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CBA Enhances Business Lending Process as Businesses Enhance Cashflow Strategies

CBA Enhances Business Lending Process as Businesses Enhance Cashflow Strategies

(12 December 2023 – Australia) CBA has announced changes to business lending processes enabling faster decision time

CommBank has announced new changes to its business lending process that will allow for shorter decision times for eligible small business customers, from three days to instant. 

The functionality will be available for customers who apply with a banker along with plans for a revised instant online decisioning pathway set to be live by the next financial year. 

The new process set in place will allow eligible existing business customers who have a qualifying credit facility with CBA to fund new and used cars, utility vehicles and vans from suitable suppliers through BizExpress, a fast lending system. 

According to East and Partners data, speed was the most important factor among businesses when making assessments regarding a business lender. About 65 percent of customers reported that they were more likely to change their lenders based on the speed of the funding rather than their price. Three out of four businesses are interested in transitioning recent cash-funded equipment into a sale and finance back arrangement, with that figure consistently high across business sizes, but most pronounced for SMEs (82 percent).

CBA’s internal data showed that there was an increasing demand for transport vehicles. Electric vehicles had the largest increase at 235 percent year-on-year. Light-medium trucks had a 14 percent increase in funding year-on-year as its asset values remained high. Prime movers (24 percent) and forklifts (31 percent) also saw an increase in demand. 

“We’re leading the charge on instant asset finance decisioning starting with cars, utility vehicles and vans” said CBA GM Asset Finance, Chris Moldrich. 

“These changes will help our customers grow their business with faster decisions and access to funds, increasing productivity and scale as well as providing better customer experiences. Business lending with A$2.2 billion in funding in Q1FY24 alone and market share of 17.4 percent is a key priority for CBA and asset finance is a key part of that strategy” Moldrich added.

“In the current environment, businesses want flexibility to manage fluctuating cash conversion cycles and have the confidence to boost liquidity if they need it. Instead of limiting themselves only to traditional financing options, businesses are looking at different ways to smooth their cashflows. That’s where they can use assets like receivables as security rather than bricks and mortar" commented CBA GM Working Capital, Elizabeth Huxley.

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