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Asset finance and healthcare – capitalising on new innovations

Healthcare providers are continuing to upgrade their equipment to streamline their procedures and better serve their patients, so it can be rewarding for brokers to increase their knowledge about this sector. 

The pandemic accelerated innovation in healthcare in Australia, with telehealth and video consults propelling an uptake of new technology. Healthcare providers continue to buy and upgrade equipment as they seek to provide a better patient experience and deliver the highest quality care. At the same time, they’re looking to tap into new sources of revenue to grow their business.

That translates to having a keen interest in securing finance that allows them to put the latest technology to work. 

You’re in a competitive market

This presents an opportunity for brokers that understand the healthcare sector – but it’s a competitive market. Research for CommBank from 2022 reveals that more than 50% of businesses that use brokers for their asset finance use two or three brokers in the process.1 Customers are actively looking for the best deals on both service and price. That means you need to have the appropriate knowledge and service skills to persuade them to go with your business. 

Be proactive. Don’t assume your customers will call you when they want something. 

Understand your customers. Brokers who do well know what equipment their customers use, when supply is low and why, what the government’s up to, and what the latest offerings are from key manufacturers and technology leaders. 

Don’t assume your customer knows what they want. You need to know about the range of loan products and financial structures available so you can make your customers aware that you can offer them different financing options and structures.

Bespoke healthcare solutions for your medico customers

CommBank has created sector-specific solutions for health care that could help brokers better service these customers’ needs.

Streamlined approvals for medical fit-outs 

CommBank has streamlined its funding process for medical fit-outs and equipment. Medical fixtures and fit-outs are treated as a “standard asset”, making it easier for healthcare businesses to get the equipment they need. It can be as simple for a customer to fund a fit-out as it is for them to get a loan for a car. 

StartWell option

CommBank’s StartWell can be used by Healthcare clients looking to expand or update their practice. This option gives customers the ability to choose lower payments during the first two years of the loan to allow time for the business to grow. After that, payments step up to a higher fixed amount over the remaining term. 

Customers are able to access the equipment they need to drive growth, but with less initial pressure on their cash flow. They do pay more interest over the full term than with a standard loan but the benefits of the cash flow break can be beneficial.

Green and sustainability finance 

Vehicles and equipment

CommBank’s new green asset finance builds on its existing sustainable finance products. Customers can access discounts of up to 1% (100 basis points) off the standard rate for new and used electric or hydrogen powered vehicles. Other qualifying assets – such as renewable energy equipment or batteries – may receive a rate discounted up to 0.5% (50 basis points).

Tailored loans to help balance business and personal commitments

CommBank can assist brokers to create loan structures that meet customers’ needs, no matter how complex. But that requires brokers to drive the conversation with their customers and be informed on the options available so they can match solutions to each customer’s unique requirements. 

Keep these points in mind. 

  • Don’t assume customers are fully across their own financial arrangements.
  • Ask needs-based questions. 
  • Advise customers on the benefits of keeping personal and business finance separate so that their personal assets are protected. 
  • Explain the flexibility of business lending in particular – for example, balloons at the end of a loan term, or asset finance loans matched to the equipment’s effective life.

CommBank is here to help

Speak to your Business Development Executive, visit commbankbrokers.com.au or contact us at CommercialBroking@cba.com.au.

Things you should know

  • 1 East and Partners Annual Banking Survey Oct 2022.

    The information contained in this article is published solely for informational purposes and provides general market-related information, and is not intended to be an investment research report. It does not take into account objectives, financial situation or needs for you or your customers. Readers should consider the appropriateness to them and their customer’s circumstances.

    A discount may apply for qualifying green and energy efficient vehicles and equipment when you ask for it. No discounts are automatically applied and must be requested prior to funding. Any discounts apply to the standard carded rate and cannot be combined with any other pricing reductions. Discounts of up to 1% p.a. and 0.50% p.a. are limited to transactions less than $250,000. Discounts are available for qualifying assets over $250,000 by negotiation. Discounts offered are subject to change without prior notification. We reserve the right to modify or revoke any discount offered at any time, for any reason.  

    Products mentioned in this article are only available to approved business customers and for business purposes only. Applications for finance are subject to the Bank’s normal credit approval and customer eligibility. Fees, charges and conditions apply. Rates are subject to change. Full terms and conditions will be provided with any agreement upon credit approval. You should view our current Asset Finance Terms and Conditions and consider them before you make any decision about these products.

    Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945.