Small Loans Australia :: News
SHARE

Share this news item!

Australian SMEs Embrace Non-Bank Lenders for Growth

Alternative Financing Gains Traction Among Small Businesses

Australian SMEs Embrace Non-Bank Lenders for Growth?w=400

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.

Recent data indicates a significant shift in the financing preferences of Australian small and medium-sized enterprises (SMEs), with over 54% now planning to utilise non-bank lenders for business investment in the next six months.
This marks a notable increase from 47% recorded a year ago, highlighting a growing inclination among SMEs to seek alternative financing solutions that offer greater flexibility and accessibility.

This trend is particularly pronounced among growth-focused SMEs, which constitute 40% of the market. A staggering 80% of these businesses are moving away from traditional banks, with more than half opting for non-bank lending solutions to support their expansion plans. This shift underscores a fundamental transformation in SME financing, as businesses seek more tailored and responsive financial products.

The move towards non-bank lenders can be attributed to several factors. Traditional banks often have stringent lending criteria and longer approval processes, which may not align with the dynamic needs of SMEs. In contrast, non-bank lenders typically offer more flexible terms, faster approvals, and a better understanding of the unique challenges faced by small businesses.

For SMEs, this shift presents both opportunities and challenges. While non-bank lenders can provide the necessary capital to fuel growth, it's essential for business owners to conduct thorough due diligence. Understanding the terms, interest rates, and repayment structures is crucial to ensure that the financing aligns with the business's financial health and long-term objectives.

In conclusion, the increasing preference for non-bank lenders among Australian SMEs reflects a broader evolution in the business financing landscape. As this trend continues, SMEs should remain informed and strategic in their financing decisions, leveraging the benefits of alternative lenders while maintaining prudent financial management practices.

Published:Tuesday, 16th Dec 2025
Source: Paige Estritori

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

Share this news item:

Finance News

Australian Business Lending Hits Record Highs
Australian Business Lending Hits Record Highs
16 Dec 2025: Paige Estritori
In a significant development for Australia's financial sector, business lending has reached an unprecedented $925 billion across the nation's top 10 authorised deposit-taking institutions (ADIs) as of July 2025. This milestone underscores a robust appetite for corporate borrowing, reflecting growing economic confidence among businesses. - read more
Australian SMEs Embrace Non-Bank Lenders for Growth
Australian SMEs Embrace Non-Bank Lenders for Growth
16 Dec 2025: Paige Estritori
Recent data indicates a significant shift in the financing preferences of Australian small and medium-sized enterprises (SMEs), with over 54% now planning to utilise non-bank lenders for business investment in the next six months. This marks a notable increase from 47% recorded a year ago, highlighting a growing inclination among SMEs to seek alternative financing solutions that offer greater flexibility and accessibility. - read more
Understanding APRA's New Cap on High Debt-to-Income Home Loans
Understanding APRA's New Cap on High Debt-to-Income Home Loans
08 Dec 2025: Paige Estritori
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at curbing high-risk lending practices within the housing market. Effective from 1 February 2026, APRA will implement a cap limiting banks to issuing no more than 20% of new home loans with debt-to-income (DTI) ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more
The Rise of Non-Bank Lending Among Australian SMEs
The Rise of Non-Bank Lending Among Australian SMEs
08 Dec 2025: Paige Estritori
Recent trends indicate a significant shift in the financing preferences of Australian small and medium-sized enterprises (SMEs). A growing number of these businesses are turning to non-bank lenders to meet their funding needs, driven by the desire for more flexible and accessible financing solutions. - read more
The Growing Preference for Buy Now Pay Later Services in Australia
The Growing Preference for Buy Now Pay Later Services in Australia
08 Dec 2025: Paige Estritori
In recent years, Australia has witnessed a significant transformation in consumer financing preferences, with Buy Now Pay Later (BNPL) services emerging as a favoured alternative to traditional credit options such as credit cards and personal loans. - read more
APRA's New Debt-to-Income Cap: What Homebuyers Need to Know
APRA's New Debt-to-Income Cap: What Homebuyers Need to Know
30 Nov 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
NAB's Interest Rate Reduction: A Boost for Australian Businesses
NAB's Interest Rate Reduction: A Boost for Australian Businesses
30 Nov 2025: Paige Estritori
In response to the Reserve Bank of Australia's (RBA) recent decision to lower the official cash rate by 0.25%, National Australia Bank (NAB) has announced a corresponding reduction in interest rates for eligible business lending products. Effective from 30 May 2025, new and existing business customers with variable rate NAB Business Options Loans or NAB Business Overdraft products will see their interest rates decrease by 0.25% per annum. - read more
Bizcap's Enhanced Loan Limits: Empowering SMEs with Up to $7.5 Million
Bizcap's Enhanced Loan Limits: Empowering SMEs with Up to $7.5 Million
30 Nov 2025: Paige Estritori
Australian non-bank lender Bizcap has announced an increase in its lending limits for small and medium-sized enterprises (SMEs), now offering loans up to $7.5 million, up from the previous $5 million cap. This decision comes in response to escalating demand from SMEs across the nation seeking larger financing options to support their growth and operational needs. - read more
AFCA Issues Warning to Small Businesses on Unregulated Lending Risks
AFCA Issues Warning to Small Businesses on Unregulated Lending Risks
14 Nov 2025: Paige Estritori
The Australian Financial Complaints Authority (AFCA) has recently raised concerns regarding the increasing number of small businesses engaging with unregulated lenders. This caution comes in response to a record 4,648 complaints lodged by small businesses in the 2024-25 financial year, marking a 4% increase from the previous year. Notably, 21% of these complaints were dismissed as they fell outside AFCA's jurisdiction, primarily because the lenders involved were not AFCA members. - read more


Personal Loans Articles

Creating a Financial Safety Net: Insurance and Savings Tips for Young Families
Creating a Financial Safety Net: Insurance and Savings Tips for Young Families
Welcome to our blog! For young families, securing your future often requires careful planning and prudent financial decisions. One of the most crucial steps you can take in this journey is creating a financial safety net. - read more
Why Having an Emergency Fund is Crucial for Your Financial Health
Why Having an Emergency Fund is Crucial for Your Financial Health
Imagine being hit with an unexpected expense like a car repair or medical bill. Without a financial buffer, such surprises can wreak havoc on your budget. This is where an emergency fund plays its heroic role. - read more
Quick Fixes for Common Credit Score Issues in Australia
Quick Fixes for Common Credit Score Issues in Australia
Credit scores play a crucial role in your financial life, influencing your ability to access loans, credit cards, and even housing rentals. In Australia, your credit score is a numerical representation of your creditworthiness, which lenders use to assess the risk of lending to you. - read more
Debt Consolidation Strategies: How to Regain Control of Your Finances
Debt Consolidation Strategies: How to Regain Control of Your Finances
Debt can often feel like a formidable obstacle on the path to financial stability. Many individuals battle with various forms of debt, from high-interest credit cards to significant loans that seem to have an unyielding grip on their financial lives. Recognizing the challenges that debt presents is the critical first step towards regaining control of your personal finances. - read more
Tips for Choosing the Right Type of Loan for Your Financial Situation
Tips for Choosing the Right Type of Loan for Your Financial Situation
Loans can play a significant role in shaping our financial landscapes. For many Australians, they are vital tools for achieving milestones like buying a home, financing education, or starting a business. However, selecting the wrong type of loan can have a detrimental impact on your financial health, leaving you with unwanted debt and stress. - read more
The Smart Borrower's Guide: Understanding Interest Rates on Small Loans
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
Understanding the Key Differences Between Secured and Unsecured Loans
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 Psychological Impact of Debt: Strategies for Stress Relief and Better Fiscal Health
The Psychological Impact of Debt: Strategies for Stress Relief and Better Fiscal Health
It is no secret that the foundation of financial well-being is rooted in effective budgeting. In today's fast-paced world, where consumerism reigns, understanding how to manage one's finances has never been more crucial. Budgeting is not merely about restraining spending; it’s about creating a strategic plan that aligns with your financial goals and lifestyle. It allows individuals to gain control over their money, rather than letting their spending habits dictate their life course. - read more
Taking Control: Steps to Improve Your Credit and Secure the Loan You Need
Taking Control: Steps to Improve Your Credit and Secure the Loan You Need
Your credit score is much more than just a number; it's a reflection of your financial history and a determining factor in securing future loans. Understanding how bad credit can affect your loan applications is crucial in today's financial landscape. Bad credit can lead to frustration and disappointment when looking for a competitive loan offer, but don't lose heart—there are actionable steps you can take to improve your situation. - read more


Need Help Finding a Loan?


All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.

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

Knowledgebase
Foreclosure:
The legal process by which a lender takes control of a property, evicts the homeowner, and sells the home after the homeowner fails to make mortgage payments.


Quick Links: | Small Loans | Small Personal Loans | Small Business Loans | Quick Loans Under $10000 | Fast Cash Loans | Emergency Loans | Instant Approval Loans | Bad Credit Small Loans | Online Loans Under $10000 | Short Term Loans | Unsecured Loans