The Covid-19 crisis has turned the world on its head, hitting people, businesses and our whole economy hard.
But, being positive amid all the negativity, it may be a good time for businesses to be bold and build for the future with the market keen to get some sense of normality and get trading again.
The result is some very enticing deals, combined with equally attractive finance options.
Here, Business Development Manager Lewis Buckley gives a few pointers to answer some of the frequently-asked questions from our customers.
What should I be investing in?
- Replacing your business’s core capital equipment to increase efficiency, reduce maintenance costs and increase margins.
- Diversifying your business’s activities to generate additional income streams.
Why is it the right time to buy?
- Suppliers and manufacturers are cutting margins and offering heavy discounts on equipment right now. They have got volume targets to hit, along with yards and warehouses stocked up with product.
- Investing in new kit can help to reduce service and maintenance costs and result in better efficiency.
- Diversification may be needed as we face a changing landscape in the short term, and longer, due to the impacts of the coronavirus pandemic that are still being realised.
Is financing the right option?
- Absolutely. The old phrase of ‘cash is king’ is certainly true, especially given the uncertainty of some trading ability in the near future.
- We now have an extension until the end of November to get applications in for Coronavirus Business Interruption Loan Scheme (CBILS) hire purchase (HP) facilities. This means facilities can be even cheaper with 12 months interest covered under the Government’s scheme (some even with no repayment at all). We have seen the benefits of this in reducing the cost of ownership of goods for clients in the past few months already.
Is money cheap?
- Uncertainty usually causes an increase in rates but, thanks to the Bank of England rate remaining so low plus an appetite from commercial banks to lend, we are still able to access great rates for our clients.
- Our lending panel still has an appetite to lend across most sectors, including construction, haulage, plant hire, engineering, manufacturing and more.
- Add into the mix the CBILS scheme and it’s a great time for small and medium-sized enterprises (SMEs) to be investing in their business to get in the best position possible to kick on for the remainder of 2020 and into 2021.
So if you want to be bold and build for the future, then give us a call here at Credo and let us talk you through some options.
Call 01603 381955 or e-mail [email protected]