Small Loans Australia

... helping Australians to finance a better future

Small Loans Australia :: News

Share this news item!

Café Closures Signal Economic Shift in Australia

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Amid rising food and energy prices, coupled with a decline in discretionary spending, the Australian hospitality sector is undergoing significant upheaval.

Data from the Australian Securities and Investments Commission (ASIC) indicates a notable increase in business insolvencies, with over 1,900 hospitality businesses shuttered in the last fiscal year alone.

Within the accommodation and food services sector, insolvency appointments surged by 50% last year, reaching an unprecedented total of 1,667. This surge exceeded the previous peak recorded in 2023, highlighting the increasing pressures on the industry.

A report by The Australian sheds light on the impact, revealing the loss of more than 90,000 jobs within the hospitality industry over the past 12 months. Interestingly, while these jobs were lost, they have largely been absorbed by the ever-expanding care economy, driven primarily by the National Disability Insurance Scheme (NDIS).

According to The Australian, the healthcare and social assistance sectors flourished last year, creating 171,000 new roles. The chief executive of the Australian Hotels Association, Stephen Ferguson, noted the transition of hospitality workers to sectors like healthcare, in part due to better growth opportunities.

Echoing these challenges, Ed Kitchen, Managing Director of Uber Eats Australia, termed Australia's hospitality scene as facing “a collision” of adverse factors: "In our conversations with restaurants, there doesn’t seem to be a singular factor they isolate, but rather … several themes including higher rental costs, competitive pressures, supply chain issues, growing insurance premiums, increasing utility and wage bills, and more expensive raw products," he elaborated.

Similarly, the CEO of the Restaurant and Catering Association, Suresh Manickman, described the situation as an “unprecedented fusion” of challenges that make today’s economic environment one of the toughest on record, affecting businesses' operational viability.

Predicting that one in eleven hospitality ventures could face closure in the upcoming year, Restaurant and Catering Australia underscores the severity of the issue. Such dire forecasts paint a bleak picture for the hospitality industry's sustainability.

Reflecting on the rapid expansion of cafés across the country, particularly in cities like Melbourne, there is a growing perception that downsizing may be necessary. During the 18-year period I spent in Ashburton, Melbourne, the number of cafés on the main shopping street blossomed from four to over a dozen. Most of the new establishments were often empty, underscoring a possible over-saturation of the market.

This narrative mirrors a nationwide challenge, where excessive café numbers have not been matched by customer demand, pushing many towards eventual closure. The economic impact of COVID-19 only exacerbated this mismatch by intensifying financial pressures on consumers.

With mortgage and rent costs reaching exorbitant levels, and real household disposable incomes dropping significantly in the past two years, luxury expenses such as $5 or even $7 coffees are increasingly being reconsidered by financially strained Australians.

Rising living costs force a shift in consumer behavior, evidenced by the growing preference for home-brewed coffee or affordable machine options from service stations or retailers like 7-Eleven. It's evident that despite the reduction in numbers, a leaner, more financially sustainable café landscape can still thrive, as Australia recovers its economic footing in these challenging times.

Published:Thursday, 24th Oct 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

OnDeck Australia's Broker-Originated SME Loans Skyrocket by 246%

17 Jan 2026: Paige Estritori

In a significant development for Australia's small business sector, OnDeck Australia has reported a remarkable 246% year-on-year increase in broker-originated small business loans funded in November 2024 compared to the same month in 2023. This surge underscores a renewed confidence among small and medium-sized enterprises (SMEs) in leveraging broker channels for their financing needs. - read more

AFCA Alerts Small Businesses to Dangers of Unregulated Lending

17 Jan 2026: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has issued a cautionary advisory to small businesses regarding the risks associated with engaging unregulated lenders. This warning comes in response to a notable increase in complaints that fall outside AFCA's jurisdiction, leaving many business owners without recourse when disputes arise. - read more

So Money Launches Tailored Lending Solutions for SMEs and Self-Employed

17 Jan 2026: Paige Estritori

In response to Australia's burgeoning small business sector, non-bank lender So Money has unveiled new lending solutions specifically designed for self-employed borrowers and small and medium-sized enterprises (SMEs). This strategic expansion aims to simplify the income verification process and provide more flexible financing options to a traditionally underserved market. - read more

Non-Bank Lenders Capture 26% of SME Loan Market

09 Jan 2026: Paige Estritori

In recent years, non-bank lenders have significantly increased their presence in the Australian small and medium-sized enterprise (SME) financing sector. As of early 2025, these lenders account for 26% of smaller loans to SMEs, marking a notable shift in the financial landscape. - read more

Australian SMEs Navigate Cashflow Struggles Amid Cost Increases

09 Jan 2026: Paige Estritori

Australian small and medium-sized enterprises (SMEs) are currently grappling with significant cashflow challenges, primarily driven by rising operational costs. Factors such as increased wages, inflation, and higher interest rates have placed considerable strain on these businesses, affecting their financial stability and growth prospects. - read more

OnDeck Australia Sees Significant Growth in Broker-Originated SME Loans

01 Jan 2026: Paige Estritori

OnDeck Australia has reported a remarkable 246% year-on-year increase in broker-originated small business loans funded in November 2024 compared to the same month in 2023. This substantial growth underscores a renewed confidence among Australian small and medium-sized enterprises (SMEs) in seeking financial support through broker channels. - read more

AFCA Issues Caution to SMEs on Unregulated Lending Practices

01 Jan 2026: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has issued a warning to small businesses regarding the risks associated with engaging unregulated lenders. This caution comes in response to a notable increase in complaints related to lenders not covered by the Credit Act and who are not members of AFCA. - read more

So Money Launches New Lending Solutions for Self-Employed and SMEs

01 Jan 2026: Paige Estritori

In response to Australia's expanding small business sector, non-bank lender So Money has introduced new lending solutions tailored for self-employed borrowers and small and medium-sized enterprises (SMEs). This strategic move aims to simplify the income verification process and provide more flexible financing options to a traditionally underserved market. - read more

Understanding APRA's New Cap on High Debt-to-Income Loans

24 Dec 2025: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will implement a cap on high debt-to-income (DTI) home loans, limiting banks to issuing no more than 20% of new home loans with DTI ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more

Click for more Finance News

Personal Loans Articles

Smart Budgeting Tips to Improve Your Financial Health

Smart budgeting is one of the most vital tools in maintaining and improving your financial health. It provides a clear picture of your financial situation, helping you make informed decisions about spending, saving, and borrowing. - read more

Interest Rates for Small Loans: Breaking Down the Basics

Interest rates play a vital role when it comes to borrowing money. They determine how much extra you'll pay on top of the amount you've borrowed. - read more

Bad Credit? No Problem! How to Get a Small Personal Loan Fast

Bad credit, often resulting from late payments, high debt levels, or other financial missteps, can feel like a major roadblock. It typically means that your credit score falls below a certain threshold and may reflect a history of financial challenges. - read more

Avoiding Common Pitfalls in Personal Loan Utilization

Personal loans can be a valuable financial tool when used wisely. They can help you cover unexpected expenses, consolidate debt, or even fund major purchases. However, it's crucial to understand the implications of taking out a personal loan, especially if you have bad credit. - read more

Budgeting 101: How to Get a Personal Loan Despite Bad Credit

Smart budgeting is the cornerstone of financial health. It helps you understand where your money is going and empowers you to make informed financial decisions. In Australia, like everywhere else, a well-managed budget can significantly improve your quality of life and financial stability. - read more

The Path to Financial Freedom: Effective Debt Management Tips

Financial freedom is the ability to live life without being burdened by the stress of money woes. Imagine having enough savings to cover emergencies, living comfortably without constant financial anxiety, and even planning for retirement confidently. This is the goal many Australians strive for – a peaceful and secure life that isn't dominated by worries about bills and debt. - read more

Understanding the Key Differences Between Secured and Unsecured Loans

In simple terms, a loan is an amount of money you borrow from a lender and agree to pay back over time, often with interest. Loans come in various forms and can be tailored to suit different needs, such as buying a home, financing a car, or consolidating debt. - read more

The Smart Borrower's Guide: Understanding Interest Rates on Small Loans

When it comes to borrowing money, whether it's for personal use or for your small business, understanding interest rates is paramount. An interest rate, simply put, is the cost you pay to borrow money. It's typically expressed as a percentage of the principal amount you're loaned. This fee is how lenders earn on the funds they lend and is a key component you should consider before signing a loan agreement. - read more

Secured Versus Unsecured: Which Loan Option Aligns with Your Financial Goals?

The landscape of personal financing is broad and varied, particularly in the Australian market where individuals have access to an array of loan options. When considering lending, the fundamental distinction to comprehend is that between 'secured' and 'unsecured' loans. - read more

Need Help Finding a Loan?

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase

Lien:
A legal claim against a property that must be paid off when the property is sold.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.