Equipment Finance for Businesses: Why Supply Challenges Could Impact EOFY Planning

Global supply chain disruptions continue to affect the availability of business equipment, particularly across construction, transport, and trade sectors. This may influence how businesses plan equipment purchases in the lead-up to the end of the financial year (EOFY).[1]

How Supply Conditions May Affect Equipment Availability.

Recent global events have contributed to increased pressure on supply chains, which may impact the availability and timing of equipment deliveries.
Some of the potential flow-on effects include:

• Higher freight costs due to increased fuel prices.
• Reduced delivery frequency, limiting available stock.
• Longer lead times for vehicles, machinery and other business equipment.

These factors may make it more important for businesses to plan ahead and confirm timelines with suppliers before making purchasing decisions.

Planning Asset Purchases in Time for EOFY.

As 30 June approaches, many businesses review their position and consider whether investing in equipment aligns with their broader financial strategy.

Government incentives such as the Instant Asset Write-Off may be relevant for some businesses.

However, it’s important to note:

• Equipment generally needs to be installed and ready for use before EOFY—not just ordered
• Eligibility requirements can vary depending on current legislation and individual business circumstances

With potentially fewer asset deliveries internationally, and the potential for higher costs, planning now could help you meet shifting deadlines.

What Businesses May Consider.

Timing and “Ready-To-Use” Requirements. 

Confirm when equipment is expected to be delivered, installed, and operational to avoid missing key deadlines.

Allowing for Potential Delays.

Supply conditions can change, so it could be helpful to allow additional time and confirm realistic delivery expectations with suppliers.

Review your Financial Position.

Speaking with your accountant or adviser can help ensure any purchase aligns with your broader tax and cash flow strategy.

Understanding Finance Options.

Equipment finance may assist with managing cash flow when acquiring business assets. A broker can explain available options and how they may apply to your situation.

Market Insight.

Industry participants are reporting ongoing pressure on the supply of vehicles, machinery, and business equipment. MoneyQuest broker Matt Gage says

“Ongoing international disruptions are impacting the flow of vehicles, machinery, and essential business equipment… Many businesses have already had tax planning meetings with their accountants and made plans to move forward”

While supply conditions and demand may fluctuate, businesses that plan ahead and seek appropriate advice are generally better positioned to manage timing and availability considerations leading into EOFY. If you need assistance securing finance for equipment or finance, be sure to reach out to us! We can help find the funding solutions that suits your needs, boost your business and get prepared for End of Financial Year.

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