Regional Equipment Finance Demand Surging – NAB
(4 April 2024 – Australia) Asset and equipment finance brokers are being urged by NAB to lean into the regional and agricultural sectors for growth opportunities as demand booms.
Antony Field reports for MPA that demand for credit in the agricultural sector grew by 9.1 percent in 2023 according to NAB, despite adverse interest rates, weather and trading conditions. The growth in appetite for new cars reflected the greater availability of imported vehicles.
“The big stories in equipment sales this year were the end of the instant asset tax write-off scheme and the easing of supply chain woes that have caused frustration for purchasers. Demand for equipment finance has been at an all-time high in regional Australia due to great weather conditions ensuring high yields for crops” commented NAB Head of Equipment Finance, Chris Fileman.
“Since NAB rolled out the Green Finance initiative for equipment in mid-November 2022, hundreds of Australian businesses have taken advantage of favourable contracts and government support while reducing their carbon footprint. With electric charging infrastructure set to triple in 2024, new electric vehicles hitting the market at a price point of around A$30,000 as opposed to the A$100,000 for premium vehicles and continuing innovation in agricultural equipment, there’s every expectation that this segment is getting ready to take off” Fileman added.
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