Is money mentality holding you back from upgrading your CNCMachines?

Ongoing labour issues continue to plague all industries, pushing more and more producers into paying overtime. The solution? 

Invest in quality automation that does the job, no matter what. 

There are ways to ensure that you get the best CNC machine price for your investment. And the borrowing process isn’t necessarily as painful as you might think.

It all starts with a shift in mentality.

BUSTING THE LATEST MONEY MYTH

First things first: are Australia’s interest rates actually taking a toll on the equipment sector? According to Equipment Finance Specialist Dennis Horne, the answer is no.

“There’s been quite a big hit to confidence – people are watching too much T.V or reading newspapers. When I say what’s your profit and loss telling you? They say we’re doing phenomenally well. We’re seeing that reflect in our own practice – our turnover went up 200% in the month of June, when the interest rate hike kicked in.”

The issue, says Dennis, isn’t the money. It’s the mentality. 

Manufacturers are willing to look for a “quick fix” solution by hiring labour. The trouble is, labour is becoming increasingly difficult to find – and more costly to pay for. 

Some still consider this more preferable to borrowing from a lender. But is it really a smart move in the current financial climate?

DO YOU NEED TO BORROW FROM THE BANK TO FINANCE CNC MACHINES?

For many Australians, borrowing from the bank is seen as a sign of weakness. While it’s a common practice for mortgages and smaller equipment loans, it’s not always the best course of action.

In fact, a customers’ banking relationship is often with a lender that’s not in line with what they want to achieve. Why?

Because, for sums of up to $250,000, the banks don’t ask for too much information. Anything over that, they get into the nitty-gritty of profit and loss sheets, asset management, and overall business practice. As we all know, things tend to look different on paper than in real life – but big institutions are legally obliged to ensure that borrowers can pay back their loans.

So, who profits from such an arrangement? Those who have their paperwork 100% sorted. Do you?

If not, consider an alternative route. Branks aren’t the only organisations that can lend money out, and they’re often not the most effective, either. 

“The big four banks aren’t relevant for everybody. The smaller lenders aren’t relevant for small customers, depending on what they want – whether it’s letters for credit, import funding, stock functioning. As brokers, that’s why we work across the board, covering the range of the market,” says Dennis.

Where there’s a will, there’s a way. One thing is for sure: the labour crisis isn’t going to improve anytime soon. That’s why we’re seeing so many customers invest in our CNC machines. Don’t let a skewed money mentality stop you from securing yours.