SMEs could cut energy costs with discount-funding initiative

Small to medium-sized businesses now have the opportunity to cut their energy and operating costs with access to discounted funding for energy efficiency and renewable energy upgrades, thanks to a new initiative by NAB and the Clean Energy Finance Corporation (CEFC).

NAB has signed a $120 million funding program with the CEFC that will see the bank offer businesses of all sizes discounted equipment finance for assets that cut energy use or generate renewable energy.

The agreement will allow NAB to offer a rate 70 basis points below its standard equipment finance rate. Finance will be offered through NAB and will be across a diverse range of pre-approved assets including cars, irrigation systems, solar PV, building upgrades, lighting upgrades, processing line improvements and refrigeration.

Cindy Batchelor, executive general manager NAB Business, said that the potential positive impact of this deal is significant given that it is the first time it has been offered to small and medium-sized businesses in this way. “This program is unique to NAB and a real point of difference,” Batchelor said.

“With loans available for one car right through to business with an entire car fleet, we’ve got an opportunity to reach a large proportion of the business community and deliver significant environmental change.

“We’ve been working with customers to help them manage their natural capital risk for some time and we know that energy risk is a key concern. It’s great to be able to help them address this concern with the support of the CEFC.”

CEFC CEO Oliver Yates said the CEFC welcomed the opportunity to reach a broader market by working with NAB.

“We really wanted to build on the success of our other financing programs with NAB to reach a new business market,” Yates said.

“This CEFC supported program offers an incentive for business to act now on projects for a positive change in their operations. It is great to see that the benefits of the CEFC funding will flow through to the businesses who take up these loans with NAB.”