Login
ISCOVER
The major bank has announced new green asset finance solutions in an effort to support businesses in their sustainability goals.
The Commonwealth Bank of Australia’s (CBA) Green Vehicle and Equipment Finance offers businesses discounts of up to 1 per cent off the standard rate for new and used electric or hydrogen powered vehicles (electric cars, trucks or buses) valued up to $250,000.
In addition, CBA is offering discounts of up to 0.5 per cent on other assets such as electric and hydrogen powered machinery, solar, wind and hydro-powered equipment and charging and storage equipment.
CBA general manager asset finance Chris Moldrich said many businesses were expected to take advantage of the Commonwealth government’s Instant Asset Write-Off scheme before its expiry on 30 June.
“This new green asset finance offering is designed to assist companies in the manufacturing, logistics and construction sectors who are focused on lowering their running costs and energy wastage, while also reducing carbon emissions.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“These new offerings enable businesses to transition their fleets and equipment to the latest, best-in-class sustainability options such as electric vehicles and green equipment.
“Our financing solutions cover up to 100 per cent of the purchase price of these assets, as well as supporting infrastructure such as chargers and batteries,” Mr Moldrich said.
‘Record year’ for agribusiness
Earlier this month (April 2023), NAB reported a 59 per cent increase for finance for large grain and general haulage trailers in its last financial year, followed by headers, which jumped 18 per cent.
This surge comes as many farms have experienced good growing conditions following a slew of natural disasters over the last few years such as droughts and floods, along with high commodity prices.
NAB executive regional and agribusiness, Khan Horne, said the bank’s data showed solid ongoing growth among regional and agribusiness customers.
“Many farmers across the country have had an excellent run of seasons, with some areas in Australia experiencing record-breaking 2022–23 winter crops,” Mr Horne said.
“Bumper crops paired with the federal government’s instant asset write-off scheme have helped fuel investment in vehicles and equipment.”
In particular, regional and agribusiness equipment finance lending lifted 3 per cent in financial year 2022, compared to the previous year, which was 47 per cent up on its pre-pandemic levels.
He added that there was also a strong appetite for new and used equipment.
“We expect this to continue at least to June 30 when federal tax incentives are currently scheduled to cease,” Mr Hornes said.
[RELATED: ‘Record year’ in agribusiness finance, NAB reports]
JOIN THE DISCUSSION