SMEs Grow Faster with Machinery & IT Funding via Asset Finance Broker
Australian small businesses are fueling their recovery with a surge in machinery, IT, sustainable assets, and office tech purchases, according to Commonwealth Bank data. Many are turning to asset finance brokers to secure the best funding.
There's a surge in demand for equipment financing! CBA research shows a 17% increase in small business loans for equipment and machinery compared to last year. This reflects a broader trend, with 67% of businesses budgeting for new equipment in the next year, with a focus on IT and office technology. Grant Cairns, CBA's Executive General Manager for Business Lending, explains this as a combination of welcoming employees back to offices with attractive tech and a growing focus on sustainable business practices.
Considering an equipment upgrade? An asset finance broker can help you navigate financing options and secure the best deal for your business needs. They can compare rates and terms from various lenders, ensuring you get the right equipment without breaking the bank.
Businesses going green
Across the small business sector, the biggest investment boosts have been in electric cars (156%), trailers (312%), and forklifts (395%).
According to CBA’s data, an increasing number of small businesses are taking advantage of discounts on financing for energy-efficient vehicles, equipment and projects.
“We’ve seen an uptake in hybrid and electric vehicles, as well as investments across other assets including IT equipment,” he adds.
“More small businesses are also seeing the benefits – including the financial benefit – of replacing old equipment with energy-efficient alternatives.”
What else is stimulating the growth?
Mr Cairns says the growing rate of investment is underpinned by a range of government incentives.
That includes attractive interest rates for the SME Recovery Loan Scheme; the extension of the federal government’s temporary full expensing scheme (aka instant asset write off) to mid-2023, and tax incentives announced in the federal budget that encourage small businesses to invest in technology and training.
Those tax incentives allow small businesses to receive a $120 tax deduction for every $100 they spend on training staff or investing in technology, up to a maximum of $100,000 a year.
“Government incentives have played a significant role in lifting business investment over the past few years,” says Mr Cairns.
“Since July last year, we’ve seen continued growth in asset finance in the small business sector, with the instant asset write-off scheme providing a good reason for customers to upgrade equipment and technology.”
Get in touch now ahead of the new financial year
Don't miss out! Government incentives like the SME Recovery Loan Scheme (ends June 30th) and temporary full expensing can give your business a boost. Talk to an asset finance broker today to explore financing options, government schemes, and energy-efficiency discounts your business might qualify for.
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