The bank supports the sustainability goals of businesses through green asset financing
Commonwealth Bank of Australia has rolled out a range of new green asset finance solutions to support businesses’ sustainability goals.
CBA’s new Green Vehicle and Equipment Finance offers discounts of up to 1% 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% on other qualifying assets such as electric and hydrogen-powered machinery, solar, wind, and hydro-powered equipment and charging and storage equipment.
Chris Moldrich (pictured above), CBA general manager of asset finance, said many businesses would likely cash in on the Commonwealth government’s Instant Asset Write-Off scheme before it expires on June 30, 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,” Moldrich said.
“These new offerings enable businesses to transition their fleets and equipment to the latest, best-in-class sustainability options such as electric vehicles and green equipment. Our financing solutions cover up to 100% of the purchase price of these assets, as well as supporting infrastructure such as chargers and batteries.
“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.”
According to a recent report by East & Partners, business investment in sustainability is driven mainly by environmental concerns, lower finance costs, and higher cost of fuels, as well as regulatory pressures and investor requirements. The report also found that one in five companies plan to install green energy production facilities on site, while one in three are broadly considering solar, hydrogen, electric vehicle chargers, batteries or pumped hydro.
The CBA Green Vehicle and Equipment Finance is available for following assets:
- 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
- Green asset finance adds to CBA’s existing sustainable finance offering including for the purchase or construction of low carbon commercial property, property upgrade loans to improve energy and water efficiency and green home loans.
Green asset finance is the latest addition to CBA’s existing sustainable finance offering, which includes for the purchase or construction of low carbon commercial property, property upgrade loans to improve energy and water efficiency, and green home loans.
What do you think about this new green offering? We’d love to hear from you in the comments below.
