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Many small-business owners are approaching the busiest time of their year with a need to increase their cash buffers, according to new research from non-bank lender Prospa and researchers YouGov.
While seven out of 10 business owners told the lender’s latest SME Sentiment Report that they were confident about remaining cash flow positive over the next 12 months, 15 per cent said they had less than a month’s buffer, while another 15 per cent said they had no cash reserves at all.
The non-bank lender’s customer data has also suggested many SMEs are heading into the peak trading period with lower-than-average monthly revenue than this time last year.
For instance, Prospa noted that in 2024, businesses averaged $111,000 in July, $111,000 in August, and $131,000 in September.
In 2025, those figures fell to $107,000 in July (down 3.6 per cent), $98,000 in August (down 11.7 per cent), and $112,000 in September (down 14.5 per cent).
The SME lender said the year-on-year decline may mean SMEs will struggle to build the momentum needed to absorb higher seasonal costs or capitalise on increased demand.
While average monthly revenue rose 23.5 per cent to $126,000 in October 2025 compared with the same period in 2024 ($102,000), this trend reversed in November, with average monthly revenue dropping 20.1 per cent from $134,000 in 2024 to $107,000 in 2025.
The strain on cash reserves was underscored by results in the YouGov research, which showed that almost a third of SMEs (31 per cent) plan to seek external finance.
Speaking to Broker Daily, Beau Bertoli, Prospa’s co-founder and chief revenue officer, said while signs of optimism were encouraging, the data underscored the immediate pressures facing SMEs.
“It is great to see that most business owners are optimistic about the next 12 months. As a former SME owner myself, you need that resilience and positivity to succeed,” he said.
“However, with nearly a third of owners reporting they have a month or less cash in reserve, barely enough to get through a single quarter’s downturn, we are worried about their ability to manage the costs and demand fluctuations of summer.”
Bertoli also noted the demands SMEs typically face in this period.
“Summer can be an exciting time for small businesses, offering new opportunities. However, many are working with slim cash reserves and facing lower monthly earnings, making them more susceptible to even small economic surprises,” he said.
“Business owners who find themselves in this situation or feel uncertain about their cash flow might find it helpful to chat with their trusted adviser.
“Together, they can explore options to make the most of this summer.”
Bertoli said brokers can make a big difference during this busy period.
“From cash flow challenges to planning for inventory and staffing, many SMEs will need to make numerous decisions without considering the personal plans the holidays bring,” he said.
“Brokers can make a substantial difference by starting conversations with their SME clients early, helping them forecast their needs, identify gaps, and leverage their lending expertise to recommend meaningful products and support. Acting now helps avoid last-minute stress and positions brokers as trusted advisers.”
He also highlighted the importance of education.
“Keeping advice simple, with clear, jargon-free suggestions on cash flow planning and solutions, greatly helps reach a resolution. Share practical resources and offer quick Q&A sessions so clients feel confident in their decisions,” he added.
“And don’t stop at December; schedule a review in January to check facilities and set goals for the year ahead. At Prospa, we’re fully committed to supporting brokers with tailored solutions and tools to help SMEs finish the year strongly and start the next with confidence.”
Supporting SMEs
In a recent appearance on In Focus podcast on Broker Daily sister brand The Adviser, Roberto Sanza, Prospa’s general manager of sales and partnerships, said innovation was crucial to supporting SMEs in today’s environment.
“If you think about 10 years ago in this space, business owners in need of funds had to wait several weeks until they got an outcome of their application or got a sense of what solutions were available in the market,” he said.
“Fast forward 10 years later, the market standard right now is 24–40 hours turnaround, and we have now actually pushed that limit even further with the introduction of Prospa IQ and our technology, where we are looking into real-time decisioning to be able to set those expectations and assess businesses.
“The second point talks to the evolution of SME needs. Once, a simple loan was sufficient to serve for different customer needs, in other words, one-size-fits-all.
“Today’s SMEs seek more tailored, holistic solutions that actually solve for very specific needs.”
[Related: Prospa expands Business Loan Plus to $1m for small businesses]