(17 July 2025 – Australia) The level of non-bank lending demand to fund new SME investment surged to an all-time high of 55 percent in the first half of 2025 according to the latest edition of ScotPac’s bi-annual SME Growth Index Report, marking a seven percent increase year-on-year (YOY).
More than half of Australia’s small-to-medium enterprises (SMEs) intend to fund new investments with a non-bank lender – a remarkable turnaround from just seven percent in 2014. The level of non-bank lending demand to fund new SME investment surged to an all-time high with the key drivers identified by SME owners and operators including faster approvals, more flexible lending criteria and a greater range of tailored funding options.
“The evolving SME finance landscape presented a great opportunity for brokers to guide their clients through a growing and competitive market. SMEs have more choice than ever when it comes to finance solutions, and they’re clearly voting with their feet. That scenario is creating more opportunities for brokers who are uniquely placed to add value by identifying the right solution for each SME’s needs” commented ScotPac CEO Jon Sutton.
Mr Sutton also encouraged SMEs relying on their own equity fund new business investment to explore external funding options.
“It’s understandable that business owners view their own equity as a safe option, but in many cases working with a lender presents strategic advantages. With the right lending solution in place, SMEs can meet tight funding deadlines while preserving their working capital or savings buffers in case unforeseen costs arise. For example, ScotPac can help SMEs access finance by unlocking the value in their business assets to take advantage of time-critical opportunities like stock purchases or equipment upgrades.”
About the SME Growth Index
Commencing in March 2014, ScotPac’s twice-yearly SME Growth Index is Australia’s longest-running research report on SME sentiment towards revenue growth prospects. The Round 22 research was conducted by East & Partners who directly interviewed 724 SME enterprises with annual revenues of A$1-20 million. SMEs surveyed have operated continuously for an average of 15.6 years and manage, on average, 55 full-time employees. Sectors represented in the survey included Property & Business Services (14%), Manufacturing (13%), Wholesale (12%), Retail (10%), Transport & Storage (10%), Personal & Other Services (10%), Construction (10%) and other industries including Mining & Resources, Agriculture, Media & Telco, Accommodation, Cafes & Restaurants, Finance & Insurance (non-bank) and Electricity, Gas & Water.
_______________________________________________________________________________________
ScotPac is Australia and New Zealand’s largest non-bank SME business lender, providing funding to small, medium and large businesses from start-ups to enterprises exceeding $1 billion in revenues. For more than 35 years, ScotPac has helped thousands of business owners succeed, offering fast and flexible funding. From simple to complex, small to large, start-up, growth or turnaround – ScotPac can help with a range of funding including Invoice Finance, Trade Finance, Asset Finance and Business Loans.
For more information contact:
Todd Hayward
Mob: 0412 205 151