Economic headwinds that may see a shift in B2B buyer behaviour may now be on the horizon.
In many cases of the last 2 years, Australian businesses have maintained healthy Profit & Loss Statements, with room to invest saved capital for asset or equipment acquisitions, without the need for finance. We have seen this ourselves, with a minor increase in the amount of cases where an asset or equipment partner’s end client has indicated they will simply be paying cash on a transaction they would have historically requested finance for.
As the conditions toughen, SME’s will look to tighten their spending and shore up their resilience. This may include wanting to maintain capital for other unforeseen circumstances. This may minimise the likelihood of the above scenario playing out and see more SME’s looking for alternatives to capital to pay for their asset and equipment acquisitions. It may also see them tighten budgets to the point where they put off acquiring new assets or equipment solutions altogether.
Regardless of whether the economic conditions are good or not so good, maintaining capital for expenses other than depreciating assets or equipment is good practice. We would always encourage all Australian and New Zealand businesses to use asset and equipment finance to allow the equipment or solution to pay for itself, as you use it, and save your capital for other business expenses. Cash is King, after all.
What should you do?
If you’re an Australian or New Zealand SME looking to acquire assets or equipment for your business, make sure you evaluate your payment options and consider asset or equipment finance payment solutions. Ideally your supplier will offer a finance solution, but if they don’t, 3E Advantage can assist you directly. Contact us and a dedicated Key Account Sales Manager will contact you to discuss your needs.
If you sell assets or equipment to Australian or New Zealand businesses and you don’t currently offer finance payment solutions, now may be the perfect time to speak to 3E Advantage about establishing your asset and equipment finance partner program. A finance solution will assist you in the abovementioned scenarios where your prospects and clients may be tightening their budgets and reconsidering purchases. Asset and equipment finance is the ideal product to allow your client to gain access to the equipment or solution they need now but pay for it over an extended period, as it earns them income or saves them money. Don’t let budget restraints impact your sales.
If you currently offer finance to your clients but are questioning whether there are additional value-adds your program might be missing, speak to 3E Advantage today about our comprehensive partner program benefits.