Despite the Australian economy reportedly, and in the economic figures, recovering well from the coronavirus pandemic, business continues to operate under challenging conditions in many industries. The pressures and impacts are being generated from both local domestic economic and weather events as well as a result of events happening in the global sphere. Business finance solutions are available to assist operations of all types to weather the impacts faced by the current economic and environment conditions.
Inflation has been surging as the recovery is underway and at a rate much faster than the RBA had anticipated. This is being felt at the petrol pump, at the supermarket checkout and for businesses in the cost of supplies and materials.
Rising costs can lead to overruns on quoted pricings which may not be possible or practicable to pass on to the customer. Increases that just need to be borne by the business and cut into the bottom line.
Materials and supplies shortages have emerged as a major problem in many industries especially in construction. Some of these shortages relate to global issues. The computer chip shortage is continuing to cause delays in production of some parts in overseas factories. In other sectors, it is a result of high demand outstripping availability.
Shortages can lead to delays in progress on many projects and in production of many goods. This can mean delays in progress payments or in payment for goods as the goods are unable to be delivered. An issue which can put pressure on business cash flow.
Delays are also occurring as a result of the floods and continuous heavy rainfall along much of the east coast and inland parts of Queensland and NSW. Access is cut off due to road damage meaning materials and supplies may be delayed and the weather is also not permitting work to continue on some sites. Delays in getting work out the door, orders distributed or construction projects to the next stage can be financially damaging to a business.
Labour shortages have been plaguing particularly the hospitality sector for some time. Not having sufficient staff to operate at peak levels can lead to a downturn in production and productivity leaving a shortfall in turnover.
The Federal Budget is tipped to offer some financial benefits and relief to both consumers and businesses. But in many cases it is up to the business owner to seek solutions before issues escalate to a position of being of serious concern. By this we mean downgrading of the credit rating which can make future loan applications more challenging and potentially more expensive.
Jade Finance fully appreciates the challenges being faced by Australian businesses and offers an extremely comprehensive selection of business finance solutions. Solutions which are tailored and individually structured to meet the specific requirements of the business.
Business Finance Interest Rates
When considering a financial solution it is worth understanding the interest rate scenario. Interest is the major cost of taking on finance and securing the cheapest interest rate is critical to achieving a cost-effective solution.
The official cash rate as set by the RBA remains at the historic low of 0.1%. But with inflation surging and unemployment continuing to fall, the markets and analysts strongly tip that the RBA will move to raise rates this year. The CBA tipped as early as June.
So the key messaging is – if you are considering a finance solution to an existing or potential business issues, it could be wise to act sooner rather than holding off to secure the cheapest interest rates.
Business Finance Solutions
There are a number of business finance facilities available to suit different business needs. Solutions can be selected to address short-term problems or to tackle more long-term or deep-rooted issues within the business. Finance solutions can also support businesses to invest to grow their business and in so doing overcome current problems.
- Business Loans: Secured and Unsecured Business Loans are versatile options which can be used to invest in new systems and processes or other initiatives which would not be considered as asset acquisitions. Terms are negotiable and tailored to suit specific needs.
- Business Overdraft: A flexible option which is widely used by businesses of all sizes to deal with cash flow shortages on either an intermittent or short-term basis. The advantage of this type of finance over say a business loan, is that the business only uses the funds as required. So interest is only payable on the amount used and only for the time used.
- Refinancing: If there are deep-rooted issues to be addressed then a general assessment with a view to refinancing may be advisable. This may cover refinancing existing equipment and machinery loans, bundling a number of finance contracts into one to streamline the repayments obligations or seeking a lower interest rate or lower repayment loan to ease cash flow pressures.
Due to the varying nature of these and our other business finance products, the interest rate is different for different loan types. These can be reviewed on our chart and repayment estimates obtained using the calculator function.
When engaging Jade Finance to assist in addressing the issues faced by your business with a finance solution, you receive extensive expertise in tailoring the solution with the cheapest rate and to specifically address the purpose.
Contact Jade Finance 1300 000 008 to discuss business finance solutions for your operation
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.