CBA Introduces Eco-Friendly Vehicle, Equipment Finance
Commonwealth Bank of Australia
To aid businesses in their efforts to lower energy costs and increase productivity while reaching their sustainability targets, Commonwealth Bank of Australia (CBA) is introducing eco-friendly asset finance options for green vehicles, equipment, and machinery.
Commonwealth Bank of Australia's (CBA) Green Vehicle and Equipment Finance will provide discounts of up to 1% on the standard rate for new and used electric or hydrogen-powered vehicles, as well as discounts of up to 0.5% for other eligible assets such as renewable energy equipment charging and storage devices. The incentives apply to cars, trucks, vans, and buses valued at $250,000 or less.
Chris Moldrich, the General Manager of Asset Finance at CBA, has stated that the Commonwealth Government’s Instant Asset Write-Off scheme, which expires on June 30, is expected to be used by many businesses to bring forward purchases of green vehicles and equipment.
In response to this trend, CBA has launched a new green asset finance offering to support companies in the manufacturing, logistics, and construction sectors to reduce energy wastage, running costs, and carbon emissions.
The new offering provides financing solutions that cover up to 100% of the purchase price of assets such as electric vehicles and green equipment, as well as infrastructure such as chargers and batteries. This enables businesses to transition their fleets and equipment to the latest, best-in-class sustainability options.
Additionally, CBA's financing solutions offer a range of terms to suit different cash flow needs, and the purchased equipment can be used as security for the loan, freeing up working capital for other purposes.
According to a recent report by East & Partners, environmental concerns, lower finance costs, higher fuel costs, regulatory pressures, and investor requirements are key drivers for business investment in sustainability.
The report also found that one in five companies plans to install green energy production facilities on-site, while one in three is broadly considering solar, hydrogen, electric vehicle chargers, batteries, or pumped hydro.
CBA's Green Vehicle and Equipment Finance is available for assets such as electric cars, trucks, or buses, electric vehicle and equipment charging and storage assets such as batteries, battery-powered agri and goods, earth moving equipment, LED lighting upgrade projects, and solar, wind, and hydro-powered equipment, including panel installations.
CBA's green asset finance offering adds to its existing sustainable finance solutions, including financing for the purchase or construction of low-carbon commercial property, property upgrade loans to improve energy and water efficiency, and green home loans.
To learn more about finance for green vehicles or equipment, visit www.commbank.com.au/assetfinance.
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