Financing – Plant & Equipment
An untapped opportunity to better manage cost and cash flow
Anything considered an asset from an accounting perspective is eligible for finance. It of course depends on your business. Its financial position and how you manage cash flow.
Most businesses use some form of financing. Credit Cards. Overdrafts. Loans. Or some like to push out payment terms with suppliers as a proxy for finance.
A proper and considered financing approach can deliver benefits. Lower cost of finance. Better profitability and greater transparency to the true cost of assets.
In good times it can unlock working capital to invest. And in bad times – owned assets can generate cash flow through sale and lease back.
Transparency creates accountability
Supply Clusters provides transparent reporting on Financing through our member portal. Sign up to our Standing Offer arrangement and your data will be available 24/7. Members have access to their data including detail on every single asset financed. Join today, start saving and see all the detail you need to manage your assets:
- Details on each asset financed
- The cost of finance for each asset (interest and other charges)
- Total spend on all of your financed plant and equipment asset
Which providers should you choose?
There are many finance providers outside of banks and manufacturers. Many offer more preferable terms and rates than bank or vendor finance. So including a wide range of lenders is valuable and better when it comes to certain assets. This is where a specialist comes in.
So why do so many businesses just use their bank? Partly a lack of transparency to the true cost of finance. Definitely complacency and inertia in going to market for finance. Also falling prey to the loyalty trap. This costs Australian businesses a lot of money every year (as it does for consumers). Why be happy paying 2-5% more for everything you buy?
You should approach financing the same way you would any line of supply. Think of it as a panel of specialists who operate in various categories.
A range of lenders provides competitive tension. Often better terms. And, a variety of rates and charges that are often hidden.
Supply Clusters Managed Service
Supply Clusters have partnered with Ethos Finance to provide a managed service for our customers Plant & Equipment Financing needs.
All of our members have access to:
- An audit and review process of all operational assets
- Access to the right finance for each type of product rather than a one-size-fits-all solution
- Consolidated data on all products financed including asset level tracking and cost of finance for each asset
- Rebates for premium members on the nett finance brokerage fee