The enhancements will allow faster decision time
The Commonwealth Bank of Australia (CBA) has announced new changes to its business lending process that will allow for shorter decision times for eligible small business customers – from three days to instant.
“We’re leading the charge on instant asset finance decisioning starting with cars, utes and vans,” said Chris Moldrich (pictured), general manager, asset finance at CBA.
The new process set in place will allow eligible existing business customers who have a qualifying credit facility with CBA to fund new and used cars, utes, and vans from suitable suppliers through BizExpress, a fast lending system.
“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,” said Moldrich.
According to data from East and Partners, a banking research and advisory firm, speed was the most important factor among businesses when making assessments regarding a business lender. About 65% of customers reported that they were more likely to change their lenders based on the speed of the funding rather than their price.
CBA’s internal data showed that there was an increasing demand for transport vehicles. Electric vehicles had the largest increase at 235% year-on-year. Light-medium trucks had a 14% increase in funding ove the same time last year as its asset values remained high. Prime movers (24%) and forklifts (31%) also saw an increase in demand.
“Business lending with $2.2 billion in funding in Q1FY24 alone and market share of 17.4% is a key priority for CBA and asset finance is a key part of that strategy,” said Moldrich.
The functionality will be available for customers who apply with a banker along with plans for a revised instant online decisioning pathway set to be live by the next financial year.