(20 September 2024 – Australia) SMEs are planning to increase their asset investment and operations despite a slower economy, according to new data from CBA.
Small businesses are continuing to expand their operations despite challenging economic conditions with CBA revealing a 15 percent year-on-year increase in vehicle and equipment financing.
Loans for hybrid vehicles have increased fivefold by 533 percent in the past financial year and loans for electric vehicles (EVs) have increased substantially by 254 percent.
CBA also recently collaborated with Carsales.com.au to launch its new car purchasing service via the CommBank app.
“Though economic conditions remain tough, there is reason for business optimism. Australia’s economic fundamentals are sound and there are reasons for optimism about the future, but inflation and other global risks contribute to uncertainty that’s rightly prompting business owners to take steps to ensure their operations are future-fit and resilient” commented CBA Executive General Manager of Business Lending, Grant Cairns.
“While companies are navigating ongoing pressure from rising cost of doing business, we are seeing business owners taking the long view on the economy and investing in their operations.”
“For small and medium-sized businesses, this means making it simpler and easier to access funds and we’ve cut our funding time-to-decision by 20 per cent to provide that support faster. While there are these pockets of strength and optimism across the economy, 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.”