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.
Poll: Is your nearest emergency department up to scratch?
Concerns have been raised about Nelson Hospital with complaints of lack of staffing and excessive wait times. Do you have confidence in your local emergency department?
-
35.8% Yes, it serves us well
-
63.3% No, I have concerns
-
0.8% Other - I'll share below
Term 2 Classes at Parnell Community Centre
Enrolments are now open for Term 2 classes and activities at Parnell Community Centre! 😍
Sign up today to secure your place in your favourite classes or learn something new in a fun and supportive environment!
🔗 villagesquare.org.nz/enrol
Term 2 classes start on Monday 28 April at Parnell Community Centre, 545 Parnell Road, Parnell.
For more information visit our website, check out our digital brochure using the link below, or contact our class coordinator, Abigail, at community@villagesquare.org.nz
Digital Brochure: villagesquare.org.nz...
The perfect Mother's Day gift is here!🌸
Looking for a thoughtful gift for Mum? Give her something she'll enjoy all year round with a magazine subscription!
Whether she’s passionate about gardening, inspired by beautiful homes, or loves to keep up with the latest entertainment, you’ll find the perfect match at
Mags4Gifts.co.nz.
This Mother's Day, save up to 35% on subscriptions – perfect for Mum, Grandma, a special mother figure, or even as a treat for yourself!
Don't miss out – shop now and make her day unforgettable!
Loading…
