Barry Saoud, Chief Executive of Mortgage and Commercial Lending at Pepper Money, highlights that the current appetite for growth among SMEs is a significant driver of this trend. Many small businesses are seizing opportunities to expand by hiring staff, upgrading equipment, and scaling operations following strong trading periods.
Statistics from the Australian Bureau of Statistics (ABS) underscore this momentum. The number of new Australian Business Numbers (ABNs) registered nationwide jumped 21% to 104,784 in the year leading up to August 2025, up from 436,000 between July 2023 and June 2024. This increase reflects a burgeoning entrepreneurial spirit and a corresponding need for accessible financing.
Non-bank lenders are stepping in to fill this gap, offering tailored solutions that cater to the unique needs of SMEs. For instance, online small business lender Banjo Loans reported a 300% surge in applications for its Business Loan Express product in one month after expanding lending limits. Similarly, Bluestone Home Loans noted that approximately 60% of its home loan lending is to self-employed individuals, indicating a significant overlap between personal and business financing needs.
For brokers, this evolving landscape offers a chance to diversify their portfolios and provide clients with a broader range of financing options. By collaborating with non-bank lenders, brokers can offer more flexible and accessible loan products, thereby enhancing client satisfaction and loyalty.
In conclusion, the current SME lending boom is not just a testament to the resilience and ambition of Australia's small business sector; it also represents a strategic opportunity for brokers to align with non-bank lenders and tap into new revenue streams. As the market continues to evolve, staying informed and adaptable will be key to capitalising on these emerging trends.
