With the national double dose vaccination rate reaching the important 70% target and several states already closing in on or exceeding the 80% double does rate, the pandemic focus has shifted to reopening the economy. Restrictions are being lifted, roadmaps to recovery have been launched and both businesses and individuals are navigating this, somewhat complex, new scenario.
Much of the commentary and forecasts are expecting the economy to bounce back quickly and some saying to pre-COVID levels. In the RBA’s October Monetary Policy Statement, RBA Governor Philip Lowe states that the setback caused by the Delta outbreak is expected to be temporary. However, he also notes that there is uncertainty around the timing and the pace of the bounce back and expects it will be slower than that experienced earlier in 2021.
While many are talking-up the reopening and recovery prospects, the situation is not even across the economy as also noted by Dr Lowe. Some industries and businesses have been especially hard-hit while others have continued strong growth and performance.
As business finance lenders, we are well aware that the recovery and resurgence journey will vary depending on the circumstances faced by individual businesses. While the Federal Government supported individuals during the so-called Delta outbreak and contributed along with some states for business support, that support was not as extensive as the 2020 pandemic support packages. The outcome likely to leave some business owners with a lot of catching up to do to get back on track.
Jade Finance recognises that businesses will have a range of finance requirements in this recovery phase and offer low interest rate finance solutions to suit specific purposes.
Range of Business Finance Support Available
- One of the key shifts that many businesses have had to and continue to have to contend with as a result of this pandemic is the totemic shift in operations. Adapting and changing how they conduct business and how their run their operations to meet the new workplace restrictions and consumer buying habits.
- Changing up procedures and processes can involve a significant investment in plant, vehicles and equipment. For that purpose we offer our asset acquisition finance products: Chattel Mortgage, Commercial Hire Purchase, Leasing and Rent to Own.
- Global supply chain issues have been a challenge and obstacle for businesses for most of last year and through this year and in some sectors, that may continue for a while. For businesses that require funding to source alternatives or face delays in receiving stock, Secured and Unsecured Business Loans may be solutions.
- Labour and skills shortages have been identified as a major issue in several sectors such as agriculture and hospitality. Businesses face challenges in taking full advantage of reopening and lifting of restrictions as they simply don’t have the staff. As plenty of businesses are quoted as reporting already – they have plenty of customers but not enough staff to serve them or create the products to supply them. This is a complex issue and solutions will vary. But if training and upskilling staff to fill the positions is required or changing up operations to deal with a smaller workforce is required, speak with one of our consultants about which of our business finance products is best suited to cover the costs of the process.
- Cash flow shortages may also be a problem for some businesses, especially in the initial reopening phases. The actual costs of reopening a business which has been paused for some time can be significant and getting back up to full production may take time. Time during which wages, supplies and other expenses still need to be met. We have a range of non-bank lenders that provide Overdrafts which can be suited to this purpose. These lines of credit operate in a similar way to bank overdrafts but are financed through a non-bank lender.
- Innovation and embracing digital has been identified by some as being critical in this so called ‘post-pandemic’ era. Businesses need to innovate to adapt but at what cost? Funding development and implementation of new systems and practices may need significant investment in a range of resources. A flexible, versatile finance solution can be structured to specifically suit the business and the objective.
- Reopening can also be a time to rethink how you operate. The unpredictability around the COVID experience has left some reeling but the astute thinking. Thinking, how can I be better set-up and secure to weather any future similar situations? Possibly securing your payments from customers in a more-timely manner could be worth considering. Slow payers can mean a slow death for businesses, especially SMEs. Our Debtor Invoice Funding is structured to allow businesses to receive a percentage of the invoice value immediately at time of issuing the invoice. This can be a lifeline at the best of times but even more critical in this recovery phase.
Getting on the Front Foot
Being proactive rather than reactive can be key to having a more successful and productive resurgence in recovery. Rather than wait till issues arise to address them, be ready to mitigate risk with a reliable, versatile channel for business finance. Schedule an in-depth discussion with one of our consultants to review and plan a ‘whole of business’ approach to your finance and loan requirements.
Whether you are a long-established operation or just starting up a new business, our services are readily available to all sized businesses. To prepare to really resurge, speak with us to arrange the low interest rate finance you need for your business.
Contact Jade Finance 1300 000 008 to discuss your business finance requirements.
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.