Asset financing grows amid uncertainty

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%.

Key sectors lead the charge

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.

“We are focused on ensuring access to capital to help drive productive capacity across the country,” Cairns said.

CBA offers tailored assistance for struggling businesses

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.

CBA offers measures like deferred loan repayments and debt restructuring for businesses in need.

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