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Surveys have shown that while small and medium-sized enterprises (SME) are entering 2026 with strong financial performance and a desire to expand, many are operating with thin cash buffers, rising compliance pressures, and increasingly complex borrowing requirements.
Non-bank lender Moneytech said brokers who achieve the strongest outcomes are those who engage clients early and help define the purpose and structure of funding prior to submission.
“We often hear very general tips like ‘improve your credit score’ or ‘trade for two years,’ but SMEs need clearer guidance,” Reece Ketu, Moneytech’s group head of sales and distribution, said.
“In practice, lenders look at dozens of metrics – from business plans to property ownership – and the process varies depending on whether you’re seeking a business loan, vehicle finance, or a larger or complex facility.
“Too often, small businesses aren’t always made aware of what’s required, which is why clear guidance is so important.”
Context matters
Ketu said well-prepared submissions that present a clear credit narrative allow lenders to assess risk more efficiently and issue offers with greater confidence.
“We see the biggest difference when brokers have worked with the client to clearly articulate why the funds are required, how long they’ll be needed, and how repayments will be serviced. That clarity significantly reduces back-and-forth during credit assessment,” Ketu said.
According to Ketu, brokers can add value by stress-testing serviceability against softer trading periods, aligning facilities to the business cycle, educating clients on documentation requirements upfront, and identifying potential compliance issues before submission.
From a credit perspective, he said structure and policy alignment often outweigh headline rates.
“Strong submissions are those where the structure matches the purpose of the funding. Short-term cash flow needs should be funded differently to long-term asset purchases. When those are mismatched, it can create pressure on the business and complicate approval,” Ketu said.
Ketu highlighted several key considerations for brokers, including matching facility terms to asset life or cash flow cycles, ensuring repayments remain sustainable during weaker trading months and researching lender appetite based on industry, turnover band, or tax position.
In a recent Finance Specialist podcast, hosts Trent Carter and Liam Garman looked at the contextual pressure on SMEs currently and how brokers can reposition themselves to help.
Documentation work
Incomplete documentation and unresolved compliance issues remain a common source of delays.
“Across the market, we’re seeing a number of recurring red flags that slow down approvals,” Ketu said.
He said outdated or missing business activity statements, inconsistent bank statement conduct, blurred personal and business accounts, and unformalised Australian Tax Office (ATO) debt were frequent pitfalls brokers should monitor.
ATO debt is becoming an increasing source of pressure for SMEs, as reported by Broker Daily. Australian Taxation Office data analysed by financial analytics firm CreditorWatch found business tax defaults began spiking in October 2023, with more than 30,000 defaults in effect as of January 2026.
Ketu added that SME applications submitted through the broker channel can carry a stronger likelihood of success due to brokers’ understanding of both borrower circumstances and lender requirements.
He said: “When brokers understand ‘know your customer’ requirements and ensure identification and compliance documentation is correct at the outset, it allows applications to move through assessment without friction.
“That preparation reduces rework, supports straight-through processing, and accelerates credit decisions. It reinforces the important role brokers play in packaging and presenting deals in a way that aligns with lender requirements.”
[Related: Brokers urged to rethink SME strategy]