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Corporate borrowing provides positivity

words by Finlease

“Research has just revealed that 47% of corporates intend to borrow money in the next six months, according to a recent study conducted by leading banking research and advisory firm East and Partners. Many economists are seeing this as a positive indicator for the year ahead.

As we look around us, we see how even the troubled European economies are now showing positive signs, while in the US the Dow Jones has reached a record high recently confirming the positive sentiment over there. But what does that really mean in the likes of Wetherill Park, Mooney Ponds or Freemantle for those at the coal face of small business in Australia? As Mark O’Donoghue of Finlease sees it, “When world economies are in a better position to go shopping again, Australian business can benefit. That often means businesses may need to borrow funds in order to acquire more modern capital equipment in order to help seize new opportunities.”

Many industries have put off upgrading equipment after the Global Financial Crisis (GFC), preferring instead to pay down debt and weather the storm. Which means that many have lost pace with changes in technologies and their equipment has exceeded its use-by date.

As production output begins to wake up from a long slumber, equipment finance can accelerate your opportunities allowing you to trade up to better equipment and gain a competitive advantage.

So despite the uncertainty of an election year, the borrowing intentions of the corporates show many companies are looking to gear up for the future. Companies seeking finance for equipment and property finance are advised to act sooner than later, as the historically low interest rates we are currently enjoying may not last for much longer.”

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