CommBank Update

Requirement for 2020 Financial Statements

Now that the deadline (31 March 2021) for businesses to lodge their completed 2020 financials has passed, 2019 financial statements are no longer acceptable.

All applications requiring supporting financial information will require completed 2020 Financial Statements.

Car and equipment finance carded interest rates

The following rates form part of the Government Coronavirus SME Guarantee Loan Scheme Phase 2 (The Scheme). Assessment and Declaration forms can be found below. For transactions that do not meet The Scheme criteria and require a standard Asset Finance product, add 70 basis points.

Finance Amount

3 years

4 years

5 years

EEEF

$20,000 - $49,999
(Equipment only)

Contact your Business Development Executive

$20,000 - $249,999

2.79%

3.24%

3.54%

0.5% p.a. off all rates

$250,000 +

Contact your Business Development Executive

Important reminders

Broker Checklist required for complete applications

Please continue to complete the Asset Finance Full Application Broker Checklist and include this with your applications.

Asset Finance Coronavirus Impact Assessment Finance form

The Asset Finance Coronavirus Impact Assessment form must be completed and submitted with each application (re-finances and balloon restructures excluded).

The Coronavirus SME Guarantee Scheme Phase 2 Declaration form must be provided to customers (when required).

Instant Asset Write-off - Extended to 30 June 2022

The Federal Government has announced a further extension of the Instant Asset Write-off, which allows eligible businesses who invest in vehicles and equipment to claim an immediate deduction for certain costs relating to depreciating assets.

How it works

  • Businesses with an aggregated turnover of up to $5 billion may be eligible. For a business with an aggregated turnover of less than $50 million, the full cost of all eligible second-hand assets may also be claimed.
  • Depreciating assets may include new business vehicles and equipment. The assets can be second hand for businesses with an aggregated turnover of less than $50 million.
  • Depreciating assets must be acquired after 6 October 2020 and installed ready for use by 30 June 2022.
  • Businesses may be able to borrow funds to purchase equipment and still claim a deduction for the cost of eligible items.
  • Deduction claims may be made for the year in which the equipment is used or installed ready for use. This may be the same year in which the equipment is financed.
  • Unlimited numbers of new eligible assets of any dollar value (and eligible asset improvements for new and existing assets) if the business has an aggregated annual turnover of less than $5 billion.

Visit this link for more details or contact your BDM.

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

*Fixed rates are current as at 06/04/2021 until withdrawn. Available on new borrowings only. Please check with your CommBank Business Development Executive on pricing for these customers. Cannot be offered to businesses with aggregated sales turnover greater than $50m.

#0.50% p.a. discount is for qualifying energy efficient vehicles and equipment, and applies the rate you would normally have paid for the type of equipment you wish to finance

Rates outside of these terms must be negotiated. For brokerage over 3% please contact your CommBank Business Development Executive.