It may seem counterintuitive to look at asset and equipment finance when rates are on the increase and supply issues are causing inflationary pressure on pricing, but here are a few reasons why right now, is a good time to take advantage of asset and equipment finance for your business.
Rates are trending upwards, and all indications are they will continue to rise.
Asset and equipment finance solutions are fixed payments for the life of the agreement. If you are approved and begin your agreement now, you are locking in the current rates, avoiding any potential future rate increases.
Asset and equipment finance rates in most cases follow the Bank Bill Swap Rate trend. Looking at approximately the last 300 days, this 5-year rate has gone from approximately 0.6% to over 3.0%. That’s an enormous increase in such a short amount of time, with no sign of this trend changing. Locking in a rate via an agreement now is a wise decision for your business.
Inflationary pressure due to supply chain concerns and increased costs will continue for the foreseeable future.
We’re all seeing the supply issues and cost increases in our day-to-day lives. These issues are also impacting the supply and price of business solutions. Many suppliers have attempted to buffer the effects of this issue but will not be able to do so for much longer. We’re also likely to see the lag effect of this for some time.
Now might be the perfect time to consider your needs over the next 6-12 months and lock in orders at current prices. Both these variables are likely to increase the cost of any future acquisition. Consider your needs and bring forward any equipment or solutions acquisitions today.
Want more information on asset and equipment finance payment solutions? Reach out to the 3E Advantage team. Our dedicated Key Account Sales Managers would be happy to discuss your needs.