The threat of hackers, cybercrime and system breaches is a major concern for businesses. While these events have been happening for some time, the issue came to greater prominence in Australia recently with the data breaches to two well-known, large organisations. The Government and security organisations have increased their alerts to both individuals and businesses as a result. For business owners, recent data breach events in Australia may highlight the need for finance to upgrade IT and security systems and other computer operations. Individuals and businesses looking to strengthen their systems and protect themselves can utilises the information, tools and resources available at the Australian Cyber Security Centre for a start.
Upgrading computer-based systems may be a preventative measure against the threat of such attacks, but the step can also represent an astute business decision. Newer, more advanced systems can deliver improved productivity, expand capabilities within the operation and open new market segments. With the labour shortage currently being experienced in Australia, increasing the IT capabilities of an operation may assist with any staff shortages also.
The outcomes of hacking and data breach attacks can be extremely serious and have long-term repercussions for a business. They can include the cost, time and inconvenience of recovering intellectual property and data, a loss of trade, damage to the business reputation and potentially loss of customers. So the decision to strengthen systems makes good business sense on many fronts.
While a great business decision, replacing or upgrading IT can be a considered investment with a significant cost involved. A cost which may require affordable finance which is tailored to meet the needs of the business and work with cash flow. Jade Finance can assist businesses in this regard with workable finance to upgrade IT and other computer-based systems.
The timing may be spot-on for strengthening systems with new IT from both the point of view of potential threats and in regard to finance. Further interest rate rises have been indicated will be required by the RBA so taking on finance at current rates rather than deferring the move may represent a savings. In addition, the equipment acquisition may be eligible for the tax benefits available through temporary full expensing.
To assist with the decision-making process, we will work through the options we can offer for finance to upgrade IT, security and computer-based systems.
Systems Finance
Upgrading systems of this nature typically involve the purchase of both hardware and software. Additional expenses are also usually required to have the systems professionally installed, tested, in some cases commissioned and training may also be required. These separate items may be purchased from the same supplier or different suppliers, at the same time or at different times.
Whatever is required, we can work with the business to arrange suitable finance. We offer asset finance for equipment and other business loans for non-asset acquisitions. Where items for the system are acquired from the same supplier under the one invoice, the entire purchase price may be included in the same finance arrangement. Streamlining finance payments and potentially saving the business from needed to use existing funds to pay for some items.
Business operators are welcome to have an initial discussion with one of our consultants about their specific acquisition in regard to how best to finance the entire installation.
Finance Options
The purchase of the hardware component of the acquisition and possibly the software, may be financed through asset acquisition aka equipment finance products.
These finance products include:-
- Lease
- Chattel Mortgage
- Commercial Hire Purchase
- Rent-to-Buy
Due to the variations across the selection and the suitability to different methods of accounting and business structures, owners are advised to refer to the business’ accountant for direction on which would best suit their business and their objectives.
When purchasing computer and IT systems that need to be replaced more frequently than some other types of equipment, many businesses lean towards Leasing as a more flexible option. Chattel Mortgage is a very versatile form of finance which is used for a wide range of business equipment and vehicle purchases and suits many businesses.
An added benefit of Chattel Mortgage in this financial year is its suitability for temporary full expensing. This is an accelerated asset depreciation measure which offers very attractive additional tax deductions but is only available until the end of this financial year.
For the other expenses associated with a systems upgrade such as technical services to install and commission the systems and training costs, a Secured or Unsecured Business Loan or Business Overdraft may be suitable finance. We work with individual businesses to structure the overall finance package to suit the specific requirements and negotiate with our lenders for the cheapest interest rates and most workable loan terms.
To assist with initial budgeting and to compare finance on quotes from different IT suppliers, please take advantage of our equipment finance calculator or simply talk to us for a finance quote.
Contact Jade Finance 1300 000 008 for finance to upgrade IT and other computer-based systems.
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.
