Australian businesses are borrowing more than they have in years, and it’s not just big corporates driving the demand. Small to mid-sized businesses (SMEs) are increasingly turning to brokers to secure the capital they need to grow, refinance, or take advantage of new opportunities.
According to the Reserve Bank of Australia’s latest figures, business credit growth rose 8.9% in the year to March 2025 — the highest annual increase since May 2023. Commercial lending has now outpaced personal lending for five straight quarters, as more businesses move from cautious recovery into growth mode.
Meanwhile, Equifax’s Q1 2025 Credit Insights show a 3.9% increase in business loan applications, with NSW and Queensland leading the way. Industries seeing the biggest surge include construction, professional services, transport, and warehousing — often linked to infrastructure expansion and the ongoing migration to regional hubs.
Why Business Owners Are Borrowing More in 2025
So, what’s behind this renewed appetite for funding?
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Supply chain normalisation: Businesses are rebuilding inventory and investing in local production after years of volatility.
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Property opportunities: Commercial and industrial property remains in demand, particularly near infrastructure zones like Western Sydney, SEQ, and outer-metro Melbourne.
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Tech and automation investment: SMEs are adopting new tech and equipment to boost efficiency and profitability.
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Shifting to non-bank lenders: With tighter policies at the big four, many business owners are exploring private and second-tier lenders who offer faster, more flexible solutions.
Where Mortgage Brokers Come In
The surge in demand doesn’t mean funding is easy. In fact, it’s more complex than ever.
Brokers who understand commercial lending are now essential partners for business owners. Here’s why:
Product knowledge
From low-doc and lease-doc loans to cashflow finance, trade credit, and equipment loans — brokers help match the right product to the right situation.
Lender access
Many SMEs don’t fit the box for a traditional bank. Brokers work with a wide panel of lenders, including those offering faster turnarounds or willing to consider real-world business scenarios.
Strategic guidance
Whether it’s refinancing a ballooning facility, funding a warehouse purchase, or securing a bridging loan, a broker can help structure the deal to suit the business’s short and long-term goals.
Looking Ahead
As the 2025 financial year rolls on, commercial lending is expected to remain strong — especially in industries benefiting from government infrastructure investment and tech adoption.
If you’re a business owner considering finance in the year ahead, now’s the time to get strategic. Working with an experienced broker gives you a partner who understands your business, your growth plans, and the lending landscape.
Want to talk through your options?
Let’s explore the funding that can move your business forward.