Today nearly 80% of the global economy is working on debt. It means that 80% of world GDP is debt. Not only countries but individuals are also under debt. The toughest task for any financing entity is the recovery of the debt rather it a country or an economy. But in terms of debt on the country, the country is liable to make their payment because of the different type of liability and involvement of guarantor. But in the case of individuals or small business, the scenario is different, because usually, the financing companies lend the money by seeing the profile or keeping some collateral as security. But there can be hundreds of reasons that may default on the debt payments or sometimes try to commit fraud. The bad debts have become very common in the finance industry and every company needs this ratio, for their survival. In the beginning, the companies usually hire their staff for debt recovery or collection, but the cost recovery operation was very high and usually, companies have to face legal implications due to the same.
This gives birth to the role of the debt collection agency. Their core job is to assist companies for their debt recovery, they hire specialized staff who are trained and experienced for the job. From the inception of the debt collection agency, they have now become an integral part of the finance industry and now nearly every company prefer to hire debt collection agencies in Melbourne instead of their recovery department, there are some good reasons for it.
- Legal protection: Usually the finance companies or banks are expert in financial law, in terms of recovery, they might not be strong enough to know the legal implications. Whereas the debt collection agency has been designed according to the particular laws, so they know how to operate in a manner, that will protect their client legal rights. By hiring, the third party, the client will always be able to safe their reputation because they are not directly liable for their actions.
- Faster recovery: When you will have experience resources and dedicated agency for one job, then it means you can improve your recovery cycle. They will be following up with your customers and may offer some discounts for early payment, that will help to improve your payment cycle.
- Customized Services: Every business has different needs and types of customer. The debt collection agency can offer customized services and they will differently plan of actions for every client. Even they will be knowing how to treat different categories of the customer in a way that their client will get their payment timely.
- Savings: Hiring the debt collection agency will not only save your money but also save effort and resource. The other important factor, that can be counted as saving is time. The reduced recovery cycle with less cost and without utilizing their resources is worth the saving that every company wants to have.
A business small or large something is bounded by budget limits and could not source equipment. Atlas Equipment Finance providing broking finance service regarding commercial equipment finance in Brisbane in many industries with their experienced commercial finance brokers.
Following are the benefits of equipment financing.
- NO DOWN PAYMENT REQUIRED.
Subject to traditional lender’s difficult requirements, now you don’t have to pay a single penny as a down payment to get 100 percent financing, it will also maintain your cash flow which is concern to your business.
- CASH MANAGEMENT.
You can manage your cash position or working capital structure by equipment financing, so the cash would be used different areas required by your business like, Research and Development, Advertising and Marketing, Improvements, Expansion.
- RISK MANAGEMENT.
Your business need a heavy duty equipment and budget is also not enough and one of the most concerned factor i.e. Risk. By investing in capital asset business has to wait long time for the return and risk of any natural disaster etc. in which asset could be destroyed, but with equipment financing risk factor is mitigated as equipment is out sourced.
- HEDGE TOUCHING INFLATION.
Purchasing equipment by paying cash or by making huge down payments in dollars, this medium of payments declines your worth of funds. Risk of inflation is hedged by equipment financing. Your lease / loan rate are locked as exist on closing date. It also mitigates the devaluation of payment over time due to inflation and several financial risks as it is suffered by the finance company.
- EXPENSES REGARDING BUSINESS CYCLE FLUCTUATIONS AND CASH FLOW.
Rent payments can be customized to match cash flow as equipment financing companies are giving many different options for rent payment which is a fruitful for a business to maintain their budget as well including cash flow.
- EQUIPMENTS ARE UPDATED WITH NEW TECHNOLOGY.
If a business wants more and best equipment then it is only possible by equipment financing without making any investment. Your equipment can be updated or replace with new one as per equipment finance program’s terms and condition mentioned in lease contract.
- TAX BENEFITS.
As the financing company is holding the ownership of equipment so the depreciation is also pertain to it. A filer financing company should work on lower rents to reduce their tax payment and it will be benefit for customer by paying low rents.
- ATTRACTIVE STATEMENT OF FINANCIAL POSITION.
Monthly rental payments are shown as expense not as long term debt. When a statement of financial position has little debt it means you have much funds available for your business growth. And who does not like to grown more and more business?.
- ASSET MANAGEMENT.
It also save the cost of asset management as it is paid by the financing company (if decided in terms and condition). Installation cost, service charges, de-installation expense, updating/upgrading of equipment and disposal of Equipment, all these expenses are responsibility of financing company.
Financial guidance is necessary for a number of moments in our lives. If you are an individual, financial guidance is necessary for you to decide what kind of investments you should do at different moments in your life. If you are a company you need to get financial guidance to make your company a profit earning venture. There are two ways in which we can get the financial guidance we seek.Both of these options are available for us if we want to get someone’s guidance with regard to our finances. It is up to us to decide which financial guidance we want to use. There are companies that can offer us both options. More often than not, the finest financial guidance providing companies have a mixture of both options to deliver the best results.
Digital Financial Guidance
The digital financial guidance or robo advice is quite popular at this moment as we live in the digital age. It has become popular as it offers more accurate guidance with regard to what we should do with our money. Whenever we want to take a decision about finances, this digital financial guidance provider goes through all the available data, gets an understanding of the local market and tells us what the best option for us is. As they always have access to real time data and sometimes even have access to information even we do not have, the digital financial guidance is more accurate and provides us with good results. Only well made software can provide us with such worthy digital financial guidance.
Advisor Based Financial Guidance
Then, we have the advisor based financial guidance. This refers to the humans who work as professionals and provide us with financial guidance such as the SMSF financial advice. There is nothing wrong with getting financial guidance from such professionals. However, if we are going to trust their words and use our money and assets as they advise us to, we have to be absolutely sure about their ability to provide reliable financial guidance. If they have been doing this for a number of years providing the best results to all of their clients, we can definitely trust them. If they do not have a good history with this kind of work, we should never trust the guidance provided by such professionals. Usually, a company we can trust with the financial guidance they provide uses both digital financial guidance provided by well made software as well as the financial guidance provided by talented human advisors.