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As of 2014, just 7 per cent of SMEs had the intention of using a non-bank lender for financing needs. In 2025, this figure has climbed to a record high of 55 per cent, knocking the majors and non-majors off the pedestal. This was a 7 per cent rise from 2024.
As reported in ScotPac’s SME Growth Index, SME borrowers are attracted to the increased flexibility, faster approvals, and tailored funding options that non-bank lenders can provide.
The portion of SMEs that intend to use bank lenders for financing is now at 30 per cent, dropping 12 per cent from 2024.
Another 21 per cent intend to stick with their main relationship bank and 9 per cent will seek a secondary banking lender.
Non-banks have a clear opportunity to capture the SME borrower segment, with 59 per cent of businesses planning to invest and grow in the next six months.
Further, brokers have an opportunity to support the growth and scale of these businesses. ScotPac CEO Jon Sutton said brokers have a great opportunity to capture a growing segment of borrowers.
Private credit demand is also increasing, with a quarter of SME borrowers planning to use some form of private credit to fund an average of 10 per cent of their business investment.
The vast majority (94 per cent) of these borrowers intend to use their own equity to fund business investment.
Sutton said it could be more beneficial to seek external lending options as it could give SMEs a strategic advantage.
“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,” he said.
It’s a thriving market for commercial finance brokers. Recent data from NAB revealed that 60 per cent of Aussie businesses plan to invest in the next 12 months.
The second quarter of 2025 recorded a 20 per cent surge in commercial finance loan settlements.
On top of this, there are more mortgage brokers than ever before writing commercial finance loans (31.54 per cent).
MFAA CEO Anja Pannek said the greater diversification of brokers allows enhanced competition and choice and SME clients are provided with more options.
Accendo Financial’s founding partner Trent Carter said the rising trend is a “win-win” for both the broking industry and consumers.
[Related: Almost a third of mortgage brokers also writing commercial loans]
