iscover
As revealed in the latest Broker Pulse: Commercial Lending survey, brokers are reporting fewer external headwinds and stronger demand signals across key loan types compared to the same period last year, allowing them to focus on growth rather than navigating volatility.
The data indicates a significant reduction in the macro-economic pressures that dominated broker concerns in 2024. While economic or trade disruption remains the top-cited issue, the share of brokers flagging it has fallen substantially to 54 per cent, down from 67 per cent last August.
This easing of macro concerns, alongside stabilising operational conditions, is giving brokerages renewed confidence.
“Twelve months on, the picture is cleaner. External volatility has stepped down while client appetite steps up, which is exactly the mix that lets brokerages lean back into growth,” said Michael Johnson, director at Agile Market Intelligence.
The report suggests this reduction in perceived risk is coinciding with faster execution times from lenders, creating a positive feedback loop that is strengthening deal pipelines heading into the final quarter of 2025.
Asset finance emerges as a standout performer
The most dramatic surge in optimism is reserved for the asset finance sector, with 55 per cent of brokers now expecting demand for asset finance to rise in the next three months. This is a level of positive sentiment that is roughly double that of August 2024.
This points to an uplift in business investment in equipment and vehicles, driven by stronger client demand and fast approval times, with lenders like Autopay averaging just 0.8 days.
“Asset finance is no longer a niche upswing. The year-on-year lift tells us businesses are back investing and brokers are routing those deals to lenders that can turn them around at speed,” said Johnson.
Non-banks dominate in service
The report revealed that non-bank business lenders consistently outperformed their peers across the entire broker journey, from the initial application to final settlement.
While credit assessment remains an industry-wide challenge with satisfaction scores varying widely, non-bank lenders received higher marks for their service.
Their business development managers (BDMs) were a particular strength, with several lenders scoring above 90 per cent in broker satisfaction.
“BDMs are the standout performers, but credit assessment is where lenders can achieve differentiation. Non-bank business lenders appear to be dominating that space,” added Johnson.
Faster approval times were also seen across the board. Prospa averaged 1.4 days for approvals, while ORDE Financial averaged 2.5 days for commercial mortgages.
“When you put lower macro friction alongside faster credit processes, you get a cleaner pipeline. That is what we are seeing in August this year versus last,” Johnson said.
The combined effect of easing economic headwinds, surging demand in asset finance, and improved lender efficiency signals a robust and optimistic period ahead for Australia’s commercial lending market.
[Related: Commercial credit demand rises, but payment strains emerge]
