10 Oct

Borrowing with Purpose

How Australian businesses are using finance to fuel sustainable growth.

OCTOBER 2025

Business borrowing has lifted across Australia.

New data from Equifax shows a 3.9% increase in demand for business loans, signalling renewed confidence among owners seeking to fund expansion, strengthen cash flow, and invest in growth opportunities.

With interest rates stabilising and lenders re-engaging the SME market, borrowers who prepare well are securing faster approvals and sharper pricing.

“Lenders are rewarding financially disciplined businesses with smoother approvals and stronger outcomes. The fundamentals are improving — confidence, cash flow, and credit access are all heading in the right direction.”

Capital as a Catalyst

Capital remains the engine of business success.

It fuels operations, funds innovation, and provides flexibility to seize opportunity. As companies scale, borrowing provides access to additional funds without tightening liquidity or disrupting daily operations.

For many, the right finance facility turns strategy into execution — enabling investment in assets, technology, and people that support sustainable growth.

A business loan can help fund projects sooner, strengthen working capital, and demonstrate to lenders and investors that the business manages debt responsibly.

Navigating the Lending Landscape

The finance market has diversified significantly.

Traditional banks, challenger institutions, and digital lenders are all active in the SME space, each offering different pricing models, eligibility criteria, and loan structures.

Before applying, it pays to compare interest rates, repayment terms, and fees, and to assess how borrowing will affect short- and medium-term cash flow.

A lender who understands your industry or seasonal cycles can often offer greater flexibility on terms and covenants.

Building a Strong Credit Profile

A business’s credit score remains one of the first indicators lenders assess.

It reflects reliability and financial discipline — qualities that directly influence both approval and pricing.

Maintaining a strong score requires paying suppliers on time, avoiding multiple concurrent credit applications, and managing existing facilities within agreed limits.

Business owners can access their report through Equifax, Experian, or illion to check accuracy before applying.

Financial Readiness Matters

Behind every successful loan application lies effective financial management.

Lenders want to see clean, current records and evidence of stable margins.

Using cloud accounting software such as Xero or MYOB allows businesses to produce real-time profit and loss statements, balance sheets, and cash-flow forecasts.

This transparency builds trust and demonstrates control.

“Lenders back businesses that understand their numbers,”.

Clarity Through Business Planning

A concise, data-driven business plan provides context for your borrowing.

It should clearly explain how funds will be used, how they will generate returns, and how repayments align with operations.

Defined goals, realistic forecasts, and measurable outcomes create confidence for both lender and borrower.

Clarity always outperforms ambition when it comes to funding approvals.

Expert Support and Strategic Advice

A trusted advisor can strengthen your application and streamline the process to help refine forecasts, ensure compliance, and present financials in a lender-friendly format.

We supports clients to identify suitable finance structures, strengthen reporting, and liaise directly with lenders to secure optimal outcomes.

Market Sentiment and Outlook

Business borrowing is trending upward, supported by stable interest rates and a competitive lending environment.

Most SME facilities with property-backed SME finance, LVRs of 60–75 % are common where the borrower’s financials are strong.

- Business loan demand: +3.9% YoY (Equifax, 2025)

- Typical loan term: 3–7 years

- Common loan purposes: Expansion, Equipment, Cash Flow

- Key success factor: Preparation and documentation

As confidence returns and credit conditions normalise, well-managed businesses are well positioned to leverage capital for growth.

Positioning for Growth

Access to capital enables progress without compromising liquidity.

Whether expanding operations, upgrading equipment, or stabilising cash flow, borrowing with purpose remains a practical lever for sustainable business growth.

Next steps

We can help with navigating through the changes that may apply to your particular situation. For further discussion, please feel free to contact our office.