The last major auctions of 2022 are fast approaching, and you may be wondering how to navigate rising rates, rising equipment costs and a shortage of labour. This trifecta has created an economic storm for business owners, but there are solutions to help get you through.
The Current Outlook
Used equipment prices are higher than ever – which is a direct result of limited supply of new equipment. Why is this? Manufacturers are backlogged (elevated by the pandemic) and used pricing follows new pricing in a high-demand environment. New equipment prices are high because input costs are up (raw steel, rubber commodity, battery, computer chip components, etc.). Real inflation (not government-posted inflation) erodes purchasing power. One dollar of cash doesn’t go as far as it previously did. Inflation places upward pressure on companies to increase wages to retain employees, which ultimately decreases profitability if revenues remain static. It can also decrease the ability to borrow reasonably priced money.
Right now, many business owners are facing uncertainty on future cash flow, uncertainty to forecast and bid jobs, and ultimately uncertainty for their employees and their personal lives. The cost of everything is up, from mortgage payments, to groceries, to fuel. Having the right strategies in place to weather the storm is key.
Save Money and Protect Your Business
CEF has real boots on the ground, and we’ve helped business owners and managers navigate these waters before. It’s what we do, with no other distractions. We can help you:
Qualify for a pre-approved line today. This will allow you to shop with certainty, and search with confidence knowing the funds are ready to be deployed.
Act quickly on a transaction when needed. You are often bidding against others that need the same equipment. Don’t let financing be the anchor that slows you down.
Know your limit(s) and stay within it when going into a negotiation. What can you afford, what will your payments look like, what parameters of borrowing do you need to agree to borrow the money. There should be no surprises when you are ready to pull the trigger.
Avoid pledging additional security wherever possible.
Better forecast your demand for cash. Options like fixed rates provide certainty of future payment obligations.
We work with you to understand your unique situation and priorities, and we determine the right solution based on what’s most important to you. We can help you save money down, save money per month, and customize your financing to match your cashflow. Contact us today, we want to help you succeed.