“Government incentives have played a significant role in lifting business investment over the past few years. Since July last year, we’ve seen continued growth in asset finance in the small business sector, with the instant asset write-off scheme providing a good reason for customers to upgrade equipment and technology,” Mr Cairns said.
“There is also the government-backed SME Recovery Loan Scheme available until 30 June this year³, as well as new government measures providing upfront deductions on digital infrastructure, so I expect we will see a continued uplift in small businesses investment.
“We’re committed to supporting businesses to invest in the future. Last week we released new lower rates through CBA’s Government-backed SME loan, the ‘Business Restarter Loan’ with rates from 3.29 per cent, including flexible payment and security options and repayment holidays³. We encourage businesses to speak to us about how we can help meet their business needs.”
According to CBA’s data, small businesses have also been utilising CBA’s Energy Efficient Equipment Financing (EEEF) which rewards customers with a discount on financing for energy efficient vehicles, equipment and projects4. Financing under CBA’s EEEF is up 13 per cent so far this financial year, compared with the same period last year.
Across the small business sector, the largest investment boosts1 have been in:
- Electric cars – 156 per cent
- Trailers – 312 per cent
- Forklifts – 395 per cent
“As organisations welcome employees back into offices, they are investing in new technology to attract and retain staff, and many are demanding sustainable business investments. We’ve seen an uptake in hybrid and electric vehicles, as well as investments across other assets including IT equipment.
“More small businesses are also seeing the benefits – including the financial benefit – of replacing old equipment with energy efficient alternatives. Many of our customers are utilising our leasing solutions and we’re able to offer packages that help businesses get everything they need now, with the flexibility to add on and upgrade in the future. Working with our strategic partner Equigroup, we have ways to help businesses convert these to leases and restore capital back for use in other areas, even if they have already paid cash for their IT equipment,” said Mr Cairns.
For more information on car and equipment finance visit, www.commbank.com.au/assetfinance or call 1800 ASSETS.
For more information on CBA’s Restarter loan, including rates, visit cba.com.au/restarter
¹CBA Asset finance data for the Small Business Banking segment, comparing FY22 (year to date) with the same period in FY21, from 1 July to 25 March inclusive.
²Statistics based on a survey of 909 business decision-makers, conducted by ACA Research for CBA in October 2021, entitled Equip: Issue 14 Asset Finance Thought Leadership Research.
³Customers need to meet eligibility criteria of the Government SME Recovery Loan Scheme Rules. Applications for finance are subject to the Bank's eligibility and suitability criteria and normal credit approval processes. Applications close 17 June 2022 and must be approved on or before 30 June 2022. Rates are subject to change. Fees, charges, terms and conditions apply.
4Credit provided by Commonwealth Bank of Australia. These products are only available to approved business customers and for business purposes only.
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