It's great to receive advisement from an organisation which clearly states 'no action is required on your part', in regard to some type of business activity. Phew, nothing for me to spend my time with that one, great! But in this blog, we are strongly suggesting that action is required on your part to address the issues we’re covering here. Action that yes will take up some of your time but with potential benefits which could be significant, substantial, and sustainable over a long time period for your business.
Specifically, we’re talking EOFY - end of the financial year, tax time, 30 June. We’re now into the final quarter of the current financial year and a time when business owners suddenly realise that they only have a relatively short time to enact strategies, acquire assets and put measures in place to be eligible for certain tax benefits. All that at a time which can be quite busy in some sectors. So the sooner you address your pre-EOFY issues the better.
Lending is our focus at Business Finance, so we’re highlighting the issues relevant to EOFY and lending for business car loans
, truck finance, and equipment financing
Here are our suggestions to assess what’s on offer, address your requirements, apply for cheap finance and loans and acquire the assets that will deliver a benefit to your business.
Assess: Tax Measures and Incentive Programs
As the COVID-19 vaccine is rolling out and states and territories are easing some restrictions, with the exception of cluster outbreaks, it can seem like the coronavirus crisis has past and you may adjust to the new level of normalcy. But while the health side of the pandemic may have eased somewhat, the economic issues are still prevalent.
In 2020 the Government introduced a massive stimulus package and some of the measures are still active and available to eligible businesses. But these are not measures that will automatically apply to your business like the personal income tax cuts. Businesses need to take their own action in order to benefit from the Instant Asset Write-Off, Loss Carry Back, and temporary full expensing.
IAWO has been on the business radar for a year now. At some stage, you might have thought it was something you would do. But over the months, other things took priority and it’s still on the ‘to-do' list. If you want to realise the tax benefits of an accelerated asset depreciation measure in this financial year, it’s time to prioritise the process of buying new machinery and equipment.
Address: Equipment, Machinery, and Car Loan Requirements
So what do you need in the way of business equipment, trucks, vehicles, and machinery?
Address the condition of your existing fleet and make a critical assessment as to whether or not they will go another round, or more specifically another financial year. Or will the cost of keeping that machinery operational be a burden on your cash flow and reduce the actual value of the asset?
Another consideration is whether your equipment will equip your business to take on the work opportunities that may come your way in the near/medium future. What is in the pipeline in your industry sector?
Governments are investing heavily in infrastructure projects right across the country. Will your existing machinery suit the type of work you may be tendering to take on?
Effect of COVID-19 on Business Operators
Another aspect to consider is your workplace and the changes to the way many businesses operate as a result of COVID-19. You may have a need to reconfigure your premises, re-equip certain areas with different or new business equipment to better suit the changing work environment. Especially take note of your IT, computer, and security systems. Business Finance
provides loans for all types of equipment including hardware and software. Check with www.ato.gov.au
or your accountant as to whether the equipment you need is eligible for an accelerated asset depreciation measure.
Apply: Commercial Loans
Apart from the tax measures on offer, a major incentive to invest at the moment is the historic low-interest rates available on business loans. Check out what rates we can achieve and use our online business finance calculator
while planning to generate rough estimates on loan repayments.
Applying for a business loan is a very easy and straightforward process. You can do so over the phone or online.
We offer a comprehensive range of commercial loans and finance for asset acquisitions:-
- Equipment Loan or Chattel Mortgage
- Equipment, Truck, and Car Finance
- Equipment and Truck Rental
- Commercial Hire Purchase to suit many purchases
- Debtor Invoice Funding to shore up your cash flow into the new financial year
- Business Overdraft to cover unexpected expenses
- Secured and Unsecured Business Loans to cover a wide range of purposes
EOFY is nearing so now is the time to start planning and enacting your plans to ensure you meet your financial targets and realise the benefits of the measures and programs available to your business.
Contact 1300 000 033 to discuss your requirements.
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.