Small and medium-sized businesses in Australia are looking to invest more in assets such as vehicles and machinery after delaying such purchases due to economic uncertainties.
New research by East & Partners found that businesses are proceeding with their investment plans. About 56.5 per cent of the respondents said improved cash-flow outlook influenced their decision, while 37 per cent cited a more favourable economic outlook.
Renee Theodor, GM of asset finance at CommBank, said earlier economic uncertainties had caused many businesses to delay investment in vehicles and machinery.
There were a lot of concerns about the economy, geopolitical uncertainty, and continued cost-of-living pressures at the start of this year, Theodor said.
“However, we have seen momentum tick up over the past month, and I expect this to continue post the Federal Election, particularly with the end of financial year approaching and the extension of the Government’s $20,000 Instant Asset Write Off for another 12 months,” he continued.
“The combination of easing inflation, clarity around the domestic political landscape, and tax-planning decisions before the financial year ends will likely encourage investment,” he added.
To support this, CommBank has introduced digital improvements to streamline financing for business vehicles and equipment, enabling faster access to funds. The enhancements include conditional pre-approvals for qualifying small businesses seeking finance up to $500,000, among others.
Theodor noted that customers often report productivity gains through new vehicle or machinery investments, highlighting benefits like energy efficiency, automation, and speed.
