stressed it was more about the settings than an actual date. Those settings are primarily inflation and unemployment and to a lesser extent wage growth. The target for inflation is sustained in the region of 2-3% and unemployment possibly around 4% or sub-4%. So what’s happening now that could change the predicted 2024 timeframe? Inflation has increased markedly in recent figures and unemployment has defied the COVID-19 outbreaks and continued to go down. Are these settings at levels to trigger a rate rise? Some analysts say ‘yes’ and are predicting that the RBA will increase rates this year and possibly as soon as August. Individual lenders of course may act independently and increase rates in their individual markets which some have done in the housing loan market. What that all may indicate for those considering new machinery purchases at some time in the short to medium term, is a good reason to act sooner. Equipment finance interest rates are at their best at the moment and while Jade Equipment Finance has a policy of always acquiring [better interest rates](/equipment-finance-interest-rates), the lending market does determine to some extent how low even we can go. Interest rate fluctuations tend to be in extremely small increments. But these small increments can represent large increases in the total interest charged on the equipment finance over the full say 7 years of the loan term. This is clearly seen by using our [calculators](/calculator). Securing finance at the cheapest current interest rates may be significant in achieving optimum ROI on acquisitions. **Realising Efficiency** Operating unreliable machinery which could be approaching its useful working life can flow on to a major hit to profitability. The ongoing maintenance and repair costs and downtime can impact have serious impacts for operators. Equipment manufacturers are constantly developing and launching more efficient models and purchasing sooner rather than later may place the business in a better position to achieve efficiency gains. Gains in fuel costs as well as increased performance and output, improved operator experience and overall efficiency and productivity improvements. **Supply Shortages** A major factor in acquiring new equipment recently has been supply issues. Manufacturers have been impacted by both the pandemic and the computer chip shortage. Operators planning to upgrade may be advised to get in fast to secure stock when it is available. Putting off that move may result in having to wait for delivery which may be at time when prices have increased and so too interest rates. **Optimising Tax Benefits** Receiving a larger tax deduction for an equipment acquisition can contribute favourably to an overall better ROI. The current accelerated asset depreciation measure – [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/), is providing eligible businesses with attractive deductions on eligible equipment purchases. To be in a position to claim that deduction in this financial year, the equipment needs to be operational in the business prior to the end of the financial year. Clock’s ticking! Jade Equipment Finance sources and structures equipment finance to specifically achieve the goals of each of our customers. We understand and appreciate that cheap equipment finance can be critical to achieving optimum ROI and we strive to achieve the best outcome. But timing does play a part in the process and business operators looking to capitalise on the current low interest rate environment are urged to move those buying plans from the back burner to the hot plate. **Contact Jade Equipment Finance on 1300 000 003 for a quote on equipment finance.** *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.* **Categories:** Buying Tips --- ### [Need advice on equipment finance options? Tips on who to ask what questions](https://www.jadeequipmentfinance.com.au/blog/need-advice-on-equipment-finance-options-tips-on-who-to-ask-what-questions) **Published:** January 31, 2022 **Author:** Publisher **Content:** The acquisition of new plant, machinery and equipment can be a considered investment and a major expense for many business operators. Depending on the industry sector, the price of the equipment can be large and then there is the equipment finance to consider also. Many business owners, while highly skilled and expert in their own field, will be seeking guidance and advice when considering such a major business investment with finance. With a range of finance experts and specialists providing varying and differing services, some business owners may be wondering who do they ask what questions when it comes to acquiring new equipment. There are a number of finance professionals available to advise businesses in making critical acquisition decisions and to assist in securing cost-effective equipment finance. Jade Equipment Finance is a [specialist finance broker](/why-jade-equipment-loans) style lender and our consultants are ideally-placed to assist businesses secure cheap equipment finance. But our role does not encompass providing advice to businesses in regard to their specific financial goals and objectives. We explain the different roles and responsibilities of finance professionals and provide direction for new businesses seeking general information on loans. **Differentiating Advisor from Broker from Accountant** The term ‘financial advisor’ is used in a number of settings and can have different interpretations depending on the individual service provider. A finance broker is clearly differentiated from a financial advisor in the services and advice they provide. A finance broker such as Jade, is tasked with sourcing finance for customers. Our undertaking is to focus purely on the needs of our customers and achieve the best finance offer according to the brief provided. We are accredited with a vast selection of banks and non-bank lenders, which provides us with incredible depth and scope to source the cheapest finance deal. Our role extends to handling the negotiations, loan structure and assisting with settlement. While we are essentially representing our customer to the lenders, all decisions are left to our customer to make. That is where the role of the financial advisor or the business accountant may be required. Businesses may retain the services of a financial advisor or consultant to handle their superannuation, investing their funds and to assist with other strategic business matters. Consultants are often involved in corporate structures and the like. Accountants are primarily tasked with preparing the business accounts and tax returns and can provide quite an extensive range of services in that space. It is an accountant or possibly advisor that typically has a more detailed perspective of the individual goals and objectives of a business. As such they are best placed to advise businesses on which type of finance product will suit them and assist with making the decision as to whether or not to accept a finance offer, where assistance is sought. In most instances, advisors and accountants do not source finance on behalf of customers but may intervene in discussions with say the bank if the customer is sourcing their own finance. Many accountants will have contacts with finance brokers such as Jade and will refer clients accordingly. **General Information for New Businesses** When setting up a new business, many operators may not have established connections with advisors and accountants and may be new to the business finance scene. New businesses are completely welcome to contact Jade Equipment Finance directly to discuss their finance requirements. New businesses often do not have all the financial documents that most banks especially, require to complete the loan application. They will require [Low Docs and No Docs Equipment Finance](/no-docs-low-docs-equipment-finance) which are specialist loan categories which Jade as a broker can assist with. Business owners may wish to upgrade their knowledge in general before requesting a quote. Unlike consumer finance which is highly regulated under ASIC, business and commercial finance is not regulated in that same way. But there are a range of sources that provide general information on business finance. The [Australian Taxation Office](https://www.ato.gov.au/) (ATO) has a range of information and state governments have Small Business Offices or Departments which may be a good source of information. When a new business applies for finance, often the financial position of the owner will be assessed as part of the application approval process. Referring to [MoneySmart](https://moneysmart.gov.au/) may assist with issues around the personal credit profile. Our Tips and News section is also packed with articles covering a range of subjects to assist our customers. **Differentiating the Finance Products** Equipment can be financed with a number of [loan products](/overview-of-equipment-loan-products): - Rent to Own - Chattel Mortgage - Hire Purchase - Lease Each of these offer varying features and benefits, many of which refer to the accounting practices and approach of the business. While your Jade consultant will source quotes and offers for the loan type(s) requested, business owners are recommended to refer to their accountant for assistance in deciding which type of finance will best meet their objectives. Having a good understanding of equipment finance can be important for business owners in selecting the right product and in making the decision to accept an offer made by one of our lenders. Knowing who to ask what questions when you have queries is the first step in acquiring that level of knowledge and understanding. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss a quote on equipment finance.** *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.* **Categories:** Buying Tips --- ### [Equipment Finance Remains Cheap for Now, RBA Rate Hold](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-remains-cheap-for-now-rba-rate-hold) **Published:** February 8, 2022 **Author:** Publisher **Content:** Cheap interest rates combined with asset investment incentives have made acquiring new plant, machinery and equipment with [equipment finance](/overview-of-equipment-loan-products) an extremely attractive proposition over the past two years. But how long will that scenario remain? Some insight into what may happen with interest rates in general was provided with the RBA’s monthly decision on monetary policy on 1 February 2022. The Board had not met since the first Tuesday in December 2021, which is standard practice, and in the ensuing period a number of factors have increased the call from many corners for the [RBA](https://www.rba.gov.au/) to move on rates. During 2021 much of the commentary around an early rate rise was from the surging prices in the housing sector. More recently those calls have intensified as a result of the recent surge in inflation. While the RBA had consistently indicated that 2024 was the timeframe that they forecast conditions to suit a rate rise, that timeframe may now be moved forward by quite some time, if analysts and others are right. For at least this month, the RBA has kept the official cash rate on hold. When a rate rise does occur it will be quite the milestone. Australia has not had a rise in the official cash rate for more than 10 years. Compared with previous periods especially in the early 1990s, many current business owners and other borrowers have certainly enjoyed very attractive borrowing rates. But complacency should not be entertained. A rise will come at some point and that will typically flow through from the cash rate to most lending sectors. By how much say equipment finance may be impacted by a cash rate increase will depend on individual lenders. As we are accredited with multiple banks and non-bank lenders, we have the capacity to source the cheapest rates across a vast range of the equipment finance sector. To grasp what is happening in regard to interest rates, we have summarised the RBA’s February statement for your convenience. **February Interest Rate Statement: RBA** The first RBA Board meeting for 2022 was held on Tuesday 1 February and a statement issued following the meeting which outlines the decisions made and rationale behind those decisions. In short, the Board kept the cash rate on hold at the 0.1% rate. It has held the rate at that level since November 2020. Several cuts were made during 2020 as part of the monetary policy approach to stimulate the economy in response to the economic effects of the coronavirus pandemic. After each of its meetings in 2021, the RBA Board has stated its targets in order to trigger a rate rise. Those targets being inflation sustained at 2-3% and unemployment around or below 4%, approaching full employment levels. The timeframe when those conditions were expected to be in place was given as around 2024. The main take-outs in regard to interest rates from the RBA’s February meeting include:- - The Omicron outbreak while affecting the economy does not appear to have ‘derailed’ recovery. - A further uptick in spending is expected as cases of Omicron decline. - Central forecast: GDP growth 4.25% 2022; 2% during 223. The forecast is supported by households and businesses holding good balance sheets; the support provided from the macroeconomic settings; and from the amount of projects in the pipeline for construction sector. - The coronavirus pandemic still continues as a major cause of uncertainty. - Continuing trend down in unemployment figures to the December 4.2% show labour market has is recovering strongly. - Job vacancies are high which indicates further improvements should be made in unemployment. - Forecast for unemployment levels: late 2022 at sub-4%; end 2023 in the region of 3.75% - Inflation increasing at a faster pace than expected. - Petrol prices, supply chain problems, escalating costs/prices for new-build homes impacted the CPI inflation. - Central forecast: coming quarters further increase; decline in 2023 The RBA confirmed it is prepared to adopt patience in regard to raising rates and will be monitoring the key factors. The targets to trigger a rate rise remain 2-3% inflation and closer to full employment. It is too earlier to conclude whether or not the current inflation surge will be sustained within target. No timeframe such as previously stated 2024, was mentioned in the announcement. **Equipment Finance Interest Rate Outlook** The day after the RBA Board meeting, Philip Lowe, Governor of the RBA made a keynote address which covered forecast for the economy. In this situation he noted that Australia had a unique opportunity to achieve a level of unemployment not seen for 50 years. The current economic situation has triggered a raft of commentary from many commentators and analysts with some predicting a rate rise between May and August. That is the opinion or viewpoint of individuals. What is looking more certain is that the official cash rate will be increased at some point in the nearer rather than further future. By how much and exactly when, is up to the RBA Board. In the interim, operators can take advantage of our current cheap interest rates across our finance portfolio. Securing [fixed interest rate](/equipment-finance-interest-rates) equipment finance ensures that same cheap rate will be applied for the full up to 7 years of the loan term. **Contact Jade Equipment Finance on 1300 000 003 for a quote on cheap interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [Low Docs Equipment Finance and Temporary Full Expensing](https://www.jadeequipmentfinance.com.au/blog/low-docs-equipment-finance-and-temporary-full-expensing) **Published:** February 8, 2022 **Author:** Publisher **Content:** As we near the final financial quarter for 2022, savvy business owners and operators will have one eye on 30 June and be making plans to ensure their business is well-placed to take full advantage of allowable tax deductions. When it comes to tax measures, in many instances, leaving your run too late can mean having to wait until the following financial year to realise the benefit. [Temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) has been extremely popular with many business owners. But for those requiring low docs equipment finance they may be wondering what their options are in this regard. It is possible for businesses requiring low docs equipment finance to be in a position to utilise temporary full expensing when acquiring eligible assets for their business. We assist business operator seeking this option by providing pathways to achieve both cheap interest rate low docs equipment finance which is compatible with the guidelines and criteria of temporary full expensing. Here’s a simple-to-follow coverage of both concepts to clarify the situation. **Temporary Full Expensing: Defined** [Temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) is what is known as an accelerated asset depreciation measure or tax ruling. It is introduced from time to time by the Federal Government and is overseen by the ATO. Under normal tax rulings, a percentage of the value of assets are depreciated or written-off on tax each year over the life/value of the assets. The percentage is determined by the ATO. The depreciation represents the tax deduction on the purchase of the asset. The depreciation amount is realised in the annual accounts/tax return. With temporary full expensing: temporary refers to the measure being in place for a limited time period; full expensing means the full amount of the asset acquisition can be expensed or depreciated in the year of purchase. This measure was introduced as part of the economic stimulus package to tackle the economic effects of the pandemic. It is currently available to eligible businesses for eligible asset acquisitions through to June 2023. Check the ATO rulings for eligibility of assets and business. **Low Docs Finance Explained** [Low Docs Finance](/no-docs-low-docs-equipment-finance) refers to applications for business finance where the applicant does not possess all the financial records and documents which are normally required for such an application. Businesses that are new or newly-started can find themselves in this situation. Often it means a finance application being rejected by some lenders. Specialist lenders such as Jade Equipment Finance have access to lenders that do offer low docs equipment finance. The eligibility criteria include having a current ABN, ID and at some financial records, even basic accounts prepared by the business owner. Being registered for BAS is not a criteria but can be viewed favourably by lenders. The greater the quantity and the quality of documentation supporting the application, very often the more favourable the outcome. In some instances the financials of the business owners will also be taken into consideration as part of the application assessment process. **Finance Products for Low Docs Loans-TFE** When one of our lenders approves a business application for low docs finance, the business has the choice of which particular finance product they wish to utilise. The choice of low docs loans for equipment includes:- - [Chattel Mortgage](/chattel-mortgage) - Lease - Commercial Hire Purchase - Rent-to-Own But not all these finance products are suitable for temporary full expensing (TFE). TFE involves depreciating the equipment to realise a tax deduction. In order for equipment to be depreciated by a business the equipment must be entered into the balance sheet of the business. With Lease and Rent-to-Own that is not the case. With these types of finance, the ownership of the equipment is retained by the lender. The borrower has full use of and is responsible for all expenses related to operating the equipment but does not have ownership on paper. Therefore, the equipment cannot be depreciated. The set-up is different with Chattel Mortgage which is seen as most suitable for using with TFE. With this finance product, the ownership of the equipment is immediately transferred to the borrower and as such entered into their balance sheet and depreciated in line with ATO rulings. So once a business is approved for low docs finance, subject to lender approval, they can acquire the equipment required with Chattel Mortgage Equipment Finance and then utilise temporary full expensing to realise the major tax benefit. **Securing Low Docs Chattel Mortgage Equipment Finance** As noted earlier, not all banks and lenders offer low docs loans. Jade Equipment Finance does. We provide extensive and invaluable assistance and expertise to businesses with these requirements. Our consultants arrange and negotiate the entire finance deal. Cheap interest rates can be achieved for low docs applicants and those interested can use our equipment calculator to work up rough repayment estimates to assist in their purchase plans. So as Q4 approaches and interest rates are very attractive, now could be the ideal time to act on those equipment purchase plans to ensure your business realises the optimum benefit from the acquisition. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss low docs equipment finance options.** *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.* **Categories:** Buying Tips --- ### [Getting Your Head around Equipment Finance Interest Rates](https://www.jadeequipmentfinance.com.au/blog/getting-your-head-around-equipment-finance-interest-rates) **Published:** February 15, 2022 **Author:** Publisher **Content:** What’s hard to avoid, sometimes confusing to understand but is can be crucial to your business profitability? Interest rates! Specifically the equipment finance interest rates. COVID-19 issues and political reporting aside, the topic of interest rates makes a regular appearance in the media. The way in which interest rates are discussed in say mainstream news media can be confusing for those that are not experts in the finance area. Is it worth learning more? As experts in lending, we consider that it is important for business owners to at least get their head around interest rates and their potential to impact their business profitability. Getting your head around the significance of equipment finance interest rates to an individual business can be crucial to making profitable and productive financial decisions. Acquiring plant, machinery and equipment with finance is an important process for most business operators. Making decisions around acquisitions to upgrade and replace or invest in new technology to realise improved performance, efficiency and productivity is an essential part of running a business. Sourcing the cheapest finance for those acquisitions is essential to ensuring that equipment will also deliver on the bottom line. And that requires at least a basic understanding of interest rates. Knowing how rates are set and when they may change can be critical to achieving the cheapest finance deal. To assist business owners to build on their knowledge bank, we’re provide a basic overview on interest rates and how Jade Equipment Finance assists business owners to secure the cheapest rates on equipment finance. **General Perspective** The general reference to ‘interest rates’ in the media tends to focus predominantly on the housing market as so many Australians have home mortgages. The ‘rate’ that is generally talked about is the official cash rate which is set by the [Reserve Bank of Australia](https://www.rba.gov.au/) (RBA). This base rate so to speak then flows through to the lending markets where banks and other lenders set their rates. Banks, finance companies and other non-bank lenders set the interest rates they will offer on their loan products with the cash rate as a base and then add in their own costs and factor in other aspects. The interest rate for loans and finance for different goods vary according to the category of goods, the lender and the loan applicant. Most interest rates advertised will be for new goods and for applicants with a good credit rating. Home mortgages are particularly susceptible to changes in the cash rate as the interest rate on home loans can be variable or fixed over only a small portion of the total loan term. So when the RBA cuts or raises the cash rates, the banks usually follow with their own changes. This then means many mortgage holders then have a reduction or increase in their monthly mortgage payments. Equipment finance contracts are not quite as susceptible to variations in the official cash rate because (at least those secured through Jade are) they are secured at a [fixed interest rate](/equipment-finance-interest-rates). By that we mean the rate is fixed for the entirety of the finance term. So when acquiring equipment with fixed interest rate finance, that rate remains in place over the full, up to 7 years of the finance agreement. **Lender Positions** We’ll focus primarily now on the equipment finance sector. This encompasses all plant, machinery and equipment which is used in business. It can include heavy equipment used in mining and construction right through to delicate medical devices and IT and the basics for an office set-up. Lenders will have different interests and positions in regard to the interest rates they will offer. Variations will be seen across industry sectors which reflect the lender’s risk assessment of a certain sector. When lenders are keen to be active in a particular sector they tend to be more competitive on rates. A major point to note is that business finance is not regulated in the same way as consumer finance. Lenders have more flexibility in negotiating loans but some large-scale lenders such as banks will have guidelines that they must adhere to. Non-bank lenders that specialise in certain areas of equipment finance can tend to be more negotiable on rates and more amenable to offering finance for no docs, low docs and bad credit applicants. Jade Equipment Finance specialises in equipment finance and has accreditation with [multiple lenders](/) including the major banks. When sourcing finance for our customers we have a vast choice so we can get that all important cheapest interest rate. A good credit profile tends to relate to a better interest rate being offered as it relates to the risk factor. Maintaining a [good credit profile](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) is critical to securing the best rate offer. **How Variations Can Add Up** Talk around interest rates is always in percentage points or bases points. These may sound miniscule, especially for businesses operating in large-scale environments, working with large quantities of materials and other spaces. But they can add up over the term of the finance and they can mean significant differences in the monthly outgoings with the loan repayments. To see exactly how much, play around with our [Finance Calculators](/calculator). Dismissing a small difference in the rate on an equipment finance deal can be at an individual’s peril over the long term. **Current Outlook** The current official cash rate is 0.1% and the RBA has repeatedly stated its targets to trigger a rate rise – sustained 2-3% inflation and nearing full employment. The recent surge in inflation has created a lot of discussion around an imminent rate rise. The RBA was saying around 2024 but it is looking more likely to be in 2022. That was the scenario at the time of the RBA Board last meeting at the start of February. But more recently the RBA Governor, Philip Lowe has commented that moving too early on rates could compromise the opportunity to near full employment. For those considering acquiring new equipment with finance in the near future, moving quickly or at least staying across developments in interest rates could be beneficial in order to achieve the current historic low rates. Interest rates is a complex topic but by engaging Jade to source your equipment finance, we streamline and simplify the entire process. Ensuring better rates and the entire finance sourcing and negotiating handled for you. Hopefully we’ve clarified much of the confusion around interest rates so you have a much clear idea of what’s going on. **Contact Jade Equipment Finance on 1300 000 003 for a quote on cheap interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [Machinery Finance Application Rejected? Options available](https://www.jadeequipmentfinance.com.au/blog/machinery-finance-application-rejected-options-available) **Published:** February 15, 2022 **Author:** Publisher **Content:** If you’ve had your application for machinery finance rejected, it can be a major blow. No-one likes a knock-back. But when it is in regard to a key business acquisition, it can be a serious set-back. If the machinery, plant or equipment is essential to the operation of the business, not being in a position to acquire the goods can derail business plans, operating schedules and customer delivery deadlines. But the situation does not have to signal the end of the process or a downturn for the business. For business owners that have had a machinery finance application rejected, there are options available to source cost-effective loans. Jade Equipment Finance specialises both in equipment finance and in assisting customers in this situation. We outline the options which are available and how we may be able to assist. **Reasons for Rejection** The reasons why a bank or lender has rejected an application for plant, equipment or machinery finance will determine which solution we can seek to achieve loan approval. It can determine your next move and/or how your Jade consultant approaches your finance application. The most common reasons for loan application rejection that we hear from customers are:- - Credit issues: the [credit rating](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports), history and profile of the business and/or business owner(s) is rated as poor or bad and as such not within the guidelines of the lender to approve the application. - Insufficient documentation to complete the business finance application form: many banks and lenders require a vast array of financial records and information to support the loan application. New businesses and start-ups rarely have acquired the docs required. - Trading time: some lenders will have minimum trading times for businesses to be eligible for finance. This may be 12, 18 or even 24 months. - Industry: the lender may not extend finance to the particular industry in which the business operates. - Type and/or condition of equipment: the lender may not finance a particular type of equipment or the age/condition of the machinery may not meet their guidelines as acceptable security. - Loan preference issues: the terms and conditions requested by the business may not meet the guidelines for loan approval by the lender. These may include the minimum or maximum loan amount, the finance term, balloon amount or the finance structure preference. For each of these rejection reasons there is a possible solution. **Credit Issues** For business with credit issues, we can pursue a [Bad Credit Equipment Loan](/bad-credit-equipment-finance). Many banks and lenders do not offer loans to bad credit applicants, but as a broker style lender, we have connections with non-bank lenders that are in a position to approve such applications. Bad credit applicants can expect a higher interest rate than that offered for good credit applicants; additional security against the loan may be requested in addition to the machinery; and special conditions may be attached to the loan. Our consultants handle all the liaison and discussion with lenders so applicants do not have to deal with that. We strive to source the most cost-effective and workable loan offer possible. Applicants can address their credit profile and fix any errors to improve their prospects. **Insufficient Documentation and Trading Term** For businesses rejected on the basis of insufficient documentation the solution is [Low Docs and No Docs Equipment Finance](/no-docs-low-docs-equipment-finance). The name says it all – these are loans for businesses that don’t have all the financials required to complete the application form. These solutions are suited to new businesses and start up and can also be applicable to businesses that do not meet the minimum trading terms for some lenders. As with bad credit loans, these types of loans are not offered by all lenders. But we do have lenders that readily offer this type of finance. Applicants can be offered cheap rates and may expect that the credit profile of the individual business owners will be assessed as part of the approval process. With some applications, additional security may be required or a cap placed on the loan amount. **Industry and Machinery and Equipment Types** Not all banks and lenders extend finance to all industries and on all types of equipment. If a loan application is rejected for either of these reasons, we can very likely assist. As specialists in machinery and equipment finance, we have a wide selection of banks and lenders on our lender panel and can source finance for most industries and for all types of business equipment. Used machinery will be assessed for age/condition and that will impact the interest rate and loan conditions. In some cases the loan amount being requested for used goods may not be approved by the lender. In these instances, businesses can opt to reduce the amount requested by paying a deposit to the seller. **Finance Structure** Where the lender does not approve how the applicant would like their finance structured, it’s definitely time to engage our services. Our consultants are skilled negotiators and experts in structuring finance. We select one of our lenders that is amenable to discussions around loan terms, loan amounts and other conditions and we then handle the dealings on your behalf. **Avoiding Disappointment, Saving Time** If a business is considering applying for machinery finance but has some doubts about their prospects of being approved, speaking with us about pre-approved finance is a highly recommended way to go. We source quotes and process the application for finance based on the preferences of the business. During the process, where and if required, amendments can be made to achieve a mutually workable result. By securing pre-approved finance, the business knows they have their loan approved for a certain amount and based on certain conditions. They can then move confidently forward to the acquisition phase. Loan application rejection can be personally hard to take. But it does not have to be final. Solutions are available and we have professionals ready to assist businesses source workable outcomes for their machinery finance requirements. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss solutions where a loan application has been rejected.** *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.* **Categories:** Buying Tips --- ### [Who, why and when on the prospect of early interest rate rise](https://www.jadeequipmentfinance.com.au/blog/who-why-and-when-on-the-prospect-of-early-interest-rate-rise) **Published:** February 22, 2022 **Author:** Publisher **Content:** As a business operator and/or possibly a home mortgage holder, you’re most likely keenly aware of the increasing talk around the prospect of an interest rate rise in the near future. The talk around this topic commenced as the property market prices accelerated as demand for housing spiked due to the historic low interest rates of 2021. But the reasoning around the call for a rate rise and who is now talking an earlier than expected increase has shifted. From finance analysts and commentators we’re now hearing talk of a 2022 rate rise by senior people in the major banks and senior government personnel. When it comes to putting rate rise talk at these levels into the context of what it means for your own proposed equipment finance, it can be a challenge. To simplify and clarify some of the technical aspects, we’re updating on what has been said and what has happened recently on the subject of interest rates. A simplistic interpretation is that any interest rate rise to the cash rate flows through to lending markets including equipment finance. A rate rise will be unknown territory for many business owners and operators. The last rise in the official cash rate was in November 2010. If you’ve started a business over the past 11 years, then chances are, you’ve never experienced rate rises. If you’ve started a new operation in the past few years then possibly all you’ve known is the current historic low rate scenario. The [RBA](https://www.rba.gov.au/) cut the official cash rate in 2020 as a pandemic stimulus measure and it reached its current historic low of 0.1% in November 2020. Borrowers have enjoyed low borrowing rates across many markets as a result. But that situation looks set to change. The RBA had anticipated that the economic conditions would be suited to a rate rise around 2024. But that is now looking more like 2022 and some say it could be as soon as June. This could be the motivation you need to move your equipment acquisition schedule forward to capture finance at the current low rates prior to any rate rise. **Who’s talking rate rises?** Answer: pretty much everyone. But more significantly recent comments have been made by the[ Commonwealth Bank of Australia](https://www.commbank.com.au/) (CBA) the largest lender in Australia and one of our key lenders at [Jade Equipment Finance](/why-jade-equipment-loans). As a major source of lending, commentary from the CBA is always noting. The report is that the bank expected June to be the month for a rate rise. Another notable voice was that of Treasury Secretary Dr Kennedy in a Senate hearing. Dr Kennedy said rates needed to be normalised with an increase. He did not state any anticipate timeline which seems extremely appropriate as he does sit on the RBA Board. On the other hand, others are talking ‘wait’ as Australia has a golden opportunity to achieve full employment as a result of the current low interest rate scenario. After the February Board Meeting, the RBA Governor Philip Lowe reiterate earlier comments that the central bank was prepared to be patient in regard to a rate rise. The Prime Minister and Treasurer, while not responsible for cash rate decisions, also commented on the opportunity for unemployment to go down to record lows. **What the Data Says** The key data that the RBA considers in terms of a rate rise are inflation and unemployment. Its targets 2-3% sustained inflation and unemployment possibly sub the 4% figure. The January unemployment figures recently released show unemployment holding steady at 4.2%. No change since December but clear that Omicron has not has a devastating effect on the economy or derailed the recovery. Inflation is increasing and businesses and households are feeling the pain with some price rises. Some price rises especially in building supplies and materials are being driven by supply and demand issues. Key dates to watch for more significant updates on interest rate rises and economic measures will be Tuesday 1 March for the RBA Board meeting and 29 March for the Federal Budget. **Equipment Finance-Rate Rise Connection** For businesses planning an investment in new plant, machinery or equipment with finance, the signs are pretty clear. Secure your purchase and finance prior to any cash rate increase to ensure you achieve the cheapest interest rates. While Jade Equipment Finance guarantees [better interest rates](/equipment-finance-interest-rates), if the entire market moves, then our rates will be better now than in possibly a few months’ time. Lenders will respond to an RBA rate rise depending on their own circumstances, competitiveness and costs. Many of our non-bank equipment finance lenders are flexible and our consultants negotiate hard to achieve the cheapest rates for our customers. Rates typically increase in small percentage increments but may increase each month over several consecutive months. To find out for yourself exactly what this could all mean in relation to what you intend to purchase, use the [Equipment Finance Calculator](/calculator). Vary the interest rate you enter by small increments while holding the other figures steady. You’ll see how the repayments change. That will give you a very clear indication of exactly what a cash rate rise could mean for your equipment finance. The prospect of an earlier than expected rate rise has really become a case of which month this year rates will start to rise. Operators that get in early with their acquisitions with finance may be well-placed to avoid a higher interest rate. **Contact Jade Equipment Finance on 1300 000 003 for a quote on cheap interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [Cost-effective Tourism Sector Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/cost-effective-tourism-sector-equipment-finance) **Published:** February 22, 2022 **Author:** Publisher **Content:** After a very, very long time, [Australia’s international borders](https://www.australia.gov.au/international-travel) are open and the tourism sector is welcoming back visitors, tourists and the all-important workers It’s been a very challenging time for travel and tourism operators specifically and all those business associated with the sector. Is your business ready and equipped to take full advantage of the return of our international tourists? You may need to invest in new or upgrade equipment to be competitive and make the most of the opportunities. Cost-effective tourism sector equipment finance is available for businesses to upgrade and renew facilities to welcome back international visitors. The scope of businesses set to benefit from the opening of international borders is vast. Tourism operators, hospitality business, support services, travel planners and agents, transport operators and even food production and distribution are set to benefit from increased visitations. In addition to a downturn in visitors, many businesses in the tourism and hospitality sectors have also been hamstrung by staff shortages. Holding them back from full operations and with that level of uncertainty, they have delayed investing in developing their operation with equipment acquisitions. Well the timing is now looking good to invest in business equipment on several fronts – to cater for the increase in business and with [low interest rates](/equipment-finance-interest-rates) on finance not expected to last much longer. Add to that the opportunity to realise the tax benefits of [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) in this financial year! A range of finance options is available for the tourism sector for the purchase of a wide range of equipment at cheap interest rates through Jade Equipment Finance. **Equipment and Machinery Financed** The types of equipment which we provide finance for is vast and inclusive. Essentially if procuring equipment or machinery to use in a business, then finance is available. - Computer and IT equipment to upgrade booking systems. - Furniture and furnishings to renew venues. - Kitchen and catering outlet equipment to expand the menu or renew the offering. - Entertainment venue equipment such as sound and lighting systems and staging. - Amusements rides and attractions for fun parks and holiday parks. - Visitor way-finding and directional equipment such as barricades, ticket kiosk equipment and safety measures etc. - Upgrade accommodation with new bedding and bedroom furniture. - Forklifts and materials moving machinery. - Food processing machinery. - Scuba and water activities equipment. **Tourism Equipment Finance Products** Jade Equipment Finance offers the complete [portfolio of finance product](/overview-of-equipment-loan-products)s for the acquisition of business equipment. These include:- - Commercial Hire Purchase - Lease - Chattel Mortgage - Rent-to-Own The interest rate, treatment of tax, balance sheet approach and accounting method suitability vary with the type of finance. Business operators are strongly advised to refer to their accountant when deciding which type of finance will result in the optimum outcome for an individual business. Worth noting, for those interested in taking advantage of temporary full expensing with their equipment purchase, [Chattel Mortgage](/chattel-mortgage) is the most appropriate loan type. All finance products can be secured with:- - No deposit finance - Terms up to 7 years - Flexible terms and conditions **Review Equipment Interest Rates** The current lending market is extremely accommodative with the RBA holding the cash rate at the historic low of 0.1% since November 2020. But that situation is set to change in coming months at some point. Businesses can fully appreciate the cheapest rates in decades by acting now with the acquisitions. The interest rate varies with the type of finance product. This reflects the structure and format of the loan. This can be clearly seen on our [Compare Interest Rate calculator](/equipment-finance-interest-rates) where we have detailed our current low rates across our portfolio. To see what repayments may be on your proposed purchase, simply enter the loan amount and the estimate is auto-calculated. Be mindful that interest rates also vary from industry to industry and on different categories of equipment. For a specific no-obligation quote, reach out to our consultants. Interest rates also vary across the lending market as each lender will price their loans based on their risk assessment of the industry sector, their own costs and other factors. The credit profile of the applicant is also taken into account when a lender makes a finance offer. To ensure our customers always secure the cheapest interest rate, we are accredited with a vast selection of lenders which encompasses all categories – banks, finance companies and more difficult to access non-bank lenders. **Specialist Equipment Finance Services** With many new operators entering the tourism sector, businesses may find they do not have all the financial documentation required when applying for equipment finance. To cater for these businesses, we offer Low Docs and No Docs Equipment Finance. Cost-effective solutions at attractive interest rates and loan terms are achievable even if you’re just starting out. If the international border closures formed a barrier to you investing in new equipment for your operation, now could be the time to finally make your move. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss equipment finance for businesses in the tourism sector** *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.* **Categories:** Buying Tips --- ### [Support with Cost-effective Equipment Finance to Ease Business Concerns and Challenges](https://www.jadeequipmentfinance.com.au/blog/support-with-cost-effective-equipment-finance-to-ease-business-concerns-and-challenges) **Published:** March 1, 2022 **Author:** Publisher **Content:** 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](https://treasury.gov.au/coronavirus/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](https://www.rba.gov.au/) 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](/overview-of-equipment-loan-products) 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](/equipment-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](/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](https://www.rba.gov.au/) 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.* **Categories:** Buying Tips --- ### [Cheaper Equipment Finance Adds Value to New Machinery Investments](https://www.jadeequipmentfinance.com.au/blog/cheaper-equipment-finance-adds-value-to-new-machinery-investments) **Published:** March 1, 2022 **Author:** Publisher **Content:** Investment in the latest plant, machinery and equipment can contribute significantly to gains in productivity which in turn can lead to increased profitability for the business. But how that machinery is acquired, that is with what form and price finance, can be pivotal to the overall cost-effectiveness of the investment. Cheaper equipment finance can add value to investments in the latest releases of new models of plant, machinery and equipment through reduced outgoings. Manufacturers focus heavily on efficiency and productivity when designing and developing new models. But these gains can be realised to a lesser extent if the repayments on the finance are greater than the business can handle. We focus on what to look for and how to achieve cheaper equipment finance which is workable as well as noting a number of recent new machinery releases. **Achieving Cheaper Finance – what to look for** The types of loans available to finance new plant, machinery and equipment tend to be the same across the lending market. Most lenders including banks and finance companies, offer [Chattel Mortgage](/chattel-mortgage) or Equipment Loan, Leasing, Rent to Buy and Commercial Hire Purchase (Hire Purchase). The structure of each of these loan types is somewhat general in regard to suitability for the cash or accruals method of accounting, when GST is paid and claimed, when a tax deduction is claimed and entry on the balance sheet. What is not standardised is the eligibility for loans, minimum and maximum loan amounts, the conditions around the finance, loan terms and in particular the interest rate. The [interest rate](/equipment-finance-interest-rates) on machinery finance varies across the lending market. This is due to the individual pricing regimes of lenders for the specific lending sectors. Specialist non-bank lenders that have a particular focus on one industry, sector or type of machinery can tend to be more flexible in regard to negotiating terms and more competitive in terms of interest rates. In relying on just one source of finance such as your bank, you may be overlooking more competitive and cheaper finance sources. While major banks remain the largest lenders in Australia and offer many benefits, taking a broader view of the lending market can result in cheaper loan options. We enable businesses to cut to the chase when it comes to surveying the equipment finance market for the cheapest loans. Our service includes sources the cheapest finance offer from across a vast selection of banks and non-bank lenders – saving you the time and hard work of doing all that yourself. **Cheaper Interest Rates Deliver Greater Value** The interest rate is the key factor in the cost of finance. By achieving a cheaper interest rate loan, the total interest payable on the loan is reduced, the monthly repayments are reduced and the resale value enhanced due to the less cost paid overall. In short, lower interest rate finance is pivotal to achieving greater value on the purchase. To see just how much the interest rate matters, use our [Equipment Finance Calculator](/calculator). Vary the interest rate slightly and note how the repayment changes. That incremental difference can add up to a sizeable amount over the 7 years of an equipment loan. All the time reducing the ROI. **Latest from Massey Ferguson** New to the agricultural machinery market is the MF8S Series from Massey Ferguson, now going the banner of AGCO. This range of new tractors includes 6 models, with a wheelbase of 3.05m and with power ratings available 205HP-205HP. According to the company, the 8S delivers new comfort levels plus efficiency for farmers with a focus on fully-connectivity, sustainable and smart operations. New features include but are not limited to:- - Spacious new cab with outstanding visibility and unique design to minimise the impacts of vibration, noise and heat. - Range of tech such as digital display dash, data terminal and multipad control lever for smarter farming through optimum control. - New transmissions for improved fuel economy and reduction in power loss of 26% [Check out the full specs and features](https://www.masseyferguson.com/en_au/product/tractors/mf-8s.html) and discuss pre-approved finance with us so you can order on your first discussion with your AGCO dealer. **New Schlam Mining Machinery** For iron ore mining operators, the latest dump truck body from [Schlam](https://schlam.com/) offers potential for higher payloads plus a longer service life. This is the Hercules EXO 240 tonne dump body which is 20% lighter than previous models to create increased payload. It also has a new design with use of innovative materials which the WA based supplier say will result in 100% rise in the service life. Plenty of value and benefit on offer, worth investigating further **Maximise Loan Value before Rates Rise** The big topic of conversation and conjecture in the finance markets is of course around when the RBA will lift the cash rate. Speculation and opinion is rife and increasing. The conditions in the economy around inflation and unemployment are pointing to a being in the target range for a rise sooner than the RBA’s earlier indications of 2024. But they could wait until wages growth starts to improve which could mean more time. To ensure maximum value is realised with any machinery loans, making purchases with finance while rates are at historic lows would be an astute move. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss value-increasing machinery finance** *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.* **Categories:** Buying Tips --- ### [RBA Keeps Interest Rates Steady](https://www.jadeequipmentfinance.com.au/blog/rba-keeps-interest-rates-steady) **Published:** March 7, 2022 **Author:** Publisher **Content:** With thousands of flood-impacted business owners facing the prospect of replacing plant, machinery and equipment, it may be at least some small comfort to see the RBA keep interest rates steady at its March meeting. The RBA Board held interest rates steady at the current historic low level in March leaving our [equipment finance rates](/equipment-finance-interest-rates) at extremely cheap, cost-effective levels. Despite the increasing calls from economics commentators, experts and analysts for the RBA to move and increase the official cash rate, the Board has once again expressed its position of patience. In the [Monetary Policy Decision](https://www.rba.gov.au/media-releases/2022/mr-22-05.html) statement announcing the March 2022 rate decision, the RBA Board stated it was holding the official cash rate at the current 0.1%. This historic low rate has been in place since the last rate cut in November 2020. The statement on monetary policy details the central bank’s rationale for the decision and provides some insights into the possible outlook for interest rates moving forward. Governor of the RBA, Dr Philip Lowe said in the statement that the pandemic recovery was continuing globally but that the Ukraine situation had raised a ‘new source of uncertainty’. A sharp growth in the inflation rate had been experienced in some countries which was seen as due to increases in energy pricing and disruptions to supply. The Australian economy, Mr Lowe said, had shown resilience and continued to bounce back with the Omicron outbreak not causing a derailment of the local economy. Investment by business has seen an uptick and consumer spending had also picked-up. As mentioned on a number of occasions in the past months, the RBA sees consumer and business balance sheets in a good position. One of the key economic indicators that the RBA watches in regard to rate changes is the unemployment figures. Currently sitting at a 14 year low – 4.2%, the Board sees this as evidence of Australia’s resilience from the economic effects of the pandemic. The RBA has forecast the unemployment rate to drop to sub 4% in the latter part of 2022 and continue at a rate below 4% during 2023. In the Monetary Policy statement, the RBA Board noted that the pick-up in the Australian inflation rate had occurred faster than the bank had forecast. The target for inflation that the RBA is seeking before raising the cash rate is a sustainable level in the range of 2% to 3%. It does not see the current level as been conclusive evidence of sustainability in order to trigger a rise. It now expects the underlying rate of inflation level to rise to 3.25% in the next quarters and then fall to 2.75% approximately in the next year, 2023. CPI inflation, differentiated from the underlying rate, is expected to spike higher than the rate of underlying inflation. This is expected in response to higher petrol prices which flow from global outcomes. The ongoing supply chain issues continue as cause for uncertainty in relation to the rate of inflation. The RBA concluded its March statement with a repetition of comments in previous months that it was adopting patience and waiting until the targets for both unemployment and inflation were met before increasing the cash rate. It would continue to provide monetary conditions which were supported in order to achieve those targets – full employment and 2-3% sustained inflation. **National Growth Figures** Also in week one of March and just as a major flood crisis was emerging across NSW and Queensland, Josh Frydenberg, Federal Treasurer, announced the latest [National Accounts](https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release) figures. He announced that in the December quarter (September through December 2021) the economy grew by 3.4%. The largest quarterly growth rate in the past 46 years. He said Australia had outperformed many other countries and our pandemic recovery was one of the world’s strongest. High vaccination rates are seen as significant in this regard. The Treasurer concurred with RBA statements that Omicron had not derailed our economy and the recovery. With the Federal Election due in coming months, the Treasurer will announce the annual Federal Budget on the evening of 29 March. This is earlier than the usual May announcement due to election timing. Business operators will no doubt be keen to hear was measures will be announced to support growth in the year ahead. **Equipment Finance Impact** With the RBA holding the cash rate steady, our equipment finance rates also remain lower than ever. Securing equipment finance at a fixed interest rate, especially while rates are at these historic lows, provides confidence and certainty for the business to plan and schedule cash flow and further acquisitions. [Fixed interest rate finance](/overview-of-equipment-loan-products) means the repayments remain at that level for the full term of the finance contract. While the RBA has stated its preparedness for patience in regard to the economy reaching its set targets, there are many predicting rates will rise by June this year. While some play the ‘wait and see’ savvy operators will no doubt be moving on acquisitions to secure cheap equipment finance rates. The first Tuesday in April is the next scheduled meeting for the RBA Board re interest rates and we will of course be posting an update following that meeting. **Contact Jade Equipment Finance on 1300 000 003 for cheap equipment finance.** *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.* **Categories:** Buying Tips --- ### [Flood Victim Support for Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/flood-victim-support-for-equipment-finance) **Published:** March 7, 2022 **Author:** Publisher **Content:** Apart from governments and other agencies, the Australian Banking Association was also quick to come out to offer support measures for customers affected by the devastating flood situation in NSW and Queensland. Flood victim support has been offered by the banks for impacted customers in regard to loan repayments for a range of business and personal loans. For the many businesses that have lost equipment, machinery or entire operations due to flood damage or have had their income interrupted due to the situation may be eligible for support from their lenders. The specific level of assistance available, will depend on both the lender and the customer’s situation with each request assessed individually. For businesses with equipment under finance and unable to meet their repayments or who have had to write-off their machinery, we outline the actions that they need to take to access support, insurance claims and new finance to acquire replacement equipment. **Support from Banks** The Australian Banking Association represents many Australian banks, including the majors, and the association [issued a statement](https://www.ausbanking.org.au/banks-offer-flood-victims-a-financial-lifeline/) which outlines the range of support and assistance the banks are offering for flood-affected customers. The support would bring some level of peace of mind to customers according to CEO Anna Bligh in the announcement. The general measures outlined include deferrals of repayments for home loans, personal loans and some business loans. Whether this will include your particular equipment finance repayments will be subject to the individual criteria of the bank. Anna Bligh said that customers who have been affected by the flood and require loan repayment assistance should contact the bank and discuss the type and level of support which is available to suit their individual circumstances. She said that this was the emergency stage support and that the banks will be providing a tailored level of support during the ensuing stages of recovery. The types of assistance which have been announced by the banks include:- - Repayments deferred for 3 months - Debt consolidation - Restructuring loans without establishment fees - Cash flow shortage finance - Deferral of payments on credit cards Business seeking flood victim support for equipment finance repayments should make direct contact with their bank to find out exactly what is available to them. While this information is based on a statement issued by the Australian Banking Association and is similar to the support available during the coronavirus crisis, similar measures are highly likely to also be available from non-bank lenders. So regardless of whether or not your finance is with a bank or a non-bank lender, if you are not in a position to meet equipment loan repayments as a result of the floods, you should contact your lender. Overlooking the issue or waiting and missing repayments could result in the lender noting a default on a credit report which may result in a lower credit rating. Those seeking loan repayment support should be aware that deferrals are effectively postponements not waivers. The amounts payable on the loans will still need to be paid. With deferrals, repayments are essentially paused for those months and then resumed. This extends the term of the loan by the number of months of the deferral. During the COVID-19 crisis when similar measures were introduced, lenders advised that seeking loan repayment deferrals would not negatively impact the customer’s credit report. **Action for Equipment Lost in Floods** Repayment support should be sought if the equipment under finance is still operable. But where machinery or equipment under finance has been lost completely due to the flood situation, business owners should make a claim with their insurer. Individual insurers will advise the process for lodging a claim and the timeframe for resolution of claims. Be mindful that thousands of insurance claims have been lodged and insurers are doing their best to address each one as quickly as possible. Businesses should also contact their lender to advise of the situation that an insurance claim is being lodged. The lender will advise the process for pausing equipment finance repayments in this situation. **Finance for Replacement Machinery and Equipment** For business owners that are urgently wanting to quickly replace their machinery and equipment lost in the floods, you do not have to wait while your insurance claim is being processed. You can [contact Jade Equipment Finance](/approval) to immediately apply for equipment finance to acquire the new goods as a matter of urgency. We provide finance for a wide range of plant, machinery and equipment, including:- - Retail store fitouts - Hospitality venue equipment including kitchen equipment, furniture and furnishings - Agricultural machinery - Yellow goods - Trade tools and gear - IT and computer equipment and systems - And many more Whatever equipment is required by a business, it is highly likely we can provide finance for its purchase. In addition, we provide other forms of business finance to assist flood victims including [Business Overdrafts](/business-overdraft) and Secured and [Unsecured Business Loans](/unsecured-business-loans). **Equipment Finance Applications in Progress** If affected by the floods and you have an equipment finance application in progress with Jade Equipment Finance that process will continue unless we are otherwise advised. We are operating as usual throughout this crisis to assist all of our new and existing customers. If you would like to make changes to a finance application as a result of changed flood-related circumstances, please make contact with your consultant at Jade and we will advise you of the options. For direct cash support, individuals and business should refer to the Federal Government Disaster Payments System and the relevant state bodies. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss equipment finance to replace flood-damaged machinery** *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.* **Categories:** Buying Tips --- ### [Cheap Equipment Finance to Offset Rising Costs and Prices](https://www.jadeequipmentfinance.com.au/blog/cheap-equipment-finance-to-offset-rising-costs-and-prices) **Published:** March 14, 2022 **Author:** Publisher **Content:** While we like to think *‘we’ve got this’* when it comes many aspects of our business, when it comes to the rising prices of some goods and services, we *‘don’t have this’*! The factors driving prices are outside of the control of most of us and we are at the mercy of the market. Or are we? While you may not be able to set the price at the pump or the check-out, business owners have the lever of cheap equipment finance on new machinery or refinancing to offset the impact of cost rises to their operation. The devastating floods in Queensland and NSW have the potential to cause increases in food produce prices over the coming months. Fuel prices are already spiking and expected to continue due to the war in Ukraine, while inflation in Australia is spiking as the economy recovers from the coronavirus pandemic. In addition, COVID-19 has added new expenses for many businesses in meeting local state requirements and for some it’s the added cost of regular RATs. Rising prices of many goods and services can impact household budgets. When it comes to business, increased expenses can mean a major hit to the bottom line. This can be especially felt by operators on fixed price contracts and a double whammy for owner-operators and sole traders where business turnover and personal income can be closely tied. Leveraging equipment finance repayments to offset these rising expenses is a tool at the disposal of many businesses. We lay out some of the options we can offer to businesses acquiring new equipment and to refinance existing finance arrangements to achieve the objective of reducing outgoings. **New Equipment Acquisitions** While it may appear counter-productive to consider purchasing new machinery or equipment while trying to keep costs down, that may not be the case. Equipment manufacturers continue to launch new models which focus on achieving greater fuel efficiency and improved productivity. Factors that can assist businesses achieve a better bottom line. Upgrading inefficient and ageing machinery which is constantly breaking down or requires expensive maintenance can be an astute move towards addressing cost pressures in other areas. Securing [cheap equipment finance](/equipment-finance-interest-rates) to acquire that machinery can be pivotal in keeping costs under control over the long term. Interest is the key component of equipment finance and securing the cheapest finance deal is key to the lowest repayments. The [RBA](https://www.rba.gov.au/) has kept the cash rate steady at the historic low of 0.1% since November 2020 making business finance, as the Governor of the RBA Philip Lowe puts it, very ‘accommodative’. While the primary focus of Jade Equipment Finance is always to achieve better interest rates for our customers, the current low interest rate climate has assisted us even further in this regard. While the RBA has said for some time that conditions for a rate rise were looking likely to be in place around 2024, the inflation rate and falling unemployment figures increasingly point to an earlier rate rise. Possibly in 2022. So acquiring new equipment with the cheapest finance now at a fixed rate, can provide the business with a buffer against rate rises as well as cost increases. We secure equipment finance at a fixed interest rate in order to provide our customers with certainty over the full term of their finance. Fixed interest rates for equipment finance are fixed for the full, up to 7 years of the contract. To fully appreciate what even a small incremental increase in interest rates can mean to costs for your business, refer to our [Equipment Finance Calculator](/calculator). By leaving all data the same and changing the interest rate slightly, you’ll immediately note the difference in the estimated repayments. Achieving the cheapest interest rate ensures the lowest monthly repayment which means keeping outgoings on budget. **Refinancing to Reduce Outgoings** For businesses with existing equipment and machinery finance, [refinancing](/equipment-refinancing) to achieve lower monthly repayments may also present an effective tool to offset rising costs of other supplies and materials. Refinancing involves establishing a new finance arrangement to replace an existing loan. It can also be utilised to combine several loans into the one loan to streamline repayments. The [credit profile](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) and/or financial position of the business may have improved significantly since the current loan was established. This may result in better loan conditions and a better interest rate. Our consultants work with each of our customers individually to structure a refinanced arrangement which is tailored to achieve their specific objectives. If reducing regular outgoings is the key objectives, then achieving a new finance arrangement with lower repayments may be the goal. The refinanced equipment loan may be arranged with the preferred finance product. It may be the same loan type as the existing finance arrangement or a different product. The selection includes Chattel Mortgage, Lease, Commercial Hire Purchase and Rent to Own. The new loan may be sourced from the same lender as the existing finance or from a different lender. Jade Equipment Finance is accredited with a wide range of lenders including specialty non-bank lenders that can be extremely flexible and open to negotiating with our consultants in regard to rates and loan conditions. Refinancing involves paying out the existing loan and that may process may attract fees and charges from the lender which will need to be considered in regard to the overall cost-effectiveness of the process. The condition of the equipment also needs to be considered. The refinancing would be on used equipment which can attract a different interest rate and loan conditions to new equipment finance. **You’ve Got This!** So if rising prices of goods and services is placing undue pressure on your business cash flow, perhaps it’s time to say *‘I’ve got this’* with cheaper equipment finance to reduce outgoings and improve your bottom line. **Contact Jade Equipment Finance on 1300 000 003 for cheap equipment finance.** *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.* **Categories:** Buying Tips --- ### [Flood Recovery Work: Cheap Finance for New Equipment](https://www.jadeequipmentfinance.com.au/blog/flood-recovery-work-cheap-finance-for-new-equipment) **Published:** March 14, 2022 **Author:** Publisher **Content:** The floods in northern NSW, Sydney and Queensland have left devastation which will take a long time and require a large number and wide range of businesses to assist with rebuilding. Businesses looking to be involved in the flood recovery work or needing to replace machinery lost in the flood, can quickly access cheap equipment finance to ensure they are equipped to assist. The recovery and rebuilding process will require many tradespeople and suppliers across multiple disciplines. Owners and operators in residential and commercial construction, road building, specialist infrastructure technicians and repairers, retail and hospitality fit-out specialists, agricultural property trades such as fencers and materials supply companies will all have a role to play. To ensure your business is well-placed to respond quickly and participate in what will be mammoth effort to assist these communities, we can provide assistance with finance to upgrade or add to your equipment fleet or replace plant, machinery and equipment which was damaged in the deluge. **Quick Response Lenders** As a broker-style lender, [Jade Equipment Finance](/why-jade-equipment-loans) can respond quickly to requests for finance and proceed to source the cheapest quote from across a vast lender market. We fully appreciate the time it can take for individual business owners to source finance through banks and finance companies on their own. Adding to possible delays, many lenders are currently receiving a large number of calls from customers for assistance due to this disaster. Our services save our customers time by handling the entire process. Customers can focus on sourcing the equipment they require and other business activities while we source the finance deal. Our industry-level accreditation with both banks and non-bank lenders affords us the benefit of quick access for quotes, fast approvals and prompt application processing. Factors which can be critical when time is of the essence to assist stricken communities. **Finance for Wide Range of Equipment and Machinery** Finance is available through Jade for machinery and equipment across just about every industry. [Earthmoving](/earth-moving-equipment-loans), civil works, construction, agriculture, hospitality, engineering and manufacturing, materials handling, retail and general business. Whether it’s yellow goods, wheeled goods and heavy machinery or delicate IT and diagnostic equipment, finance is available quickly and with less hassle. **Tax-effective Finance Products** Ensuring the acquisition of upgraded or replaced equipment delivers a benefit to the business in improved productivity and efficiency and is cost-effective can come down to which finance product is selected. The selection includes: [Leasing, Chattel Mortgage, Rent to Buy and Commercial Hire Purchase](/overview-of-equipment-loan-products). Operators are encouraged to discuss loan types with their accountant to ensure the product features will best suit the structure and objectives of their individual operation. All business finance includes tax deductible elements but there are variations on when that deduction is realised. With Leasing the repayments are fully tax deductible while with Chattel Mortgage the major tax break is realised through the depreciation of the equipment according to the [ATO’s](https://www.ato.gov.au/) schedule. Currently, eligible businesses acquiring eligible assets can utilising [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) to realise a tax deduction on the full purchase price of equipment in the year of purchase. Equipment purchased at this time of year using this measure could mean the deduction claimed in this financial year. Chattel Mortgage is the most appropriate form of finance for temporary full expensing. **Loan Assistance for New Operators** The anticipated high demand for a vast range of trades in the flood recovery work may be a motivator to move to self-employment as a sole trader owner-operator. Those considering that move should be aware that challenges can present when applying for finance to purchase equipment and machinery to set up the business. Banks in particular, but lenders in general, have criteria for approving business finance applications that include having certain financial documentation for the business, referred to as ‘docs’. New businesses in the process of setting-up rarely have the full set of docs to complete their loan application. Some banks also have a minimum trading period to qualify for finance. This may be 12 months and up to 24 months in some cases. To assist new operators with cost-effective finance, we are accredited with non-bank lenders that offer [Low Docs and No Docs](/no-docs-low-docs-equipment-finance) Equipment Finance. This type of finance can be secured at cost-effective rates but may require additional security be provided. All applications are assessed on an individual basis and our consultants handle all the lender negotiations. Access to this specialist lender service may be critical to successfully and cost-effectively achieving the move to self-employment with your own machinery. Speak with us about the options available to suit your circumstances. **Preparing for the Big Job Ahead** To prepare your operation with the equipment and machinery needed for the massive rebuilding task ahead, speak with us to get your equipment finance application underway. To assist with budgeting and comparing makes and models, use our finance calculator to estimate repayments. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss equipment finance to prepare your business for the flood recovery work.** *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.* **Categories:** Buying Tips --- ### [Pre-EOFY: Cheap Machinery Finance & Tax Benefits](https://www.jadeequipmentfinance.com.au/blog/pre-eofy-cheap-machinery-finance-tax-benefits) **Published:** March 21, 2022 **Author:** Publisher **Content:** Read the room? Yes, we appreciate that businesses are dealing with a lot right now. Recovering from two years of COVID-19 disruptions, facing significant pressures from rising prices, dealing with material shortages and for many, rebuilding from flood damage. But beyond attending to the immediate issues, it can be worthwhile to spend some time looking ahead and taking action in the build-up to the end of financial year. To realise some tax benefits from acquisitions in this financial year and to realise other gains, securing cheap machinery finance now could be a smart move. The 30 June EOFY deadline might be just over 3 months away, but with shortages in supply of some machinery caused by supply chain and global issues and with an interest rate rise imminent, are strong reasons to expedite machinery and equipment acquisitions. Add to that the current tax measures in place and the case mounts for prompt action. The selection of [finance product](/overview-of-equipment-loan-products) is an important part of the machinery purchase process. While all business finance will have tax deductible elements, there are variations across the range which should be considered in the context of the individual business operation. To assist business owners to quickly get across the differences in machinery finance products in order to achieve an optimum outcome and how to secure the cheapest loan, we provide this general guide. **Tax Benefits of Equipment Finance** To finance plant, machinery and equipment the main finance products available and widely-used include:- - [Chattel Mortgage](/chattel-mortgage). Some banks now refer to this finance as Equipment Loan - Hire Purchase or more specifically, Commercial Hire Purchase - Equipment Leasing or Equipment Lease - Rent-to-Own, Equipment Rental and Rent to Buy – different terms for the same finance product which is a loan type where ownership of the equipment can be achieved. Different from the short-term hire of equipment. Jade Equipment Finance offers this full selection of loan types which can be used to finance a wide range of plant, machinery and equipment across most industries. There are differences in finance products in regard to which elements of each loan are tax deductible and when in the financial year a tax benefit can be claimed. Rather than create too much confusion, we’ll highlight these differences by comparing Leasing and Chattel Mortgage as they are most commonly-used finance products. - The interest portion of the finance is tax deductible for all loan types. - The monthly equipment finance repayments are fully tax deductible for Equipment Lease as they are considered an operating expense. With several months left in this financial year, the opportunity presents for businesses that purchase machinery with Leasing to claim several months of repayments in the 21/22 tax year. The same principle applies to the residual. - With Chattel Mortgage the situation is different from Lease. The full amount of monthly finance repayment is not considered tax deductible, only the interest as mentioned above. The main tax benefit of this finance type is realised through depreciation of the plant or machinery in accordance with the current [ATO](https://www.ato.gov.au/) rulings. A set percentage of the equipment value is deducted as a tax claim each year over a set number of years. This includes any balloon which is included in the finance contract. - GST is also a tax and is also treated differently between Chattel Mortgage and Leasing. With a Lease, the monthly lease payments have the GST added. The business can then claim that on the appropriate BAS return. - The way GST is treated differs for Chattel Mortgage. The total GST payable on the machinery purchase price can be claimed back on the BAS return corresponding to the timing of the purchase. For businesses that take out a Chattel Mortgage in the April-June quarter that means a potential significant amount of GST could be claimed. Possibly substantially reducing the amount payable at the end of July. Businesses that expedite equipment acquisitions prior to 30 June may stand to realise significant tax deductions in the current financial year. **Current Asset Acquisition Tax Measures** In addition to the tax benefits which are always available through different types of finance products, there is currently an additional and very attractive benefit available – [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/). This tax measure, which essentially evolved from Instant Asset Write-Off, has been a real talking point and motivator over the past few years. Introduced by the Federal Government to stimulate business investment and thus the economy during the pandemic, this tax measure is available to eligible businesses through to the 22/23 financial year. But for businesses wanting to claim the tax benefit in this financial year, the equipment must be purchased and operating in the business prior to 30 June. Those interested should check the eligibility criteria. Chattel Mortgage is consider the most suitable finance product for business operators intending to take advantage of this measure. Advantageously, this form of finance also attracts the lowest interest rate across the equipment finance selection. **Interest Rates on Machinery Finance** Interest rates – a smooth lead-in to another reason for businesses to seriously consider acting on their machinery acquisitions. There are strong indications that the RBA will move on rates this year. How soon? Keep an eye on the outcome of the April RBA Board meeting for the bank’s outlook. By reaching out to us for cheap machinery finance at the [current low interest rates](/equipment-finance-interest-rates) asap, businesses may benefit in reduced costs of finance compared with waiting until after rates rise. There are other considerations for businesses in regard to choice of loan product and these should be discussed with the business accountant. So there is quite a few compelling reasons to speed up machinery acquisitions to realise tax benefits in this financial year and take secure finance prior to a rate rise. **Contact Jade Equipment Finance on 1300 000 003 for cheap machinery finance.** *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.* **Categories:** Buying Tips --- ### [How to replace flood-damaged equipment with cheap machinery finance](https://www.jadeequipmentfinance.com.au/blog/how-to-replace-flood-damaged-equipment-with-cheap-machinery-finance) **Published:** March 21, 2022 **Author:** Publisher **Content:** As the clean-up continues and the full extent of the flood damage is realised in northern NSW, areas of Greater Sydney and in SE Queensland, many businesses face the onerous task of replacing machinery, equipment and plant lost in the deluge. The mere thought can be overwhelming. To assist businesses to replace flood-damaged equipment quickly and easily with cheap machinery finance this guide may streamline the process. As addressed in a previous post, banks and lenders have announced loan assistance and direct cash assistance is being made available through both State and Federal Governments. For business, a major priority will be getting the operation back into some form of working order. Possibly only a few pieces of machinery have been written off or possibly it is the complete business. Regardless of the extent, even if the equipment lost is currently under finance, [Jade Equipme](https://www.jadeequipmentfinance.com.au/why-jade-equipment-loans.php)[n](/why-jade-equipment-loans)[t Finance](https://www.jadeequipmentfinance.com.au/why-jade-equipment-loans.php) is well-placed to assist businesses with quick service to secure finance to make new acquisitions. We address a number of concerns and questions in this easy-to-follow Q&A format as a preliminary step on the process. **Who should be my first contact point for equipment under finance?** If machinery or equipment under finance has been damaged beyond repair or swept away and lost, both the insurer and the lender should be contacted. When purchasing machinery and equipment with finance, taking out insurance is a condition requested by lenders. Individual insurers will have their own processes and procedures for lodging claims. The lender that holds the finance should also be contacted to be advised of the circumstances. The lender will discuss how you should proceed from their point of view. **What if I have lost my paperwork and financial documents?** In regard to making an insurance claim, insurers have stated that it is not an issue if the policyholder does have their policy documents. They will handle that. The same should be so for the finance. However, when it comes to applying for new machinery finance, businesses are required to provide financial information. In the event of an entire business being inundated, as has been the case for sadly many operators, the hard copies and computer-held records may also have been lost. If digital records of documents were secured in a cloud-based platform they should be retrievable. Accounting records may be retrieved via the business accountant. The [ATO](https://www.ato.gov.au/) may also be able to assist with retrieving records of BAS returns and income tax records. Your Jade Equipment Finance consultant may also be of assistance in tracing and tracking records of other loans and financial history through credit profiles, [PPSR](https://www.ppsr.gov.au/) and other sources. Another option is also Low Docs and No Docs Equipment Finance for those without all the documents to complete the application form. **What happens with finance repayments on written-off machinery?** The obligation remains to continue meeting the repayment schedule until the insurance claim is settled unless alternative arrangements can be agreed with the lender. This is why it is important to contact the lender. The insurer will settle the claim by paying what is due to the lender and the balance to the policy holder. Failing to meet repayments and not informing the lender may lead to default entries on a credit report which can lead to bad credit ratings. **Can I replace the machinery prior to the settlement of the insurance?** Yes. Businesses can apply for new loans while the insurance claim on the current machinery under finance is being processed. Your Jade consultant will handle the quote sourcing and negotiating the cheapest deal so you can focus on the myriad of other matters you most likely have to deal with at the present time. Finance for replacement equipment may be with the same or a different loan product to the finance on the damaged machinery. The selection of [finance types](/overview-of-equipment-loan-products) includes: - [Equipment Lease](/asset-lease) - Chattel Mortgage - Rent to Own - Hire Purchase Pre-approved finance can be arranged on the choice of finance product so you are well-positioned to start placing orders to secure the new equipment. If delivery, installation and commissioning costs are attached to the purchase, mention this to your Jade consultant re including the expense in the total loan amount. **How can you assist to speed up the process as the equipment is critical for my business?** We can assist significantly in this regard. On contacting Jade Equipment Finance, our customers are assigned their own consultant to handle their loan requirements. That provides a direct, one person point of contact through the entire process. Your consultant will source the cheapest quote from across our vast lender base, handle the paperwork and even liaise with the equipment dealer to expedite settlement. **Will the circumstances affect the interest rate on the finance for the new equipment?** Each application is assessed on individual details and replacing lost or written-off equipment or machinery should not in principle, impact the interest rate offered. We will be sourcing quotes for the new finance based on the current interest rates. These rates may be different from the interest rate offered on other previous loans. Review the [current rates](/equipment-finance-interest-rates) we are achieving on equipment finance in our guide. **Will this process impact my credit rating?** Making an insurance claim does not in itself typically provide a reason for any negative impact on a credit score. But as mentioned above, the loan repayment schedule must continue to be met or arrangements made with the lender in order to avoid any negative effects on the credit score. The team at Jade Equipment Finance fully understand the circumstances facing businesses that have been impacted by the recent floods and rain events. Our services are fully operational and we welcome your call for assistance in quickly sourcing finance to replace machinery, plant and equipment. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss finance to replace flood-damaged 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.* **Categories:** Buying Tips --- ### [Cheap Equipment Finance to Replace and Upgrade IT and Automation Systems](https://www.jadeequipmentfinance.com.au/blog/cheap-equipment-finance-to-replace-and-upgrade-it-and-automation-systems) **Published:** March 29, 2022 **Author:** Publisher **Content:** The eastern seaboard has seen a deluge of rain over the past weeks which has led to devastating floods and damage in some areas. But outside of these identified flood areas, there will be businesses experiencing damage to key systems and equipment as a result of dampness and humidity and minor flash flooding. A problem which is widespread across the coastal areas and can create havoc with sensitive tech and computer-driven systems. To assist businesses get back online and back to their best, cost-effective, cheap equipment finance is available for tech and IT equipment including software and systems which drive many automated business operations from engineering, through logistics and warehousing, retail and hospitality and across the general business environment. Damage can be sustained to vital systems through mildew and mould as a result of high humidity. Damage which can affect the performance of systems and disrupt business operations. Regularly upgrading systems to maintain a competitive edge is another common reason for replacing computerised equipment. The replacement of these types of computer systems, especially if they are operation-wide or key to the business operations, can be a significant cost to business. The cost is measured in both the acquisition and the downtime while the systems are being installed and commissioned. To minimise the cost and streamline the overall process, business owners will be looking for [cheap interest rate finance](/equipment-finance-interest-rates "Cheap Equipment Finance to Replace and Upgrade IT and Automation Systems") and a service to handle the finance side while they handle the equipment purchase and installation. **What equipment and inclusions can be financed?** Some lenders may separate hardware and software as different types of business equipment. But at Jade Equipment Finance, we provide finance for both components of computer systems. We provide finance solutions for:- - Hardware and software for wide range of business operations - Computer-driven and automated engineering, manufacturing, logistics and operating systems - Accounting and business management systems - Ancillary expenses such as installation, commissioning, testing and training - Cash flow support for the business to cover downtime during the installation **Finance Products Available** A [range of finance products](/overview-of-equipment-loan-products) are available to suit differing objectives of businesses and the varying nature of the expenses associated with computer system acquisitions. For the acquisition of physical assets such as hardware and software, businesses can select the loan type which best meets their objectives and suits the method of accounting used:- - Chattel Mortgage - Leasing - Commercial Hire Purchase - Rent to Buy All business finance products include tax deductible elements but these do vary across the different types of loans. Ancillary expenses associated with the acquisition may include delivery, installation, commissioning and training. Finance is available to cover these expenses. There are a number of options to consider:- - Where the ancillary expenses are included in a complete package and ordered and invoiced at the time of acquisition your Jade consultant can work towards included these costs in the overall finance total. That would result in all costs covered and just the one repayment to handle each month. - Where the ancillary costs are purchased at different times and from different suppliers and depending on our lender guidelines, a Secured or Unsecured Business Loan may suit. These are general loans to the business to cover non-asset acquisitions which do not fall under the loan guidelines of the asset finance as listed above. A major cost to business as part of upgrading and replacing automation and computer systems is the downtime. Potential loss of income while regular outgoings still need to be met. To cover the potential shortfall in cash flow during these periods, a [Business Overdraft](/business-overdraft) may best suit. Another major cost of large systems may be the insurance premiums. To cover the cost of an annual premium at the same time as the costs of the system upgrade may place undue pressure on a business. To ease that pressure, consider Insurance Premium Funding. **Comparing Interest Rates** If a system upgrade is on your radar then now could be the ideal time to act. While Jade always focuses on achieving the cheapest interest rates on equipment finance, the general lending market is currently extremely accommodative. The [RBA](https://www.rba.gov.au/) has held the cash rate at that historic low for now. But the signs are strong that a rate rise will be made in coming months. Securing finance before a rate rise can save the business significantly in extra interest over the full term of the finance. **Finance Structure Service** Structuring finance of the nature and size of automation and computer systems can be complex. Your Jade consultant assists by handling the entire process. We source the cheapest quote from across our vast lender panel and negotiate the best rates and the terms and conditions that are most amenable to our customers. For initial budgeting purposes, businesses can use our Loan Calculators to obtain repayment estimates and form a view as to how they would like the finance structured. Issues to consider include:- - What ancillary items to include in the overall loan amount - Any balloon or residual amount – ensuring that amount would not exceed the value of the equipment at the end of the finance term - The finance term – being mindful of the projected working life of the assets and/or the timing for the next upgrade. Payout fees may apply if the finance is finalised prior to the agreed fixed finance term Upgrading and replacing computer and automation systems as a result of damage or obsolescence can be a challenging process. Jade Equipment Finance eases the burden for business owners with cheap finance and a comprehensive lending service. **Contact Jade Equipment Finance on 1300 000 003 for cheap computer and automation equipment finance.** *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.* **Categories:** Buying Tips --- ### [Projects delayed? Stop-gap business finance for contractors](https://www.jadeequipmentfinance.com.au/blog/projects-delayed-stop-gap-business-finance-for-contractors) **Published:** March 29, 2022 **Author:** Publisher **Content:** The construction and mining sectors have enjoyed fairly busy times during the past few years, despite the impacts of the pandemic on many sectors of the economy. But a number of issues are impacting the timing of some projects which may leave contractors with the need for business finance support for their operation. These issues cover a range of factors including both domestic and global influences. When project delays and cancellations occur without some prior and/or long term indication, they can interrupt the business plans for contractors that may have been counting on that work. Interruptions which can lead to cash flow problems which if left unaddressed can flow-on to credit issues and a bad credit rating. Seeking support to cover cash flow shortages or stop-gap finance early, can be a smart preventative measure to a worst-case scenario. Jade Equipment Finance has the resources and finance products available to support businesses in these situations. **Potential Delays to Projects** Federal and State and Territory Governments all used their infrastructure levers to stimulate the economy during the pandemic with significant spending on new projects. The Federal Government also introduced a number of initiatives to stimulate the construction sector in particular. But as the next waves of COVID-19 rolled in and the Government bill for support grew, so did the deficits. We are now in and approaching Government budget time and an assessment appears to be occurring. The Federal Treasurer is set to announce an increase in infrastructure spending in the [22/23 Federal Budget](https://budget.gov.au/index.htm). While encouraging for some, be mindful that these works may not happen for some time as the Budget needs to be passed by Parliament, doesn’t come into effect until 1 July at least and the Federal Election may result in changes to the Budget. The NSW Government has been a big-spender when it comes to infrastructure investment in recent times. A number of huge projects have been commenced in recent years creating jobs and work for many contractors. But reports in the media are that some of these projects may be facing delays. Delays which are being put down to increased costs and other impacts. The specific projects named include the Parramatta Light Rail extension and the much-anticipated and in some circles controversial Norther Beaches Link. Reports have the Infrastructure and Cities Minister Rob Stokes saying the state’s major projects are under review. Funding via the Federal Budget for NSW projects has been flagged but the Minister reportedly said there are other issues to consider. The recent and continuing flood and heavy rain impacting the eastern seaboard will also cause delays to many projects – both in the private residential sector and in the infrastructure space. However, there will be a huge demand for recovery and construction work once the weather settles. The Home Builder scheme delivered returns to the building sector with work for many trades and suppliers. The popularity of the scheme and the ensuing demand has led to shortages in supplies and materials. Materials shortages are being felt across many sectors and causing projects to be delayed. Another impact to be considered is the surge in inflation and rising costs of materials. This puts pressure on quotes and estimates and if increases to say the customer are required, it may result in a postponement or pause in work. **Potential Delay Impacts on Contractors** Delays to projects can create significant problems for contractors that were depending on that work. Without the work or at least some of that work, especially for small sole trader operators, there is no income and that means no capacity to meet expenses. **Finance Support for Business** Despite the potential for a poor outcome to develop, we do provide a range of finance solutions to support businesses deal with project delays and the ensuing delays in income. [Business Overdraft](/business-overdraft) is a very versatile and flexible facility which we source and tailor to meet the specific needs of our customers. This can be an extremely useful facility to cover short-term or intermittent cash flow shortages. One of the great attractions of an overdraft is that businesses only pay interest on the funds drawn upon. An overdraft amount is established and can be used in whole or part. Interest is charged by the lender only on the part which is used. While banks are the traditional sources of overdrafts, we have accreditation with non-bank lenders that also provide this facility at extremely competitive rates. And our consultant will handle all the negotiations. A vital stage which saves our customers those sometime difficult conversations. [Business Loans](/unsecured-business-loans) both secured and unsecured are also available. These loans can be secured for a wide range of purposes. [Insurance Premium Funding](/insurance-premium-funding) is worth keeping in mind if a business faces large annual premium on key equipment. Finding the entire amount when due can be challenging when the pipeline of work is compromised. This funding facility allows for the premiums to be paid in instalments. [Refinancing](/equipment-refinancing) is a strategy to consider where longer term issues may be foreseen. A review and restructure of a business’ commitments and refinancing of those obligations may be an extremely workable and cost-effective solution. Delays in work flow in many industries is unfortunately in many cases unavoidable. What is avoidable is dealing with the negative financial fall-out. If your business is or may be subject to delays in work flow for whatever reason, reach out to us to discuss the solutions we can offer to support the business. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss business finance solutions** *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.* **Categories:** Buying Tips --- ### [Equipment Finance Outcomes of the Budget 2022/23](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-outcomes-of-the-budget-2022-23) **Published:** April 5, 2022 **Author:** Publisher **Content:** Josh Frydenberg, Federal Treasurer, delivered the Government’s Federal Budget for 2022/23 on the evening of Tuesday 29 March with some significant benefits on offer for businesses. With pressure increasing in regard to costs of living and especially with record fuel prices a major concern, many were eyeing the Budget to deliver at least some level of immediate relief to cash flow and back pockets. As lenders, our keen interest is on what effect Budget measures will have on equipment finance and especially how our customers will benefit and grow through the initiatives offered. On reviewing the [Budget](https://budget.gov.au/) announcement we see there are a number of key measures in the Budget which present work opportunities and tax benefits for machinery investments with the right equipment finance. Interest rates are also a hot topic right now and while the cash rate is set by the [RBA](https://www.rba.gov.au/) and not the Federal Government, the outcomes of Budget measures are major influences on the economic conditions relevant to rate moves. We present the key take outs from the Budget announcement with particular focus on the measures which represent opportunities for business operators to benefit from machinery and equipment asset investments. **Budget Intro** In delivering his Budget Speech, Josh Frydenberg opened with comments around the challenging period which currently exists both globally and locally. Mentions included the Ukraine invasion, the pandemic which is continuing and especially the disastrous flood situation. Mr Frydenberg noted how difficult the past few years had been but how resilient Australia and Australians had been in recovering from the effects of the pandemic. The recovery in Australia being faster and was stronger than nations such as Japan, Germany, United States, United Kingdom and Canada. Unemployment levels have dropped to those equal with the lowest recorded over the recent 48 years, being now at 4%. The Treasurer stated that unemployment would decrease further with this Budget as it would deliver more jobs and would result in wages growth. Mr Frydenberg said that with low levels of unemployment now achieved, the emergency support measure phase had passed. The focus of the Government now was on the next phase of its fiscal and economy strategy for recovery. **Significant Budget Measures** The ‘biggie’ that all Australians had been waiting for over the past few weeks was finally released – relief at the petrol bowser. Rocketing fuel prices have been crushing for many businesses as well as households. The rising costs flowing through supply chains. The Government has responded with a temporary cut in the 44c per litre fuel excise to 22c per litre for 6 months. Unlike some budget measures which must go through the passing of the Budget Bill, this cut came into effect from Budget night. Reductions are now being seen at the petrol bowser and will continue to be seen as petrol stations finish stock that was purchased pre-announcement. Not budget related but worth mentioning, global oil prices are also starting to fall so there should be further reductions in petrol prices in coming weeks. For those planning on new equipment acquisition in the coming year, the good news is that the Instant Asset Write-Off will continue through to 30 June 2023. This initiative was introduced as a stimulus measure and presents significant tax benefits to eligible businesses for the purchase of eligible assets. Check criteria with ATO guidelines. IAWO allows the full cost of the equipment to be deducted as a tax deduction in the same year it was acquired. But the right finance product, [Chattel Mortgage](/chattel-mortgage), needs to be used for the acquisition. Small businesses also get a tax cut in the Budget. A reduction to 25% from the current 30% company tax rate. Additional tax breaks can also be realised through investments in new digital technologies. $120 tax deduction for every $100 spent. Jade Equipment Finance can assist businesses to acquire these technologies which may include e-invoicing, cloud computing, cyber security systems and even websites. Our finance products can be used for the purchase of both hardware and software either through our asset purchase finance or through[ Secured or Unsecured Business Loans](/unsecured-business-loans). For individuals that earn $126,000 or less that is what is considered as low to middle income earners, the LMITO is increased by $420. This represents a maximum now of $1500 for some taxpayers. This is received as a tax refund after the annual return is submitted and assessed. Business spending on upskilling and training also attracts and additional tax break. To assist with implementing training programs, speak with us about finance by way of Business Loans or Business Overdrafts. **New Work Opportunities** The prospects to grow many businesses are offered through the Budget’s investment in infrastructure projects and the Modern Manufacturing Strategy. To review industry or region specific projects, review the [Budget](https://budget.gov.au/) detail. **Equipment Finance Outcomes** From an interest rate on equipment finance perspective, the falling unemployment rate is a key determinant for the RBA to increase the cash rate. If this continues to fall while inflation rises, we could see the RBA move on rates several times in future months. The outcome bottom line for astute operators is to move quickly with the current low interest rate scenario to achieve the [cheapest equipment finance](/equipment-finance-interest-rates) to fund equipment, plant and machinery purchases. **Contact Jade Equipment Finance on 1300 000 003 for cheap equipment finance.** *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.* **Categories:** Buying Tips --- ### [Purpose-specific Business and Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/purpose-specific-business-and-equipment-finance) **Published:** April 5, 2022 **Author:** Publisher **Content:** The announcement of the [Federal Budget](https://budget.gov.au/) and the measures to support business can provide direction and assistance for operators to plan ahead. Especially in regard to investing in new plant, machinery and equipment. But as the Treasurer pointed out in his Budget Speech, despite Australia’s remarkable recovery performance, challenges still remain. To assist businesses to grasp new opportunities and overcome current challenges, specific structured business and equipment finance is available at cheap rates. Challenges continue to be faced as a result of global supply chain issues. A new outbreak of COVID-19 in China is looking likely created new issues around supply chains and the invasion of Ukraine poses serious concerns in many sectors. The computer chip shortage looks like continuing to cause delays in supplies into next year. The recovery and clean-up from the NSW and Queensland flood emergency will be a massive process and will put further strain on building supplies and trades especially. Rising inflation is putting cash flow pressures on businesses and back pocket pressures on households. The Federal Budget presents a level of relief immediately for some of these issues but some of the measures will have to wait until the Budget Bill passes both Houses before they can take effect. What doesn’t need to wait is securing cheap finance to implement business plans. **Targeted Business Finance** The most effective solutions to any problem or challenge are those that are specifically targeted to address the key need. When it comes to finance, that means tailored to suit the individual needs of the business in conjunction with addressing the purpose. Different types of finance are required to address asset acquisitions and other needs of businesses. Jade Equipment Finance specialises in not only providing finance for plant, machinery and equipment but in solutions for general business requirements. Solutions are tailored by our consultants to specifically meet either short-term issues or to take on the most challenging structural or longer term financial problems. **Asset Acquisition Loans** The Budget announced an extension of IAWO and that opens up the opportunity for eligible businesses to realise significant tax breaks with the purchase of new equipment. Upgrading equipment can deliver benefits in improved efficiency and productivity which will be realised over an extended period. The selection of the appropriate finance product can be critical to realising the full extent of benefits to the business. In selecting equipment finance, business owners should consider their accounting method; financial objectives; treatment of their balance sheet; approach to GST; and other issues. These are the areas where loan types vary. [Chattel Mortgage](/chattel-mortgage) is a versatile and flexible finance product which is best suited to IAWO. It can be used to purchase a wide range of equipment and as an added attraction, it has the lowest interest rate of the range of loan products. Sometimes listed as Equipment Loan, this finance type allows for the ownership of the asset to immediately be transferred to the borrower. As such it is posted to that business’ balance sheet. With that in place, the asset is then depreciated in line with current [ATO](https://www.ato.gov.au/) guidelines. With IAWO, those guidelines allow for the entire purchase price to be fully tax deducted in the year the asset was acquired. Why is this significant? Because under normal depreciation rulings only a small percentage would be depreciated each year over multiple years. With IAWO, businesses can receive a much larger tax deduction to reduce taxable income and reduce tax payable. If the structure of the business does not suit Chattel Mortgage, other forms of finance are available including Leasing, Commercial Hire Purchase and Rent-to-Buy. All business finance products include tax deductible elements. **General Support Finance** Not all needs of business relate to investments in new equipment. For some it is non-asset expenses or support to tide the business over during periods of cash flow shortages. To assist with these situations we can offer Secured and [Unsecured Business Loans](/unsecured-business-loans) and Business Overdrafts. As with asset finance, these are individually tailored and sourced from our vast lender panel with the cheapest interest rates. Purposes for these types of finance may be the cost of training or digital technologies in order to receive the Budget benefit of the 20% extra tax break. Under this new measure, small businesses can receive $120 tax deduction for each $100 spent on upgrading digital capabilities, as per the criteria. **Interest Rates Outlook** The key consideration when taking on business finance is of course the interest rate. Over the past 2 years, Australia has enjoyed a historic low interest rate situation. As the RBA Governor has said on several occasions, lending rates are extremely accommodative. But that situation looks set to change with another milestone – the first increase in the cash rate for many years. The RBA set targets for unemployment and inflation to be met before it would move on rates. Despite calls from many sectors over recent months for the central bank to act, the RBA has remained patient and kept the cash rate on hold. It is looking increasingly likely that the RBA will act and raise the official rate in 2022. Such a move will flow through to lending sectors, resulting in a rise in equipment finance interest rates. While we focus on always achieving the cheapest rates available to meet individual requirements that is premised on what rates our lenders set for their individual markets. To start solving those niggling financial issues in your business or to make a move to invest in new equipment to grow your business, start a conversation with one of our consultants about how we can support you with business and equipment finance solutions. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss business and equipment finance solutions** *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.* **Categories:** Buying Tips --- ### [RBA April Hold: What it means for equipment finance](https://www.jadeequipmentfinance.com.au/blog/rba-april-hold-what-it-means-for-equipment-finance) **Published:** April 11, 2022 **Author:** Publisher **Content:** It has been an action-packed period of major announcements – Federal Budget 2022/23, the Federal Election called and the Reserve Bank monthly meeting re interest rates. All major events which can have implications and impacts on business operators and on equipment finance. As we provided an overview of the impacts of the Budget on equipment finance last week, we now turn attention to the significance of the [RBA’s April decision](https://www.rba.gov.au/media-releases/2022/mr-22-11.html) to hold the cash rate at the current record low. The decision not to increase the rate was not surprising in itself. While a rate rise is highly expected in the near future very few expected the Board to act in April. But the statement announcing the RBA Board’s monthly decision is where the real interest lies. This overview of key aspects and commentary may explain to business owners the importance and significance of the RBA April hold on equipment finance moving forward**.** **RBA Holds Rates for April** As Tuesday 5th April 2022 approached, the talk about the RBA Board moving to increase interest rates had intensified. Inflation has been surging, unemployment dropping and these were they key targets the RBA Board has repeatedly stated as significant to any decisions to increase the cash rate. But the Board made the decision to leave rates at the current 0.1% for at least another month. The decision may appear on the surface as ‘so what’? The real interest is found when you read the decision announcement and consider the tone of the statement. The consistent message over many months of these monthly RBA announcements has been the mention of the central bank’s ‘patience’. It has been a recurring phrase – ‘prepared to be patient’ – which has appeared in the statements and has been stated by Governor Philip Lowe in speeches and presentations. Come April 2022 and patience is not mentioned. This was immediately noted and reported by finance media and analysts and interpreted as meaning a rate rise was no imminent. Remember, it was not that long ago (several months) when the RBA was talking 2023/24 for the cash rate to be increased. So this change is quite significant. Key content in RBA Board April statement:- - Spending and investment by the business sector is continuing to show a pickup. - Resilience continues to be shown across the Australian economy. - Central RBA forecast is for unemployment to fall further from the current 4% in this year. - Only gradual but further wage growth is expected. - Global events including the invasion of Ukraine was mentioned as a factor driving global inflation. - Fuel prices and rising pricing of many goods impact on further increase in inflation. On the issue of when an increase to the cash rate may be made, as is the normal practice, no specific timeframe was provided. The statement says that the Board is awaiting further evidence that the current rate of inflation will actually be sustained in the 2-3% target range. That evidence is expected in figures which will be released in the near future. These figures will be assessed by the RBA Board as evidence of targets being reached and any increase in the official cash rate applicable. **Reactions, Predictions, Outlooks** Many in the financial markets had already reacted to the prospect of a rate rise in the future and priced accordingly. The reaction to the April decision and the changed tone has been picked up as the strongest indication yet that a rise in interest rates will be made in the very near future. Broad consensus appears to be pointing to June for that much-anticipated move by the RBA. It has been 12 years since interest rates last rose, so it will be a momentous event. All four Big Banks have come out to state the 7 June RBA meeting as being when they expect to see a rate rise. Many are tipping not just one, but several increases in the cash rate over the course of the remaining months of 2022. **Equipment Finance Repercussions and Impacts** Keeping rates on hold for now, means that our [cheap equipment finance rates](/equipment-finance-interest-rates) remain in place. For those with fixed interest rate equipment and machinery finance, loans will not be impacted by any change in interest rates. That rate is locked in for the full finance term. When the RBA does act, the resulting cash rate increase will flow through to the lending markets. The amount that equipment finance lenders actually lift their specific rates will be based on individual decisions. Any change to interest rates would be expected to be incremental. But even an incremental increase can significantly increase the monthly equipment finance payment. Refer to our [Equipment Finance Calculator](/calculator) to see the effect of a slightly higher interest rate on repayments. Any move by the RBA to lift rates does not however mean that Jade Equipment Finance will no longer be offering cheap equipment and machinery finance. We have a long-standing commitment to always achieving cheaper and better interest rates for each of our customers and that approach remains unchanged. Wherever possible however, business owners would be strongly advised to act quickly with equipment, plant and machinery acquisitions while interest rates remain at record lows. **Contact Jade Equipment Finance on 1300 000 003 for cheap interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [Cheap Machinery Finance - Dealing with Looming Rate Rise](https://www.jadeequipmentfinance.com.au/blog/cheap-machinery-finance-dealing-with-looming-rate-rise) **Published:** April 11, 2022 **Author:** Publisher **Content:** We’ve posted the latest update on the [RBA’s April rate decision](https://www.rba.gov.au/media-releases/2022/mr-22-11.html) and the predictions that many economists, lenders and analysts expect the central bank to move to increase the cash rate as soon as June. For those that have had to delay their machinery acquisitions due to supply issues and availability of their preferred model, that news must come with an increased sense of annoyance. The prospect of missing out on cheap machinery finance because of the supply problem can be extremely frustrating. A looming rise in interest rates does not have to mean reduced opportunities to access [cheap machinery finance](/equipment-finance-interest-rates) for equipment for many business operators. As equipment and machinery finance specialists that focus on achieving cheaper loans, we have compiled a number of ways that businesses can approach machinery finance in order to ensure that they achieve the most cost-effective and the cheapest interest rate offer available. The cheapest finance despite the prospect of rises in general lending interest rates across the market. **Move Quickly** Yes, we do realise that availability has been a major obstacle to purchasing new machinery and equipment for many business owners. When the RBA timeframe for a rate rise was 2023 or even 2024, waiting was an option. Now that interest rates are tipped to start creeping up from as soon as June 2022 and possibly several times this year, it may be time to reassess priorities. That may include seeking other brands or alternative models which are currently available so you can secure finance at the current historically low interest rates. **Review Equipment Finance Selection** Regardless of the official interest rates, the rates which apply to different finance products vary at all times. The [interest rates](/equipment-finance-interest-rates) for Equipment Lease, Chattel Mortgage or Equipment Loan, Hire Purchase and Rent to Own are different. Hire Purchase and [Chattel Mortgage](/chattel-mortgage) attract the lowest while Rent to Own the highest. If you usually opt for say Lease or Rent to Own, considering the cheaper interest rate products may be an option. This choice will of course be dependent on the suitability of the features of each finance facility to the individual business objectives and should involve a discussion with an accountant. See how equipment finance repayments vary when different finance products are selected by viewing our Interest Rate Calculator. **Take Advantage of Tax Measures** If monthly equipment finance repayments may be more than anticipated post-increase, then realising tax deductions may counter the impact of that increase. Instant Asset Write-Off and temporary full expensing are available through the 2022/23 financial year for eligible asset acquisitions. This may include the machinery you require. The full machinery cost can be a tax deduction in the year the asset was acquired but the appropriate form of finance, Chattel Mortgage, needs to be selected. The reduction in tax payable realised may be a significant offset for any increases caused by higher interest rate finance. **Hone in on Finance Structure** Cheap machinery finance is clearly a very relative concept. It needs to be considered within the context of the individual operation. What is ‘cheap’ to one business may be extremely ‘costly’ to another. While the focus of finance is primarily on interest rates, to achieve cost-effective finance, businesses can focus on the finance repayments. This is the amount payable each month and can have the most significant impact on cash flow. This can be the cost-effective factor. Most business owners regardless of the size of the operation, will have a target loan repayment figure they want when applying for machinery finance. Achieving that target is not always possible if dealing with lenders that are not flexible and open to negotiating on loan terms. This is a key area where Jade Equipment Finance can greatly assist. Repayments can be varied by changing the loan term and/or the balloon or residual. Having access to lenders that are flexible when it comes to negotiating on loan structure can be critical. We offer a vast selection of lenders including specialist non-bank equipment lenders that are willing to discuss terms. Your Jade consultant handles these negotiations on your behalf. By using our [Equipment Finance Calculator](/calculator) and changing the finance term and balloon, you’ll realise how the structure of the loan can be tweaked to achieve the target repayment amount. The amount which may be the issue that determines whether or not the finance offer is a cost-effective or cheap option. **Credit Rating Matters** Interest rates advertised by machinery finance lenders will in most cases relate to businesses with a [good credit profile.](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) By keeping your credit profile in a good score range will increase the prospects of being offered the cheapest interest rate. **Use the Support Services Available** The machinery and equipment finance market is quite extensive with both banks and non-bank lenders active in the sector. Utilising the services available in order to access providers of the most competitively-rated finance can be a smart move. [Broker-style lenders](/why-jade-equipment-loans) such as Jade Equipment Finance provide industry-level access to a vast selection of specialist lenders and offer a range of additional benefits to operators seeking cheaper machinery finance. With the lending rate scene set for a change in coming months with the imminent rise in the cash rate, it may also be time for businesses to review how they source their finance. **Speak with a Jade Equipment Finance consultant on 1300 000 003 to discuss cost-effective and cheap machinery finance options** *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.* **Categories:** Buying Tips --- ### [Tractor Sales Down but Machinery Finance Rates Set to Rise](https://www.jadeequipmentfinance.com.au/blog/tractor-sales-down-but-machinery-finance-rates-set-to-rise) **Published:** April 19, 2022 **Author:** Publisher **Content:** Businesses in the agricultural sector may be facing a dilemma with supply issues hampering tractor sales right at what could be last call for record low machinery finance rates. A range of conditions are currently affecting the sector including global events, the effects of flood and huge recent rainfalls in NSW and Queensland and inflationary pressures on prices having the potential to affect demand. Some areas may be thriving while others are struggling. The finance scenario is currently extremely favourable for investing in new equipment with record low rates, IAWO in place and the tax benefits to be realised by purchasing prior to EOFY. We cover off on the current tractor sales situation and the opportunities available to achieve cheap interest rate tractor finance for those that can source the machinery they require and are ready to buy. **Tractor Sales Situation** The [Tractor and Machinery Association of Australia](https://tma.asn.au/news-events-page/supply-impacting-tractor-sales-across-the-board/) (TMA) recently released the results of tractors for March. The figures reveal another drop in sales, this time a 19% decreased compared with March 2021. The over total sales are place 13% below the year-to-date figures for the same period in 2021. Despite these drops, the TMA see the figures as strong for the sector due to the supply issues. While many of the supply issues reported across many sectors are being put down to global issues, the TMA said the current tractor supply issues may be being exacerbated by the ports. The statement says that TMA members had cited issues of overly long quarantine delays stemming from the lack of appropriately trained personal to process the equipment plus the rise in container costs. The container shortage is also seen as an issue. The TMA also relates of reports which indicate that the backlog in the unloading ships is leading to not as many ships being allocated to Australian deliveries. In the light of these issues, the TMA welcomed the announced that a productivity commission would review the efficiency of maritime logistics systems. The TMA has prepared a submission to the commission but expects any findings and outcomes to be many years before realisation. In regard to specific tractor sales figures, the under 40hp or 30kw small category registered figures which were down, 18% compared with March 2021. The 40-100hp range also down 6%. The first drop for this category in some time. While the 100-200hp segment was also down, by 21% as was the 200hp large category down 39%. All figures comparing March 2022 with March 2021. The TMA says that the demand for ag machinery worldwide is strong and as some prices are starting to rise for produce in some sectors, it expects demand to stay high. **Incentives to Buy Now** While supply issues may be seen as hampering the sales of tractors, there are many reasons why buying new machinery at the present could be a very advantageous decisions. For those that can access and acquire the machinery they require the tax incentives and low interest rate scenario combine to create an ideal time to make that investment. The major tax incentive on offer is the [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) measure aka Instant Asset Write-off. Put in place initially as a stimulus measure, this tax benefit for eligible businesses acquiring eligible assets was extended to 30 June 2023 in the Federal Budget. This measure has been extremely well-received across multiple sectors to acquire vehicles as well as a wide range of equipment, plant and machinery. The key is the ability to write-off or depreciate or fully expense the total purchase price in the financial year the machinery was acquired. This compares extremely favourably to the usual tax ruling where machinery is only depreciated incrementally over a set number of years. While that is an extremely attractive prospect, the benefits of using this measure can extend further. By claiming the IAWO the business may report a loss for 2021/22 which may allow for the Loss Carry Back measure to be realised. This may result in a cash refund of tax paid in an earlier year. In order to realise these measures in this financial year by 30 June 2022 buyers will need to act quickly to arrange finance and make the acquisition. The choice of finance product is critical to a business being in a position to realise these benefits. In order to be depreciated, the machinery must be listed as an asset in the business accounts. [Chattel Mortgage](/chattel-mortgage) is seen as the most appropriate finance product in this case. The ownership of the machinery goes directly to the buyer which enables the machinery to be depreciated by the business. As an added bonus, the interest rate on Chattel Mortgage is the lowest compared with the other finance products – Lease and [Rent to Buy](/equipment-rental-finance). The interest rate situation is another key driver for businesses to purchase new machinery such as tractors at this time. The lending market has been in a position to offer record low rates since November 2020 when the RBA dropped the cash rate to 0.1% But the end of record low rates appears to be fast approaching. As soon as June the RBA is expected to raise rates. A decision which will flow through to lending markets. Acquiring new tractors and machinery while interest rates are at their lowest on record may result in extremely attractive and cost-effective finance with extensive benefits to the operation. **Contact Jade Equipment Finance on 1300 000 003 for cheap interest rate machinery and tractor finance.** *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.* **Categories:** Buying Tips --- ### [Race is On: Refinancing before Rates Rise](https://www.jadeequipmentfinance.com.au/blog/race-is-on-refinancing-before-rates-rise) **Published:** April 19, 2022 **Author:** Publisher **Content:** As has been widely reported in the media and in our news articles, there is a very strong probability that interest rates will start to rise from as early as June. Inflation has been increasing for several months at the same time as the unemployment rate has been dropping. Though the March unemployment rate of 4% is the same as for February. These are in the target range that the [RBA](https://www.rba.gov.au/) has previously indicated as being possible reasons to lift the cash rate. With the RBA expected to raise rates at its June meeting businesses may look to refinancing equipment loans before lending rates respond and rise. The [RBA](https://www.rba.gov.au/) meeting is scheduled for the first Tuesday in June and it is now mid-April. Is it too late for refinancing? How long will the process take? Will lenders increase equipment rates prior to action by the RBA? Are my loans suitable for refinancing? Yes, some business operators will obviously have plenty of questions around refinancing. With the clock ticking we address these concerns and provide information on how refinancing of equipment loans can be achieved at current low interest rates. **The Process of Refinancing** We’ll start with some of the basics of [refinancing](/equipment-refinancing) in a quick Q&A format:- - What is refinancing? It is the process of replacing the existing equipment loan with a new loan. - How it is done? A loan application is made for new finance on that existing loan. Our consultants source the cheapest quote and/or offer to replace the existing loan including any balloon/residual involved. On accepting the offer, we proceed to finalise the refinancing by paying out the existing lender for the monies outstanding on the loan. This would include any payout charges and other fees. - Who can refinance? All types of business set-ups can apply to refinance existing loans. - What equipment can be refinanced? All types of plant, machinery and business equipment can request refinance. Lenders will operate within individual guidelines as to suitability. But Jade Equipment Finance is accredited with many banks and lenders so we have a vast choice when it comes to sourcing the right lender to suit our customer’s requirements. - Do I have to stay with the same bank or finance company? No. Your Jade consultant will source the cheapest refinancing offer from across our lending panel. There is no obligation to refinance through the same lender. **Finance Product Selection** Another question that many businesses ask when considering refinancing is if they need to refinance using the same finance facility or not. The answer is NO you do not have to refinance with the same finance product as the original loan. For example: If the existing loan is a [Lease](/asset-lease), you can refinance with Chattel Mortgage. If the existing loan is Rent to Own you can refinance with Lease or another form The choice of finance products for refinancing include:- - [Chattel Mortgage](/chattel-mortgage) - Lease - Rent to Buy - Commercial Hire Purchase As you can see from our [Compare Equipment Rates](/equipment-finance-interest-rates) table, the interest rate varies across finance products. Achieving a cheaper interest rate can be one of the major incentives for businesses to refinance. **Refinancing Interest Rates Scenario** As mentioned, a cheaper interest rate is a key reason to refinance. The refinanced loan is quoted at the current interest rate. And currently, interest rates remain at their historic lows. But that could change if the RBA acts as expected and raises the cash rate in June. That may be the first of several rate rises in 2022. Lenders will then react based on their own individual policies to reset their own rates on loans such as equipment finance. If the existing finance was sourced when rates in general were much higher, say pre-2020, then it may be expected that a lower interest rate may be achieved in comparison. The refinanced loan rate will also depend on the details of the loan application. If for example the business or sole trader individual applying for refinance has improved their credit rating since the existing loan was secured, they may achieve a better interest rate now. An improved credit profile can also be a good reason to refinance. **Calculating Refinancing Repayment Estimates** While loan fees and payout charges do need to be factored into any refinancing, businesses considering the process can use our Equipment Finance Calculator to estimate possible repayments. Achieving a lower monthly repayment level to ease pressure on cash flow can be a popular reason to seek refinancing. **Additional Matters to Consider** While refinancing can be an effective strategy to achieve cheaper interest rate finance or lower loan repayments which can be highly beneficial to the business, there are matters to take into consideration with the process. These considerations include:- - Payout fees and costs of establishing the new loan. - IAWO cannot be utilised through refinancing as the process would not be seen as acquiring new assets. - Equipment would be treated as second hand when lenders quote for refinancing. This may attract different interest rate or loan conditions from when the equipment was originally acquired as new. So with the clock ticking for a rate rise, the big question remains to be addressed – how fast can refinancing be completed? When engaging Jade Equipment Finance to handle your refinancing, we will react with quick quotes and fast approvals to streamline and expedite the process. The exact time involved will of course vary and depend on the complexity of the individual requirements. **Don’t waste time. Speak with a Jade Equipment Finance consultant on 1300 000 003 about refinancing equipment loans prior to the expected rate rise.** *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.* **Categories:** Buying Tips --- ### [Election Impact on Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/election-impact-on-equipment-finance) **Published:** April 26, 2022 **Author:** Publisher **Content:** The Federal Election is coming up on 21 May and now, part-way through the 6 week campaign, news feeds are full of pitches, promises and policies from the candidates. The information covers a vast array of topics and issues which have varying impacts for different individuals and groups. There is a lot of information to absorb and analysis as to the relevance to one’s own circumstances. Adding into the possible confusion at the moment is the discussion about the [RBA’s](https://www.rba.gov.au/) decision on interest rates. For business owners with finance or considering purchasing new machinery and equipment with finance, there may be questions around how it all ties in and to their business. In short, how does, if at all, the result of a Federal election have an impact on equipment finance? The importance of the answer may be in business owners timing their machinery acquisition decisions. Either acting now, as planned or waiting until after the election when possible new policies are in place. These can be significant decisions to a business when considered in conjunction with the interest rate scenario. Waiting may mean seeking finance after interest rates start increasing. A move which could be significant financially on large value machinery and loan terms over up to 7 years. This explainer highlights the connection between government policy and equipment finance to show any possible impact on equipment finance of a federal election outcome. **Changes in Policy and Direction** The key difference between the two major parties which are most likely to win government are in relation to policies. Some policies which are already in place under legislation may require new laws to be altered. Measures and new commitments may be brought in straight away or may take time. In the Budget which was brought down in March, some of the measures are due to commence from 1 July but requiring passing by both houses to come into effect. Should there be a change of government, a new or mini budget may be introduced. Infrastructure spending, jobs creation through specific projects and other commitments which are regular announcements in election campaigns. As far as individual businesses are concerned, the benefits of such announcements would need to be assessed as far as they may mean new and additional business opportunities. Opportunities which may back a move to invest in new machinery. Industry associations lobby government and politicians both during and before election campaigns for certain actions that will benefit their members. The [Australian Trucking Association](https://www.truck.net.au/media/media-releases/hit-reset-button-truck-safety-productivity) has presented a number of initiatives that it would like to see government introduce to create a safer industry and increased productivity. **Equipment Finance** When it comes to equipment finance, as specialists in this sector, we focus on interest rates. As do most business owners when seeking finance. Interest rates on equipment, plant and machinery are not set or determined by governments but can be impacted by the outcomes of policy. We explain. The RBA sets the cash rate which then forms the basis for lenders to establish their rates. Currently, the RBA has been focussing on unemployment and inflation figures as a guide to when the economic situation is suited to raising the cash rate. Government policies focus on creating jobs to drive down unemployment. Thus creating a connection between interest rates and government and in turn elections. A similar approach also applies to inflation. Government policies impact these figures also. This is a simple illustration of the connection between fiscal policy as established by government and monetary policy as set by the central bank, the RBA. Governments also introduce stimulus and other temporary measures at times. Currently in place is temporary full expensing and IAWO. These are in place until 30 June 2023. It could be considered as highly unlikely for this timeframe to be altered. Financial markets typically ‘react’ when certain policies are introduced or in response to certain economic data being released. These responses may have an effect on lending guidelines by way of their attitude to lending to certain sectors. As far as the main finance products themselves – [Chattel Mortgage](/chattel-mortgage), Leasing, Commercial Hire Purchase and [Rent to Own](/equipment-rental-finance), these are not impacted by elections and government. The key issue for businesses to consider at the moment may appear to be the highly expected move by the RBA to increase the cash rate. This may come as soon as the RBA Board May meeting or it could be June. This will have a direct impact on equipment finance interest rates. Business operators are strongly encouraged if at all possible, to acquire new equipment finance as soon as possible to secure the current historic low interest rates. **Contact Jade Equipment Finance on 1300 000 003 for cheap interest rate equipment finance.** *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.* **Categories:** Buying Tips --- ### [Don’t miss IAWO Benefits 2021/22: Equipment Finance Options](https://www.jadeequipmentfinance.com.au/blog/dont-miss-iawo-benefits-2021-22-equipment-finance-options) **Published:** April 26, 2022 **Author:** Publisher **Content:** Staff shortages due to COVID, business picking up as consumer confidence returns, the upcoming Federal Election, supply chain issues affecting operations, the war in Ukraine, rising costs, expected interest rate rise, flood damage and recovery….there is a lot happening right now. Events and influences which distract business operators from some of the key decisions they need to make. Decisions such as buying new equipment to take advantage of Instant Asset Write-off in this financial year. We provide a timely reminder of the benefits available with IAWO, the timeframe required to claim in 2021/22 and the equipment finance options suited to this tax measure. **Instant Asset Write-Off: The Catch-up** Straight up an urgent reminder: the deadline to claim in this financial year is to have the assets operating in the business by 30 June 2022. So you only have about 8 weeks to get the equipment sourced and the finance sorted. [IAWO](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/?=redirected_instantassetwriteoff) has been available now for two years so most operators will already have considered it or at least seen the promotions for this measure in conjunction with equipment or vehicle advertisements. It was introduced by Treasurer Josh Frydenberg in April 2020 as part of the initial Government stimulus package as the effects on the economy of COVID-19 just started to be realised. The objective of IAWO is to motivate businesses to invest in new equipment. The measure was amended several times in 2020 and re-named temporary full expensing. The reasoning behind its introduction – eligible business can write-off or claim as a tax deduction, the full purchase price of the equipment in that one year, the year it was acquired. That can represent a very attractive option to many businesses. The more equipment, plant, machinery, vehicles and other assets that businesses acquire, the more business activity across the economy. For businesses, the more tax deductions effectively reduces taxable income and that means less tax payable in that year. The catch? Businesses and assets being purchased need to meet the eligibility criteria which we outline below. Another key to using this measure is that the appropriate form of equipment finance needs to be utilised to allow the equipment to be depreciated in this way. Also see below for our coverage of the finance options. It is not the first time the measure has been introduced in Australia. The current measure is in place until 30 June 2023 as confirmed in the recent 2022/23 Federal Budget. **Eligibility** Businesses should refer to the [ATO](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) website for temporary full expensing or Instant Asset Write-off for the specific details of eligible businesses and equipment. But in a nutshell the assets must be new to the business but can be second-hand. Other conditions are in place to cover a number of options. Businesses need to meet the turnover threshold which covers the majority of business operations in Australia. **Equipment Finance Options** As mentioned above, the real key to being in a position to claim IAWO on the business’ tax is acquiring the plant, machinery or equipment with the suitable form of finance. For that purpose, [Chattel Mortgage](/chattel-mortgage) is considered most appropriate. In order for an asset to be ‘written-off’ or more specifically depreciated, it must be listed in the balance sheet of the business as an asset. With Chattel Mortgage the ownership of the equipment is immediately transferred to the borrowing business when the finance/purchase is settled. As such. It is posted to the balance sheet and can be depreciated. To illustrate this we explain the difference with another very popular form of finance, [Leasing](/asset-lease). With an Equipment Lease the ownership of the machinery remains with the lender. The borrowing business makes monthly lease payments. The major tax benefit of this form of finance is that the lease payments are treated as a business expense and hence a tax deduction. Chattel Mortgage is available to finance a wide range of plant, machinery and equipment. This type of finance can be used by many types of businesses including SMEs, sole traders, large corporates and operations that require low docs, no docs and bad credit loans. **2021/22 Timeframe** For those intending to utilise the benefits for IAWO or temporary full expensing in this financial year, under the ATO guidelines, the eligible assets must be operational in the business by 30 June 2022. The measure is in place until 30 June 2023 but any equipment purchased after 1 July would be included in the tax return in the 2022/23 financial year. The benefit is realised when the annual business tax return is prepared and submitted. So if IAWO is on your to-do list for this year, it’s time to get moving and source that machinery. Speak with one of our Jade Equipment Finance consultants for pre-approved finance prior to purchase to speed up the process. **Speak with a Jade Equipment Finance consultant on 1300 000 003 about pre-approved machinery finance to expedite the purchase for IAWO claims in this financial year.** *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.* **Categories:** Buying Tips --- ### [Improve Appearance of Balance Sheet with Equipment Lease](https://www.jadeequipmentfinance.com.au/blog/improve-appearance-of-balance-sheet-with-equipment-lease) **Published:** May 2, 2022 **Author:** Publisher **Content:** When acquiring new plant, machinery or equipment with finance, business owners have a range of factors and aspects of the acquisition and the loan to take into consideration. One of the most significant, and the one that can determine the taxation and other benefits to the business, is the choice of [equipment finance product](/overview-of-equipment-loan-products). Business have the choice of Equipment Lease, Hire Purchase, Rent to Buy and Chattel Mortgage, which is also referred to as Equipment Loan by some banks and lenders. For many businesses, the lowest interest rate and cheapest finance in general is the main focus. While that is also our key focus in securing the cheapest equipment finance for our customers, business owners should also take a broad perspective on their financial objectives. A perspective which takes in how a particular loan type may or may not contribute to achieving the financial goals of the business. While our role as finance broker centres on securing cheap interest rates and finance, we advise our customers that their accountant or a financial advisor is often best-placed with the knowledge and insight of the operation to provide advice on choice of finance product. While having the professional advice from an advisor is great, it can also be helpful for individual business operators to have a grasp on the features and benefits of different finance products. Particularly how those features can assist the meet achieve its financial or other objectives. An objective for some businesses is to improve the appearance of the balance sheet and that may be possible through equipment lease to finance new equipment, plant and machinery. The balance sheet lists what the business owns and is owed in customer invoices being assets and what it owes which is the liabilities. Clearly having assets greater than liabilities may present the business in a stronger position than the reverse. So how can equipment lease achieve that objective? We explain why equipment lease is considered by some as improving the balance sheet and how other forms of finance compare. **[Equipment Lease](/asset-lease) and the Balance Sheet** Leasing is a very popular and widely-used finance product for asset acquisitions including vehicles and a wide range of equipment. Leasing allows the equipment or machinery assets to be acquired with finance without the complete and whole cost or value of the loan liability being posted to the business balance sheet. This can be seen as useful or advantageous in some circumstances. Those may include the development or growth stage of the business. A relatively new business may not be in a position to want the liability on the balance sheet. The decision or preference may also reflect the plans by the business for further acquisitions or finance applications. In reviewing loan applications, lenders will assess the balance sheet as indicative of a business’ position and ability to take-on and repay loan commitments. The relationship between a finance product and the balance sheet of a business lies in the ownership of the equipment being financed. Where the business has the ownership of the equipment over the loan term the equipment is listed in the balance sheet. If not, it’s not. With Equipment Lease the ownership of the equipment is held by the lender offering the finance through the lease period. Yes, the business as full use of the equipment and as such is responsible to meet the required running expenses such as insurance, servicing, parts etc. But the lender holds the title ownership. As such, the asset is not listed in the business balance sheet. The lease payments, as an expense, would be treated as liabilities. When the equipment lease is completely finalised including where the residual is paid, the business can take ownership of the equipment. With no payments outstanding, the value of the equipment may be considered as an asset to a business. Compare this to say Equipment Loan or [Chattel Mortgage](/chattel-mortgage), which is another extremely popular form of equipment finance. With this finance product the ownership does revert to the business at the time of purchase, after the finance is settled. With the business holding ownership the equipment is then posted to the balance sheet as an asset and the financed owed as a liability. The advantage of Chattel Mortgage at this current time, is the suitability to accelerated asset depreciation measures such as Instant Asset Write-off and [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/). Where equipment is on a business balance sheet as an asset, it is depreciated or written-off according to ATO guidelines. This is the case with equipment acquired with Chattel Mortgage but Leasing is not considered as suitable to take advantage of these tax measures. Equipment Leasing does however include attractive tax deductions. The Equipment Lease payments are fully deductible as a business expense. GST is included in these monthly payments and can be claimed by eligible businesses. **Equipment Lease Payment Calculations** Leasing typically attracts a slightly higher interest rate than Chattel Mortgage. Those interested in Equipment Lease for an upcoming purchase can calculate monthly payment estimates to assist with purchasing decisions and to help decide between different makes and models of machinery. While there are many issues to consider, Equipment Lease can present a viable and appealing form of finance for a wide range of businesses. **Contact Jade Equipment Finance on 1300 000 003 for a quote on equipment leasing** *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.* **Categories:** Buying Tips --- ### [Rising interest rates a worry? Secure Fixed Rate Equipment Finance](https://www.jadeequipmentfinance.com.au/blog/rising-interest-rates-a-worry-secure-fixed-rate-equipment-finance) **Published:** May 2, 2022 **Author:** Publisher **Content:** Interest rates and the prospect of a rise in the cash rate by the RBA very soon is very much at the forefront of most news reports at the moment. In some cases even superseding coverage of the Federal Election and even becoming somewhat of an election issues. A rise in interest rates is a worry for many in regard to both personal loans and business finance. But fixed rate equipment finance can shield a business from an increase to their repayments and hence business costs as a result of a rise in the cash rate by RBA. It doesn’t seem like that long ago that the [RBA](https://www.rba.gov.au/) was saying it expected conditions to be in line for a rate rise in around 2023 or even 2024. The targets to trigger a rate rise being unemployment in the sub 4% range and the inflation rate sustained in the range of 2% to 3%. These figures are driven by economic activity and as far as inflation is concerned, also by global impacts. Well, the Australian economy has recovered from the pandemic downturn much faster than the RBA had forecast and inflation is surging. Prices of many goods and services are going up and up and causing cost of living and cost of doing business pressure. Of course not all this is due to local conditions. Global events including the computer chip shortage, ongoing pandemic effects, general supply chain impacts and the war in Ukraine are playing their part. Inflation is surging on a global level and pressure is on the central banks to react by raising the official cash rates. While the pressure on the RBA is rising in intensity, this type of pressure and commentary is not isolated to Australia. The IMF has also come out and said that central banks need to act on interest rates to curb the surging inflation rates as these levels represent a danger to many countries. Interest rates have not been lifted in Australia for over 12 years. So many business operators will be novices in ways to negotiate a climate of rising interest rates in general and equipment interest rates more specifically. As specialists in equipment finance and achieving the cheapest equipment finance, we provide this explainer of how the lending interest rate market in general, equipment finance rates specifically and how businesses can achieve fixed rate finance to avoid the effect of rises in the future. **Inflation and Interest Rates** The RBA dropped the cash rate during 2020 to address the economic effects of the pandemic. The objective being to make lending cheaper to stimulate especially business investment. This monetary policy measure complemented the Federal Government’s fiscal measures including the introduction of Instant Asset Write-off and [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/). The cash rate has been left at the historic low of 0.1% since November 2020. At each of its Board meetings since that time, the RBA has indicated the target levels of inflation and unemployment that it saw as being the triggers to indicate a rate rise. Those essentially being 2-3% inflation sustained and 4% or less unemployment. With Australia’s strong recovery, inflation has increased faster than many expected. The latest data for the March quarter saw the inflation surge to 5.1% and [underlying inflation](https://www.rba.gov.au/inflation/measures-cpi.html) hit 3.7%. Definitely in the target range and most consider definitely sustained. The RBA Board meets monthly with an expectation of a rise either at the 3 May meeting or the meeting on the first Tuesday in June. While the pressure is on to act, the RBA may wish to wait until the latest data on wages growth is available – due mid-May. This was mentioned in the April monetary statement. The key point for business owners to take out from the rate rise scenario is how many! This May or June rate rise may just be the first of several hikes in the cash rate. The RBA may act in several months in 2022 and again in 2023 to address inflationary pressure. When the RBA moves on the cash rate, lenders respond. That includes equipment finance banks and non-bank lenders. So it is quite feasible that we will see several increases in general equipment finance interest rates over the next 12 months. What can businesses do? Purchase new equipment with finance as soon as possible and lock-in their equipment finance with a fixed interest rate. **Fixed Rate Equipment Finance** Key to not having equipment finance repayments continually increase as the RBA and subsequently lenders increase rates is to have the equipment finance [interest rate fixed](/equipment-finance-interest-rates) from the get-go. At Jade Equipment Finance, we offer fixed interest rates loans across our [finance product range](/overview-of-equipment-loan-products): Chattel Mortgage, Lease, Hire Purchase and Rent to Own. Unlike say home mortgages which only have fixed rates for relatively short periods, fixed rate equipment finance is fixed for the entire period of the loan term – up to 7 years. So once the fixed and cheapest rate available at the time is secured, it remains unchanged. With the fixed interest rate secured, that ensures the repayments also remain unchanged. Confidence and certainty around finance repayments can be of great assistance to business owners in budgeting and planning other business investments and acquisition into the future. We offer fixed rate equipment finance for the purchase of a wide range of business equipment across all industry sectors to all types of businesses, regardless of type of size. Low Docs and No Docs Equipment Finance and Bad Credit Equipment Loans can also be acquired with a fixed interest rate. **To discuss fixed interest rate equipment finance speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [RBA Raises Cash Rate, More Interest Rate Rises Ahead](https://www.jadeequipmentfinance.com.au/blog/rba-raises-cash-rate-more-interest-rate-rises-ahead) **Published:** May 9, 2022 **Author:** Publisher **Content:** The Reserve Bank of Australia (RBA) raised the cash rate at its Board meeting on Tuesday 3 May. The decision comes after many months of commentary about the central bank acting on rates to curb surging inflation. While the decision to raise the rate from the historic low of 0.1% was highly expected to occur in May or June, what is probably most notable for businesses is that additional interest rate rises are also extremely likely. The timing of the rate rise being mid-campaigning for the Federal Election was seen by some as ‘interesting’ but in fact, the RBA has moved on rates during an election campaign previously. But what was quite significant was the size of the increase. It was evident to many economists and analysts that the bank would act soon to restore the drastic rate cuts made during the pandemic. But there seemed to be a general opinion across the finance sector that the bank would make several smaller rate rises. But the bank acted with a 0.25% increase to put the cash rate at 0.35%. This is the first increase in the cash rate in 12 years and is in line with what is happening in other global economies. The US Federal Reserve also recently increased its central rate but by a much larger 0.5%. For business owners the major concern with the RBA move and even more interest rate rises is the effect on equipment finance and the outlook for the economy moving forward. Effects which may impact their equipment acquisition and investment decisions. The RBA issues statements to announce Board decisions regarding rates. These statements include the reasoning behind the outcomes and also include central forecasts for key economic indicators and the outlook for the economy. We have reviewed the May RBA Monetary Policy statements and provides this overview of key inclusions which we see of interest to business owners and operators. **[RBA May Monetary Statements](https://www.rba.gov.au/media-releases/2022/mr-22-12.html): Key Inclusions** There are a number of major take-outs from the RBA Board’s May statement around the decision to lift the official cash rate to 0.35%. The Board states that the timing was seen as appropriate to commence withdrawing the support provided to the economy through low interest rates during the economic crisis of the pandemic. The RBA frames this situation as ‘normalising’ monetary conditions. Conditions in 2020 with the onset of the coronavirus pandemic were ‘extraordinary’ and now as the economy has bounced back to target levels, the scenario is right to return interest rates especially to more normal rates. In the statement, the RBA notes the resilience of the Australian economy in recovering faster than expected. This has also caused inflation to pick-up at a rate faster than the central bank has expected. This is the explanation provided for the dramatic change in timing for a rate rise. In many statements issued following Board meetings through 2021, the RBA had indicated that it forecast conditions to be right for a rate rise in 2023 or 2024. The faster rate of Australia’s economic bounce back has seen that timeframe expedited to May 2022. Wages growth has also been included in discussions around conditions right for a rate rise. The RBA states it has evidence from business surveys and other data that wages growth is picking up. This seen as especially evident in increases in wages in private sector enterprises. Unemployment figures and the rate of inflation are the major economic data that have been indicated by the RBA as key to any decisions to increase the cash rate. Unemployment has now dropped into the target range, sitting at 4%. The RBA forecasts this rate to drop further into the 3.5% range by early 2023. This rate, it states, is the lowest in around 50 years. The economic growth outlook is seen as positive by the RBA, albeit with uncertainties in regard to a number of global issues. These include the war on Ukraine, ongoing pandemic-related disruptions especially in China at the moment as well as inflation being high in many economies. On the domestic front, the business sector investment is continuing well and the pipeline of work ib the construction sector mentioned as a positive indicator for growth. The surge in inflation in Australia is still lower than in many other advanced economies. The surge is related to both global and domestic pressures. The RBA central forecast is for inflation to rise to 6% with an underlying inflation rate of 4.7% this year. It sees the rate moderating to 3% by mid-2024. A significant note is that the RBA says the forecasts provided for inflation are based on the assumption of further interest rate rises. An important statement for businesses to note when scheduling investment acquisitions in the future. In closing, the RBA Board statement states the bank’s commitment to doing what is required to see the inflation rate return to target. This, it states, will required additional rate rises to achieve. **Flow on Effects for Equipment Finance** The flow-on effect of RBA rate rises is increases in interest rates in lending markets. The [CBA](https://www.commbank.com.au/) was one of the first of the Big 4 to respond by raising home mortgages by the 0.25%. Lenders in other sectors and loan products such as for equipment finance will also reflect the RBA rate rise as lenders adjust their rates accordingly. We have our [current lowest available rates](/equipment-finance-interest-rates) displayed for our finance products as a handy reference and planning tool for business operators. The rates offered on equipment finance will vary for different industry sectors, the age and condition of the machinery and the loan application details including the credit profile of the business. The timing of the RBA’s move to increase rates from 2023/24 to 2022, may have impacted business investment timing. A situation which now needs reviewing in order to secure cheap interest rate finance before rates rise again. We will of course be continuing our policy of better interest rates to secure cheaper finance for our customers. An outcome we are well-placed to achieve through our [multiple accreditations](/why-jade-equipment-loans) including with specialist non-bank lenders. The RBA Board next meets to make decisions around the cash rate on the first Tuesday in June. **Contact Jade Equipment Finance on 1300 000 003 for a quote on equipment finance** *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.* **Categories:** Buying Tips --- ### [Outcomes for Equipment Finance from RBA Rate Rise](https://www.jadeequipmentfinance.com.au/blog/outcomes-for-equipment-finance-from-rba-rate-rise) **Published:** May 9, 2022 **Author:** Publisher **Content:** With the RBA moving to lift interest rates at its 3 May 2022 meeting, concerns may be raised by many business owners as to how this rate rise will effect both existing and new equipment finance. Moves to cut or increase the official cash rate by the RBA do flow into all lending markets and this rate rise will be reflected as lenders review and adjust their rates. While the move by the [RBA](https://www.rba.gov.au/media-releases/2022/mr-22-12.html) was expected as a result of surging inflation and falling unemployment figures had created the appropriate conditions for a rate rise, the concept of interest rates rising will come as something new to many operators. Interest rates as far as the cash rate have not been increased for around 12 years. So we have moved from a position of historic low interest rates since November 2020, to this somewhat historic phase of rising rates. There will be effects of the RBA May rate rise and future rises on equipment finance in various aspects but cost-effective loans will still be attainable. Banks and non-bank lenders will respond to the RBA moves by adjusting their rates on equipment finance. The amount and timing of the adjustment will be based on lender’s individual policies in this regard. To assist business operators to plan and proceed with equipment acquisitions, we address some typical concerns and provide insights into securing cost-effective finance as rates start to creep up. **Types of Finance** The range of [finance products](/overview-of-equipment-loan-products) available for the acquisition of plant, machinery and equipment remains unchanged by any variations in interest rates. The selection of [Chattel Mortgage](/chattel-mortgage), Lease, Rent to Buy and Commercial Hire Purchase remain the same. These finance products attract different [interest rates](/equipment-finance-interest-rates) and the variations across the selection will also be retained. In the light of rate increases, business operators may rethink their choice of loan type. The choice of loan type depends on many aspects of the business including its financial objectives, balance sheet approach and the method of accounting used. If possible, opting for a loan product with a cheaper rate than the business traditionally selects may present a useful strategy to achieve lower interest rate finance for new equipment purchases moving forward. It is advisable to have this discussion with the business accountant or financial officer. **Existing Finance and Loans** The impact of a rate rise on existing equipment finance will depend on whether the loan was secured with a fixed or a variable interest rate. Jade Equipment Finance offers fixed interest rates across our equipment finance range. This ensures businesses that the rate and the repayments will remain unchanged through the entire finance term. Fixed interest rate loans that are currently in place should not change as a result of the RBA and ensuing lender rate changes. Some loans such as Unsecured Business Loans and loans from some lenders may have been acquired with a variable interest rate. If so, there is the possibility that the rate and hence the repayments will increase. Businesses in this position should contact their lender for details. To prevent any changes to repayments, business can seek fixed rate finance including considering refinancing variable rate loans with fixed rate finance. Speak with one of our consultants about the options for your individual circumstances. **Pre-approved Equipment Finance** Securing pre-approved equipment finance can present many benefits to businesses. It can provide confidence with the knowledge of exactly how much the business is approved to borrow and hence spend on equipment and assist in making decisions on which make or model of machinery to consider. Pre-approved finance is quoted based on the interest rate current at the time of applicaton/quoting. The offer made will be valid for a certain time period as indicated by our consultants when the offer is made. If the offer is accepted and the finance proceeded with before the offer expires, a change in interest rate should not typically effect the offer. If the pre-approved finance is not utilised prior to expiring but is then re-requested at a later time, the new offer would be priced at the interest rate current at the new timing. If you have a pre-approved offer through Jade Equipment Finance and have any queries, please contact your consultant. **New Finance Applications** New applications for equipment finance are quoted based on the best interest rates that we can secure at that time. Our consultants source quotes from across our vast lender panel to ensure we have secured the cheapest rate available to suit individual circumstances. If you have a finance application currently being processed, your Jade consultant will advise any updates as a result of the RBA rate rise. With further interest rate rises eluded to by the RBA, businesses that are in a position to act on acquisition plans, may save on interest on their loan by acting asap. **Refinancing Equipment Loans** Refinancing is priced at the rates current at the time of application. Those that have been considering refinancing existing loans while interest rates were at historic lows may be wise to expedite those plans. **Securing Lowest Interest Rate Equipment Finance** Despite rises in the cash rate and the flow-on effect through lending markets, Jade Equipment Finance continues to focus on achieving the lowest interest rate finance for our customers. With the 0.25% rate rise by the RBA, lending rates are still relatively low and attractive. To work up estimates of what this level of increase may mean for equipment finance repayments, use our finance calculator. The equipment finance sector is quite competitive and our specialist, non-bank lenders are open to flexibility and negotiation when our consultants seek finance offers. So while there will be rate rises across lending sectors as a result of the RBA decisions, we are still in a position to achieve attractive and cheap equipment finance rates for customers. **To discuss equipment finance speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Strategies for Achieving Affordable Equipment Finance in Rising Rate Market](https://www.jadeequipmentfinance.com.au/blog/strategies-for-achieving-affordable-equipment-finance-in-rising-rate-market) **Published:** May 16, 2022 **Author:** Publisher **Content:** With the [RBA](https://www.rba.gov.au/) acting at its Board meeting in May to raise the cash rate, business has now been placed in unusual territory when it comes to sourcing equipment finance. Times of lending rates on the rise. A situation which has not happened for over 12 years as it was 2010 when the RBA last raised the cash rate. Especially over the past 20-24 months, businesses have enjoyed an extremely low interest rate environment with, as put by the RBA, very accommodative lending conditions. This has been the result of the RBA cutting the cash rate to provide supportive monetary policy as the pandemic took its toll on the economy. But with the goods news of economic recovery comes the not so good news of rising inflation and the resultant rising cash rate to combat the situation. In times of rising interest rates across lending markets business can adopt certain strategies to work towards continue achieving affordable equipment finance. While sourcing the [cheapest interest rate](/equipment-finance-interest-rates) is key to cheaper equipment finance, there are additional considerations which can work in concert with cheaper rates to achieve more affordable outcomes. The specific strategies and approach taken to sourcing finance will depend on aspects of individual business operations and in some cases the equipment being purchased. But there are a range of universal steps or processes that many business owners can adopt to ensure they achieve loans for plant, machinery and equipment at the cheapest possible interest rate and most importantly work with their cash flow and towards achieving their objectives. While our consultants discuss these strategies directly with our customers when taking their brief to source finance, we share some basic steps for all businesses to consider. **Broaden Lender Scope** Many business operators by habit, always apply to their bank when they require finance for any purpose including machinery and equipment loans. The [Big 4 banks](https://www.commbank.com.au/) are the biggest lenders in Australia and we are accredited with all four as well as many other banks. But banks are not the only game in town when it comes to equipment finance. There is a large section of the market in non-bank lenders and within that, a more specialised sector which focuses specifically on equipment finance. We are also accredited with many of these non-bank lenders. These specialist non-bank equipment lenders can be more flexible when it comes to negotiating on many of the key aspects of finance offers – interest rates and loan conditions. They don’t always tend to be as restricted with guidelines as the banking status creates for banks. But many of these non-bank lenders are only accessible via lending industry channels. That means the lender has a select group of finance brokers that it works through rather than working directly with business clients. As part of these groups with a number of key specialist non-bank lenders, Jade provides accessibility to these finance channels for our customers. So a first strategy for businesses seeking cheaper equipment finance may be a rethink of choice of lender. Working through a broker-style lender such as Jade can deliver significant benefits in achieving better equipment finance compared with a DIY approach. **Choice of Finance Product** Another strategy to achieve a lower interest rate loan is to reconsider the choice of finance product. There are [four main loan types](/overview-of-equipment-loan-products) available to finance new equipment – Rent to Own, Lease, Commercial Hire Purchase and Chattel Mortgage. The interest rate varies across the range due to specifics of the structure of each finance facility. This is standard across lending markets. So changing from say Leasing if that is the loan type usually selected to say Chattel Mortgage, could achieve a lower interest rate loan and hence more affordable repayments. The basis on which a business decides the finance product for their equipment purchase includes the accounting method used by the business; approach to balance sheet; preference in regard to tax deductions; and general financial objectives. In making a decision on finance product, businesses are strongly encouraged to refer to their accountant. **Varying Elements of the Loan** Achieving ‘affordable’ equipment finance can mean focussing on the monthly loan repayments as well as the interest rate. After all, it is that monthly commitment that can be a deal-breaker as it directly impacts cash flow and must work for the business to achieve profitability. While our consultants focus on sourcing the cheapest interest rate loan, our customers can focus on how they would prefer us to structure that loan to achieve the preferred repayment amount. The amount of the loan clearly impacts the repayments and the amount of total interest payable and hence the cost of financing the equipment. We offer no deposit equipment finance across our loan portfolio which enables businesses to include the full price of the plant, machinery or equipment in the finance. Additional expenses such as delivery, installation and commissioning may also be included. While no deposit finance can be attractive in times of record low equipment interest rates, in a rising market it may not be as cost-effective. Businesses can opt to pay an upfront deposit to the equipment dealer and in doing so reduce the loan amount. This flows through to less total interest payable and a lower monthly repayment. Another element to consider is the finance term. With up to 7 year finance terms available to many businesses, there are options. A longer finance term reduces the repayments but a shorter term results in a larger repayment. Then there is the balloon or residual amount to consider. While lenders and in some cases the ATO will have some say in the amount permitted, this is an element which business operators can vary to vary the finance repayments. Jade consultants work with customers and negotiate with lenders to achieve the most appropriate and affordable outcome in regard to finance structure. **Address Credit Profile** The [credit rating](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) of the business and in the case of sole traders and some SMEs, the owners and directors, is assessed as part of the finance application process. Good credit rated applicants are seen as lower risk and as such can attract cheaper interest rate finance. Addressing errors on a credit profile can be undertaken and may result in an improved credit rating and better finance offer. With the RBA due to meet in early June, another rise in the cash rate may be made. To continue to achieve affordable or cheaper equipment finance, contact us to discuss how we can support your business implement these strategies. **Contact Jade Equipment Finance on 1300 000 003 for affordable equipment finance** *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.* **Categories:** Buying Tips --- ### [Post-rise Prospects for Low Docs No Docs Equipment Loans](https://www.jadeequipmentfinance.com.au/blog/post-rise-prospects-for-low-docs-no-docs-equipment-loans) **Published:** May 16, 2022 **Author:** Publisher **Content:** When the announcement was made in early May by the [RBA Governor Philip Lowe](https://www.rba.gov.au/) that the central bank had decided to lift the official cash rate, many business operators planning investments in new equipment with finance were highly likely disappointed to say the least. Possibly purchase decisions were postponed due to the business climate or due to delivery delays. Issues which prevented business taking advantage of the highly accommodative lending conditions over the past going on 2 years. But most disappointed and possibly with concerns may be those planning to start a new business and requiring [Low Docs No Docs Equipment Loans](/no-docs-low-docs-equipment-finance). Planning for the start-up including budgeting and business plans may have been based on securing finance and the resultant loan repayments at the pre-rise interest rates. With the RBA rise and lenders across many markets following with their own rises, those repayments may now be higher than originally anticipated. A factor which may throw plans for the business into disarray or at least a rethink phase. Achieving low docs and no docs loans for small and new business can often be a frustrating process. Without all the financial documentation and records, aka docs, that are required to complete a standard business finance application, new businesses can face obstacles and rejections. With interest rates tipped to rise further with future RBA moves on the cash rate, what are the prospects for those needing low docs no docs equipment loans? There will be those looking to go out on their own as sole trader contractors with say their own back-hoe, diggers and other earthmoving equipment. Individuals branching out to set-up a new online business which is totally dependent on computer and IT equipment. Just a few examples of the types of operations that typically require no docs equipment finance to get their business underway. To ease the doubts and concerns some may have, we provide this general overview of Low Docs and No Docs Equipment Finance with hints and tips on how businesses can still achieve affordable loans in a rising rate market. **Who is eligible for low docs and no docs equipment loans?** The terms low docs and no docs refer to the quantity of documentation in regard to financials and trading history that a business has for inclusion in the finance application. Businesses with no documents means no docs while some but not all docs to meet the application requirements can be classified as low docs. Low docs and no docs loan applicants are different from bad credit loan applicants. Bad credit is a totally separate classification of loan applicant. However, having a good credit profile for the business entity and/or the directors and owners would be beneficial to achieving a better finance outcome. The types of businesses that need to source low docs and no docs equipment finance can be extensive but primarily include businesses which are just starting up or have only been trading for a short period. Minimum trading periods are often a criteria for business loans from banks and some lenders and as such, businesses that do not meet that criteria may consider a low docs loan. Must at minimum have a current ABN and ID. The quality and quantity of docs provided may affect the outcome. Business owners are encouraged to produce as much information as possible to provide a stronger application. That may include business plans, projections based on strong evidence and/or simple accounts figures prepared by themselves. The criteria for eligibility for this type of finance would not in general terms be affected by interest rate increases. Lenders may however, implement their own guidelines in regard to the total amount of finance approved and other aspects of the loan. **Finance Product Selection** Low docs and no docs are classifications of loan applications and do not describe specific loan products. Applicants can select which finance product best suits their requirements from the general range available:- - [Low Docs Chattel Mortgage](/chattel-mortgage) - No Docs Low Docs Leasing - Hire Purchase for Equipment and Machinery - Low Docs No Docs Rent to Buy **From Bank to Broker – Lender Choice** While the banks are the major source of business finance, for those requiring no docs and low doc loans, they may not be suitable. Banks operate to strict guidelines and it is easy to see from the business finance eligibility notes that some display online, that many new and start-up business would not qualify for bank finance. In addition, banks and not as flexible in all circumstances as many non-bank lenders. Businesses requiring low docs loans can benefit greatly from engaging a specialist equipment finance broker such as [Jade Equipment Finance](/why-jade-equipment-loans) to source their loan requirements. Just because you’re starting up or you’re small, does not mean you are not welcome to utilise the professional services offered by a finance broker. All are welcome and we handle a wide range of different plant, machinery and equipment finance. **Interest Rates on Low Docs Equipment Finance** As mentioned above, low docs does not mean bad credit. But the risk assessment of some low docs applicants may still be considered as high and that may impact the interest rate applied to the finance offer. However, low docs and no docs finance does not in general terms, attract a higher interest rate. All applications are considered, sourced and negotiated by our consultants on an individual basis. It is possible for low docs finance to be offered at better interest rates. Business owners are encouraged to ensure they maintain a good individual credit profile and provide as much financial information about the enterprise to present a strong application. In order to attract a better interest rate, applicants may be required to provide additional guarantee or security for the finance. Additional lender conditions may also apply. If wanting to get rough estimates of what repayments may be on low docs equipment finance, refer to our [Interest Rate Chart](/equipment-finance-interest-rates) or our Equipment Finance Calculator. The basic requirements and guidelines for Low Docs and No Docs Equipment Finance would not change as a result of any rises in interest rates as a result of RBA decisions. However, as rates move away from the record lows enjoyed lately, all businesses should be covering all bases to ensure they achieve the cheapest rates and the most workable, cost-effective finance possible. **To discuss low docs and no docs equipment finance speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Tax Benefits & Rate Rises: Motivation to Apply for Equipment Finance Now](https://www.jadeequipmentfinance.com.au/blog/tax-benefits-rate-rises-motivation-to-apply-for-equipment-finance-now) **Published:** May 23, 2022 **Author:** Publisher **Content:** If there are two things that can motivate business operators to activate and accelerate equipment purchases they must be the prospect of achieving a tax deduction and the prospect of paying less on the equipment finance. At the moment, both tax deductions and lower loan repayments are a possibility for operators that acquire new equipment with suitable equipment finance prior to 30 June. EOFY is always a busy time for asset purchases as businesses seek to maximise their tax deductions to minimise payable tax in that financial year. That prospect has increased significance this year with the accelerated asset depreciation measures – IAWO and [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) that are currently in place. Measures which may also trigger the opportunity for loss carry back which may result in a tax refund. An added incentive to move fast at the moment is the prospect of the [RBA](https://www.rba.gov.au/) lifting interest rates again at its upcoming early June meeting. Additional rises were indicated by Governor Lowe at the May meeting and some analysts are forecasting rises several times in 2022. Delaying machinery purchases with finance may mean a higher interest rate on the loan and as such higher loan repayments. **Tax Deductible Equipment Finance** For those less familiar with asset finance and tax rulings, it may be assumed that when an asset such as equipment is acquired, then the purchase is a business tax expense and hence a tax deduction which can be claimed in that tax year. That is not actually how the tax system works. The finance used to purchase the equipment determines how, when and the amount of a tax deduction that can be realised by the business. The finance products are: Equipment Loan or [Chattel Mortgage](/chattel-mortgage), Hire Purchase, Equipment Rent to Own and [Equipment Leasing](/asset-lease). Tax deductible elements and timing of tax deductions vary with finance products. We’ll give a brief overview of the key points in regard to Chattel Mortgage and Leasing as the two most popular finance products for both GST and business income tax. - Interest payable on a loan is fully deductible across all finance products. The amount of interest paid on a loan in a financial year would be claimed at end of year in the tax return. No GST is charged on finance interest. - GST can be claimed in full at time of purchase on ensuing BAS for Chattel Mortgage. With quarterly and annual BAS payments due in July, new purchases may deliver a significant reduction in GST payable for that period for the business. A reduction which could ease the burden on cash flow. - With Equipment Leasing and Rent to Own, the GST is added to the monthly lease payments. The GST is then claimed on the relevant and corresponding Business Activity Statement for businesses that are registered for GST. - Monthly lease payments with Leasing and Rent to Buy are treated as an operating expense and tax deductible. - Only the interest portion of finance repayments on Chattel Mortgage are deductible. - Equipment purchased with Chattel Mortgage can be depreciated under ATO rulings and the depreciation amount represents a tax deduction. Tax deductions and depreciation are accounted for in the preparation of the annual business accounts and the business tax return. **Special Tax Measures on the Table** For the financial year 2021/22 temporary tax measures are in place which have relevance for equipment finance. Instant Asset Write-off or temporary full expensing are available for eligible enterprises for the acquisition of assets eligible under the criteria, which are purchased and operational in that enterprise prior to 30 June. Such assets can include plant, machinery and equipment. These accelerated asset depreciation measures refer to depreciation of the asset as a tax deduction in the same financial year that the equipment was acquired rather than incrementally over several years. In order to be in a position to take of these tax measures the equipment or asset must be acquired with suitable finance. That is finance that allows for the asset to be depreciated – Chattel Mortgage. With many items of equipment, especially in earth moving, civil construction and manufacturing of significant value, IAWO can represent a very significant tax deduction to the business. A deduction which may result in the business recording a loss for the year. Depending on the profit/loss recorded in earlier years as designated by the ATO, this may open the door to utilising the loss carry back measure. But remember, to take advantage of these temporary measures this year the new machinery must be working in the business by the deadline of 30 June. Acquisitions made in the next financial year would be realised in the 22/23 tax return. **Equipment Finance Interest Rate Scenario** As we noted in the intro, the other compelling motivator for businesses to acquire machinery with finance asap is the prospect of further rate rises. This may occur as early as the [RBA](https://www.rba.gov.au/) June meeting and there is the prospect for a number of rises in this calendar year. A cash rate rise triggers increases across the lending scene including in the equipment finance sector. Review our current rates and use the calculator to obtain a basic outlook of what repayments may look like if the finance was priced at a higher rate – a rate possibly applicable following a RBA rise. Motivated to move on equipment acquisitions? Our team of consultants is ready to assist in acquiring the cheapest equipment finance for your purchase. **Contact Jade Equipment Finance on 1300 000 003 for cheap equipment finance at better interest rate** *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.* **Categories:** Buying Tips --- ### [Upcoming Field Days: Pre-approved Machinery Finance Available](https://www.jadeequipmentfinance.com.au/blog/upcoming-field-days-pre-approved-machinery-finance-available) **Published:** May 23, 2022 **Author:** Publisher **Content:** Following two years of COVID-caused disruptions and cancellations, many of the extremely popular field days are back in 2022. These events are very important to the primary industry sector as they present valuable opportunities to inspect a wide range of machinery and equipment in the one place and have one-on-one discussions with reps regarding suitability for individual operations. Operators can prepare for upcoming field days and be in a position to place an order by arranging pre-approved machinery finance prior to the date. Added benefits of arranging finance at the moment and purchasing possibly by June, are the dual issues of further rises in interest rates later in the year and the current temporary full expensing tax measure available in this financial year. To assist and guide buyers, we check out what’s on the calendar and what’s on the table in terms of cheap pre-approved machinery finance with benefits! **Upcoming Field Days** From June through August there are a number of [great field days](https://afdj.com.au/events/) scheduled in Victoria, NSW and Queensland:- - Queensland: 7-9 June, [Farmfest](https://acmruralevents.com.au/farmfest/home). Location: Kingsthorpe Park, Kingsthorpe. Details at [event website](https://acmruralevents.com.au/farmfest/home) - Queensland: 23-25 June, Ag-Grow Emerald Field Days. Location: 26007 Capricorn H’way, Emerald. Details at [event website](http://www.aggrow.com.au/). - NSW: 8-9 July, Mudgee Small Farm Field Days. Location: 267 Ulan Road, Bombira. Details at [event website](https://mudgeefielddays.com.au/). - Victoria: 15-17 July, Australian Wool and [Sheep Show](https://sheepshow.com/). Location: Holmes Road, Bendigo. For more information head to the website. - Victoria: 31 July- 2 August, Sheepvention. Location: Shakespeare Street, Hamilton. - Victoria: 3-4 August, Mallee Machinery Field Days. Location: 2574 Sunraysia Highway, Speed. - NSW: 16-18 August, AgQuip. Location: 134 Black Jack Road, Gunnedah. All the details at [website](https://afdj.com.au/events/agquip-field-days-3/). AgQuip Field Days are the premier events of this nature for the primary industry sector and a must-attend for many producers, growers and suppliers in the industry. These events are renowned for the vital role that they play in the industry. Showcasing and providing first-hand demos of an extensive range of new machinery, equipment and products as well as services to assist producers. Running for nearing 50 years, AgQuip field days are a great opportunity to see the innovative developments in the sector especially in technology to improve efficiency and productivity across operations. In preparation to attend a field day, it can be smart to check the event website for any changes in scheduling or arrangements and if possible, preview the suppliers that will be exhibiting. Ear-mark those of special interest and if particularly keen to purchase, contact the supplier to see if they will arrange a special meeting time for you. These shows attract large crowds and it can be disappointing to arrive at a stand of particular interest to you, only to find a wait to speak to the representatives. **Pre-event Finance Options** For buyers keenly intent on or even have some interest in placing a machinery order at a field day, having the [finance](/farm-machinery-and-agricultural-equipment-loans) arranged ahead of time is very much an essential requirement. We can assist with Pre-approved Machinery Finance across our portfolio of equipment finance facilities. Pre-approved finance is available for:- - [Equipment Loan/Chattel Mortgage](/chattel-mortgage) - Equipment Leasing - Equipment Rent-to-Own - [Hire Purchase for Equipment](/commercial-hire-purchase) The application process for pre-approved finance is the same as when an application is made after the machinery purchase has been committed to. The key difference is that in most situations the exact amount required for the loan will not be known at the time of applying for pre-approved finance. The final loan total may not be determined until a purchase price is confirmed with the dealer and any additional costs for delivery, installation and commissioning are agreed upon. Extra expenses can in many cases be included in the finance. The [interest rate](/equipment-finance-interest-rates), loan term and other factors will all be the same as for post-purchase finance. Pre-approved allows buyers to know exactly how much they are approved for and select machinery within their finance budget. At field days it allows buyers to commit on the day and eliminate any possible delays in taking delivery which may arise with sourcing finance after the viewing. New producers and start-up operations are eligible for pre-approved finance. [Our Low Docs and No Docs Equipment Finance](/no-docs-low-docs-equipment-finance) is structured to suit businesses in the early stages if operation. An added advantage of using Jade Equipment Finance as these types of loans are not available through all banks and lenders. **Machinery Finance Interest Rates** Pre-approved finance is quoted based on the interest rates available at the time of application. With the RBA tipped to move again with another rise in the cash rate in coming months, securing finance and acquiring machinery sooner rather than delaying may result in a better rate and a better repayment. **For pre-approved machinery finance prior to upcoming field days speak with a Jade Equipment Finance consultant 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.* **Categories:** Buying Tips --- ### [Utilising Temporary Full Expensing directly linked to Equipment Finance Selection](https://www.jadeequipmentfinance.com.au/blog/utilising-temporary-full-expensing-directly-linked-to-equipment-finance-selection) **Published:** May 30, 2022 **Author:** Publisher **Content:** Investing in new equipment and machinery can be motivated by a number of factors – upgrading obsolete and outdated machinery, to achieve greater efficiency, to facilitate expansion and growth and in general, to improve the productivity of operations with new tech and innovation. But the overall driving reason for many is to increase the profitability of the business. These objectives can be boosted by selecting the appropriate equipment finance to take advantage of tax deductions. For this and next financial year, instant asset write-off and [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) can be utilised by businesses that meet eligibility criteria for eligible equipment acquisitions. These temporary tax measures, known in general terms as accelerated asset depreciation measures, can represent significant tax deductions. The effective utilisation of temporary full expensing for equipment, plant and machinery acquisitions is linked to the choice of equipment finance selected. The features and structure of the finance product need to ensure that the equipment is a depreciable asset. This relates to the accounting method and approach taken by the business. Many businesses will leave it to their accountant to advise and explain such decisions, a move we strongly support. However, we appreciate there are others that may choose to minimise their accounting fees by minimising the services they opt-in to from their accounting firm. For those that would appreciate an understanding of temporary full expensing and how they may best realise the benefits through finance selection, we provide this explainer. **Accelerated Asset Depreciation Measures** When buying new plant, machinery and equipment for a business, the goods would generally be considered a tax deductible purchase. But the entire price of the goods is not deductible immediately at the same time or in the same accounting period as the purchase. Assets are depreciated – as in a tax deduction allowed, as a set percentage of the value over a set number of years. Depending on the price of the equipment it may take several years to fully tax deduct the cost. Accelerated asset depreciation measures such as Instant Asset Write-off and temporary full expensing allow an accelerated (faster) depreciation (tax deductibility) of the value of purchased assets. Accelerated meaning faster than under the normal tax schedules for depreciation of assets. These measures are introduced by governments and managed through the ATO for limited time periods, hence the term ‘temporary’, to achieve an economic objective. In the case of the current measures, the objective being to stimulate the economy by making business investment in assets more attractive, during the pandemic economic downturn. The current temporary full expensing is available through to 30 June 2023. The measure allows business that meet the specific criteria to fully deduct the entire amount of purchases of equipment that also meet the criteria in the financial year of purchase. This represents a much greater tax deduction than would otherwise be available. More deductions means a lower taxable income and less tax payable for that year. The benefit is realised on the books when the EOFY tax return is prepared. Eligibility criteria and additional details recently issued by the ATO can be reviewed at the [ATO website](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/). While there has been a change of government as the result of the federal election, it would not be anticipated that the new Treasurer would wind back this measure. **Selection of Equipment Finance** The criteria in relation to the equipment of key significance is that the equipment must be depreciable. That means the business must retain ownership of the goods. When selecting the type of finance, that point is critical. With [Equipment Lease](/asset-lease), the ownership of the equipment stays with the lender. The borrower makes tax deductible lease payments. However, with [Chattel Mortgage](/chattel-mortgage), the ownership transfers directly to the business from the supplier on settlement of the finance and purchase contracts. This entitles the business to depreciate the goods in line with the ATO rulings at that time. While business owners should always discuss finance selection with their accountant, in general terms, Chattel Mortgage is widely suited to many types of businesses from the smallest to the largest. It is also available through our [No Docs Equipment Loans](/no-docs-low-docs-equipment-finance), Low Docs Equipment Loans for those businesses that require Bad Credit Equipment Finance. **Accessing Fast Chattel Mortgage Equipment Finance** Another key aspect of temporary full expensing is the timing. The tax deduction is available in the financial year that the equipment is acquired. With EOFY fast approaching, those looking to realise that benefit in 2021/22, you only have a matter of weeks to purchase the goods and secure Chattel Mortgage finance. An additional compelling factor to move quickly is the current interest rate scenario. While Chattel Mortgage does offer the lowest rate compared with Lease and Rent to Own, all lending rates are subject to RBA decisions. The RBA moved on rates in May and is set to do so again. So securing equipment finance sooner rather than waiting could be a cost-saving decision. Our Jade Equipment Finance consultants handle the entire loan sourcing, negotiating and securing process for our clients. And we can act quickly. To capitalise on the current tax benefits available on equipment purchases and be ahead of future rate rises, contact us to start the finance application process. **Contact Jade Equipment Finance on 1300 000 003 for Chattel Mortgage equipment finance** *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.* **Categories:** Buying Tips --- ### [New Financial Year Support: Business Finance](https://www.jadeequipmentfinance.com.au/blog/new-financial-year-support-business-finance) **Published:** May 30, 2022 **Author:** Publisher **Content:** 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 - Overdrafts - 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](/overview-of-equipment-loan-products) 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](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/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](/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](/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](/debtor-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](https://www.rba.gov.au/) 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.* **Categories:** Buying Tips --- ### [Updates: New Machinery, Equipment Finance Rates](https://www.jadeequipmentfinance.com.au/blog/updates-new-machinery-equipment-finance-rates) **Published:** June 6, 2022 **Author:** Publisher **Content:** Approaching the end of financial year is a busy time as business operators seek to optimise the tax benefits of acquiring new machinery and equipment before the tax year cut-off*.* As we countdown to the end of financial year, we take a look at what some of the leading manufacturers have in the way of new machinery and what’s happening with equipment finance rates. Acquiring new machinery at [cheap equipment finance rates](/equipment-finance-interest-rates), fixed for the entire finance term can be pivotal to achieving greater productivity from the purchase. In developing new equipment, manufacturers place special focus on upgrading features to allow operators to realise improvements in productivity. But when new machinery is purchased with finance at interest rates and resultant repayments which place pressure on cash flow and don’t work for the business, any productivity gains from that machine may be compromised. Focussing on achieving cheaper interest rate equipment finance for the purchase of the latest machines from top manufacturers can provide the ideal combination to achieve targets, better output and that all-important bounce to the bottom line. **New Caterpillar Loaders** CAT has built on the successes of its M-Series with a new generation, dubbed Next Gen, of wheel loaders – the 908, 907 and 906. These new machines feature reengineering of the operator station for an improved experience for the operator and provide the comfort of a larger machine on a small platform. The new loaders have the C2.8 new engine with an upgrade to the drive and powertrain to deliver increased performance and roading speeds. Also receiving an overhaul are the structures and hydraulics. The cab is pressurised and seal and retain many of the design aspects of previous models. Visibility is optimised with the larger side mirrors. Options include heated mirrors, parabolic lens, rear and front cameras. Operators will also appreciate the increased wiper coverage achieved with the new single-piece windshields. Ergonomics are also improved with seat-mounted controls and a multi-functional joystick to elevate safety. The powertrain upgrade has the new engine which delivers the same power as the previous version but with 13% increase in torque. Along with plenty more detail to check out, these models allow operators to control the implement and to operate attachments simultaneously and seamlessly with the pressure compensated valve. For operators in agriculture, industrial and waste operations, the option CAT 908 high-lift configuration is sure to be of special interest. There are plenty of other new features to [check out](https://www.cat.com/en_AU/products/new/equipment/wheel-loaders.html) on these next gen CATs. Prior to talking to your local CAT dealer, talk to us about pre-approved equipment finance. With finance set and sorted you’ll be ready to place that order and receive your new CAT loader faster. **John Deere News** New from John Deere is a range of [Precision Air Hoe Drills](https://www.deere.com.au/en/news/all-news/p600-precision-air-hoe-drill/) – the P600. What’s on offer? 15.5% increase in working width and 24% reduction in weight, when compared with the P500. This decreases compaction, lowers labour time, reduces consumption of fuel and optimises productivity and seed-to-soil contact. The range includes models with working widths of 12.2m to 27.4m. Each with 25.4cm to 30.5cm spacing, duel knife openers which consistently place the fertiliser to achieve even emergence and provide equal nutrient access. According to Ben Kelly, the manager of this product segment for John Deere, this new range gives small grain operators a comprehensive selection of machinery to meet their specific preferences. He said the focus is on adaptable and flexible solutions in offering wheel, 2-track and 4-track tractors and other machines. For forestry operators, the company recently announced [Smooth Boom Control (SBC)](https://www.deere.com/en/news/all-news/2021apr22-smooth-boom-control/) is now available of its MH Series Harvesters and the M Series Tracked Feller Bunchers. This is now standard on new machines and available as an upgrade on existing models. SBC improves control overall by responding instantaneously to input from the operator while smoothing deceleration and acceleration of hydraulics. Check the specs and check the [interest rates on finance](/equipment-finance-interest-rates) to acquire a new JD for your operation. **June Equipment Finance Rates Update** The May rise by the RBA signalled the start of what could be several months of cash rate increases this year. The central bank is normalising rates after the period of record lows required as pandemic stimulus. As the RBA Board meets this week, another rise is highly anticipated. By how much is more the question that many are pondering. As the RBA moves so do the banks and non-lenders across the lending sectors. Business owners that want to stay ahead of further rises would be wise to move quickly with machinery acquisitions requiring finance. While much is being talked about the rise in interest rates, these increases are coming off the historic low base and are effectively normalising the scenario. Lending rates on equipment finance available through Jade Equipment Finance still remain extremely attractive as we continue to secure better rates across our loan portfolio. For rough repayment estimates on a new John Deere or CAT machine, refer to our [Equipment Finance Calculator](/calculator) or simply contact us for pre-approved finance so you can proceed confidently to place your order. **Contact Jade Equipment Finance on 1300 000 003 for better rates on equipment finance** *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.* **Categories:** Buying Tips --- ### [Would refinancing equipment loans better position your business for the new financial year?](https://www.jadeequipmentfinance.com.au/blog/would-refinancing-equipment-loans-better-position-your-business-for-the-new-financial-year) **Published:** June 6, 2022 **Author:** Publisher **Content:** The end of each financial year can be an opportune time to assess and review the position of a business and consider the options available to move the business forward to achieve key objectives. The past few years have presented significant challenges, a number of which are ongoing such as outcome from the pandemic and the supply chain issues globally. Amongst the options available to businesses that are reviewing their financial situation is refinancing equipment loans. As the Australian economy bounces back from the pandemic era, work opportunities in many sectors including construction and infrastructure appear strong while retail, hospitality and tourism enjoy customers returning and spending. But at the same time, inflation is also surging and the [RBA](https://www.rba.gov.au/) is moving on interest rates. If high overheads especially repayments on equipment finance are hampering the ability of the business to fully realise the situation, business owners can seek our expert assistance for workable solutions. [Refinancing equipment loans](/equipment-refinancing) can be considered as an effective solution to ease cash flow pressures with rising prices especially around fuel and energy costs. New challenges for business continue to emerge and businesses need to be well-positioned with workable equipment loans to accept the opportunities and overcome the obstacles. Refinancing may sound like quite a complicated concept which will take a lot of time and attention. In reality, when handled by your Jade Equipment Finance consultant, the process can be extremely simplified, streamlined and deliver effective outcomes. **Objectives of Refinancing** While we have addressed current cost pressures as a key reason to seek refinancing to reduce repayments and outgoings, it can also be an effective solution to achieve other objectives including:- - Achieve [cheaper interest rate equipment finance](/equipment-finance-interest-rates) than the rate on the existing loan. - Where the business has changed structure, objectives or other operational aspects, a change in the finance product may be called for. - Where ownership of the business that holds the loan and security or title to the equipment has changed and one owner is taking over the equipment finance from departing directors or partners. - Where a Bad Credit Equipment Loan was originally secured at a higher interest rate and now that credit profile has been improved and the business is in a position to achieve a lower rate. - Where the existing equipment finance was arranged with strict conditions which the business seeks to change. - Where a business seeks to change the bank or finance company which currently holds its loans. - As part of a broader-based restructuring of the finances. - Seeking to combine several equipment loans into a single arrangement. **Streamlining the Refinancing Process** The process involves sourcing a completely new finance arrangement to replace the existing loan. The steps to refinance follow similar lines as when seeking the original loan with some variations:- - Businesses can source refinance directly from a bank or lender or engage experts such as [Jade Equipment Finance](/why-jade-equipment-loans) to handle the process. - Refinancing can be requested from the same lender as the existing loan or from a different lender. - Businesses must complete the business finance application. - A payout figure is requested from the existing lender to assess the amount required to be refinanced. - A quote is sourced with the loan amount encompassing the total amount outstanding on the current loan including any residual or balloon, interest and the payout costs. - Payout costs usually apply when a business loan is finalised prior to the end of the finance term. These are typically included in the new loan. - Jade consultants negotiate with our lenders to structure the refinanced loan to best meet the objectives of the business. - If the quote meets the approval of the business, we proceed to process the application and finalise the loan. - Our consultants liaise between the existing and the new lender for a streamlined transfer of the loan. - If the quote achieved does not leave the business better off, it would not be advised to proceed. However, all decisions are up to our customers. - The equipment being financed would be regarded as used goods and as such attract the loan conditions and interest rates applicable. - The full range of different business set-ups can apply for refinancing equipment loans. This includes equipment finance which was originally acquired as a Low Docs or No Docs Equipment Loan or Bad Credit Loan. **Interest Rates and Choice of Loan Type** The refinanced loan may be with the same finance product as the original loan or a [change of product](/overview-of-equipment-loan-products) may be requested. Businesses can select from Chattel Mortgage, Leasing, Commercial Hire Purchase or Rent to Buy. The same features and benefits of the finance product would apply including the option for a balloon or residual. Business owners are advised to refer to their accountant when selecting any finance product. The goods would be treated as used and this may impact the interest rate and loan conditions including the lender accepting the equipment as suitable security against the loan. Refinancing existing assets would not meet the eligibility criteria for IAWO and [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) as these measures relate to new assets to the business. The interest rate offered is established primarily based on the credit profile of the business. With the start of the new financial year just weeks away and further interest rate increases imminent, businesses are urged to move on refinancing plans in order to achieve better, pre-rise interest rates. **To discuss refinancing equipment loan solutions for your business 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.* **Categories:** Buying Tips --- ### [Takeouts for Equipment Finance from RBA June Rate Rise](https://www.jadeequipmentfinance.com.au/blog/takeouts-for-equipment-finance-from-rba-june-rate-rise) **Published:** June 13, 2022 **Author:** Publisher **Content:** The 7 June announcement by the RBA to further raise the cash rate was met with surprise only due to the size of the hike – 0.5%. The general feeling gained from commentators was for a rise of 0.25% with some tipping possibly a 0.4%. A 0.5% rise has only been called five times going back several decades. The RBA decision for a 0.5% cash rate rise places greater emphasis on the need for businesses to delve deeper to acquire the cheapest equipment finance. With costs of living pressures and hikes in energy and fuel costs, business operators will be seeking relief wherever possible, especially in regard to finance costs. The June rise in the cash rate was pre-empted by the Board of the RBA after the May meeting and is a timely reality check for businesses that the period of record low rates is now past. As the RBA Governor Lowe said in the statement accompanying the announcement, further increases are likely to be ahead. **RBA Board Monetary Statement for June 2022** The [June statement](https://www.rba.gov.au/media-releases/2022/mr-22-14.html) provides insights into the Board’s decision making and some indication as to what it sees as uncertainties and certainties in the economic outlook. The statement is worth perusing for businesses seeking to gain a better understanding of what could be ahead in order to plan their major acquisitions and investments. The 0.5% increase raises the cash rate to 0.85%. The statement opens with noting the significant rise in inflation. Noting that while this level is below many advanced economies it is higher than previously expected by the RBA Board. As some analysts have commented, effectively conceding that the May expectations were not correct. The impacts driving inflation are coming from primarily global but also domestic issues. On a global level, the war in Ukraine and the ongoing disruption of many supply chains caused by continuing issues with the pandemic. Locally, the tight labour market plus the constraints in some sectors to operate to capacity along with the fall-out from the recent flood event in the eastern states are seen by the RBA as adding to the inflation surge. Inflation is currently at 5.1% and the Board expects this to go higher before dropping through 2023 to the target levels of around 2% to 3%. Recent fuel price spikes and the high costs of energy and some commodities are also seen as contributing factors to the higher than expected rate. As supply issues resolve on a global basis, inflation is expected to moderate. The Board views the June increase as assisting in returning the inflation rate over time to target. The Board notes the resilience of the Australian economy in the 0.8% growth figures for March and over the year, 3.3%. An upswing in investment by business is underway and there is a lot of work in the construction project pipelines. Unemployment, at its lowest in around 50 years at 3.9% is expected to decrease further. Indicating a strength in the market for labour. Job ads are at high levels. Uncertainty is noted around a number of issues including how consumer spending figures will respond to the pressures on household budgets caused by the surging inflation. The Ukraine situation also creates doubt due to the effect on the prices of energy and commodities. The pandemic situation in China also remains a current uncertain factor. In general terms, as stated in May, the RBA is now proceeding with a stage approach to normalising monetary policy by removing the levels of extraordinary support set up during the pandemic. This means, raising interest rates back to pre-pandemic levels after a sustained period of historic low rates. Of major interest to businesses planning asset acquisitions and investments is the nod from the Board that further steps in this normalisation process will be required. In other words, brace for more rate rises. Exactly when and by how much rates will rise will be dependent on the Board’s assessment of data, especially how inflation is tracking. All eyes will now be on the 5 July RBA meeting as businesses look to the new financial year to continue recouping and recovering. **Equipment Finance Takeouts** The key messages to businesses, as we have said for some months, is to act as soon as possible on acquisitions prior to the next rate rises and utilise available services to ensure you secure the [cheapest interest rate](/equipment-finance-interest-rates) equipment finance. The major banks were quick to pass on the full rate rise to their home mortgage customers. Rate rises by the RBA do flow through to increases in lending interest rates in, fairly much all sectors. Specialist non-bank lenders that are proactive in supporting businesses, may choose to remain highly competitive and keep rates down. Businesses may need to engage a broker such as Jade Equipment Finance to access this specialised area of equipment finance. Businesses with existing fixed rate equipment finance should not see a change in their finance repayments. Those seeking new finance should ensure they acquire a fixed and not a variable rate to ensure against future increases ahead. Businesses can improve their prospects of cheaper rates by ensuring they keep a good credit profile. While rates are on the rise, [our consultants work with customers](/why-jade-equipment-loans) to structure equipment finance to meet affordability targets in regard to repayments. This may involve negotiating for extended finance terms or larger balloon or residual amounts. Both strategies that can result in lower monthly finance payments. Businesses are also encouraged to consider closely the tax benefits available through different finance products. The timing and amount of deductions may contribute to an overall more workable and affordable outcome. **Contact Jade Equipment Finance on 1300 000 003 to discuss achieving affordable and workable equipment finance in a rising rates climate.** *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.* **Categories:** Buying Tips --- ### [Making equipment finance workable and affordable as rates, costs and prices rise](https://www.jadeequipmentfinance.com.au/blog/making-equipment-finance-workable-and-affordable-as-rates-costs-and-prices-rise) **Published:** June 13, 2022 **Author:** Publisher **Content:** Businesses are facing somewhat of a mixed messaging and a mixed fortune time in many sectors. Confusing which may have some delaying decisions around taking on equipment finance to invest in new plant, machinery and equipment. On one hand, we’re told by politicians and the RBA, that the economy is bouncing back well from the pandemic and businesses are recovering. But this great bounce back appears to have created a downside – rising interest rates and surging inflation. Businesses are offered attractive tax benefits for the acquisition of eligible assets but lending rates are creeping up. At the same time, business owners in many sectors are dealing with labour shortages which is restricting their ability to operate to the max. Supply chains are disrupting production and income in many areas and costs of living are skyrocketing as inflation surges. Decisions around whether or not to proceed with equipment acquisitions have become – complicated! For example, on one hand, should the decision to buy be put off until the situation around costs and supply chains improves? Over that time, interest rates could rise and the costs of maintaining that ageing equipment and the loss of productivity represents a lost benefit. Solutions to dealing with a rate and price rising climate can be found by sourcing equipment finance which is affordable and actually works for the business. As specialists in structuring equipment finance to specifically suit individual businesses, we lay out a number of pathways to achieving workable equipment finance to enable a business to invest in the equipment required. **Sourcing Cheapest Interest Rates** The [RBA](https://www.rba.gov.au/media-releases/2022/mr-22-14.html) has now raised interest rates at its last two board meetings and has stated that additional rises are ahead. So record low rates may be history but that doesn’t mean cheaper and better interest rates on equipment finance are an impossibility. In a rising rates climate, the emphasis is squarely on looking more closely at the lending market and options available to you. Changing the way finance has been sourced in the past, not settling on the same old way or same lender the business has used previously. The finance sector in Australia is continuing to grow with new non-bank lenders regularly entering the market. Many of these non-bank lenders specialise in industries or sectors including heavy equipment or machinery finance. Many also do not work directly with businesses but through brokers and broker style lenders such as [Jade Equipment Finance](/why-jade-equipment-loans). Why are we telling you about these lenders? Apart from the fact that we can provide access to many of these lenders, we are also highlighting them because of their tendency to be more flexible. Without the banking status restrictions, they can be more open to negotiating on, you guessed it, interest rates and those all-important loan conditions. So sourcing the [cheapest interest rate](/equipment-finance-interest-rates), which is a real key to cheaper equipment finance, can start with selection of lender and engaging a broker to provide access to finance channels that have not previously been considered. Another key consideration is the [business credit profile](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports). All lenders assess the credit rating of applicants and the better the rating, the lower the interest rate, in general terms. So don’t let those bill payment deadlines slide. **Finance Structure** Interest rate rises are unavoidable – that is in the hands of the RBA. What may be avoidable is settling for unworkable equipment finance. Affordability can be the magic word when it comes to finance and that can come down to the monthly outgoings – the repayments. In an environment where costs of living are pressuring both business and household budgets, reducing regular monthly payments can provide a level of relief. Businesses can start by considering how the finance is structured and by seeking professional assistance through engaging a broker. Lenders will have their individual guidelines around what they will and won’t approve in regard to loan terms and other aspects of the finance. Our consultants however, have access to lenders that will negotiate. The key aspects which can be varied to achieve affordable repayments and where we may be able to assist are:- - Total loan amount: pay a deposit to reduce the amount required to be financed or select a lower priced make or model could be possibilities. - Loan terms: negotiating a longer finance term can reduce the monthly repayments. - Balloon and residual: larger balloons/residuals can reduce the monthly repayments, but there are other issues to consider around this decision. **Finance Product Selection** The selection of [finance product](/overview-of-equipment-loan-products) can be determined by the accounting method used by the business and overall financial objectives. But with rates rising and varying across the range of finance products, now could be the time to have ‘the talk’ with the business accountant. Discuss if it is possible that accounting methods could be changed to make the business set-up more suited to a lower interest rate loan such as Chattel Mortgage. The taxation benefits also vary across finance products. While all business finance products offer tax deductions, some are more attractive. These additional deductions may be factored into the overall cost of the finance and effectively represent a savings or at minimum, a gain in the short-term. For example, opting for a lower rate Chattel Mortgage on the equipment in order to implement temporary full expensing and Loss Carry Back. The tax benefits realised in the current financial year may just be the short-term relief required. Delaying plant, machinery and equipment investments may mean missing out on gains in efficiency which may reduce fuel and energy consumption and costs; improvements in productivity which may be vital where labour shortages exist; and in bottom line profitability with the costs of maintaining obsolete and ageing equipment. Securing workable and affordable equipment finance at better interest rates could be the solution to effectively navigating through the current economic climate. **To discuss refinancing equipment loan solutions for your business 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.* **Categories:** Buying Tips --- ### [Fast Equipment Finance Approvals for Last Minute ‘Tax Time’ Buyers](https://www.jadeequipmentfinance.com.au/blog/fast-equipment-finance-approvals-for-last-minute-tax-time-buyers) **Published:** June 20, 2022 **Author:** Publisher **Content:** With emerging from pandemic restrictions, dealing with ongoing supply chain issues and labour shortages, devastating flood events, surging prices and a change of Government in Canberra for starters, 2022 has already been quite a significant year. For those that have been dealing with other matters and still are yet to upgrade their plant, machinery and equipment – its crunch time. Time to securing equipment finance to make the purchases and realise the relevant tax benefits on offer in this financial year. While there is only a short window of opportunity to source finance and the required equipment to have it operating by 30 June, there is urgency but not the need to panic. Jade Equipment Finance can arrange fast equipment finance with quick appros and settlement while still securing better interest rates. The choice of equipment finance product is critical to the tax benefits to be realised on new machinery purchases in a financial year and prior to 30 June deadline. Securing those all-important tax deductions in this financial year may deliver significant benefits with potential even for a cash refund from the ATO. The last few weeks leading up to June 30 is traditionally an extra busy period for many businesses. Not only in setting up your own EOFY promos and special offers to attract customers, but at the same time sourcing deals to purchase the gear to set your operation up for the financial year ahead. An additional incentive for operators to purchase new equipment this financial year comes in the form of quite lucrative tax measures which are in place for 2021/22 and the prospect of higher lending rates if the purchase is delayed for another few months. The [RBA](https://www.rba.gov.au/) is set to meet on 5 July and the outcome could be yet another significant hike in the cash rate with more to come. A major consideration in sourcing equipment finance at this time will be ensuring the cheapest loan is achieved to support the business through what is shaping up as up to 7% inflation by December and the resultant rises in prices of supplies, energy and operating expenses. Affordable equipment finance repayments will be essential for businesses to achieve productivity and profitability in the times ahead. **Tax Benefits of Equipment Finance** Tax deductions can be realised through most forms of business finance including equipment finance. But the specifics of what is permitted, when the deduction can be claimed and in what form will depend on a number of factors. These include the structure of the business entity, the current rulings by the ATO at a particular time and the type of equipment finance product. For 2021/22 financial year, ATO measures include IAWO and [temporary full expensing](https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing/) as major drawcards for businesses to invest in new equipment. Businesses and the equipment need to meet the criteria for these measures and the appropriate finance product used. Operators need to address the critical decision of choice of finance product so as to maximise the tax deduction benefits while optimising improved productivity and increased profitability. A decision which we highly recommend be made in conjunction with the accountant for the business as many of the aspects of loan types relate to accounting matters. [Equipment finance products](/overview-of-equipment-loan-products) include: - Chattel Mortgage for Equipment, Plant and Machinery - Equipment Leasing - Rent to Own for Equipment - Commercial Hire Purchase for Equipment All our finance products are suited to a wide range of plant, equipment and machinery across many industry sectors. This can include everything from heavy machinery and construction equipment through to agricultural and horticultural machinery, to engineering and manufacturing plants, to delicate medical equipment and the IT and other equipment required by many businesses. The key factors that determine which finance product a business should opt for are primarily:- the method of accounting used by the operation; the strategy for the balance sheet in respect of liabilities and assets; and overall objectives to be achieved over the coming financial period. The major tax measures currently on offer, temporary full expensing and IAWO, allow significant deductions in the financial year that the equipment is acquired. The full equipment purchase price can be deducted in the one year rather than incrementally be depreciated over many years. This can be a major boost to a business by reducing the tax payable for the year. It may also be used in conjunction with Loss Carry Back. This measure allows for losses to be carried back rather than forward and claimed against profits and tax paid in key earlier years. For some businesses, this can result in a cash refund from the ATO. While meeting the eligibility criteria for temporary full expensing is the first consideration, choice of finance product is also relevant. The equipment needs to be a depreciable asset. That means posted on the balance sheet and that comes back to the finance choice. [Chattel Mortgage](/chattel-mortgage) aka Equipment Loan is seen as best-suited. It also offers the lowest rate of interest compared with Leasing and Rent to Buy. Another very important consideration in this current climate of rate hikes. But Jade Equipment Finance arranges all our equipment finance at a fixed interest rate so the rate and the repayments are protected against rises in interest rates over the finance term. Where Chattel Mortgage doesn’t work with the objectives of an entity, both Rent to Buy and Leasing offer tax deductibility of the monthly finance payments. The important issue at the moment is to act quickly to meet 30 June deadlines and to beat any July rate rises by the RBA. Our team is ready to arrange finance quickly while ensuring better interest rates to support your business. **Contact Jade Equipment Finance on 1300 000 003 for fast equipment finance quotes, approvals and settlement.** *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.* **Categories:** Buying Tips --- ### [Data Points to Further Rate Rises – Secure Equipment Loans before the Next Hike](https://www.jadeequipmentfinance.com.au/blog/data-points-to-further-rate-rises-secure-equipment-loans-before-the-next-hike) **Published:** June 20, 2022 **Author:** Publisher **Content:** It’s hard to believe it was only a week ago that we posted an article covering the RBA’s June cash rate decision and the Board’s outlook for the coming period. A number of key economic data has since been released and further information have come to hand since that meeting which have implications for interest rates. Specifically that there are strong signals that additional cash rate rises are coming and business operators should secure equipment loans promptly to avoid lending rate rises. After implementing cash rate cuts to support the economy during the pandemic, the [Reserve Bank](https://www.rba.gov.au/) remained patient through late 2021 as inflation began to surge, waiting until May 2022 to instigate its first rate rise. This followed the long period since November 2020 of extraordinary record low interest rates. The lowest on record. A scenario which made lending extremely accommodative with low lending rates across most forms of loans and finance. The 0.25% May rate rise was followed with the 0.5% rate rise earlier this month as the RBA rolls out what it is referring to as normalising monetary conditions, aka interest rates, and withdraws the support which is no longer seen as required by the economy. While the rate rises were totally expected, the reality of it actually happening, may take a bit for some operators to absorb. But time is of the essence. Business owners looking to acquire new plant, machinery and equipment with finance are urged to act. While we do have access to a vast selection of the lenders in order to source the cheapest interest rates, decisions by the RBA are relevant to all our banks and lenders. The RBA considers a range of economic data when making decisions around interest rate moves. Having a basic understanding of what conditions and data effect those decisions, may assist business owners to make their own decisions around timing of equipment acquisitions. We update on what has happened in the past week which may impact lending rates moving forward and equipment acquisition decisions right now. **May Unemployment Data** The [May unemployment figures](https://www.abs.gov.au/) were released last week and showed the rate steady at 3.9%. This is the lowest rate of unemployment in Australia in 40 years and highlights the tight labour market conditions. While a low unemployment rate is a target for economies, the tight labour market is presenting significant challenges in many sectors. Being unable to fill job vacancies can be limiting a business’ capacity to operate to its full extent. This is an issue which was mentioned in recent RBA statements. Unemployment is one of the major sets of data that the RBA analyses when making its decisions around the cash rate. The low rate with possible further drops ahead, is seen by some as increasing the pressure on the central bank to further lift interest rates. **Inflation Continues Upward** The outlook for inflation has changed in the past week. When releasing the 7 June Board decision, RBA Governor Lowe stated that the rate of inflation was expected to hit 6% towards the end of this year. But days after that statement was released, that 6% was revised upward to 7% in a media interview given by Dr Lowe. Specifically 7% by around December. Surging inflation is the major reason that rates are on the way up. So forecasts for further rises in this key economic indicator and further upgrades, strongly point to another rate rise in July. 7% rate of inflation, if it gets to that, will be something totally new for many Australians as it has not been recorded since the 1990s. Looking to the RBA’s 5 July meeting, some economists are predicting that the rate rise could be another 0.5% or even 0.75%. Cash rate rises flow through the banks and lenders with increased interest rates in their relevant loan markets. **Minimum Wage Increased** The Fair Work Commission brought down its much awaited decision on the minimum wage case last week also. The increase in the vicinity of 5% will be much-appreciated by the workers affected and broadly considered as deserved. From a business perspective the increase does have the potential for further pressure on prices as increase to business costs are translated in higher prices for consumers and customers. This in turn has the chain reaction of fuelling inflation. So more reasons for action by the RBA on rates. **Looking Abroad** Certain events and activities in other economies can also impact what is happening here in Australia. In regard to inflation and cash rate hikes, both the US and the UK are experiencing both. The domestic economy is also impacted by the ongoing disruption in supply chains and the rising costs of freight to get goods into the country. **[Equipment Loans Interest Rates](/equipment-finance-interest-rates) – How we can help** From that massive big picture view, we focus down to what is most important to our customers – interest rates on equipment loans and finance. As we mentioned above, decisions by the RBA are felt through lenders increasing their rates. Rising interest rates places increased importance on businesses to secure the cheapest interest rate finance possible when purchasing new equipment. With equipment finance terms extending over up to 7 years and the loan amounts in many cases substantial, even a small differential in the interest rate can be extremely significant to the bottom line. If you’re wondering how significant, simply use our [Equipment Finance Calculator](/calculator) to find out. Despite all this news about rising interest rates, be assured that Jade Equipment Finance can still assist with our better interest rates commitment. Our specialist equipment lenders in particular are flexible and open to negotiations when it comes to rates and loan conditions. Allowing our consultants the opportunity to source cheaper rated finance for our customers. We also assist our customers by structuring the finance – the term, varying the residual or balloon and negotiating on any specific conditions, to achieve affordable repayments and to ensure the loan works with the business cash flow and achieves a better bottom line. But, we reiterate, business should act as quickly as possible prior to further rate rises to ensure they secure finance at current lower rates. **To discuss workable equipment loan solutions for your business 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.* **Categories:** Buying Tips --- ### [New biz aspirations but don’t meet bank criteria for equipment finance? Options are available](https://www.jadeequipmentfinance.com.au/blog/new-biz-aspirations-but-dont-meet-bank-criteria-for-equipment-finance-options-are-available) **Published:** June 27, 2022 **Author:** Publisher **Content:** The end of one financial year and the start of another is a landmark time in the business calendar. Apart from the busy period of last minute purchases to maximise tax deductions, running EOFY clearances and finalising finances for annual accounts, it is also an opportune time for review. But for some businesses seeking to expand with new machinery purchases with equipment finance or set up a new operation, this can be a challenging period. Reflecting, reviewing and resetting business finance at the start of a new financial year can be an effective strategy to establish a solid operational framework through the next 12 months. It can also be a time when many budding entrepreneurs and aspirational employees branch out to set up their own business operations. For new business aspirants seeking to start new enterprises, challenges may be faced when sourcing equipment finance. Challenges such as not meeting the conditions for loan approval for many banks and some non-bank lenders. But attractive finance options and rates are available for business operators that don’t meet the criteria for machinery and equipment finance as set by many banks. Even for those that are currently formulating their new business plans and are in the very early stages, workable finance for machinery and equipment can be sourced at cost-effective interest rates. You just have to know who to ask. **New Business Loans and Finance: Overview** Sourcing finance involves looking beyond the traditional sources and utilising the professional services and resources available to assist new businesses. Specifically in our case, using our broker-style services and the far-reaching resources we offer, to source the required finance on your behalf. Banks can be limited by their corporate guidelines around lending. Often this relates to the trading period of the business in order to be eligible for business loans. This may be 12 months or 24 month minimum trading period. For new businesses, clearly it is not realistic to consider meeting that criteria. Other criteria may be in regard to the information required to complete a business finance application form. Typically this includes providing details of financials such as the annual accounts, tax returns, BAS returns and profit and loss statements. A business which is in the early stages is not likely to have such financial documentation, referred to in the industry as ‘docs’. To suit business operators in this position, specialist lenders such as Jade Equipment Finance offer [Low Docs and No Doc Equipment Loans](/no-docs-low-docs-equipment-finance). Due to the criteria for this type of finance, it is not usually available through major banks and through some large finance companies. There may be lenders that offer loans effectively to ‘all-comers’ but at exorbitant interest rates. Before even going down that route, speak with us and see what cost-effective solutions we can offer with our Low Doc options. **Low Docs and No Docs Finance** Low Doc and No Doc are a classification of the loan applicant and relate to businesses that have little of none of the financial documentations which is traditionally requested to fully the obligations of a business loan application. Despite not requiring the financials, there are certain requirements such as the business having a current ABN and ID. Any financials that can be provided to support the application may be viewed positively by our lenders and provide reason for the offering a better interest rate. We have accreditation with specialist non-bank lenders that offer this type of finance and can handle the process on behalf of our customers. Each application is handled and assessed on an individual basis and each loan offer may or may not include its own special conditions. These can, in some instances, included the request by our lender for additional security or personal guarantee be provided by the business owner and reducing the total amount of the loan requested. Our consultants will be negotiating hard to achieve the loan terms and conditions that work best for our customer to support the set-up of their new business. **Finance Product Options** When a business owner is approved for Low Docs or No Doc Finance, they may select from the range of asset finance products which are available to other businesses. The equipment finance products include:- - Equipment Lease - [Chattel Mortgage](/chattel-mortgage) - Rent to Own - Commercial Hire Purchase The decision around which of these is best-suited to an individual business will depend on a number of factors especially in regard to accounting matters. Referring to an accountant for advice on this matter is strongly encouraged. **Interest Rates** The [RBA](https://www.rba.gov.au/) is currently in the process of normalising monetary policy through a series of rises in the cash rate. This is flowing through to lending markets including equipment finance lenders. Higher rates mean higher repayments which can place pressure on cash flow. So sourcing the cheapest possible interest rates on finance is even more important. For small and emerging businesses, if the forecasted rate rises have not been factored into the business plan, the need to achieve the cheapest interest rate finance may be further intensified. The good news is that Low Docs and No Docs loans do not, merely by definition, attract higher interest rates. Workable, better rates can be achieved by businesses seeking this type of finance. As the business is yet to establish a trading record it is unlikely to have established a credit rating. Once finance is applied for, a [credit profile](https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports) is established. For small businesses in this situation, the credit rating of the business founder and owner may be assessed and taken into account. The take-out – if you’re planning to start a new business and intend to apply for finance, get your own credit score and profile in the good range as a priority. **Moving Forward** New businesses, regardless of size or industry or the type of equipment being purchased, can use the services of Jade Equipment Finance. You will be assigned your own consultant who will be your personal contact point and handle your requirements. We have an impressive track record and extensive experience in securing affordable equipment finance at better interest rates. So don’t despair if you don’t meet bank loan criteria. Contact us to discuss how we can assist. **Contact Jade Equipment Finance on 1300 000 003 for affordable equipment finance for new businesses.** *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.* **Categories:** Buying Tips --- ### [Upgrading with Machinery Finance to Optimise Qld & NSW State 22/23 Budget Opportunities](https://www.jadeequipmentfinance.com.au/blog/upgrading-with-machinery-finance-to-optimise-qld-nsw-state-22-23-budget-opportunities) **Published:** June 27, 2022 **Author:** Publisher **Content:** With the economy adapting to the post-pandemic conditions – global and domestic inflation, supply chain issues, labour shortages, businesses are no doubt looking for all possible opportunities to increase their profitability and productivity. Opportunities which may be found in the state budgets for 2022/23. But to fully realise the opportunities available through state budget initiatives, businesses may need to secure affordable machinery finance to upgrade equipment. State budgets traditionally include plans for infrastructure projects and other construction plans which offer opportunities for those operating directly and indirectly in those areas. Big infrastructure spends have been a major component of state budgets in the last few years in particular as part of the stimulus measures. For 2022/23, as state governments, just like individuals and businesses, deal with rising interest rates on borrowings, addressing the debt accumulated in providing pandemic support is a priority for treasurers. Despite this situation both the NSW and the Queensland state budgets which were recently announced do offer significant opportunities for a range of business operators. We provide an overview of the budget highlights for business owners to consider if there are opportunities which necessitate upgrading plant, machinery and equipment to take advantage of. **2022/23 [NSW State Budget](https://www.budget.nsw.gov.au/) Highlights** The budget for NSW was delivered by Treasurer Matt Kean and seen by some as a pre-election budget in the lead-up to the March 2023 election. Plenty of spending on, as the Treasurer said, on people. While the media highlighted the delay or postponement of a number of key infrastructure projects in this budget, there is still a lot of construction work included. Schools and police stations as well as projects in the renewable energy sector are noted. Additional spending has been announced for childcare, workforce participation for women, health services, first home buyers and in other areas. Relief for some road users with toll rebates will be seen by many business operators as a true cost savings. In regard to major projects, the Sydney Metro West is included as is the line to the new airport in Sydney’s west and the extension to the southwest of the Metro Northwest line. Projects to be delayed include the Northern Beaches Link and the M6 second stage. Those in agriculture can consider the funds available for upgrades to operations and properties to more sustainable farming practices. The budget covers a broad range of sectors and programs and details can be reviewed at the dedicated website. **2022/23 Qld State Budget Highlights** The Queensland Government also announced its [budget](https://budget.qld.gov.au/) for the 22/23 financial year with Treasurer Cameron Dick highlighting the major drivers. These include increasing the health system capacity; creating more storage for energy as well as developing renewable sources; providing support to businesses both emerging and traditional; and recognising cost-of-living pressure on households and businesses. Highlights of the budget include:- - Made in Queensland continuing to provide support for the manufacturing sector. - Waste Package which provides funding for both industry and local councils to invest in programs an in infrastructure to reduce waste. - Resources Industry Development Plan which aims to fast-track the processing and production of new economy minerals. On the cost saving side for businesses, Treasurer Dick announced a reduction in payroll tax. The threshold is raised to $10.4m from the current $6.5m from the start of 2023 calendar year. There could be plenty more opportunities for your business to investigate in the Queensland state budget. **Machinery Finance Opportunities** While Federal Budgets can include measures which impact business finance by way of tax deductions, the same does not generally result from the announcement of state budgets. Though state-based charges, fees and taxes may impact decisions around taking on finance and may add to or decrease business expenses. The range of finance products available for the acquisition of plant, machinery and equipment include:- - [Equipment Lease](/asset-lease) - Commercial Hire Purchase - [Chattel Mortgage or Equipment Loan](/chattel-mortgage) - Rent to Buy If you identify opportunities in the Queensland or NSW State Budgets for your operations and you would like to upgrade your set-up to be in a great position to capitalise on these situations, start thinking finance. While lending rates across the board are rising in response to RBA decisions, our policy of achieving better interest rates remains unchanged. We are achieving workable and cost-effective rates across our loan portfolio. To get a rough idea of estimated repayments on the machinery you are considering, use our Finance Calculator or our Interest rate comparison calculator. Rates are set to edge up again as early as 5 July at the RBA’s next Board meeting, so getting in asap to avoid the next rise is advisable. **To discuss workable machinery finance for your business 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.* **Categories:** Buying Tips --- ### [ANZ Equipment Finance & Many Other Lenders from a Single Source](https://www.jadeequipmentfinance.com.au/blog/anz-equipment-finance-many-other-lenders-from-a-single-source) **Published:** July 4, 2022 **Author:** Publisher **Content:** When acquiring new equipment one of the major challenges for business owners is finding the time to source the cheapest equipment finance. Identifying lenders that offer the cheapest rates in your industry, making contact, going through the quotation process multiple times and then making sense of the quotes to suss out the best option that suits your requirements. It’s all time-consuming and demanding. The major banks – [CBA](https://www.commbank.com.au/), NAB, Westpac and [ANZ](https://www.anz.com.au/personal/) equipment finance can be easily contactable and competitive in many instances. But in addition to these Big 4 banks is a myriad of other highly competitive non-bank lenders. Many of these non-bank and specialist lenders are not readily available directly to customers but operate through a specially selected group of finance brokers. Imagine the time you could save by having access to a large number of leading equipment finance lenders by just making the one contact. It is possible and many business operators have long realised the benefits of using a finance broker to source their finance requirements. A broker-style lender, Jade Equipment Finance works with and for business owners to solve the time and hassle issues of sourcing the cheapest equipment finance. Access to specialist non-bank lenders and CBA, Westpac, NAB and ANZ equipment finance and expertise to source cheap rates is provided by Jade Equipment Finance. If you’ve never considered the option of using the expert services of a broker-style lender to source your equipment finance, now could be an extremely opportune time to start. Over the past two years interest rates have been at record lows. But as the RBA rolls back the monetary support provided during the pandemic, rates are on the rise. And all those small incremental rises been higher equipment finance rates and higher repayments. All taking another bite out of the bottom line. With further rate rises ahead, now it is more important than ever to achieve the cheapest interest rates on equipment finance and that may be achieved with access to a multitude of lenders through Jade Equipment Finance. **Working with Us** [Jade Equipment Finance](/why-jade-equipment-loans) has accreditation with over 40 banks and lenders. So one call or online contact with us and access to an extensive selection of equipment finance lenders is opened. Working with us is a streamlined and straightforward experience which can reap many rewards. When contacting us with your finance requirements, you will be assigned a fully-trained consultant who will be your single point of contact through the process. After listening to your requirements and taking your brief, your consultant will proceed to source the cheapest quote from across our lender panel. A quote that is negotiated to as close as possible meet your individual requirements. There is no obligation to proceed at this stage. But on approval and acceptance of our quote, your consultant proceeds to process the application and continues through to settlement. We’ll even liaise between our lender and the equipment seller to finalise the purchase. All saving you time, hassles and the frustration which can be associated with sourcing cheaper equipment finance. While we will cover off on many lenders in sourcing finance, if a business has specific reasons for wanting finance through their bank then our consultant can handle that on their behalf. If you CBA, Westpac, NAB or ANZ equipment finance is specifically requested, we will oblige as we are accredited with all four major banks. **Services to Suit all Types of Businesses** All types and sizes of operations can use our broker-style services to secure equipment finance. This includes the smallest micro businesses, SMEs, family operations, partnerships and large corporations. You don’t have to hold an account with a particular bank such as ANZ in order to be eligible to apply to that lender for equipment finance. The banks must adhere to their guidelines regardless of whether the application is from an existing or new customer. Existing customers may save some time as their ID would have already been verified when issuing their customer number. **Complete Portfolio of Equipment Finance Products** ANZ equipment finance along with the other banks and many other lenders including Jade provide a comprehensive range of finance products for the purchase of plant, machinery and equipment. [Our selection includes](/overview-of-equipment-loan-products): - Chattel Mortgage which some banks refer to as Equipment Loan for simplicity - Leasing - Commercial Hire Purchase - Rent to Own **Accessibility to Specialist Finance – Low Docs and No Doc** While major banks including ANZ equipment finance can offer competitive loans for well-established businesses, their guidelines may preclude those just starting out. Some lenders, especially the major banks may include a minimum trading period to be eligible for business finance and the requirement to provide extensive financial documentation. Business just commencing operations or which have only been in business for a short period, may not have all the required financial records. That is another way that working with us is of great benefit. We are accredited with non-bank lenders that offer Low Docs and No Doc Equipment Finance. Cost-effective finance can be sourced at competitive rates for this type of business. **Lender Interest Rate Comparisons** ANZ equipment finance rates and those of other banks can be previewed at their websites. But it should be noted that the best rates advertised typically apply to business operators with a good credit profile and for new goods. It can be challenging or even impossible for business owners to negotiate directly with the large banks in regard to achieving a lower interest rate than offered. The guidelines and regulations that banks operate under must be acknowledged and respected. When applying for finance through Jade, you have the advantage of your consultant having industry level contacts with large lenders and access to non-bank lenders that can be more flexible. Your consultant will negotiate on your behalf, using our extensive bargaining power to achieve the cheapest interest rate. When it’s time for equipment finance, business owners can save time and increase their prospects of cheaper loans by accessing ANZ equipment finance and many other lenders simply by contacting us. **Contact Jade Equipment Finance on 1300 000 003 for quotes on ANZ equipment finance and access to a large choice of other lenders.** *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.* **Categories:** Buying Tips --- ### [Equipment Finance that Supports New Fin Year Targets](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-that-supports-new-fin-year-targets) **Published:** July 4, 2022 **Author:** Publisher **Content:** Effective equipment finance can be the key to businesses unlocking their full potential and realising improvements in productivity, increasing profitability and undertaking larger projects and orders. Financing may be required to acquire new plant, machinery and equipment in order to achieve these objectives. The beginning of the financial year can be an ideal time to seek new finance and re-set the business to take on new opportunities as they present through the coming 12 months. As the economy re-sets post-pandemic and hopefully supply chain issues resolve, new projects and opportunities should arise across many sectors. But challenges and uncertainties will still exist as costs and inflation surge and other conditions emerge. To be workable and support the business rather than be a burden, any finance must be secured at the cheapest interest rates and with terms and repayments that work with cash flow. [Cheap interest rate](/equipment-finance-interest-rates) equipment finance which is structured to meet specific business requirements can be sourced through specialists, Jade Equipment Finance. With lending rates on the rise it is increasingly important for business owners to prioritise how they can achieve the cheapest equipment finance interest rates. Equipment purchases can represent significant investments and finance contracts extend over long periods. Any reduction achieved on the interest rate at the outset, when the finance contract is sourced, can add up over the finance term to significant savings. To achieve these objectives, business owners can consider a range of strategies including:- - Careful selection of bank or non-bank lender. - Selection of equipment finance product to suit the business set-up. - Structuring finance to work with cash flow and deliver desired outcomes. - Securing cheaper interest rates. - Considering benefits to be realised through taxation measures. **Selection of Bank or Non-bank Lender** Finance for equipment acquisitions can be sourced through a range of lenders including the Big 4 major banks, smaller banks, finance companies, manufacturer and dealer finance and specialist non-bank lenders accessed through our broker services. [Banks](https://www.commbank.com.au/) are an important source of financing for many purposes. But in many cases, the banks are constrained by their banking status and guidelines and are not in a position to negotiate on rates, terms and conditions. Dealer finance can be convenient as it is secured at the point of purchase. But likely it is supplied through a large finance corporation and again, with little prospect of negotiations. Our specialist non-bank lenders offer the prospect of flexibility and negotiating on interest rates. They also offer financing that may not be readily available through major banks – [Low Doc and No Doc Equipment Loans](/no-docs-low-docs-equipment-finance). Accessing this sector of the lending market can only be achieved through a broker such as Jade Equipment Finance. Our accreditation with over 40 lenders provides vast choice for our customers. Choice which can result in cheaper rates and more tenable terms and conditions. So if you’ve always just rung the bank for financing, perhaps 2022/23 represents the time for a change-up and a broader consideration of the options available. **Selection of Equipment Finance Product** Business have a number of options when it comes to finance products. The [selection](/overview-of-equipment-loan-products) includes Chattel Mortgage (aka Equipment Loan), Equipment Lease, Rent to Own and Commercial Hire Purchase (CHP). While opting for a finance product which has the lowest interest rate, which is typically Chattel Mortgage, may appear the sensible choice, it may not be the best fit with the business set-up. Each finance product has varying features which will be suited to benefit varying business structures. Referring to the accountant which handles the business’ accounts in assessing suitability of finance product for a business is highly recommended. This can be an important decision with impacts not only in this financial year but over the full term of the finance. **Equipment Finance Structure to Suit the Operation** If the equipment finance is not structured to suit the business, especially in regard to monthly repayments and anticipated cash flow, then it is unlikely to assist the business to achieve performance improvements. Securing the financing structure that supports rather than burdens the business can go back to choice of lender and choice of finance product. Lenders that are flexible in structuring finance may approve a loan amount, balloon or residual or finance term that better suits the business. Business owners can use our Equipment Finance Calculator to establish their preferences for these loan aspects prior to briefing our consultants to negotiate with lenders. **Securing Cheaper Equipment Finance Rates** The 22/23 financial year has commenced in a rising interest rate scenario. The [RBA](https://www.rba.gov.au/) started hiking rates in May and is expected to make further increases to the cash rate through 2022. This means interest rate increases across lending markets. When lending rates were historically low in 2020 and 2021, complacency may have set when sourcing finance. But as those rates creep up, reality is overtaking complacency. Time to focus on ensuring you achieve the cheapest financing rates possible. We secure fixed interest rate financing on equipment loans and that ensures that the repayments will remain unchanged over the full period of the finance term, regardless of RBA decisions. When reviewing what rates are on offer, be aware that the lowest rate will usually be applicable for new equipment purchases and for good credit rated businesses. Buying second hand equipment may attract a higher rate. Keeping your credit rating in a good score range will contribute to being offered better rates. Small businesses especially sole traders may also have their personal credit score included in the loan assessment. Don’t overlook how to improve your credit score to achieve better rates. **Consider Benefits Available through Taxation Measures** Tax deductions represent a reduction in taxable income. Effectively a savings. Take into account the benefits on offer to suit your business. Specifically, the benefits available through temporary full expensing in this financial year. Chattel Mortgage is best suited to this tax measure. Effective financing can be achieved, especially through Jade, to support and assist businesses achieve goals and targets in this financial year. Consider your options closely to ensure you achieve the best outcomes. **To discuss effective equipment finance for 22/23 fin year, 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.* **Categories:** Buying Tips --- ### [Reserve Bank Rate Rise July 2022](https://www.jadeequipmentfinance.com.au/blog/reserve-bank-rate-rise-july-2022) **Published:** July 11, 2022 **Author:** Publisher **Content:** As was expected, July sees yet another interest rate by the Board of the Reserve Bank of Australia to take the cash rate to 1.35%. The Reserve Bank rate rise for July brings makes the cash rate 1.25% higher than the 0.1% historic low which was held from November 2020 to May 2022. The Board has now lifted the cash rate at three consecutive monthly Board meetings and has stated that further rises will be made. The Reserve Bank rate rise in July is part of the bank’s policy to address soaring inflation and will result in increases in equipment finance and other rates. The last three months’ of rate rises is explained by the RBA Governor as normalising its settings for monetary policy and withdrawing the economic support through record low rates provided when the worst scenario was expected in the early stages of the COVID-19 pandemic. Inflation in Australia has soared beyond what the RBA sees as its preferred target of 2-3% and currently sits at 5.1%. Lifting interest rates is utilised by central banks to curb spending and lower inflation. The reasoning for the Board’s monthly decisions on the cash rate are provided in the announcement which is issued on the day of each monthly meeting. Reviewing this statement can be extremely useful for businesses that are considering investing in new equipment with finance in the time ahead. The statement gives an insight into the RBA’s current thinking and its outlook for rates and the economy. **Governor Philip Lowe July Statement** The RBA Board made the decision to increase the cash rate by a further 0.5% at its July meeting. In making this decision, the Board has noted key factors which are continuing to contribute to rises in the rate of inflation in Australia. These factors are both at a local level and a global basis. Notable points from the [July decision](https://www.rba.gov.au/media-releases/2022/mr-22-20.html) include:- - Inflation on a global basis is high and is being further pushed up by issues around supply chains which are primarily attributed to ongoing pandemic problems in some countries. - The Ukraine situation remains and ongoing concern and is contributing to inflation internationally and locally especially through gas pricing. - Demand is strong and pressuring production capacities. - Central banks in many countries are adjusting monetary settings to arrest surging inflation rates. - Adjustments to monetary policy by way of rate rises will require time in order to show a downturn in inflation. - Some other countries are experiencing much higher inflation rates than those being seen in Australia. - In addition to the international issues, a number of factors in the Australian economy are also contributors to surging inflation. - Local factors include strong demand for goods and services coming at a time of a tight labour market which is placing constraints on the ability of some operators to capacity to meet that demand. - The demand-supply scenario places upward pressure on prices. - The flood events of 2022 have had and continue to have an impact on prices which further drive inflation rates. - The Board expects Australia’s inflation rate to rise above the current 5.1% to a peak of around 7% later this year. In 2023 it is expected that the rate will decline and approach the 2-3% target. Reserve Bank rate rises are seen by the Board as assisting the achievement of more sustainable balance in regard to demand and supply. The Board will be closely reviewing the CPI data covering the quarter to end of June which will be available in coming weeks. The Board states that it will release a full set of updates and forecasts in August. Not surprisingly, the July statement repeated a number of points that had been previously mentioned in earlier months. This relate the resilience being seen in the Australian economy, the low rate of unemployment at 3.9% which is created the tightness in the market for labour. Unemployment is expected to fall further in coming months. Wages growth is anticipated as organisations and businesses compete in the jobs market. But uncertainty remains around the spending behaviour of households. Recent data had been quite positive but pressure is being felt on budgets with price and rate rises. The Board states that it will be closely watching the global outlook, in particular the pandemic issues which are created uncertainties in countries such as China. The Board expects that further steps in normalising rates will be required in the months ahead. The Board will be guided by the upcoming release of new data as to the size and the timing of further interest rate rises. The RBA Board next meeting is scheduled for Tuesday 2 August. **Effects on Equipment Finance** Banks and non-bank lenders use the cash rate as their foundation for their own lending rates. Straight after the 5 July RBA announcement, the major banks moved to lift their rates in the housing markets and other markets followed. Some lenders actually moved to raise rates before the announcement, in anticipation of the RBA decision. The focus is now on the RBA’s August decision and whether or not it will be the last rise or if further increases will occur in September or October. The expectations from economists vary from a 0.25% to a 0.75% August rise. For those seeking finance for new equipment, such an increase can mean significantly more in monthly repayments. At a time when price rises in materials and other supplies are pressuring cash flow. Despite this cycle of rising rates, we continue to [maintain our policy](/why-jade-equipment-loans) of sourcing the cheapest equipment finance rates for each customer. Our vast accreditations provide our customers with more choices and more options in sourcing the cheapest rates currently on the market. To allow for rate rises, businesses can look to:- selecting a lower-priced finance product; speaking with us about structuring the finance to achieve target repayments; and utilising available tax benefits. Above all, as we have for some months, we strongly recommend acting on acquisitions earlier rather than later to secure finance prior to the expected future rate rises. **Contact Jade Equipment Finance on 1300 000 003 to secure cheaper equipment finance ahead of the next RBA rate rise.** *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.* **Categories:** Buying Tips --- ### [Is your equipment finance ‘fit for purpose’ in 2022/23?](https://www.jadeequipmentfinance.com.au/blog/is-your-equipment-finance-fit-for-purpose-in-2022-23) **Published:** July 11, 2022 **Author:** Publisher **Content:** 2022 sees quite a different economic environment that the past few years. While the COVID years presented considerable challenges on many fronts, the rebounding phase and resulting surge in inflation has created a new set of circumstances for businesses to confront. Prices for goods and services are soaring which is driving inflation, the [RBA](https://www.rba.gov.au/media-releases/2022/mr-22-20.html) is raising interest rates to curb inflation, the labour market is tight and uncertainties exist around supply issues globally. To address the economic circumstances of 2022/23 especially in regard to inflationary pressures, businesses may look to their equipment finance arrangements. Businesses seeking to overcome current and future challenges may address whether or not their equipment finance is fit for purpose in the 2022/23 environment. We’ve now seen the RBA raise interest rates for the past 3 month rates and Governor Lowe has stated further steps will be required. That is, more rate rises ahead. So delaying acquisitions in the hope that rates will go down is not a realistic scenario. Though the RBA does expect inflation to return to 2-3% in 2023 which should ease price pressures. To address the situation as it exists now, for both businesses with current equipment finance and those intending to acquire new equipment with finance in the near future, options may be available to secure more workable solutions. Reducing repayments to ease pressure, securing cheaper rates on new finance, optimising tax benefits and refinancing may be considered as options. Time to consider whether your approach to sourcing equipment finance and/or your current loans are truly fit for purpose or could do with amending. These are issues which are controllable whereas many of the factors around price rises and other economic conditions are not. We outline the current challenges and how businesses may look to adjusting their financing processes to achieve equipment finance which is specially sourced and structured to suit the current economic climate. **Upward Pressure on Costs** Taking on finance for a business takes in consideration of the existing and anticipated costs being faced. With the start of the new financial year and due to other conditions and scheduled decisions, a number of business costs have been increased. The minimum wage has been increased as a result of the recent decision by the Fair Work Commission. Other award wages are also scheduled for rises over coming months. This may represent an increased wages bill and possibly payroll tax for some businesses. Also adding to the wages bill is the scheduled increase to 10.5% in the superannuation guarantee. This may be an added cost for operators that offer super on top of wages. As we’ve noted in our article on recent decisions by the RBA, there are global and domestic factors which are contributing to the surge in inflation. Factors which are driving up prices both for households and businesses. On the supply side, many operators may be constrained from achieving their target outputs due to problems in acquiring necessary materials. Price increases may drive project costs up in sectors where tenderers must adhere to fixed quoted prices. Causing the business to absorb the price increases and impact profitability. Fuel prices have long been a source of contention and discontent for Australians. While the price at the pump has been partially reduced due to the temporary reduction in the fuel tax, that is due to come to an end in September. Increases in interest rates can have a range of impacts depending on the business and particular it’s finance and lending arrangements. Those with Business Loans and Overdrafts which have a variable interest rate, may be experiencing increases in those areas. To account for rises in some areas, businesses may need to look to reduce other expense to maintain profitability. One of the areas to consider is finance and loans. Reducing outgoings in this area may take the pressure off cash flow. **Adjusting Equipment Finance** There are a number of options to consider to amend or adjust equipment and other business finance to better suit the current economic conditions. The choice of lender can be critical and may be worth reviewing. Interest rates and loan conditions vary across the business lending market and sourcing the cheapest rate or more amenable conditions may be crucial to achieving a workable solution. Opting to engage with [our broker services](/why-jade-equipment-loans) can be of significant assistance in providing access to a wider range of lenders in order to source that cheaper interest rate loan and negotiating on loan conditions. Not all banks and lenders will have the flexibility or the preparedness to negotiate on these aspects direct with customers. Our consultants have the capabilities to know and access the right lenders to achieve the most suitable solution. When sourcing new equipment finance, the monthly repayment will be critical to cash flow, especially in the current inflationary period. A target repayment may be achieved by securing a [cheaper interest rate](/equipment-finance-interest-rates) and/or working with a lender that will negotiate on finance term and balloon/residual to achieve that target. Reviewing the choice of finance product may also result in a better outcome. Interest rates vary across the finance products with Chattel Mortgage attracting a lower rate than say Leasing and Rent-to-Buy. Reducing outgoings may also be achieved by optimising the use of the current tax measures available. These include temporary full expensing and Loss Carry Back. Where existing equipment finance repayments are now putting pressure on the business as costs rise in other areas, refinancing may be an option we can assist with. With inflation predicted to lift to 7% before starting to fall, the remainder of 2022 is looking like being a challenge for many businesses. Reviewing equipment finance now to ensure it is achieving the intended purposes and goals may better position the business to achieve improved profitability into the future. **To discuss reviewing and resetting equipment finance and sourcing new finance and loans 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.* **Categories:** Buying Tips --- ### [Unemployment Rate 50 Year Low – not all good news](https://www.jadeequipmentfinance.com.au/blog/unemployment-rate-50-year-low-not-all-good-news) **Published:** July 18, 2022 **Author:** Publisher **Content:** The [Australian Bureau of Statistics](https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-falls-35) (ABS) released the latest unemployment figures for June 2022 on 14 July and the result was quite a surprise. The unemployment rate dropped to a 50 year low of 3.5% from the May rate of 3.9%. The markets had reportedly been anticipating a drop in the unemployment rate to 3.8% not this record 0.4% fall. The record unemployment rate of 3.5% for June is not all good news as it places pressure on the RBA to lift the cash rate even higher at its 2 August meeting. Unemployment is a major driver for the [RBA’s rate decisions](https://www.rba.gov.au/) and this significant drop of 0.4% has some analysts already predicting a large rate rise for August. While low unemployment levels are a key objective for Government and much aspired to, in the current Australian labour market it may represent bad news for some businesses. Businesses that are already have difficulties in filling job vacancies due to the labour shortage may have even more problems with less people in the job market. The tight labour market has been identified by the RBA as a constraint to businesses operating to full capacity and as such contributing to supply not meeting demand. A major cause of the surging inflation. So a statistic that would often go relatively unnoticed by most business operators has now become definitely something to note especially if making plans to purchase new equipment with finance. **ABS Statement – June Unemployment Rate** The ABS released its usual media statement to announce the June employment statistics. The ABS’ Head of Labour Statistics, Bjorn Jarvis said the 3.5% seasonally adjusted unemployment rate was the lowest since August 1974. In that month the rate was 2.7% and he notes the survey was conducted quarterly. Comparing statistics for women and men, Mr Jarvis notes the current unemployment rate for women at 3.4% is the lowest since the month of February 1974. For men the 3.6% current rate is the lowest since 1976 in May. The ABS advises that this is the eight month of consecutive falls in unemployment and follows the wind back of restrictions following the Delta outbreak in the later part of 2021. Mr Jarvis said that growth in employment is continuing to be quite notably stronger when compared with pre-pandemic figures. There were some variations across the states – NSW down 0.7%, Victoria down 0.5%, Queensland down 0.1% of note with Western Australia actually posting and increase of 0.3%. In a point that will come as no surprise to many businesses and be met with concern is the reduced hours due to illness. Mr Jarvis said this statistic, people unable to work as a result of illness, is continuing at high levels. This corresponds to the June COVID-19 numbers which were large and reflects the ongoing disruption to the workforce from both flu and Omicron. **Impacts for Business** While low unemployment is usually a good sign for an economy, in Australia’s tight labour market it can be a worrying sign. Many businesses are currently unable to operate at their optimum capacity as they cannot source the workers to fill job vacancies. With less people now employed that means less looking for work and lowers the prospects of business filling vacancies. The number of people listed as unemployed is now at the lowest since late 2008. For business operators this may mean engaging in stronger competition to recruit workers and this may involve having to offer higher wages and other incentives. A situation which is already being seen in some sectors such as hospitality. Increased wages add to the business costs and while filling roles enables business to operate at a higher capacity, the increased cost may put pressure on cash flow, especially in the short term. If your business is in this position, we may be able to assist with [Business Overdraft](/business-overdraft) or Business Loan. **Impacts for Interest Rates** This large drop in unemployment has huge significance for interest rates. As mentioned in recent statements, the RBA will be assessing the latest data in making further decisions around rises to the cash rate. General opinion among economists and analysts was for a 0.5% cash rate hike at the RBA’s August meeting. But these latest unemployment figures now have some talking about a possible full 1% hike. We’ve already seen the cash rate increase by 1.25% over the past 3 months which has led to rises across lending markets including for equipment finance. As we have repeated for many months, those considering new plant, machinery and equipment acquisitions with [finance](/overview-of-equipment-loan-products) are strongly advised to move as quickly as possible to avoid higher rates. Some lenders have been moving on their own rates prior to RBA decisions in anticipation of rate rises. As always, Jade Equipment Finance will be sourcing the [cheapest rates](/equipment-finance-interest-rates) from across our vast lender panel and providing access for customers to specialist non-bank equipment lenders. **Contact Jade Equipment Finance on 1300 000 003 to secure cheaper equipment finance ahead of further rate rises.** *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.* **Categories:** Buying Tips --- ### [Equipment Finance Repayment Calculator Assists Asset Investment Planning](https://www.jadeequipmentfinance.com.au/blog/equipment-finance-repayment-calculator-assists-asset-investment-planning) **Published:** July 18, 2022 **Author:** Publisher **Content:** In the current scenario of rising interest rates, having the tools such as an equipment finance repayment calculator to support planning for asset acquisitions can be extremely helpful. The RBA held the cash rate at the record low of 0.1% between November 2020 and May 2022. During this period, it may have been somewhat easier to plan and budget for investment in new assets as there were low prospects of a rate rise. But now we have seen the RBA act to lift the cash rate in three consecutive months by a total of 1.25% and more increases are in store. The largest of the recent rises was 0.5%. A significant amount when lenders increase their rates across their markets. That added interest increases the repayments which can impact cash flow and the total interest payable on the finance which effectively increases the cost of the equipment. With the June unemployment figures revealing a massive drop, the pressure is now on the [RBA](https://www.rba.gov.au/) with some expected that the August rate rise may be as much as 1%. The RBA has indicated more steps will be taken so further rises after August cannot be totally ruled out. Being in a position to factor in all scenarios and contingencies when preparing forward budgets for asset purchases can be extremely helpful for getting the timing and figures right. An [equipment finance repayment calculator](/calculator) allows businesses to prepare budgets and forecasts for purchases based on estimated repayments at different rates. We provide a number of calculators to assist businesses with this task. Optimising their capabilities while appreciating their limitations will result in the most effective and productive use of these finance tools. **Effective Use of Finance Calculator** Our two main finance calculators are the [Interest Rate Comparison Calculator](/equipment-finance-interest-rates) and the Equipment Finance Calculator. The interest rate version shows the current rates for our portfolio of finance products. Users can quickly compare estimated repayments on the same finance amount for different loan products such as Leasing compared with Chattel Mortgage. This may assist with selection of finance product. The finance calculator allows for more individual calculations with balloon/residual and other features. Using a finance calculator is a relatively straightforward and simple process. The finance amount required is entered with the interest rate, preferred finance term and the preferred balloon or residual percentage. When entering the finance total, do not deduct the balloon/residual amount. Include the full amount as the device will allow for the balloon when carrying out the calculations. For planning purposes, business owners can input different interest rates and note the resulting repayments. Note – the calculator has no memory. You will need to record the results in spreadsheets or in notes for future reference. By calculating repayment estimates based on different interest rates, businesses can allow contingencies for future rate rises in their planning. If the asset acquisition is planned for later this year, it would be unrealistic to expect today’s interest rates to be in place at that time, based on RBA indications. **Considerations and Realistic Expectations** Equipment finance calculators are extremely helpful for planning and really, a must-use resource prior to a purchase of plant, machinery or equipment. But the results shown must be taken and used in context and with consideration of how lenders arrive at finance offers and other aspects. - Repayments shown on a calculator are estimates only. - Calculator figures are not finance offers, approvals or quotes. - All typical fees and charges are not included as these can vary with lenders. - Lenders have guidelines around the loan elements they will approve. The loan term and finance amount requested by an individual applicant may not be approved. - Assessment of the credit rating will impact the interest rate and other loan elements. - Advertised interest rates are best offers and the actual rate offered may vary. - Low Docs No Doc Finance may attract additional conditions such as limits on total loan amount and additional security. - Interest rates vary across different industry sectors. - New and used equipment may attract different rates and loan conditions. On the positive side – when preparing asset acquisition budgets, don’t forget to work balancing probable rate rises with increased tax deductions which may be realised in 2022/23. Temporary full expensing and Loss Carry Back are available for eligible businesses and eligible acquisitions and significant tax benefits may be realised. To utilise the accelerated asset depreciation measure of temporary full expensing, Chattel Mortgage is seen as the most suitable form of finance. **Acquiring Specific Equipment Finance Quotes** Finance calculators are extremely helpful in preparing budget estimates, comparing different makes and models of machinery and with other issues around purchasing equipment with finance. But the result generated by a calculator should not be used as definite indication of a finance offer. After or before using a calculator, contact us for a specific finance quote based on your exact requirements. Our consultants will work with you to source the cheapest interest rate quotes for either planning or purchase purposes. **To clarify results generated by a finance calculator contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Buying Tips --- ### [What type of equipment can be financed with equipment loans?](https://www.jadeequipmentfinance.com.au/blog/what-type-of-equipment-can-be-financed-with-equipment-loans) **Published:** July 25, 2022 **Author:** Publisher **Content:** Probably one of the most common queries by business owners seeking finance is around what type of equipment actually qualifies for finance with equipment loans. To some, especially new business owners, the reference to equipment loans or equipment finance may be associated with heavy construction equipment. While that is a very popular and large part of our business, it is certainly not the only area in which we operate. The types of equipment that can be financed by equipment loans through Jade Equipment Finance covers the wide range of plant, machinery and equipment used across industries. Essentially any type of equipment that is used by a business may be eligible for equipment finance. The [ATO](https://www.ato.gov.au/) does of course have guidelines that need to be followed. More information in that respect can be obtained through the ATO or through a discussion with a business accountant. **Eligible Equipment** Equipment finance can be sought for, in general terms, any equipment that is used by a business. That may be heavy construction and earthmoving machines; engineering and production plant; delicate medical and imaging equipment; beauty and hairdressing equipment; gym and fitness equipment; machining and tooling equipment; fitouts and business furniture; and of course the IT and computer equipment used by all businesses. Where a number of pieces of equipment are being acquired, we can discuss whether it is preferable for our customer to set-up individual finance for each item or to group the entire acquisition into the one finance contract. This may simplify the accounts payable process and ease pressure on cash flow. **Are there differences in type of finance?** The same range of [finance products](/overview-of-equipment-loan-products) are available for all equipment purchases. These include Leasing, Rent to Buy, Commercial Hire Purchase and Chattel Mortgage. The decision around which product is best suited to a particular equipment purchase is made primarily around aspects of the business itself. Different finance products suit different business set-ups. The features of each product should be considered against the objectives of the business. The variations include in the approach to the balance sheet, the tax deductible elements, suitability to either the cash or accruals method of accounting and treatment of GST. As our role focuses on sourcing and negotiating finance, we strongly encourage our customers to discuss the choice of finance product with their accountant. The choice may revolve around how long the equipment will be retained, how often upgrades are required and of course the business structure. There may also be variations across the lender market. While most banks and lenders offer a similar range of finance products, some lenders are better-suited to certain industries. We have accreditation with many non-bank lenders including some that tend to specialise in certain sectors such as construction. The best way to start the process and resolve any queries you may have is to simply give us a call and have a no-obligation initial discussion with one of our consultants. **Special Tax Measures** The tax treatment varies with different types of finance and may vary with the equipment being purchased. For example, currently [temporary full expensing](https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Temporary-full-expensing/Eligibility-for-temporary-full-expensing/) and Instant Asset Write-Off is available. In order to utilise these accelerated asset depreciation measures, the equipment being purchased must meet the eligibility criteria as set out by the ATO. **Interest Rate Variations** The interest rate on equipment loans will vary based on the business applicant and may vary across different industries and types of equipment. Banks and lenders set their individual interest rates based on their guidelines and their risk assessment of different sectors. The advertised interest rates by lenders will typically be the cheapest available at that time. The rate offered on a specific equipment purchase in a specific industry to a specific business may vary from the advertised rate. When preparing business plans and budgets, business owners can use our calculators and allow for contingencies to ensure there are no surprises if a higher rate is applicable. Currently the Reserve Bank is raising the cash rate and these increases do flow through to all lender markets including for equipment loans. The next rate rise is expected in early August but some lenders will lift their rates prior to RBA announcements. The current interest rate scenario is quite a changing landscape. Further rate rises are anticipated in several months before the end of this year. Be mindful of this situation when planning purchases with equipment loans later in the year. **Solutions for New Businesses** One area which does vary across equipment loans is finance for new businesses. Many banks and finance companies have business finance eligibility criteria which precludes new businesses. These criteria can include a minimum operating period of 12-24 months and having solid and extensive financial trading records. This information is referred to as documentation or docs by lenders. Businesses without all the docs to complete a business application form need to consider other options. That option comes in the way of [Low Docs and No Doc Equipment Loans](/no-docs-low-docs-equipment-finance). Not offered by all lenders, but offered by Jade Equipment Finance through our specialist non-bank lenders. Extremely cost-effective and workable solutions at very attractive rates can be achieved for many new businesses. **For equipment loans in most industries and businesses contact Jade Equipment Finance on 1300 000 003 for a quote.** *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.* **Categories:** Buying Tips --- ### [Compare Farming Machinery Finance Options](https://www.jadeequipmentfinance.com.au/blog/compare-farming-machinery-finance-options) **Published:** September 11, 2023 **Author:** Publisher **Content:** Agribusiness can present many challenges to operators, especially having sufficient time and possibly easily accessible resources to assess the financing options when purchasing new machinery. We support operators in the agricultural sector with easily accessible resources to compare farming machinery finance options and services to secure loans at the best interest rates. Acquiring new machinery is a major business investment and one that is expected to deliver improved efficiency and productivity, increases in output and yield, reduce operational costs and in many instances, make working the property easier. Selecting the most appropriate loan product can be critical to achieving those objectives. Different asset financing facilities will suit different business setups and structures. There are options to suit operators with a small holding, family properties, large scale operations, SMEs, self-employed operators and trust structures. The decision as to which is most appropriate to the individual business will be determined by considering several factors which include the method of accounting which is used to prepare the accounts; the approach taken to the balance sheet; and the strategy regarding tax deductions. Interest rates are of course integral to the overall cost of the financing and the outlay for the machinery. But the appropriate finance product is even more important to achieving the expected outcomes. ## Farming Machinery Financing Options Operators have a choice of four options when it comes to financing farming equipment. There are variations across these options relating to tax and accounting practices. Some products suit the cash method of accounting and others the accruals method. Referring to the accountant is advised to clarify which method is implemented by the business. The accounting method used by a business can only be changed at the start of a new financial year. Farm machinery Leasing is suited to the accruals accounting method. This is an off-balance sheet financing product where the lender retains ownership of the machine during the lease term and leases the machine to the business. Full use of the machine is with the operator and the operator must meet all expenses related to operating and maintaining the machinery. The tax deductible elements are straightforward in that the monthly repayments are treated as an expense by the ATO and are deductible. Repayments have GST applied and this is claimable on the relevant BAS. A residual can be selected, in line with ATO guidelines, and this can reduce monthly outgoings but is payable at the end of the term. Machinery Rent-to-Own loans have features similar to Leasing but with some variations which result in the interest rate being higher than for Leasing. Chattel Mortgage is a widely-used financing option for farming machinery as many businesses use the cash method of accounting which this option suits. Ownership of the machine is in the hands of the business from settlement. This results in the machine being posted to the business accounts as an asset which is then subject to depreciation. The annual depreciable value is determined by ATO rulings at the time of purchase. This value is the annual tax deduction on the acquisition. The repayments are then not deductible, except for the interest component. The GST charged on the purchase price is claimable immediately, on the relevant next BAS. A balloon component – a percentage of the loan payable at the end of the term, is an option. We can assist operators in structuring the finance with a balloon to deliver the preferred monthly repayment structure. Chattel Mortgage has a lower rate of interest than Leasing and Rent-to-Own. An option that has features that are in line with both Chattel Mortgage and Leasing is Commercial Hire Purchase. This product can be used by businesses that implement either the cash or the accruals method of accounting. Widening the options for many operations. When securing all farming equipment financing, we arrange fixed terms of up to 7 years, fixed interest rates and fixed repayment schedules. No deposit financing is available. To cover additional features to compare farming machinery finance, including options like [Macquarie equipment finance](/macquarie-equipment-finance "macquarie equipment loans"), refer to the individual web pages or contact us to discuss the options regarding the machinery you are purchasing. ## Compare Farming Machinery Finance Interest Rates The [Equipment Loan interest rates](/equipment-finance-interest-rates "Equipment Financing Interest Rates") on loan facilities do vary and there are variations in rates offered by different lenders. With access to specialist lenders, Jade Equipment Finance sources the best rates to enable operators to quickly compare farming machinery finance options. Our quick reference table and calculator allow estimates to be easily calculated to compare finance options and different machines. ## Compare Finance for Types of Machinery and Equipment The selection of financing products can be used to purchase all types of machinery and equipment used in the agriculture and farming industry. That includes new and used, from all leading brands and manufacturers – harvesters, tractors, irrigators, dozers, dairy operations, tillage machines, tech systems and more from CASE IH, [JD](https://www.deere.com.au/en/index.html "Explore Deere"), [New Holland](https://agriculture.newholland.com/apac/en-au "Explore New Holland"), Massey Ferguson and more. Our consultants handle the complete finance sourcing process through to settlement. Providing time-challenged agricultural operators with an efficient, straightforward and extremely smart way to acquire lower rate farming equipment finance. **To compare farming machinery finance quotes, 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.* **Categories:** Buying Tips --- ## Pages ### [Better Equipment loans with Jade](https://www.jadeequipmentfinance.com.au/) **Published:** October 19, 2023 **Author:** Publisher --- ### [Medical Equipment Financing - Veterinary](https://www.jadeequipmentfinance.com.au/veterinary-equipment-loans) **Published:** November 14, 2023 **Author:** Publisher --- ### [Lenders & Banks Information](https://www.jadeequipmentfinance.com.au/lenders-and-banks-information) **Published:** November 16, 2023 **Author:** Publisher --- ### [Testimonials](https://www.jadeequipmentfinance.com.au/testimonials) **Published:** October 31, 2023 **Author:** Publisher --- ### [News & Tips](https://www.jadeequipmentfinance.com.au/blog) **Published:** October 20, 2023 **Author:** Publisher --- ### [Equipment Loan Calculator](https://www.jadeequipmentfinance.com.au/calculator) **Published:** October 23, 2023 **Author:** Publisher --- ### [Quick Equipment Loan Interest Rate Quote](https://www.jadeequipmentfinance.com.au/approval) **Published:** October 23, 2023 **Author:** Publisher --- ### [Bad Credit Equipment Finance](https://www.jadeequipmentfinance.com.au/bad-credit-equipment-finance) **Published:** October 23, 2023 **Author:** Publisher --- ### [Business Overdraft](https://www.jadeequipmentfinance.com.au/business-overdraft) **Published:** November 17, 2023 **Author:** Publisher --- ### [Business Vehicle Finance | Get Quick Commercial Car Loan Approvals](https://www.jadeequipmentfinance.com.au/business-vehicle-finance) **Published:** October 25, 2023 **Author:** Publisher --- ### [Chattel Mortgage - Equipment Finance Loan](https://www.jadeequipmentfinance.com.au/chattel-mortgage) **Published:** October 25, 2023 **Author:** Publisher --- ### [Caterpillar Equipment Loans](https://www.jadeequipmentfinance.com.au/cat-caterpillar-equipment) **Published:** November 13, 2023 **Author:** Publisher --- ### [Catering & Kitchen Equipment Loans](https://www.jadeequipmentfinance.com.au/catering-and-kitchen-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Civil Construction Equipment Finance Loans](https://www.jadeequipmentfinance.com.au/civil-construction-equipment-finance) **Published:** October 23, 2023 **Author:** Publisher --- ### [CBA (CommBank) Equipment Finance](https://www.jadeequipmentfinance.com.au/cba-equipment-finance) **Published:** November 16, 2023 **Author:** Publisher --- ### [Compare Equipment Finance Rates From Over 80+ Lenders](https://www.jadeequipmentfinance.com.au/equipment-finance-interest-rates) **Published:** October 24, 2023 **Author:** Publisher --- ### [Commercial Cargo Trailer Loans - Jade Equipment Finance](https://www.jadeequipmentfinance.com.au/trailer-finance) **Published:** November 8, 2023 **Author:** Publisher --- ### [CNC Machinery Equipment Finance Loans](https://www.jadeequipmentfinance.com.au/cnc-machinery-finance) **Published:** November 13, 2023 **Author:** Publisher --- ### [Computer & IT Equipment Loans | Computational Finance](https://www.jadeequipmentfinance.com.au/computer-and-it-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Concrete Pump Equipment Loans - Construction Finance](https://www.jadeequipmentfinance.com.au/concrete-pump-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Construction Equipment Finance](https://www.jadeequipmentfinance.com.au/construction-equipment-financing) **Published:** November 13, 2023 **Author:** Publisher --- ### [Debtor Finance Facility | Invoice Funding](https://www.jadeequipmentfinance.com.au/debtor-finance) **Published:** November 17, 2023 **Author:** Publisher --- ### [Drilling Equipment Loans](https://www.jadeequipmentfinance.com.au/drilling-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Digger Finance](https://www.jadeequipmentfinance.com.au/digger-finance) **Published:** November 13, 2023 **Author:** Publisher --- ### [Engineering Equipment Loans - Machinery Finance](https://www.jadeequipmentfinance.com.au/engineering-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Equipment Finance Australia](https://www.jadeequipmentfinance.com.au/equipment-finance-australia) **Published:** November 14, 2023 **Author:** Publisher --- ### [Equipment Finance Brisbane](https://www.jadeequipmentfinance.com.au/equipment-finance-brisbane) **Published:** November 14, 2023 **Author:** Publisher --- ### [Equipment Finance Lease | Machinery Leasing](https://www.jadeequipmentfinance.com.au/asset-lease) **Published:** October 25, 2023 **Author:** Publisher --- ### [Equipment Finance Calculator](https://www.jadeequipmentfinance.com.au/finance-calculator) **Published:** November 22, 2023 **Author:** Publisher **Content:** From your computer, laptop, tablet or mobile you can quickly and easily calculate the repayments and other details of a loan on a range of vehicles. Using the calculator is private and confidential, no need for long, time-consuming phone calls with the bank, avoiding those intrusive personal questions just to get a rough idea of what you might be up for by taking out a loan for equipment. The use of this online free calculator is predicated on the end user’s knowledge as well as undertaking that the outcome presented does not specify a loan quote; it does not imply an application for any type of finance has been lodged; it is not an indicator that any kind of finance application has actually been approved. The format of this online calculator does not consider certain information pertaining to any particular individual finance application or any type of lending institution fees and also charges. It is formatted to provide a basic result based on basic info as well as amounts only. After lodging a formal lending application, the quote and also repayment amounts that you might be given might differ from the quote worked out by this online calculator. The device is not ideal for calculations on lending that are established on a rate of interest only basis. The formatting is simply established to compound interest for a chosen amount of time based upon the amounts input by the individual. The calculator is not intended as a tool for financial decision making. Individuals that call for financial advice need to seek a specialist monetary advisor in relation to their circumstances. To make an application for a loan as well as get a quote based upon your personal requirements, the user must call Jade and also have their individual application assessed by one of our Jade specialists. --- ### [Equipment Loans - Commercial Hire Purchase (CHP)](https://www.jadeequipmentfinance.com.au/commercial-hire-purchase) **Published:** October 25, 2023 **Author:** Publisher --- ### [Equipment Finance Sydney](https://www.jadeequipmentfinance.com.au/equipment-finance-sydney) **Published:** November 14, 2023 **Author:** Publisher --- ### [Equipment Finance Melbourne](https://www.jadeequipmentfinance.com.au/equipment-finance-melbourne) **Published:** November 14, 2023 **Author:** Publisher --- ### [Equipment Refinancing](https://www.jadeequipmentfinance.com.au/equipment-refinancing) **Published:** November 17, 2023 **Author:** Publisher --- ### [Equipment Rental Finance - Rent To Own](https://www.jadeequipmentfinance.com.au/equipment-rental-finance) **Published:** November 17, 2023 **Author:** Publisher --- ### [Low Doc & No Doc Equipment Loans](https://www.jadeequipmentfinance.com.au/no-docs-low-docs-equipment-finance) **Published:** November 8, 2023 **Author:** Publisher --- ### [Excavator Finance & Lease](https://www.jadeequipmentfinance.com.au/excavator-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Fit Out Equipment Finance](https://www.jadeequipmentfinance.com.au/fit-out-finance) **Published:** November 14, 2023 **Author:** Publisher --- ### [Medical Finance - Dental Equipment Loans](https://www.jadeequipmentfinance.com.au/dental-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Macquarie Equipment Finance | Commercial Lender](https://www.jadeequipmentfinance.com.au/macquarie-equipment-finance) **Published:** November 16, 2023 **Author:** Publisher --- ### [Mower Loans | Ride-On And Zero Turn Mowers Finance](https://www.jadeequipmentfinance.com.au/lawn-mower-finance) **Published:** October 24, 2023 **Author:** Publisher --- ### [Software Finance - Computer & IT Loans](https://www.jadeequipmentfinance.com.au/software-finance) **Published:** October 23, 2023 **Author:** Publisher --- ### [Pepper Asset Finance](https://www.jadeequipmentfinance.com.au/pepper-asset-finance) **Published:** November 16, 2023 **Author:** Publisher --- ### [Technology Leasing Chattel Mortgage Loans](https://www.jadeequipmentfinance.com.au/technology-equipment-financing) **Published:** November 13, 2023 **Author:** Publisher --- ### [Truck Finance Loans & Leasing Australia](https://www.jadeequipmentfinance.com.au/commercial-truck-financing) **Published:** November 13, 2023 **Author:** Publisher --- ### [Benefits Of Lending With Us](https://www.jadeequipmentfinance.com.au/why-jade-equipment-loans) **Published:** October 20, 2023 **Author:** Publisher **Content:** --- ### [Business Finance And Leasing](https://www.jadeequipmentfinance.com.au/business-finance-and-leasing) **Published:** October 25, 2023 **Author:** Publisher --- ### [Westpac Equipment Finance](https://www.jadeequipmentfinance.com.au/westpac-equipment-finance) **Published:** November 14, 2023 **Author:** Publisher --- ### [Backhoe Financing Loans Leasing & Rentals](https://www.jadeequipmentfinance.com.au/backhoe-financing) **Published:** November 13, 2023 **Author:** Publisher --- ### [Chipper Finance Loans & Leasing](https://www.jadeequipmentfinance.com.au/chipper-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Crane Equipment Finance & Lease](https://www.jadeequipmentfinance.com.au/finance-lease-crane) **Published:** November 13, 2023 **Author:** Publisher --- ### [Aircraft And Aviation Financing](https://www.jadeequipmentfinance.com.au/aircraft-and-aviation-financing) **Published:** November 8, 2023 **Author:** Publisher --- ### [Beauty Equipment Finance Loans & Lease](https://www.jadeequipmentfinance.com.au/beauty-industry-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [BOQ Finance](https://www.jadeequipmentfinance.com.au/boq-finance) **Published:** November 16, 2023 **Author:** Publisher --- ### [Contact Us](https://www.jadeequipmentfinance.com.au/contact-us) **Published:** October 25, 2023 **Author:** Publisher --- ### [Bobcat Equipment Finance Loans & Leasing](https://www.jadeequipmentfinance.com.au/bobcat-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Equipment Loans Finance & Lease Australia](https://www.jadeequipmentfinance.com.au/australia) **Published:** November 24, 2023 **Author:** Publisher --- ### [Earth Moving Equipment Finance & Leasing](https://www.jadeequipmentfinance.com.au/earth-moving-equipment-loans) **Published:** October 23, 2023 **Author:** Publisher --- ### [Farm Machinery And Agriculture Equipment Loans](https://www.jadeequipmentfinance.com.au/farm-machinery-and-agricultural-equipment-loans) **Published:** October 23, 2023 **Author:** Publisher --- ### [Equipment Finance Loans & Lease Perth](https://www.jadeequipmentfinance.com.au/equipment-finance-perth) **Published:** November 14, 2023 **Author:** Publisher --- ### [Forklift Lease Finance](https://www.jadeequipmentfinance.com.au/forklift-lease) **Published:** November 13, 2023 **Author:** Publisher --- ### [Fitness & Gym Equipment Financing](https://www.jadeequipmentfinance.com.au/gym-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Generator Financing - Machinery Loans](https://www.jadeequipmentfinance.com.au/generator-financing) **Published:** November 14, 2023 **Author:** Publisher --- ### [Heavy Machinery Loans](https://www.jadeequipmentfinance.com.au/heavy-machinery-loans) **Published:** October 20, 2023 **Author:** Publisher --- ### [Harvester Loans - Farm Machinery Finance](https://www.jadeequipmentfinance.com.au/harvester-loans) **Published:** November 14, 2023 **Author:** Publisher --- ### [Industrial Equipment Finance](https://www.jadeequipmentfinance.com.au/industrial-equipment-finance) **Published:** November 8, 2023 **Author:** Publisher --- ### [Insurance Premium Funding | Unsecured Business Loans](https://www.jadeequipmentfinance.com.au/insurance-premium-funding) **Published:** November 17, 2023 **Author:** Publisher --- ### [Equipment Financing Leasing - Laundry Equipment](https://www.jadeequipmentfinance.com.au/laundry-equipment-leasing) **Published:** November 14, 2023 **Author:** Publisher --- ### [Logging Equipment Lease & Asset Finance](https://www.jadeequipmentfinance.com.au/logging-equipment-finance) **Published:** November 13, 2023 **Author:** Publisher --- ### [Equipment Funding - Manufacturing Equipment Finance](https://www.jadeequipmentfinance.com.au/manufacturing-equipment-loans) **Published:** October 31, 2023 **Author:** Publisher --- ### [Medical Equipment Loans - Medical Finance](https://www.jadeequipmentfinance.com.au/medical-equipment-loans) **Published:** November 8, 2023 **Author:** Publisher --- ### [Machinery Finance](https://www.jadeequipmentfinance.com.au/machinery-finance) **Published:** November 13, 2023 **Author:** Publisher --- ### [Mining Equipment Loans - Heavy Equipment Finance](https://www.jadeequipmentfinance.com.au/mining-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [NAB Equipment Finance](https://www.jadeequipmentfinance.com.au/nab-equipment-finance) **Published:** November 16, 2023 **Author:** Publisher --- ### [No Deposit Equipment Finance](https://www.jadeequipmentfinance.com.au/no-deposit-equipment-loan) **Published:** November 17, 2023 **Author:** Publisher --- ### [Overview of Equipment Loan Products](https://www.jadeequipmentfinance.com.au/overview-of-equipment-loan-products) **Published:** October 25, 2023 **Author:** Publisher --- ### [Office Equipment Finance Leasing & Rentals](https://www.jadeequipmentfinance.com.au/office-equipment-loans) **Published:** November 14, 2023 **Author:** Publisher --- ### [Lease Office Equipment - Photocopier Rentals & Loans](https://www.jadeequipmentfinance.com.au/photocopier-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Equipment Loans - Printing Equipment Finance](https://www.jadeequipmentfinance.com.au/printing-equipment-finance) **Published:** November 14, 2023 **Author:** Publisher --- ### [Equipment Loans - Riding Mower Financing](https://www.jadeequipmentfinance.com.au/riding-mower-financing) **Published:** November 13, 2023 **Author:** Publisher --- ### [Commercial Equipment Financing - Sheet Metal Machinery](https://www.jadeequipmentfinance.com.au/sheet-metal-equipment-loans) **Published:** November 14, 2023 **Author:** Publisher --- ### [Tractor Loans - Farm Equipment Financing](https://www.jadeequipmentfinance.com.au/tractor-loans) **Published:** November 14, 2023 **Author:** Publisher --- ### [Transport Equipment Finance](https://www.jadeequipmentfinance.com.au/transport-equipment-finance) **Published:** October 25, 2023 **Author:** Publisher --- ### [Equipment Financing - Tree Care & Arborist Machinery](https://www.jadeequipmentfinance.com.au/tree-care-and-arborist-services-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Unsecured Business Loans | Finance Broker](https://www.jadeequipmentfinance.com.au/unsecured-business-loans) **Published:** November 17, 2023 **Author:** Publisher --- ### [Machinery Loan - Waste & Recycling Equipment Finance](https://www.jadeequipmentfinance.com.au/waste-and-recycling-equipment-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Finance For Machinery - Woodworking Equipment](https://www.jadeequipmentfinance.com.au/woodworking-equipment-loans) **Published:** November 14, 2023 **Author:** Publisher --- ### [Bulldozer Equipment Finance Loans & Leasing](https://www.jadeequipmentfinance.com.au/bulldozer-loans) **Published:** November 13, 2023 **Author:** Publisher --- ### [Better Rates, Better Loans](https://www.jadeequipmentfinance.com.au/quick-quote) **Published:** November 22, 2023 **Author:** Publisher --- ### [ANZ Equipment Finance](https://www.jadeequipmentfinance.com.au/anz-equipment-finance) **Published:** November 16, 2023 **Author:** Publisher --- ### [Privacy Policy](https://www.jadeequipmentfinance.com.au/privacy-policy) **Published:** October 25, 2023 **Author:** Publisher --- ### [FAQs](https://www.jadeequipmentfinance.com.au/faq) **Published:** October 25, 2023 **Author:** Publisher --- ### [Use A Equipment Finance Broker For Your Machinery Loans](https://www.jadeequipmentfinance.com.au/broker) **Published:** October 23, 2023 **Author:** Publisher --- ### [Scholarships Support for Tertiary Students](https://www.jadeequipmentfinance.com.au/scholarship) **Published:** October 25, 2023 **Author:** Publisher **Content:** With the expenses associated with studies soaring, many students will be seeking support from scholarships to assist with covering their costs. While there are a range of scholarships available, many have criteria which exclude some students from applying. They may be awarded based on financial need, student categories and other criteria. Jade Equipment Finance in conjunction with Jade Finance Australia is offering an approach to tertiary scholarships which focuses on generating ideas and conversations. **Jade Finance Australia is offering scholarships for tertiary students to nurture new ideas and thinking around the finance and lending sector in Australia**. The scholarship will be awarded for the most outstanding response in writing, as deemed by the judging panel, around the theme of innovations and insights into the finance, business and lending sector in Australia. Applicants are encouraged to express their own ideas and opinions by selecting their own issue or topic to discuss. There are no strict limits or boundaries to what can be explored in the submission, except it must have relevance to finance and lending. Applicants may be studying a wide range of courses and be interested in expressing their views in applying. Applications are open to students in all fields of tertiary studies at recognised Australia institutions for higher education at a tertiary level. As Jade Equipment Finance provides[ finance for equipment across many industry sectors](/heavy-machinery-loans) our article readers can span a vast cross-sector of Australian business. Giving rise to contacts with students across multiple faculties, fields of study and courses. The scholarship is a very generous $5,000 award to further the studies of the winner. This is a great opportunity, so if you know someone who meets the criteria, we welcome you sharing this information and the link for applications. **Scholarship Specifics** Applicants can source all the information on the terms and criteria for entry to the Jade Finance Tertiary Studies Scholarship by following this link. Here are main details for consideration:- - Open to students in tertiary full-time and in part-time courses. - Studies must be being undertaking at a recognised institution in Australia for tertiary study or higher education. - Studies may be in any faculty or field. - One year of study must be completed and the student must be currently enrolled in the course. - The application must include a written submission of 800 words with content as stipulated. - The written submission should be related to the area of lending finance but can be of the topic or theme of the applicant’s choosing. - The written work must be the applicant’s original composition. - The scholarship is an amount of up to $5000 which will be deposited into the winner’s bank account. - The funds are provided for expenses related to the studies. - Deadline for applications is July 18, 2023. Winner decided by July 31, 2023 **Written Submission Ideas** We are leaving the topic, issue and approach of the written response as open as possible to encourage and nurture innovative and original thinking. As our customers come from many areas of Australian business – manufacturing, construction, medical, professions, farming and agricultural and many others, the ideas from students that they connect with re this opportunity will also be extremely varies. Those studying areas of technology may take that approach. Employing new technologies and embracing greater connectivity with customers is a major focus for the finance sector. Jade Finance was at the forefront of digital and online services, starting online loans services many years prior to mainstream take-up. So this may be an area where students can see potential for advancement. Political studies students may address the regulation and legislation side of this area of finance. Australian lenders must adhere to guidelines for [consumer finance](http://www.asic.gov.au) but the business finance sector is less regulated. Governments and central banks including Australia’s [RBA](http://www.rba.gov.au) play a critical role in the impact on finance of fiscal policy and monetary policy decisions. These [determine interest rates](/equipment-finance-interest-rates) which are achieved by lenders such as Jade Equipment Finance as well as tax deductions which can be realised. A review of current policies and settings may provide inspiration for new ways that this could be approached. Students in engineering and trade courses may take a more practical point of view to their written response content. Possibly addressing how the lending sector can better serve certain business sectors and types of businesses. There has been a significant increase in the number of small businesses starting up and some sectors such as building and construction is suited to sole traders and contractors. But these SMEs can face obstacles when requiring finance. The impact of global events on the Australian economy has been especially highlighted in recent times. This may also present a great topic to cover. Climate change is arguably the greatest challenge of the contemporary era and has a bearing and relevance across many sectors. Students may choose to write a piece on how lenders can better place climate change as a key focus in their business plan and approach. **Apply Now** Applications are now open and run through to July 2023. Please share this opportunity with students, friends, course providers and others to ensure as many as possible have the chance to submit an application. **Jade Equipment Finance expands its support for business with cheaper equipment finance to supporting tertiary students** *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.* --- ### [Equipment Loans Australia](https://www.jadeequipmentfinance.com.au/equipment-loans-australia) **Published:** November 14, 2023 **Author:** Publisher --- ### [Machinery We Finance](https://www.jadeequipmentfinance.com.au/equipment-we-finance) **Published:** November 14, 2023 **Author:** Publisher --- ## Categories ### [Uncategorised](https://www.jadeequipmentfinance.com.au/blog/category/uncategorised) **Description:** Discover a mix of equipment finance insights and updates that don’t fit into our main categories. --- ### [Buying Tips](https://www.jadeequipmentfinance.com.au/blog/category/buying-tips) **Description:** Explore advice on financing equipment, comparing options, and making smarter buying decisions. --- ### [Finance](https://www.jadeequipmentfinance.com.au/blog/category/finance) **Description:** Find out how equipment finance options can make it easier for your business to upgrade, replace, or expand. ---