Commonwealth Bank of Australia (CBA) joins a slew of banking institutions including NAB, Westpac, and ANZ in launching a range of green asset finance solutions. CBA says the new range will help businesses lower energy costs and boost productivity.
CBA’s Green Vehicle and Equipment Finance offers discounts of up to one per cent off the standard rate for new and used electric or hydrogen powered cars, trucks, vans or buses valued up to $250,000, and discounts of up to 0.5 per cent on other qualifying assets including electric and hydrogen powered machinery, solar, wind and hydro-powered equipment and charging and storage equipment.
CBA General Manager Asset Finance, Chris Moldrich, said many businesses were expected to take advantage of the Federal Government’s Instant Asset Write-Off scheme before it expires on 30 June, to bring forward purchases of green vehicles and equipment.
“This new green asset finance offering is designed to assist companies in the manufacturing, logistics and construction sectors who are focused on lowering their running costs and energy wastage, while also reducing carbon emissions.
The solutions cover up to 100 per cent of the purchase price of these assets, as well as infrastructure including chargers and batteries.
Moldrich said a report by banking research and advisory firm, East & Partners, found environmental concerns, lower finance costs and higher cost of fuels as well as regulatory pressures and investor requirements are key drivers for business investment in sustainability.
The report said one in five companies planned to install green energy production facilities on site, while one in three were “broadly considering” solar, hydrogen, electric vehicle chargers, batteries or pumped hydro.
“There is a range of terms to suit different cash flow needs and the ability to use the purchased equipment as security for the loan also enables businesses to free up their working capital for other purposes,” Moldrich said.
CBA Green Vehicle and Equipment Finance is available for assets including:
- Vehicles: Electric cars, trucks, or buses
- Charging and storage: Electric vehicle and equipment charging and storage assets such as batteries
- Electric or hydrogen machinery and engines: Battery powered agri, and goods and earth moving equipment
- LED Lighting upgrade projects
- Renewable energy: Solar, wind and hydro powered equipment including panel installations
