Unlocking the power of asset finance

A guide to helping the manufacturing industry in Australia combat rising inflation costs and improve cash flow with asset finance.

The manufacturing industry is a critical part of the Australian economy, creating jobs and driving growth. Despite its significance, the industry faces various challenges, including inflation. This can significantly increase costs and negatively impact cash flow. Thankfully, asset finance brokers can help mitigate these costs and improve cash flow for manufacturing businesses.

The basics of asset finance and its advantages

Asset finance is a type of financing that enables businesses to purchase assets, such as machinery, equipment, or vehicles, which then generates income. This method provides an alternative to purchasing assets outright, allowing businesses to conserve their cash flow and working capital, especially for small businesses or startups that need to preserve their cash resources. Additionally, payments made under a finance lease or loan are considered taxdeductible expenses, providing businesses with the opportunity to claim tax deductions for interest paid on their finance.

The role of asset finance brokers in the manufacturing industry

Asset finance brokers are specialists in arranging finance for asset purchases. They work closely with businesses, understand their needs and goals, and provide customised finance solutions. Brokers have extensive knowledge of the various finance options, including loan and lease structures, and can negotiate with lenders to secure the best terms for their clients.

Mitigating inflation costs with asset finance brokers

Inflation can significantly increase the costs of manufacturing businesses, particularly for assets like machinery and equipment.

By financing these assets through an asset finance broker, businesses can spread the cost over time, reducing the impact of inflation and conserving their cash flow. Furthermore, brokers can provide finance that is flexible, allowing businesses to adjust their repayments if their circumstances change, such as if they experience a decline in business activity due to inflation.

Enhancing cash flow with asset finance

One of the primary benefits of asset finance is its ability to improve a business's cash flow. By financing assets, businesses can conserve their cash flow and working capital, allowing them to reinvest in their business. Additionally, by spreading the cost of assets over time, businesses can reduce the impact of large upfront expenses on their cash flow, improving their financial management, reducing debt, and increasing their bottom line.

In summary

In conclusion, asset finance brokers play a crucial role in the manufacturing industry in Australia. By providing tailored finance solutions and negotiating with lenders, brokers can help businesses combat inflation costs and improve cash flow. Whether it's a small startup or a well-established manufacturing firm, working with an asset finance broker can offer numerous benefits and help businesses secure the assets they need to grow and succeed.

Simply Finance Australia

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