Industry Update

November 9, 2020

Industry Update

November 9, 2020

The banks and financial institutions are being more cautious with the types of industries and assets they are willing to finance. A lot of the streamline or low-doc policies (no financial applications for business owners) have been reduced or completely withdrawn, and the majority of applications are being assessed with full financials, recent bank statements, and BAS Statements (to confirm trading).

Recently funded assets

Here is a list of assets that Designer Financial Services (DFS) has been financing recently, the introduction of these assets to our clients has undoubtedly helped grow their businesses during this difficult time:

  • Utes & other trade-specific vehicles – for Electricians, Plumbers, Air Conditioning Professionals, and other industry trades
  • Excavators – (Civil & Infrastructure & Landscaping work) – The lenders are making it challenging; however, if there is government contract work or other work sources for the machine, they will lend to the right profile.
  • Lawn Mowing equipment (Landscapers, Civil & Infrastructure work).
  • Truck & Trailers (Civil & Infrastructure work)
  • Plumbing equipment (Jet Blasters & Sewer Cameras) this sort of equipment is very affordable and the earning potential for a plumbing business can be astronomical (we have a number of plumbers who have had proven success with adding these assets into their business).

The increase and extension of the ATO Instant asset write-off

With the ATO increasing the Instant asset write-off from $30k to $150k (Extended until the 31st of December 2020) we have started to see several clients needing to purchase the following types of assets & equipment:

  • Vehicles – Utes, Trucks, Water Trucks, Trailers and Industry-specific vehicles
  • Yellow Goods
  • Excavators
  • Construction equipment
  • CNC Machines
  • Piling rigs
  • Cranes
  • Manufacturing equipment
  • Printing Machinery

A lot of these assets are being purchased due to the amount of infrastructure work the government is fast-tracking for projects across Australia. This means that there is work up for grabs and contracts available and purchasing of these types of assets are required to complete these projects.

It is, therefore, a good time for customers to purchase assets, which will help grow their business turnover. Additionally, the interest rates offered by the financial institutions we introduce applicants to have never been lower.

If you have any client scenarios that you would like to speak about, please feel free to reach out on any of the details above, we will do our best to get the right finance package in place for you or your clients.

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