Asset loans and used asset finance – what's right for your business?
We all understand that buying cheap does not always equate to the best value purchase but when it comes to finance, the interest rate (particularly in an upwards trending market) is often the primary focus and this can lead to poor customer outcomes. This is because decisions makers often overlook the importance of maintaining positive cash flows in their businesses, especially in relation to their asset loans or used asset finance structures. Financecan be complex and other more important factors like loan structure and terms and conditions can have a much greater impact on cash flow than interest rate.
It’s very common to see businesses with cash flow issues that have poor asset finance or asset loans structures for new assets and used asset finance as the primary cause for this. A typical example of this situation is a customer taking up a very low interest on a new asset (often on dealer a discounted interest rate where the dealer is subsidising the rate by reducing margin) on a term offered of 2 or 3 years maximum. The asset may have a useful life of fifteen years, but in most cases a short term like this does not make sense and won’t be able to generate enough annual surplus to pay off the asset loan and likely lead to cash flow problems in the business.
Can you crack Today’s neighbourhood conundrum?
Without a bridle or a saddle, across a thing, I ride a-straddle. And those I ride, by help of me, though almost blind, are made to see. What am I?
Do you think you know the answer to our daily riddle? Don't spoil it for your neighbours! Simply 'Like' this post and we'll post the answer in the comments below at 2pm.
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Poll: What special qualities should a 5-star New Zealand airport hotel at our largest international airport have?
Te Arikinui Pullman Auckland Airport is New Zealand’s only 5-star airport hotel, given its incredibly close proximity to the airport, the convenience of walking to the airport is a major highlight but there are plenty of other features that make it special.
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5.7% Unmatched runway views with a private lounge
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44.9% Exceptional service from arrival to departure
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4.5% Gourmet dining featuring New Zealand's finest, celebrating Te Ao Māori kai
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38.5% A soundproof oasis with all desired amenities
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6.4% Māori culture reflected throughout, creating an architectural marvel
Be Loved this Spring! Reduced fee dog adoptions at SPCA start today
From 5-20 October only, SPCA dog and puppy adoption fees are 25% off. Plus, every dog adopter gets a free Simparica Trio flea, tick & worm treatment, and discount voucher.
We have more than 300 adoption-ready dogs and puppies nationwide, waiting for their happy forever after.
Visit www.spca.nz... to start your journey together.
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