Interest rates tipped to rise

Posted on March 9, 2010

 

The Reserve Bank of Australia (RBA) Governor Glenn Stevens has given his strongest indication yet that the RBA is confident that we are heading for economic growth and with it the certainty of increased cash rates back to "normal" levels.

 

"This is normal experience in an economic expansion: as economic activity normalises interest rate do the same," Mr Stevens said.


This will lead to an increase in the cash rate over the coming years as the economy begins to expand, which in turn increases the cost of funding for financiers. There has never been a better time to plan your needs and secure your equipment funding.

 

Below:: Graph of Australian Cash rate from May 2002 to December 2009. Each point represents an increase in the Cash Rate by the RBA (Source: ABS)

 

Cash_Rate_graph

 

What next?

 

Now is the time to consider what your plans are for the next 6-12 months. Have you considered whether you have the right equipment to assist you in your growth? If not, what is required?

 

Equipment vendors are currently looking to boost their sales so now is a perfect time to negotiate a great solution. By planning what you need and securing your equipment at today's cost of funds, whilst enjoying fixed payments for the term of the agreement, you are likely to see a much quicker return on investment as the economy enters full swing.

 

Contact your dedicated Alliance Equipment Finance Relationship Manager today to discuss your options. They will be more than happy to assist you in your planning and provide suitable solutions for your equipment finance needs.


  1. Complete an audit of your current equipment.

  2. Outline what may be required or upgraded in the next 6-12 months.

  3. Contact Alliance Equipment Finance to obtain approval for your required amount. 

 

Cash is King...

 

Don't forget our previous advice regarding your cash reserves and overdraft. It is important that you do not utilise these facilities to fund your equipment acquisitions.

 

Take a look at our earlier article, or ask your Relationship Manager for a copy:

 

www.equipmentfinance.com.au/cash-is-king

 

 

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Posted by Admin at 3:44 pm 0 Comments