The Commonwealth Bank of Australia today announced new enhancements to its business lending process that will enable eligible small business customers to receive an instant conditional decision on the spot for cars, utes and vans – delivering one of the fastest decisioning in market across the major banks.
Under the new process, from 4 December, eligible existing business customers who already have a qualifying credit facility with CBA will be able to fund new and used cars, utes and vans, from suitable suppliers through the pioneering fast-speed lending system BizExpress – cutting down the time to decision from three days to instant for eligible customers.
These changes coincide with industry data2 showing speed is the most important factor for businesses when assessing a business lender, with the majority of customers (65 per cent) reporting they are twice as likely to change lenders based on speed of funding than they are based on price.
CBA’s internal data3 also underscores the increasing demand from customers for transport vehicles, with electric vehicles leading the way – up 235 per cent year on year. Light-medium trucks have seen an increase of 14 per cent in funding on same time last year with asset values remaining high. Prime movers and forklifts are up 24 per cent and 31 per cent respectively.
“We’re leading the charge on instant asset finance decisioning starting with cars, utes and vans,” said Commonwealth General Manager Asset Finance, Chris Moldrich.
“Business lending with $2.2bn in funding in Q1FY24 alone and market share of 17.4 per cent is a key priority for CBA and asset finance is a key part of that strategy.
“These changes will help our customers grow their business with faster decisions and access to funds, increasing productivity and scale as well as providing better customer experiences.”
The functionality will initially be made available to customers who apply with a banker, with plans in place for a revised instant online decisioning pathway to go live next financial year.
1East and Partners, October 2023.
2East and Partners, October 2023.
3CBA FY23 data.
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