As Melbourne gradually opens for business, are we starting to see the green shoots of recovery as business owners shift their focus from survival, to rebuild and growth.
Whilst many businesses and individuals have been severely impacted by COVID-19, the green shoots of a recovery are finally starting to appear!
The Bank’s Head of Australian Economics, Gareth Aird has suggested that the governments economic stimulus will help the economy recover faster than was originally forecast.
They are now predicting GDP growth of 4.2% in 2021 compared to previous estimates of 2.50%.
In 2022 they expect growth to be 3.80%
Over recent weeks we have experienced an enormous uptake in demand for equipment finance.
Whilst this in part is driven by the Instant Asset Write-off Scheme, the vast majority of business owners are “hard nosed” realists!
Despite the negativity and uncertainty, they are unlikely to invest in new equipment, if they were not optimistic about the future outlook
Whilst demand for finance is positive, the downside is that is undeniably taking longer for finance to be approved.
We have found the keys to a successful outcome are:
- Addressing issues that may be of concern to Lenders before submitting the application (Our Loan and Bankability Assessment can help you here)
- Providing current financial information – which may also include forward projections – is critical
- Supplying all information required by Lenders at time of submission (drip feeding information significantly slows down the loan approval process)
Even in the current climate, there are Lenders with an appetite to lend. They are not all the same.
Some favour particular industries or types of lending and policies and appetite between Lenders varies widely.
They key is to know which Lenders and Bankers to approach for the type of finance you are seeking.
If you are thinking about finance to assist you as we move towards recovery, don’t hesitate to give me a call!