For many business owners, January is kick-back time. It’s been a challenging year with cost and labour pressures, impacts of floods and supply chain challenges in many industries. You’ve earned a break. But for shrewd operators, January is kick-start time. Time to lock in new machinery acquisitions with equipment finance to be well-prepared for the ‘working year’.
January can be an ideal time for new acquisitions with equipment finance to stay ahead of rate rises, meet tax benefit deadlines and bag new year deals. The potential benefits can be worth sacrificing a small amount of kick-back time, especially if it means securing cheaper interest rates prior to the RBA’s February interest rate decision.
We present some of the key reasons as to why January could be the month to get your business ready and raring to go for 2023.
Deal with the Tight Labour Scenario
In some sectors there has been a seismic shift in the labour market, in working schedules and employee behaviours. Remote working has become the norm, there’s even talk of a 4 day working week and many employers are dealing with serious worker shortages.
Australia is recording some of the lowest unemployment rates in decades and those low rates are tipped to continue into at least the early part of 2023. Instead of waiting to see how it all may play out, January may be a smart time to start thinking how your operation is going to operate to optimum levels with possible shortages in the roster.
The keyword here being productivity. Getting more output with the same labour force. The solution may be more efficient machinery and equipment which can deliver those productivity improves. It may mean excavators that have larger buckets, it may mean specific machines to suit tricky sites such as compact excavators to save time on access.
It may mean new digital processing systems to computerise certain processes within the manufacturing or logistics operation.
Balancing Cash Flow with Inflation Pressures
Inflationary pressures are causing grief for households and businesses. The December quarter figures due out this month, will reveal the true situation. But based on the RBA’s outlook, high inflation is expected to continue through 2023.
Relieving pressure on costs may be achieved through more efficient equipment. It could be fuel efficient machines or energy-efficient equipment. It may be upgrading the cars or trucks to EVs or hydrogen to reduce fuel costs.
Capture Current Offers and New Year Sales
Get in early for the deals on offer. Bobcat Australia for example has a few offers available until 31 January. Including for a bundle which includes a 38 horsepower tractor with a mulcher. Check out manufacturers and dealers in your sector and use our Finance Calculator to work up estimated finance repayments to see how much you could be saving.
Starting a New Business
A new year always brings change. For many that is a new business. Time to break free and become your own boss as an owner-operator contractor. But the hurdle for most in this position is the equipment and machinery finance. Most new businesses simply can’t meet the business finance criteria of the major banks. Particularly in regard to time in business and with financials.
We assist these new operators with affordable, individually negotiated Low Docs and No Docs Equipment Finance and even assistance for those with bad credit. Speak with us now so we can source the best equipment finance offer from across our vast lender panel including specialist non-bank lenders and get you set up to do business asap.
Be Ahead of RBA Rate Decisions
Interest rates dominated the conversation in 2022 with RBA rate increases every month starting from May. These increases could continue in 2023 though the outlook is possibly slightly uncertain. The RBA Board has consistently stated in the conclusion of each monthly rate announcement, that further rate rises would be needed in order to get inflation back to target.
But in the minutes of the December 2022 meeting, it reveals that the Board actually considered halting rate rises and also considered the arguments for another large hike of 0.5%. With all the options on the table, it will be a wait to see situation.
The RBA Board does not meet in January so the next interest rate rise won’t be announced until the first week of February. Another reason why January is an ideal month to get equipment finance sorted at our current interest rates.
Don’t Miss Out on Special Tax Measures
In our posts we’ve been reminding customers of an approaching deadline and once again we’ll do so – temporary full expensing or Instant Asset Write-off expires on 30 June 2023. This is a very generous tax benefit as it allows the full investment price of new assets such as equipment and machinery to be realised in the year that those assets were acquired.
For those still on the sidelines with this, this could be the ideal month to move to centre field on the issue. The benefits can be worthwhile, especially when matched with our current cheap rates on the Chattel Mortgage equipment finance.
So there you have a lot of reasons to kick-start rather than kick-back this month to ensure your business kicks-on through 2023.
Contact Jade Finance 1300 000 008 for quick quotes on cheaper equipment finance.
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.