By:
Chris Thomas
Commercial broker and equipment finance executive National Australia Bank
At the turn of financial year, brokers are having thousands of conversations with business owners each week. But right now, those conversations are changing.
Surging input costs, fuel pressures, inflation concerns and changing regulatory obligations - all among an uncertain global outlook - may not have been on every business owner’s bingo card this year, but together, they are forcing many small to medium-sized enterprises (SMEs) to reassess their plans.
As businesses navigate a more complex operating environment, brokers are increasingly being asked to do more than simply arrange finance.
For Chris Thomas, executive for commercial broker and equipment finance at Australia's largest business bank, National Australia Bank, the current environment places a premium on brokers who can combine commercial expertise with strong customer relationships and a genuine understanding of business.
“It’s a great time to get to know your customers again,” Thomas said.
“Businesses aren't just looking for finance, they're looking for partners who truly know them.
“They'll have opportunities, they'll have challenges. Both of those present a great starting point for a conversation.”
Business conditions began the year on strong ground, but the proceeding months have certainly tested these foundations.
Prior to the escalation of conflict in the Middle East, loans to non-financial businesses totalled $1.23 trillion at the end of March 2026, up 9.7 per cent over the year, according to APRA data.
NAB outpaced the broader market, growing its business lending book by 12.3 per cent to $267.5 billion.
“We had seen a very buoyant, voluminous period,” Thomas said.
“But then we got to the Middle East crisis, and suddenly things started changing very quickly.”
While the underlying demand for finance remains, uncertainty has changed what businesses are borrowing for and how they approach major decisions.
Through ongoing conversations with customers, particularly those operating in energy-intensive industries, Thomas said NAB has seen concerns grow.
“What we're hearing back is that they are very concerned about the rise of energy costs, its impact on cash flow and the ability to forecast into the future,” he said.
NAB's latest Business Survey paints a similar picture, with profitability remaining under pressure and cost growth continuing to weigh on many sectors.
“With all that being said, businesses aren’t panicking,” Thomas added.
“There is no sign of distress, but they are certainly turning their mind to different approaches to operate their business.”
If uncertainty is changing the way businesses approach decisions, it is also changing what they need from their brokers and lending solutions.
According to Thomas, it's these periods of disruption that highlight the value of brokers who ask the right questions.
“At the heart of knowing your customer is being curious,” Thomas said.
“What we're hearing back is that they are very concerned about the rise of energy costs, its impact on cash flow and the ability to forecast into the future,”
- Chris Thomas
“Curious about what your customer is thinking, how they see their business, the dynamics that need to be in place for their business to thrive, the risks and the things they need to evolve.”
As market conditions change and lending conversations become more nuanced, Thomas said it was essential for commercial brokers to stay connected to their clients and keep a clear view of the bigger picture.
“Knowing your customer sounds easy, but it's not. It requires constant nurturing,” he said.
“Things change so quickly that that knowledge is only current for a period; it needs to be reinvested in.
“It's a contact sport – you've got to be in contact with your client to make it work.”
While having a deep understanding of business is the foundation of the credit conversation, understanding where the business is going forms the second piece of the puzzle, Thomas said.
“The past performance is the bedrock on which we assess credit.
“But truthfully, with so many different variables at play, the critical credit assessment pathways and the way we should think about credit is becoming increasingly about what the future looks like for that customer as well.”
“Knowing your customer sounds easy, but it's not. It requires constant nurturing,”
- Chris Thomas
For Thomas, strong credit applications are underpinned by a combination of a proven track record and a credible strategy for future growth.
“Good bankers and good brokers will work with the customer and their accountant to formulate a proposal that allows the customer to achieve what they're trying to do, with the right actions to address the challenges they face, while still underpinning their aspiration to move forward.”
NAB’s executive for commercial broker and equipment finance added that this is where the broker proposition comes into its own; the businesses best positioned to succeed are often those supported by a broker who understands not just where a business has been, but where it’s heading.
“These are real deep conversations that then need to be backed up by good data and analytics to prove the point.
“I think any customer that is being supported in that way by their finance professionals and their other professional service providers is going into trickier times well served. That could be the difference of whether they achieve their goals or not.”
The same qualities that help brokers build stronger customer relationships are also shaping NAB's broker strategy.
As commercial lending evolves, Thomas said NAB is increasingly focused on brokers with deep expertise, strong customer relationships and a clear strategy for growth.
“In the commercial broking space, we recognise there’s a very specific skill set that’s required,” he said.
“Good bankers and good brokers will work with the customer and their accountant to formulate a proposal that allows the customer to achieve what they're trying to do, with the right actions to address the challenges they face, while still underpinning their aspiration to move forward.”
- Chris Thomas
“Our focus is deepening relationships with commercial brokers that have clear strategies for their businesses, strong capabilities, proven expertise and established track records.”
Indeed, many successful brokerages have expanded beyond a single lending speciality, creating diversified service offerings for clients.
“I'd class some of those broker firms as almost financial services businesses that are providing broad ranges of products,” Thomas said.
“That's how NAB operates. That's how we see the world.
“We love partnering with those types of firms because it's very like-minded. Then it’s about ultimately deepening customer relationships and giving them as many solutions as possible.”
It’s the deepening of relationships and expertise that makes brokers the channel of choice for home buyers and a growing amount of businesses.
But only by having a lender partner with the same level of expertise and decision-making power can brokers have truly seamless client outcomes.
“We pride ourselves on the fact that our business bankers are in the field, have lending authorities and can make credit decisions,” Thomas said.
“It’s been a hallmark of NAB's business banking operation that in many instances, it’s a decision-maker that you're putting in front of the client,” he said.
Working with customers across virtually every industry in Australia, Thomas highlighted NAB’s capacity to make informed and open-minded credit decisions across a variety of sectors.
“Our focus is deepening relationships with commercial brokers that have clear strategies for their businesses, strong capabilities, proven expertise and established track records.”
- Chris Thomas
“As the largest business bank in the country, we're fortunate enough to bank virtually every industry,” Thomas said.
“So we have a deep understanding of business banking and that's allowed us to craft a credit model that is very responsive and understands business.”
NAB also continues to invest in those relationships, maintaining a nationwide network of business bankers and broker support teams.
“We still see a world where it's very people-orientated, it's very relationship-driven,” Thomas concluded.
“We're a relationship bank.”
“As the largest business bank in the country, we're fortunate enough to bank virtually every industry,”
- Chris Thomas
Tune in to hear more!
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Chris Thomas
Commercial broker and equipment finance executive National Australia Bank
