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New insights from non-bank lender Lumi’s Market Pulse: Q1 2026, based on a survey of 402 small and medium sized enterprises (SME) owners conducted in January, indicate businesses are struggling with a variety of cash flow strains.
The survey also found that brokers who act early and can provide a variety of integrated solutions are best positioned to help clients navigate changes.
In the survey, 81 per cent of SMEs reported improved financial performance over the past 12 months, with 68 per cent raising growth targets for 2026.
However, 79 per cent hold less than three months of cash reserves, while 80 per cent expect ongoing or increased cash flow pressure this year.
Payday Super and ATO pressures
One upcoming regulatory change that will impact SME cash flow is the Payday Superannuation reform.
From 1 July 2026, superannuation payments will move from a quarterly to a monthly pay cycle, creating immediate cash flow implications for SMEs.
While 81 per cent of SMEs are aware of the reform, only 11 per cent have planned how they can accommodate it, and 35 per cent of respondents said they were concerned about the impact on cash flow.
Broker Daily has reported on how the Payday Superannuation reforms could reduce SME borrowing power by as much as 15 per cent.
“Payday Super is forcing businesses to rethink working capital,” said Ben Lamb, chief commercial officer at Lumi.
“The reform is altering day-to-day cash flow dynamics, while also creating a clear planning window. While awareness of compliance pressures is high, most businesses have not yet taken steps to prepare (or fund) for their impact.
“Brokers who engage clients early on compliance-driven funding needs will position themselves as strategic partners rather than just transaction facilitators.”
For existing debt, more SMEs are treating debt restructuring as part of normal business planning, not just when things go wrong.
Twenty-nine per cent of those surveyed plan to consolidate existing loans, 11 per cent plan to refinance Australian Taxation Office (ATO) obligations, and 29 per cent cite intensified ATO enforcement as a major 2026 risk.
ATO debt is becoming an increasing source of pressure for SMEs, as reported by Broker Daily. ATO data analysed by financial analysis company CreditorWatch found that business tax defaults began to spike in October 2023, with more than 30,000 defaults in effect as of January 2026.
How brokers can help
In a tighter economy and changing regulatory environment, the survey indicates that SMEs are increasingly choosing their brokers for trust and guidance.
Seventy-five per cent of SMEs said they trust brokers or advisers most when evaluating funding options, while 78 per cent want brokers to provide full-picture guidance across working capital, asset finance and long-term structuring.
The survey also shows that SMEs are seeking brokers who can provide integrated and blended solutions.
Fifty per cent of respondents said they would switch to a broker offering integrated capital solutions, while 66 per cent said they prefer an asset-finance broker also supporting cash flow needs. Fifty-six per cent said they prefer a mortgage broker also supporting cash flow needs.
“SMEs are moving beyond transactional relationships. Businesses are thinking strategically about how capital supports both day-to-day operations and long-term growth, and they’re sending a clear signal: they value full-service brokers who can cover multiple solutions – whether it’s asset finance, mortgages or cash flow lending,” Lamb said.
“Brokers who combine specialisation with a broader capital view are best placed to build durable, long-term client relationships.”
“Looking ahead to 2026, we’re seeing SMEs plan with intent,” added Anna Hawter, deputy chief executive officer of Lumi.
“Demand is steady, confidence is high, and many businesses are actively positioning for growth. The challenge isn’t access to funding – it’s using it at the right time and in the right way. Brokers who help clients secure funding before cash flow tightens can protect flexibility, borrowing capacity and enable sustainable growth.”
[Related: Broker diversification goes mainstream]