The hospitality sector has been one of the worst-hit from the COVID-19 pandemic. No work-from-home options for these businesses to continue trading during lockdowns and strict post-lockdown conditions imposed on capacity with social distancing restricting trading just for starters. But one of the biggest COVID-related issues affecting the sector is without doubt the labour situation. While staffing has been a major issue for operators, the situation may have that light at the end of the tunnel. A sign that now may be the time to consider upgrading and replacing with cheaper hospitality equipment finance.
The exodus of backpackers and overseas students as well as many temporary visa holders at the start of the pandemic left the sector in a massive staffing hole. Many of these workers have not immediately returned since the Australian border was reopened. But there are new government measures in place and under consideration, which are aimed at increasing the migrant intake and encouraging other category workers to Australia.
Many of these issues were covered in the recent Jobs and Skills Summit held in early September. Treasury has now released the Outcomes of the Summit which may be worth a browse to see what actions may benefit your business. Some of the immediate actions reported include:- increasing the migrant intake; accelerating the visa processing system to get workers into the country and into jobs faster and clear the backlog; relaxing the working restrictions for some categories of international students/graduates; and increasing the amount that age pension holders can earn before impacting their benefit.
These are just some of the ‘immediate actions’ with longer term plans and initiatives also being implemented. Will these measures ease your staffing issues? With better staffing will this increase your capacity? Present the need to look at your equipment?
We look at the hospitality equipment finance options that Jade Equipment Finance offers at cheaper interest rates to assist the sector to expand as staffing situations improve.
Types of Hospitality Equipment We Finance
The hospitality sector covers a range of establishments including smaller cafes, restaurants, pubs, licensed clubs, venues, theatres, entertainment centres and similar. In addition, we include catering and other food preparation businesses within our hospitality equipment finance category.
The type of equipment required by these operators will vary and, as specialists in equipment finance, we provide finance for this vast range.
Equipment which may be financed includes:-
- Kitchen equipment such as ovens, commercial stoves, commercial refrigeration and similar.
- Fit-outs for kitchens such as benches, cupboards and storage.
- Fit-outs for customer areas such as tables, chairs, carpet and floor coverings etc
- Bar set-ups and equipment such bar and drink dispensing systems, storage systems and similar.
- Point of sale computer systems and business IT systems.
- Digital upgrade of IT systems including entertainment equipment, communications systems, safety systems and others.
- Plus many more.
If you are planning an upgrade but not sure if the items you need to purchase can be financed, just contact us for a quick response so you can proceed with your plans.
Finance Products
The business set-up, financial objectives, accounting method and other aspects will determine which specific loan type is best-suited to the hospitality equipment purchase.
The selection we offer includes:-
- Chattel Mortgage for Hospitality Equipment
- Hospitality Equipment Leasing
- Commercial Hire Purchase
- Rent to Own for Equipment and Machinery
New hospitality businesses which are just setting up are catered for with our Low Doc and No Doc Hospitality Equipment Loans. These are achievable at very cost-effective rates and individually negotiated through our specialist non-bank lender to best meet the customer’s requirements.
Speak with the accountant for the business to assist which of these may meet the requirements of the business.
In addition to negotiating the cheapest rates, our consultants also focus on negotiating the preferred finance structure. The loan term and balloon or residual directly affects the repayment amount. Achieving a cost-effective and workable result can involve requesting preferences with these finance aspects. Factors which may be particularly significant to hospitality sector businesses which are still in post-COVID recovery mode and seeking to achieve more than just make ends meet.
Interest Rates
Interest rates on equipment finance vary with the industry and with the individual business applicant. As we deal with multiple industries, the interest rates we are currently displaying are intended as a general guide. But be assured that our consultants will be sourcing the cheapest rate from across our extensive selection of lenders for your particular requirements.
For budgeting and comparing models purposes, use our current rates with our Finance Calculator.
The interest rate also varies with the different finance products. So establishing which product is best for the business first, can make working up estimated repayments with the calculator a lot faster and a better ballpark achieved.
Additional Benefits to Consider
Adding greater value to both the acquisition and the finance offer may be realised in current tax measures such as temporary full expensing. Read our recent reminder article on this accelerated asset depreciation measure and check the criteria to see if the equipment meets the ATO guidelines.
For workable hospitality equipment 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.
