We hope this month’s asset finance update finds you well.
Providing business, equipment, and asset finance to our clients often involves navigating a range of interesting and sometimes complex scenarios. This requires us to think beyond traditional funding solutions to ensure businesses have access to the right financial tools for growth.
This month, we’re excited to share two key updates:
- Industry Growth Spotlight – A deep dive into the significant growth we are witnessing in the health, education, and manufacturing sectors.
- Innovative Finance Solutions – A look at how businesses in other industries are overcoming financing challenges to achieve expansion and operational efficiency.
Many of our clients require tailored solutions that traditional lenders may not offer. This is where our expertise and diverse range of alternative lending options make a crucial difference in helping businesses access the finance they need.
No matter your sector, we are here to collaborate with you on finance solutions designed for your specific industry and business requirements.
So, sit back, relax, and explore this month’s insights. We look forward to discussing how we can help you with your business finance needs.
Asset Finance Growth in Key Sectors
The asset finance landscape in Australia is experiencing significant growth, particularly in the health and community services, education, and manufacturing sectors. Recent industry data shows:
- 35% increase in financing applications within the health sector,
- 24% increase in education,
- 18% increase in manufacturing.
These industries are increasingly turning to asset finance to modernise operations, enhance service delivery, and respond to evolving market demands. Below are some real-world examples illustrating this trend.
Health and Community Services: Expanding Medical Capabilities
The health sector is leading the way in asset finance growth, as hospitals and medical facilities invest in cutting-edge technology to improve patient care.
Case Study: Regional Hospital in Queensland
Funding Requirement: Advanced medical imaging equipment, including MRI machines and ultrasound devices.
Challenges with Traditional Lenders: Due to its regional location, the hospital did not meet standard lending criteria imposed by major banks.
Solution: By securing funding through a non-bank lender using an asset finance arrangement, the hospital spread the cost of the equipment over several years instead of facing significant upfront expenses.
Outcome:
- Improved patient care by reducing wait times for diagnostic tests.
- Enhanced operational efficiency.
- Flexible repayment terms enabled budget allocation for staff training and facility upgrades.
- Ultimately, the investment benefited the wider community by increasing accessibility to advanced medical care.
Education Sector: Investing in Learning Environments
Educational institutions are embracing asset finance to upgrade infrastructure and enhance the learning experience.
Case Study: NSW College Technology Upgrade
Funding Requirement: The college needed to upgrade its technology infrastructure, including interactive smartboards and digital learning tools, but was concerned about the financial strain of an upfront investment.
Solution: The college leveraged asset finance to implement these upgrades while maintaining financial stability.
Outcome:
- Increased student engagement and improved learning outcomes.
- Enhanced digital capabilities, ensuring students and teachers had access to modern educational tools.
- Strengthened financial management by allowing the institution to allocate funds to other essential areas.
This case demonstrates how asset finance can support the education sector’s need to innovate without placing undue pressure on budgets.
Manufacturing Sector: Driving Efficiency Through Innovation
Manufacturing companies are increasingly relying on asset finance to stay competitive in a rapidly evolving industry.
Case Study: Mid-Sized Manufacturing Company in Victoria
Funding Requirement: The company needed to upgrade its production line to secure a critical new contract.
Solution: Instead of depleting cash reserves, the business utilised an asset finance solution to acquire high-tech machinery, including state-of-the-art robotics and automation technology.
Outcome:
- Improved production efficiency and reduced operational costs.
- Increased competitiveness in securing new business opportunities.
- The ability to spread payments over time allowed management to invest in employee training programs, ensuring staff could operate the new technology effectively.
This case highlights how asset finance enables manufacturers to adapt to market changes and invest in long-term growth strategies.
The Shift in Borrowing Preferences
For the first time, some non-bank lenders report that asset finance settlements have exceeded mortgage settlements. This shift indicates a growing preference among Australian businesses for asset finance solutions over traditional forms of borrowing.
The notable growth trends in asset finance across health, education, and manufacturing underscore the vital role that financing plays in helping businesses adapt to changing economic conditions. By leveraging asset finance, companies can modernise operations, improve service delivery, and achieve better outcomes for their clients.
As the asset finance landscape continues to evolve, staying attuned to sector-specific trends enables us to provide valuable insights and tailored solutions for our clients.
For more information on how we help SMEs grow with asset finance options, feel free to reach out. We’d love to discuss how we can support your business in achieving its financial goals.
