By Geoff Scofield, Westlawn Finance MD & CEO
15 March 2016
Australian businesses have almost $125 billion tied up in the ownership of assets. And this is having a negative impact on the majority of small and medium sized businesses.
That’s according to Alleasing’s latest Equipment Demand Index. In a media release on 27 January 2016, Alleasing reported that this latest research has found that the average percentage of assets owned outright by Australian businesses has jumped from 7.5% to 8.1% from the time the inaugural index was released in August 2014.
Further, the number of Australian businesses suffering negative impacts from outdated assets has escalated over the past 18 months. According to this latest report, 75.5% of micro businesses and 77.1% of SMEs are detrimentally impacted by outdated assets.
Unlocking capital to grow your business
As we reported in ‘Unlocking capital is key to SME success new research shows’, tying up capital by owning (often outdated) assets outright means many businesses struggle to find enough cash to invest in growing the business.
By unlocking capital tied up in assets, your business could better utilise that capital for more productive purposes such as:
- Hiring and retaining key employees
- Conducting product research and development
- Marketing your products or services.
Renting business equipment could help free up some of that $125 billion currently tied up in Australian businesses.
Renting business equipment
A significant advantage of renting is that you can always keep up to date with the latest equipment and technology rather than being stuck with assets that quickly become obsolete and are expensive to replace. At the end of the term, you can simply hand back the old equipment and replace it with the latest technology.
What equipment can my business rent?
Westlawn offers equipment rental finance on a wide variety of the latest business equipment and technology including:
- Office equipment such as computers, communications technology and printers
- Catering equipment
- Medical and dental equipment
- Manufacturing equipment, and
- Computerised equipment.
Why choose Westlawn?
For business finance, Westlawn has access to major commercial lenders as well as our own finance. For you, this means greater choice and flexibility and competitive terms.
If you choose to rent business equipment with us, some of the benefits include:
- Fixed tax deductible repayments for a specified term. At the end of the term you choose to either return the equipment with no more to pay, continue renting or buy the equipment at market value at that time.
- Flexible terms, usually from 3 to 4 years with terms up to 5 years available, and
- Fast approvals.
Contact Westlawn about equipment rentals
To find out how Westlawn can assist your business with equipment rentals or other business finance, contact a Westlawn Business Finance Specialist today on 1300 WESTLAWN (1300 937 852).
About the Equipment Demand Index
The Alleasing Equipment Demand Index is a quarterly index, which examines the current asset inventory of Australian businesses, as well as expectations for future investment. More than 1,200 firms that turn over $1-$100M are surveyed each quarter. These businesses have been broken into three segments: micro business ($1-5M annual turnover), SME ($5-20M annual turnover) and lower corporate ($20-100M annual turnover). The inaugural index was run during July and August 2014 – the research is executed by East & Partners on behalf of Alleasing.
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