Apr 4, 2022 3:03:15 PM

Future Proofing SME Businesses

Topics: Mortgage Broker, Business Finance, Asset Finance 0

One of the best ways to build a successful business is to keep investing and planning for the future, even when things are going well. And, as life returns to normal post-Covid-19, many small and medium businesses in Australia are putting that strategy into practice. A growing number of businesses are buying equipment and machinery months in advance, with demand for asset finance topping previous records. And it’s only likely to continue as more SMEs look to progress in 2022. Find out more here.


Growing demand for asset finance

Data released by The Commonwealth Bank of Australia shows a record number of asset loan applications in the last six months, largely driven by government incentives, such as the “instant asset write off” scheme and businesses offsetting supply constraints. 

Over the six months up until December 2021, demand for asset financing was highest amongst small and medium businesses in South Australia, closely followed by Victoria, West Australia and New South Wales.  

CBA’s Executive General Manager Business Lending, Grant Cairns, said: “After the government extended the instant asset write off scheme last year, we saw a big uplift in financing for vehicles and equipment and expect this to continue into 2023. The government-backed SME Recovery Loan Scheme is also available until 30 June 2022 and is an excellent initiative to ensure more businesses can access low lending rates on flexible terms.”

“The Australian economy is looking strong in 2022 and, with expectations that demand will increase, we anticipate continued investment in capital goods to fuel future growth.” 

Financing for SME equipment

Asset financing plays a pivotal role in helping drive business growth. For a small business just starting out or those with limited resources, physical assets, equipment and vehicles are a significant cost to outlay initially. But, if they are an essential part of business operations, delaying the purchase means the business is unable to perform and generate an income.

One of the key advantages of asset finance is that it allows the business to buy assets without committing capital, helping fund growth without increased risk. What’s more, asset finance means the business is able to spread the cost of an asset over its lifespan.

With this type of financing, the asset being financed is generally used as security in the lending process. Asset finance can be used to finance any asset that is seen as a significant investment in a business and that will have a reasonable lifespan, such as:

  • Heavy Machinery
  • Farming Equipment
  • Company Vehicles
  • Mining Equipment
  • IT Equipment
  • Kitchen Fitouts

Get expert advice about asset finance

With a number of asset financing providers available to SME businesses in Australia, it’s important to find the right finance solution to fit your business’s needs. Talk to a financial specialist about your options for financing business equipment, machinery or vehicles, and get expert advice about asset finance.

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Australian Financial Complaints Authority (AFCA) | Member of Choice Aggregation Services.