829 days ago

Asset loans and used asset finance – what's right for your business?

Speirs Finance

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.

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More messages from your neighbours
3 days ago

Poll: Is it rude to talk on the phone on a bus?

The Team from Neighbourly.co.nz

Buses can be a relaxing way to get home if you have a seat and enough space. However, it can be off-putting when someone is taking a phone call next to you.

Do you think it's inconsiderate for people to have lengthy phone calls on a bus? Vote in the poll, and add your comments below.

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Is it rude to talk on the phone on a bus?
  • 64.3% Yes
    64.3% Complete
  • 33.3% No
    33.3% Complete
  • 2.3% Other - I'll share below
    2.3% Complete
2190 votes
1 day ago

Become an SPCA Foster Hero!

The Team from SPCA Auckland - Centres & Op Shops

Kitten season has arrived, and over the next six months, over 8,000 cats and kittens will come into SPCA’s care. Please help us give these babies the best start in life and sign up to be a foster parent today! It's not just cats and kittens - we are also urgently seeking foster homes for dogs and small animals.

Fostering saves lives and helps these tiny babies grow into healthy, well-adjusted adults, ready for adoption. We cover all training and costs. All you need is time and love to spare!

Sign up today and save a life!

1 day ago

Wireless Coverage Experts

Thomas from The WiFi Experts

Sick of slow WiFi? Call in the local experts for a free site visit and quote Auckland wide!

0800 943 439
hello@thewifiexperts.co.nz
www.thewifiexperts.co.nz...

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