Despite economic uncertainties, small and medium-sized businesses in Australia are increasing their asset investments, according to new Commonwealth Bank data.
CBA reported a 15% rise in vehicle and equipment financing compared to the previous year, driven largely by motor vehicle purchases, with loans for hybrid vehicles up 533% and electric vehicles up 254%.
Health, education, and manufacturing drive financing growth
Businesses in the health and community services sector saw a 35% increase in financing activity, followed by education (24%) and manufacturing (18%).
Companies are also investing in shop and office upgrades, with a 25% rise in financing for shelving and furniture fittings.
“Many business owners are taking the long view on the economy and investing in their operations,” said Grant Cairns (pictured), CBA’s executive general manager of business lending.
CBA has made efforts to support businesses with faster access to capital, cutting its funding decision time by 20%. The bank has also introduced a new car buying service in partnership with Carsales, allowing businesses to easily finance vehicles through the CommBank app.
“We are focused on ensuring access to capital to help drive productive capacity across the country,” Cairns said.
While many businesses are optimistic, others are struggling due to rising costs.
Cairns acknowledged that some businesses are facing challenges and emphasised the bank’s commitment to providing support.
“We know that the economic climate is challenging some businesses more than others, and we have tailored support available for those who are doing it tough,” he said.
CBA offers measures like deferred loan repayments and debt restructuring for businesses in need.
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