As I write, the last vestiges of the pandemic economic stimulus have been snuffed out – namely the 100 per cent Instant Tax Writeoff and associated carry back loss provisions. Both were introduced by the Federal Government to encourage business investment in equipment, and to shield businesses from the difficulties of losses in one year, profit the next. Now they’re gone!
All is not lost, however, and for the 2024 financial year businesses can still claim 100 per cent writeoff for business assets up to $20,000 (plus GST), even in multiples. Perhaps you may wish to buy a small machine for $20,000, then separately add an accessory costing a similar amount – both could be claimed and you can do that as many times in a year as you need to. And if so, you could use a ‘small ticket’ finance facility to finance each of them very quickly and easily.
Interest rates are all over the news on a daily basis now, seemingly on a steady march upwards. However, in the commercial space they often move up and down in accordance with the more jittery money markets, usually the result of supply and demand. In the period leading up to the end of June the best rates on offer were at or just above seven per cent and although a new financial year for most begins, several Australian banks’ financial year ends on September 30, so pressure remains on them to continue to fill their loan books before the reporting season begins. As in June, this often translates into discounted interest rates.
If you’re looking for equipment or vehicle finance, much of the decision making criteria is now statistical, ranging between the nature of the goods being purchased, length of the borrower’s time in business, whether or not the borrower has real estate, whether the goods are new or used and most importantly their age. These criteria make up the lender’s decision to approve an application and as mentioned last issue, lenders all have their own niche. Cars almost always attract the best rate and some financiers specialise in quick Another could approve finance for your used tipper truck from a private vendor at an equally good rate, in an hour.
Finance applications can be decisioned very quickly and the majority of the settlement process is now often done electronically, far removed from the piles of paperwork and application processes of years ago. The secret is to know where to go and how to go about making way through the maze – to get you driving, working or leisuring!
With the ballooning cost of insurances, multiple policies can be financed with Insurance Premium Funding. Workers compensation, fleet and equipment insurances can be bundled together, financed over 10 usually without requiring directors’ guarantees and you can always mix a variety of insurance classes sourced from multiple insurers and brokers into a manageable monthly payment.
If you’re looking for quotes, information, good service and finance contact Australiawide Finance. We specialise in all types of commercial finance for vehicles, machinery and equipment. We also hold an Australian Credit Licence for consumer lending, covering all types of leisure goods such as cars, caravans, boats and motorbikes.
