The survey, encompassing 722 SMEs with annual revenues between $1 million and $20 million, reveals that the primary drivers for this shift include competitive pricing, streamlined credit approval processes, and more flexible spending limits offered by non-bank lenders. Notably, two-thirds of SMEs cited the ease of obtaining credit facilities as a decisive factor, while over half were influenced by the proactive engagement of these alternative lenders.
Furthermore, the data shows that four out of five SMEs maintain a secondary working capital provider, underscoring a strategic move towards diversifying financial resources. This trend is further evidenced by the increasing reliance on broker intermediaries, as SMEs actively seek better financing deals beyond the offerings of the major banks.
For Australian SMEs, this evolving landscape presents both opportunities and challenges. While non-bank lenders offer attractive terms and expedited processes, it's crucial for business owners to conduct thorough due diligence. Understanding the specific terms, interest rates, and potential fees associated with alternative financing options is essential to ensure alignment with the business's financial health and growth objectives.
In conclusion, the growing inclination towards non-bank lenders reflects a dynamic shift in the SME financing environment. By carefully evaluating all available options and seeking professional financial advice, SMEs can leverage these alternative lending solutions to fuel their growth and navigate the complexities of the current economic climate.
Published:Sunday, 26th Oct 2025
Source: Paige Estritori
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