With now six cash rate rises in six months, a Federal Budget about to be released which looks like being a tough one, the RBA indicating uncertainties on both a global and a domestic front and the Treasurer saying the chance of a global recession is now probable, it may be time for many operators to assess their business finance arrangements. Assess, analyse and review to ensure that the business finance currently in place will support the business if the worst-case scenario does play out.
When interest rates were at their historic low levels, taking on finance posed a very appealing and sensible solution for many businesses. But as inflation has started to soar, supply chains continue to be disrupted and costs soar, those commercial loans may be started to place pressures on the business.
Whether the personal opinion of the recession talk is considered scaremongering, far-fetched or very real, businesses may choose to err on the side of caution and undertake an assessment of their commercial finance.
Assessing business finance and commercial loans to ensure the business is well-supported if economic conditions worsen can include discussions with Jade Finance. Our consultants can assist business owners with an extensive range of solutions which can be individually curated to suit specific needs and specific business set-ups.
Support and Solutions
As broker-style lenders with specialist expertise in business finance, Jade Finance provides a very personalised and comprehensive service. Each customer is assigned their own trained consultant to handle their individual requirements.
With our multiple lender accreditations, we open access to lender channels with non-bank lenders as well as negotiating with the major banks to ensure the cheapest interest rate finance is sourced. Each finance deal is negotiated to achieve as best outcome as possible to suit the loan structure preferred by the business. This may be in regard to the term of the loan, the loan amount and particularly any conditions attached to the finance.
Unlike some lenders, we assist businesses with credit issues with bad credit finance options and low doc and no doc solutions for new operators.
Targeted Solutions
When assessing the overall business finance situation, business owners may identify areas which represent specific pain points and place pressure on cash flow either ongoing or at different times of the trading year. Some of these pain points can be addressed with targeted commercial finance solutions.
Large insurance premiums can be one such issue which businesses struggle with. When a large premium is due to be paid in total by a specific date it can pose a problem. Insurance Premium Funding directly addresses that issue by spreading the premium over several payments.
A major problem for many businesses is getting paid by their customers in a timely manner. Despite electronic payments the norm, many large businesses still have long payment times for suppliers. Not receiving payment for invoices within a reasonable timeframe can result in awkward situations. The business may not want to put pressure on their customer for payment and risk the customer taking their business elsewhere.
Debtor Invoice Funding is especially designed to deal with these situations. Removing any awkwardness and allowing businesses to receive payment for invoices through a financing arrangement.
Commercial Loans
General finance support is available through both short-term and longer-term finance solutions. Our consultants will discuss the specific requirements with each customer and tailor the finance to suit. Secured and Unsecured Business Loans are extremely flexible in being suitable for a range of business expenditure and non-asset purchases.
For cash flow shortages, Business Overdrafts are the go-to solution and can be structured on an ongoing basis or to plug short-term shortfalls. While banks are traditionally seen as the source of overdrafts, we offer overdrafts through a range of non-bank lenders which may be a more favourable alternative.
New Asset Acquisition Finance
If the individual outlook for the economy and the business is more positive than some of the current conversations, now could be the time to invest in new machinery, equipment, plant, tucks and vehicles. Further interest rate increases have already been indicated by the RBA, so securing finance at the current rates could result in a significant benefit.
Leasing, Rent to Buy, Commercial Hire Purchase and Chattel Mortgage are available for new asset acquisitions. Interest rates and loan conditions may vary between used and new goods and for different types of equipment in different industries, so contact us for a quick quote to assist budgeting.
Acting now may also present other advantages in utilising the tax benefits available through temporary full expensing. This is available until 30 June 2023 for eligible businesses but waiting a few more months may result in higher interest rates.
Refinancing is also an option which may be a solution for some issues.
One, some or all of these options can be considered when conducting an overall assessment of current commercial finance arrangements. Your Jade Finance consultant will work with you and our lenders to deliver a cost-effective, cheaper interest rate solution.
Contact Jade Finance 1300 000 008 for workable, cost-effective commercial loan solutions.
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.
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