New data from the Commonwealth Bank of Australia shows small and medium businesses are preparing for the future, with equipment and machinery financing significantly up in the first six months of FY22 compared with the same period in FY21 (87 per cent) and pre-pandemic FY20 (86 per cent).
Over the six months to December 2021, demand for equipment financing was highest amongst small and medium businesses in South Australia, with lending up 198 per cent in the state. This was followed by small business owners in Victoria (181 per cent), West Australia (84 per cent) and New South Wales (53 per cent).
CBA’s Executive General Manager Business Lending, Grant Cairns, said: “The operating environment has been very challenging for businesses who have navigated protracted lockdowns, the Omicron wave and major weather events. While many have been cautious, we have seen strong demand for asset financing, largely driven by government incentives and businesses trying to manage supply chain disruptions. Businesses – both small and large – are now buying equipment and machinery months in advance in response to supply constraints.”
Mr Cairns said government incentives like the instant asset write off scheme, available until mid-2023, had provided a boost for Australian businesses.