With the 2014-2015 federal government budget announcement of more than $125 billion investment to support construction activity, one could argue the future for the civil contracting industry is looking promising. However, some major projects such as the Pacific Highway duplication in New South Wales, the East West link in Victoria, or the North South Corridor in South Australia, will have a big impact on the overall landscape of the industry.
Indeed, if these projects are packaged and handed out to the larger enterprises, it will have
repercussions on the small-to-medium sized contractors. Despite the government believing that smaller contractors get subcontracted the large projects, the requirements for the head contractor are such that profitability is often reduced.
Add to the above stronger competition, rising costs of equipment, changing and increasing compliances issues, the margins of more and more companies are shrinking, and are therefore looking for creative solutions to finance new machines.
That is where asset finance can come into play as it has very often proven to be an extremely effective method in obtaining equipment. There are a number of finance products available to tailor a client’s specific needs. However, strong industry knowledge, and a sound understanding of the type of equipment sought, is paramount when preparing a client’s finance proposal. Communicating these key points in detail to a lender can be the catalyst in obtaining a successful outcome. Too often customers will apply for equipment funding direct with their bank without consulting a specialist first.
Diversifying lender options is another factor to consider when purchasing a piece of equipment. Utilising different lenders gives customers the ability to spread their financial
exposure, thus preserving precious working capital. Subsequently this will enhance a business’s ability to grow and take full advantage of further opportunities.
Linx Australia Group has been offering their expertise in innovative and strategic asset finance to businesses and individuals throughout Australia for over 15 years, and consequently understands that most equipment requires customised finance. Working closely with the major industry bodies, machinery suppliers and dealing with the specialist divisions within the major financiers, Linx has developed the ability to secure the right finance products for its clients.