Improve warehouse safety with finance
For most businesses, nothing ranks higher than safety - not productivity nor profit margins. And yet, the statistics tell a rather different story.
In the last two months alone, there have been numerous compensation payouts following forklift accidents, including a $400,000 compensation claim after the death of a 63-year-old operator in New South Wales.
One way for business owners with warehouse facilities to improve safety standards is to upgrade the equipment their workers are working with every day.
Safety features on new equipment
The range of new products that enter the market every month is impressive. Business owners may look longingly at them and their safety features that could remove some of their health and safety-related headaches.
They then take a glance at their budget and think: "maybe next year".
With a little lateral thinking, however, they could afford the latest, safest technologies without crippling their cash flow.
Equipment Finance as a solution
Equipment finance - it's a way for businesses to use new machinery and tools without buying them outright. Through a rental agreement, also sometimes known as an operating lease, they can structure their payments to come from their operating budget, not their capital expenditure.
"One of the main benefits is that rental repayments are operating expenditures (or OpEx) and therefore 100% tax deductible, as opposed to large capital outlays from the capital expenditure (CapEx) budget" says David Wright, a senior relationship manager at Classic Funding Group. "It also means businesses may not have to worry about balance sheet depreciation or the obsolescence of their machinery. Should a forklift, scissor lift or conveyor need an upgrade or replacement, it may be easily achieved through a simple finance contract variation." he continues.
Arranging finance does not have to be difficult either. "A business can apply for a pre-approval of up to $50,000 without having to provide financials. As you might expect, this is subject to credit criteria, and terms and conditions do apply, but a business will generally be notified of their approval within hours of applying" David concluded.
With budgets constantly squeezed ever-tighter, it's just one smart way to spread out the payment of business-critical machinery, and hopefully give business owners greater tools to lower some of these unfortunate safety statistics.
For a finance quote or to obtain more information, call us now on 1300 780 895.
Classic Funding Group does not provide financial advice. You should obtain your own financial advice on the tax and accounting treatment of any finance solution you choose. Approval is subject to normal credit requirements. Terms and conditions apply.