Navigating SME Finance in Australia’s 2025 Economy
Insights for Accountants, Advisers and Business Decision Makers
Australia’s economic climate is shifting. Inflation has eased to around 2.1 %, with core inflation at 2.7 %, which is comfortably within the Reserve Bank’s target range. This is creating space for expected interest rate cuts in late 2025 and early 2026. Lower borrowing costs are likely to lift business confidence, giving SMEs the opportunity to restructure finance, strengthen cash flow, and plan for growth.
SMEs are still under pressure
Even with an improving interest rate outlook, small and medium businesses continue to face significant challenges. Rising operational costs, increased compliance demands from recent workplace law changes, slower consumer spending, and persistent supply chain disruptions are all putting pressure on profitability.
Australia’s business failure rate is sitting at around five per cent, which is close to pandemic‑era highs. Insolvencies and payment defaults are on the rise, making liquidity and timely access to finance more critical than ever.
Why Banks are no longer the first choice for SME finance
Traditional banks are tightening credit criteria for SMEs, increasing collateral requirements, and slowing down approval processes. This leaves many viable businesses waiting far too long to secure the finance they need to move forward.
In response, more SMEs are turning to non‑bank and specialist lending options including invoice finance, private credit, peer‑to‑peer lending, and asset‑based funding. These options provide greater flexibility, faster approvals, and competitive outcomes that meet the realities of today’s business environment.
A bigger role for Accountants and Advisers
In the current market, accountants, lawyers, and business advisers have an opportunity to go beyond compliance and reporting. They can become strategic finance partners who help their clients secure the right funding to maintain operations, protect jobs, and pursue growth opportunities.
By being proactive and connected to alternative finance solutions, advisers can strengthen their client relationships and demonstrate value far beyond the numbers.
How Finmore Capital fits in
At Finmore Capital, we position ourselves as an extension of your advisory team.
We focus on education, ensuring clients clearly understand their options and the implications of each choice. We build relationships by taking the time to understand a business’s structure, goals, and challenges. We prioritise speed, working with an extensive panel of non‑bank and specialist lenders to deliver finance outcomes quickly and competitively.
This approach gives advisers the confidence to refer clients, knowing their needs will be met professionally and their trust in you will grow.
Key takeaways for advisers
📌 Interest rate cuts are on the horizon, making this a strong time to review finance arrangements
📌 Banks are becoming less flexible with SME lending, so alternative solutions are essential
📌 Liquidity is vital in the face of rising insolvencies, so finance should be secured before it is urgently needed
📌 Proactive support strengthens client loyalty and positions you as a trusted partner in their success
Let’s start the conversation
If you are an accountant, lawyer, or business adviser with SME clients, now is the time to connect. Together we can provide your clients with strategic, competitive finance solutions that help them succeed in the current economy and prepare for the opportunities ahead.
Djamel Chettibi-Managing Director
📞 0401 162 023 | ✉️ info@finmore.com.au | 🌐 www.finmore.com.au