While many Australian businesses were significantly impacted by COVID during FY21, positive conditions in some sectors saw new business lending in asset finance grow at 20 per cent year on year according to data from the Commonwealth Bank. This volume of new asset finance lending is the biggest ever recorded by CBA in a financial year.
According to the CBA data, a record number of Aussie businesses invested in motor vehicles, and plant and equipment assets in the last financial year – with new asset finance lending volumes 20 per cent higher than the median volumes recorded over the past ten financial years.
CBA’s Group Executive Business Banking, Mike Vacy Lyle, said many businesses had capitalised on several months of increased customer demand in 2020 and Government tax incentives to prepare for future growth.
“While the operating environment has been challenging for many business for the last 18 months, we’ve seen some businesses in sectors like agriculture and manufacturing, restock and invest in equipment upgrades, expansion of fleets, new fit outs or take advantage of technological advancements.”