Has there been a better time in recent years to invest in assets for your business? I doubt it, and here’s why….
Interest rates are at record lows and the government incentives for small/medium businesses (see my last blog) suggest that this current moment in time is a sensational opportunity to invest in the growth of your business.
Yesterday, the Reserve Bank of Australia maintained the cash rate at a historic low of 1.75% and whilst many economists agree that there is probably one more reduction to come in the near future, the banks have already factored the next rate cut in.
Although I am by no means an expert on mortgages many of my contacts, who know that I have spent my whole career in finance, think that I am and they are asking me whether the time is right to fix their mortgage rate. I value all of my relationships too much to give them any advice on their mortgages but the discussions did get me thinking about the various payment solutions we provide to our clients when they are acquiring assets for use in their business.
Although the cash rate is not exactly correlated to leasing rates, experience tells me that leasing rates are very unlikely to go much lower and now is the time where we should all be investing in those assets for our businesses.
All of 3Es Payment Solutions can provide fixed repayments for the term of the facility, providing our clients with the significant benefits of budgeting and cashflow certainty.
In addition to those obvious financial benefits, investment for growth sends a great message to all of your stakeholders. Your employees get a morale boost and it increases confidence to your clients and suppliers and proves that you can continue to deliver value to them.
So why wait? Rates may never be this good again. Go for it.
Author – Brian Swan – “challenging the status quo for the benefit of our clients and partners”