Capital expenditure, including the purchase of new truckmounts, portables, restoration, and other equipment, is crucial to maintaining your company's operations and ensuring its growth.
1. Meet Changing Business Needs.
Investing in new equipment enables your business to be more agile and responsive to changes in your customer's preference of floor covering.
Tile and grout, area rugs, vinyl plank. If it is on the floor, we need to respond by investing in knowledge and often specialised equipment.
2. Increase Productivity.
Gains in productivity and efficiencies by purchasing new equipment can not only generate more income but also significant cost savings.
With the right investment in new equipment, you can do more of what is needed, faster, safer, with less maintenance and downtime, and less sweat... and with better quality outcomes.
3. Improve Safety.
Older equipment, even when well-maintained, can present safety risks.
If you or an employee is injured on the job, there could be significant expenses incurred due to downtime, worker's compensation, and other costs.
4. Remain Competitive.
It is not just a matter of your customer's perception or your company’s reputation. The lack of new equipment can make it difficult, if not impossible, to take on new work and provide a more diverse range of services.
Cleaning and restoration businesses that choose to delay or avoid acquiring new equipment risk losing customers and contracts to competitors that do make the investments.
5. Warranty and Support.
Older outdated equipment has likely outlived any warranty and guarantee of support. Once a piece of equipment has reached this stage, your business is risking downtime or complete outage due to outdated or obsolete parts.
New equipment comes with a warranty, parts availability, and support. When there is a question or problem, our support is a phone call away.
6. Take Advantage of Tax Incentives.
Recent tax measures bought in by the Federal Government relevant to equipment purchases are the Instant Asset Write Off (IAWO) and, since October 2020, Temporary Full Expensing (TFE) provisions.
TFE allows your businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year.
That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the full purchase price from your gross income, lowering the amount of company tax you may have to pay.
And... if you are looking like making a tax loss at the end of the financial year as a result of claiming under TFE, instead of carrying the tax loss forward and using it to offset your future income, you may be eligible to apply the tax loss to a previous years profit.
We recommend that you speak to your accountant or financial advisor to see what current tax incentives your business may be eligible for.
7. Very Low Interest Rates.
The reserve bank has set the official cash rate at a record low and suggested that they will not be going up anytime in the near future.
There has never been a more opportune time to review your finance options.
A dedicated lending professional with deep knowledge of your industry can present a number of financial solutions and help you select the right tools for your specific needs.
To learn about financing options please talk to our preferred finance specialist, Darren at Bluefire Finance on 0416 222 510 or email firstname.lastname@example.org
Weigh the Pros and Cons.
Investing in new equipment is a major undertaking for companies of all sizes. It can be especially precarious for small businesses.
Before making any purchase decisions, you talk to your accountant or financial advisor, assess your business's needs and resources, then review your options.
For those companies that do decide that buying new equipment is the way to go, there are still numerous decisions to be made.
Equipment capabilities, lifespan, warranties, maintenance needs, and other factors also must be considered.