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Author: rdelavictoria

Green financing for business

Posted on by rdelavictoria

Top five myths surrounding green finance for SMEs

The momentum on green loans is growing as the local market’s willingness to engage with green financing expands. Sustainability linked loan transactions have expanded across Australia over the past 12 months.

  • Green financing is a way for businesses and consumers to reduce their carbon footprint without breaking the bank. Research indicates that Australia’s roughly 2.4 million SMEs emit about 146.5 million tonnes annually, with transport identified as one of the key drivers of the carbon footprint of SMEs.

  • Increasingly, financial institutions are offering customers competitive green finance products.

Supporting the government’s net-zero initiatives, Metro recently launched its MetroEco product for small-to-medium sized businesses, developed in partnership with the Clean Energy Finance Corporation (CEFC) to provide discounted finance solutions for electric vehicles (EVs), solar panels, batteries and more efficient farm and building machinery.

While Australians are increasingly wanting to contribute to more sustainable business practices, there are quite a few myths and misinformation circulating about how green finance works, especially for EVs and equipment. So, we’d like to debunk a few of these.

Myth number one:

Green finance attracts higher interest rates than traditional finance.

Green loans can have lower interest rates than conventional loans.

Buying an EV could earn you a better deal on your car or van loan than through a traditional loan – with reduced fees and up to a 1% discount on interest rates. It can also provide competitive rates for energy efficient tractors, earth movers and cranes.

For example, a MetroEco loan of $60,000 for an EV could save some $1700 in interest expenses over five years. Metro strives to make owning an electric vehicle and installing a solar system not only a sustainable choice but also an affordable one. Our competitive rates and flexible terms ensure that you receive the best possible options for your EV, plug in hybrid car loan or next eco-friendly purchase.

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myth-number-2

Myth number two:

Green finance involves more hurdles for applicants.

With the extra momentum and motivation from lending institutions and government to support reduced emissions, red tape is minimised for businesses who are being encouraged to support Australia’s sustainability goals. Metro aims to make the green loan repayment process as convenient and stress-free as possible.

Metro’s streamlined green loan application process for EVs and equipment ensures that clients receive a prompt response, allowing them to secure an EV for their commercial fleet, faster and easier.

Myth number three:

It’s just the same finance but with a different name.

Green loans operate in the same way as traditional loans in general, but there are important distinctions. The process is the same in that the borrower applies for finance from a lender and the lender assesses their application before deciding whether to loan a sum of money or not. However, this is where the similarity ends. The main difference between the two types of loans is where the finance is generated from and its purpose.

Different purpose: Traditional finance can be applied for a variety of purposes and products and can originate from, while green loans may only be used for the purchase of approved environmentally friendly products that have the dual purpose of reducing carbon emissions and supporting net-zero goals.

Lower interest rates: Lenders can apply a lower interest rate to green loans, helping to incentivise the purchase of environmentally-friendly products.

Access to benefits: Using a green loan allows you to purchase environmentally friendly products and start enjoying their benefits sooner while paying off the balance over several months or years Much like standard finance, the terms of green lending do vary between lenders.

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Myth number four:

Only established businesses can successfully apply.

MetroEco offers green loans for commercial EVs and equipment to all kinds of businesses, provided they meet the usual criteria and credit approval checks. We do not restrict our green loan products to established business entities. (minimum of 2 years trading history required).

Myth number five:

Green finance can only cover a short period because EVs and hybrid vehicles don’t last as long as traditional vehicles.

This is not the case. At Metro, for example, you can choose an electric vehicle loan term of up to five years to suit your business’s financial situation and preferences. Whether you prefer a shorter term to pay off your electric vehicle loan quickly or a longer term with lower monthly payments, we have options that cater to these individual and business needs.

Loan terms do vary across lenders.

myth-number-5
For more information about MetroEco finance please visit: https://metrofin.com.au/metro-eco-electric-vehicles/

Choosing the right EV for your company’s fleet 

Posted on by rdelavictoria

Whether you have a local fleet of vehicles that run short distances or a delivery cargo van that covers a fair number of kilometres a day, or even if your distance range is beyond this, commercial electric vehicles could be a good fit.

You may have heard that electric vehicle (EV) adoption is steadily growing in Australia in support of the country’s net-zero emissions goals, while investment in charging station points has also been turbocharged; but how are we travelling when it comes to the bigger contributor to carbon emissions: commercial transport fleets?

Australia still has a way to go with fleet decarbonization, but we are forging ahead. 

A Report by AMFA found that more fleets are now using Battery Electric Vehicles (BEVs) with 45 per cent of fleets now having at least one BEV, up from 25 per cent in 2020. Government fleets are at the forefront of EV adoption.

As a comparison, the United States is also taking action. McKinsey Sustainability Insights projects that commercial and passenger fleets in the US could include as many as eight million EVs by 2030 (up from less than 5000 in 2018), which would amount to 10-15 per cent of all fleet vehicles. 

fleet-decarbonization

You may have heard that electric vehicle (EV) adoption is steadily growing in Australia in support of the country’s net-zero emissions goals, while investment in charging station points has also been turbocharged; but how are we travelling when it comes to the bigger contributor to carbon emissions: commercial transport fleets?

New models available

According to a reputable EV news site in Australia: The Driven, these are some new models you might want to consider for your commercial fleet: Arrival mid-late 2024

01 /

Ford

Has announced that its smaller light commercial E-Transit Custom van will be arriving in Australia in the latter half of 2024.

02 /

Peugeot Australia

Has confirmed the arrival of the larger light commercial e-Expert van in late 2024. This model provides more space and a longer driving range compared to the smaller e-Partner van.

03 /

Renault’s Master E-Tech

The largest in their light commercial van lineup, is set to debut in Australia in 2024. Positioned between the smaller Kangoo E-Tech and the larger Master E-Tech, the Renault Trafic E-Tech light commercial van offers enhanced efficiency and can travel up to 297 km on a full charge. Renault plans to introduce the Trafic E-Tech in Australia in late 2024.

04 /

Zeekr

AChinese brand under the Geely umbrella—which also owns Volvo, Polestar, and Lotus—will be launching its luxury electric people mover, the Zeekr 009, in Australia during the second half of 2024. The Zeekr 009 utilizes the same Sustainable Experience Architecture (SEA) platform as the Volvo EX30 and Polestar.

Carsguide also put together a list of ‘top 10 commercial vehicles to keep an eye on in Australia’. Among its favourites are the Renault Kangoo Z.E van, BYD T3 van, Skywell EC11 cargo van, Tesla Cybertruck and the Mercedes-Benz eVito panel van.

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Future looks bright

There’s more good news and green shoots on the horizon in transport decarbonisation in Australia. Car reviewers are tipping that Australians will soon see an EV version of the very popular Toyota HiLux Ute after the company confirmed it will begin making it by the end of 2025. As a nation, we are also starting to flex our innovation muscle in commercial EV technology development. Homegrown EV start-up SEA-Electric has created an Australian software and component system to be fitted into light commercial vehicles including delivery and distribution vans. They recently signed up to a groundbreaking exclusive supply deal with two global manufacturers – Japanese truck giant Hino (a Toyota subsidiary) and Volvo’s Mack – to deliver thousands of its ‘drivetrain’ system units to electrify this segment of the commercial vehicle sector. So, watch this space! For more information you can also check out the Governments guide to green vehicles: https://www.greenvehicleguide.gov.au/

The rise (and fall?) of electric vehicles

Posted on by rdelavictoria

News of an EV downturn is not all doom and gloom

It’s virtually impossible to have missed the rise of electric vehicles (EVs) and what they mean for the future of mobility. 

First pitched as a utopian technological saviour, then widely derided as an expensive, compromised replacement for internal combustion engine (ICE) vehicles, and now an increasingly viable mainstream option, EVs still have their fair share of fans and detractors, but one thing remains certain: they’re here to stay. 

Where the topic of EV market penetration gets tricky is predicting how much of the market share they will come to occupy in the years to come. The answer seemingly differs depending on who you ask.

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From a manufacturing perspective, the world’s top auto brands are taking a bit of a breather on some of their lofty EV predictions. BMW and Mercedes-Benz have previously revised its EV sales predictions, while ‘The Big 3’ US carmakers, Ford, General Motors and Stellantis (previously Fiat Chrysler), have successfully persuaded the US Government to walk-back its own targets, with the Environment Protection Agency (EPA) revising its expectation that EVs would make up around 67 per cent of the US new car market by 2032, down to between 35 to 56 per cent.

So, does this mean that electric vehicles are in decline? 

Yes and no. While it’s true the number of electric vehicles sold every month in both Australia and the other parts of the world have declined, it should be noted that EVs account for around 8% market share in Oz mid-year, up from 7.4% the same time last year. Industry analysts are predicting it is more a case of market appetite for EVs slowing, rather than an about-face. 

So why the slow-down? There are likely to be a number of reasons: first of all, as EVs become more common place, tech-savvy early-adopters drop-off the sales bell-curve and are replaced by more risk-adverse and technology agnostic mainstream buyers – meaning they are harder to entice into a relatively unknown technology. Secondly, concerns remain over a lack of public charging infrastructure, and thirdly (and perhaps most significantly), there’s the cost. As Australia grapples with a cost-of-living crisis, consumers are holding onto their cars longer and will look to more affordable options (both in terms of purchase price and up-front running costs) when purchasing a vehicle for their household.

Government incentives played a part in pushing early EV sales up in Australia, however now that they have concluded (at least from a purchase price perspective) many EVs are once again significantly more expensive than a comparable ICE vehicle. 

Where Australia is concerned, geography also plays a part. 

As a continent with huge distances between major capital cities and townships, range remains a common source of anxiety for would-be EV buyers. While the driving range of EVs continues to increase, availability of charging infrastructure, both in terms of physical access to a charger and one that it is functional, is a lingering concern. 

The continued uptake of plug-in hybrid vehicles in Australia points would suggest a market need for more reliable refuelling on long journeys – in time, further charging infrastructure will remedy this, as will the addition of other uber-efficient technologies, like hydrogen, on our roads. 

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There is a good case for taking current EV sales trajectories with a grain of salt. EV sales doubled and tripled each month in 2022 and 2023, and while there is a noticeable plateau in the middle of 2024, the first sixth months of the year has seen EV sales outperform the market by almost double – as noted by the CEO of Australian Automotive Dealers Association (AADA)  in a recent interview. (https://www.drive.com.au/news/electric-car-sales-fall-in-australia-june-2024/)
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Regardless of current market trends, electric vehicles represent a viable mobility option for many Australians in both urban and rural areas. Metro Finance, through its MetroEco product, offers a range of savings for customers looking to purchase sustainable technologies such as solar panels, battery chargers and electric vehicles. To find out more, talk to your Metro Finance broker.

People Profile: Meet Amanda Mowbray

Posted on by rdelavictoria

We sit down with our award-winner BDM and discuss her career and working with Metro

Metro is beyond thrilled and proud to announce that our own Amanda Mowbray has been named BDM Of The Year NSW – Asset Finance in the recent Commercial and Asset Finance Brokers Association of Australia (CAFBA) Awards!

As a passionate member of the Metro team since 2022, Amanda has a wealth of experience in asset finance that she regularly shares with the team and Metro’s amazing introducers.

“I’ve found Metro to be a truly special company where everyone’s opinions are valued, contributing to the best outcomes for both brokers and clients. The company fosters an environment where everyone is treated equally, creating a safe space for new ideas, which helps the business thrive,” Amanda says.

“We get to work with some of the best asset finance brokers in the country. I believe they also enjoy being a part of the wider Metro team and feel just as valued as the internal staff,” she continues.

When it comes to working with Metro’s brokers, Amanda stresses the importance of collaboration and values the personal approach

Not just in terms of putting together the right finance package for a customer, but taking a vested interest in shared success and growth with every introducer.

Amanda Mowbray

“The most important element is being able to put yourself in the broker’s shoes. It’s crucial to give brokers the time they need, whether it’s workshopping a deal or ensuring they get the right outcome. If the deal doesn’t fit our policy, knowing your competitors’ products well enough to suggest alternatives, like referring them to another BDM, is key to building trust,” Amanda explains.

“Being transparent is important. If a deal isn’t right for us at Metro, it’s important to explain why. We’re all constantly learning.”

As for her win, which makes Amanda the first woman in NSW to win the prestigious award, the ever-unflappable and much-loved BDM is taking things all in her stride.

“I am absolutely blown away. I never imagined that I would be nominated for such an award, let alone win it. Every day, I simply focus on delivering the best outcomes for our brokers and their clients. Being in a room with some of the best in the industry was already a privilege, but winning the award shows that hard work and staying true to yourself and your core values really pays off,” Amanda tells us.

When asked to share any advice for those looking to start a career in finance, Amanda’s response was unequivocal.

“Do it! Never in my life did I expect my career to take this path. I used to work in the music and entertainment industry in various roles, but then I applied for a job with an asset finance company doing marketing and events, and that was the start of an incredible journey. Since then, I’ve run a charitable trust for an international banking group, worked as a Finance and Insurance Manager in dealerships, been an asset broker, and, for the past five years, a Business Development Manager. Each role has taught me so much and opened doors to new opportunities,” she says.

“This industry can take you wherever you want to go – it doesn’t matter if you’re male or female. It’s up to you to take those chances, believe in yourself, and seize the opportunities in front of you. You’ll meet some amazing people who will support you along the way, just always make sure that you follow through on your promises.”

From all of us at Metro, congratulations on your fantastic achievement, Amanda!

We’re proud to have you as a part of our team.

How Increased Electric Vehicle (EV) Adoption Affects Auto Loan Rates

Posted on by rdelavictoria

If you’ve been seriously thinking of joining the ranks of the 180,000 plus Aussies who’ve been seduced by the electric vehicle (EV) zeitgeist, you will be aware of the favourable conditions propelling the trend, including:

Environmentally conscious consumers

Environmentally conscious consumers

goverment tax benifits

Government tax benefits

Wider range of vehicles coming into the market

Wider range of vehicles coming into the market

Expanded charging station infrastructure

Wider range of vehicles coming into the market

Improved EV technology

Wider range of vehicles coming into the market

The other big driver of EV uptake is the auto lending sector, which is undergoing significant change as it responds to the consumer appetite for EV ownership and more sustainable lifestyles.

Emphasis of flexible loan terms and repayments

Financial institutions and EV manufacturers are developing specialised financing products tailored to EV buyers’ needs. These products include lower interest rates, extended loan terms, and EV-specific insurance options to encourage more consumers to switch to electric vehicles, thus stimulating market growth.

Lender loan products are being adjusted due to healthy EV growth rates. Flexibility in loan terms such as repayment plans for borrowers is one of the ways financial institutions are responding. 

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Metro has introduced increased flexibility on loans for EV purchases. Metro CIO David Bridges says, “At Metro we want to make owning an electric vehicle not only a sustainable choice, but an affordable one. Customers can choose an electric vehicle finance loan term of up to 7 years (consumer only) that suits their financial situation and preferences.

“Whether customers prefer a shorter term to pay off their EV loan quickly or a longer term with lower monthly payments, we have options that cater to their needs.

“We understand the financial considerations involved in adopting renewable technologies and we provide value-driven solutions that align to our customers’ budgets and long-term savings goals,” he adds.

Leasing versus buying

Given the rapid pace of technological advancements in EVs and concerns about battery life, consumers are becoming more curious about leasing over buying. This is leading to a shift in the auto lending market, with a greater emphasis on leasing options. 

The big advantage of leasing an electric vehicle is simple: you can regularly upgrade your car every few years, ensuring that you always have a modern ride. That’s a big deal. In a few years, there will be a whole lot more options for electric vehicles in Australia with better ranges, faster charging speeds, and better software experiences.

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“In the current EV market, leasing is a prudent option compared with an outright purchase,” David says. “EV technology is evolving rapidly, and updates are coming to market at breakneck speed, so it would be advantageous to have the flexibility to change or upgrade the vehicle a couple of years down the track.

“Metro’s electric vehicle novated leasing simplifies the financial journey, providing convenience and simplicity. Choosing a novated lease for an electric car could open the gateway to a multitude of tax-saving opportunities,” he adds.

Responding to the trend


According to recent McKinsey research, loans to purchase EVs represent a major growth area for the US and the UK, and while Australia is a latecomer to the party due to lack of previous governments’ policies and incentives to support it, this is changing. 

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“As a non-bank lender, Metro is able to respond to customers’ needs in the area of electric vehicle novated leasing and purchasing; because we are smaller, we can be more nimble, cut down on approval times and admin and provide personalised, tailored packages and service,” David says.

To help you in your next electric vehicle novated lease or purchase, this is a link to the government’s EV guide: https://www.greenvehicleguide.gov.au/ and head to our website for more information on EV leasing and loans Metro Finance | Reliable Vehicle & Equipment Loans. For more on our newly launched Metroeco product: Metro Eco for Electric Vehicles | Green Loans for Electric Cars (metrofin.com.au)

Digital Transformation in Finance

Posted on by rdelavictoria

Transformation in the digital lending sector is continuing at pace and being driven by ever smarter technologies, from cloud to AI and predictive analytics. 

Companies have seen the benefits that can flow from digitalisation, including higher speed of operations and better-quality risk decisions – which translate into an optimal customer experience and profitability down the road.

Until very recently, digital lending transformations in the asset finance sector were set back by multiple factors, including legacy IT systems, a general lack of trust in automated decision-making, limited data access and siloed departments. However, many lenders have seen the light and understand that digitalisation with an end-to-end credit journey focus is luring customers.

A major report on the digital lending revolution by McKinsey & Company said that the key factors a customer considers when choosing a lender nowadays is shorter approval and disbursement times.

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How is Metro harnessing tech for customer benefit?

Metro is already well and truly on its way to upgrading its technological systems. Under the stewardship of Chief Information Officer David Bridges, Metro is developing a new end-to-end digital journey, primarily for its brokers (introducers) – rather than taking a piecemeal approach. 

David says: “Metro is at the forefront of tech innovation in novated leasing. Our investment in technologies, including cloud, AI, and data analytics, is not only enhancing our operational efficiency but driving improvements in transformation of the introducer experience.”

There are three main areas where improved technology and digitisation will improve the lending process:  

loan application

Loan application

(quicker time to ‘yes’)

settlement

Settlements

(faster processing)

customer service

Customer service

(converging systems)  

At Metro, it will be more important than ever to use data to customise and individualise service offerings and evaluate channels and assets to optimise services and experience.

Metro plans to implement this across its systems in the following ways:

ai technology

AI technology

Using AI technology to facilitate a quicker journey to approval of finance.

cloud technology

Cloud technology

Using cloud technology to enhance fraud detection prevention.

ai cloud and data analytics

AI, cloud & data analytics

Using AI, cloud and data analytics to give introducers more choice and tailoring.

data analytics

Data analytics

Using data analytics for enhanced ways to process manual details – such as invoices and statements – faster.

Experience proves that the efforts to upgrade digital platforms in the asset finance sector are more than fully repaid in competitiveness and profitability. Success means much faster credit decisions, with customers having access to finance up to 80 per cent sooner; lower costs, with 30-50 per cent less time spent on decision making.

In an age of flexibility and mobility in fintech, as well as a cost-of-living squeeze, it is more important than ever to ensure the borrower journey is streamlined and efficient for the end use.  

“We aim to enhance and simplify the borrower experience at each stage of the lending process. In the back end we’re bringing in more predictive analytics on approvals and credit scoring. We are developing a credit rules engine to improve approvals and automate those decisions,” David says.

 

The McKinsey Report also identifies partnerships as a way of enabling lenders to develop new capabilities and present new customer offerings more quickly. Partnerships can help support full platform capability and data feeds for end-to-end journeys in new markets and offer experience in new lending approaches.

 

“There is potential for Metro to open up to a partnership in the future with third parties,” David adds.

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