Our latest survey of more than 500 businesses owners found over one in two (52%) small businesses are confident about trading conditions over the 12 months ahead. This optimism is reflected in a 54% year-on-year growth in OnDeck’s loan originations for January 2025.
Key takeaways:
- OnDeck’s research confirms the majority (52%) of small enterprises are confident about trading conditions over the 12 months ahead. Confidence is expected to increase following the February 2025 rate cut.
- Confidence is highest in the construction sector (61%), followed by the financial services sector (47%).
- High levels of confidence are driving our lending growth, which recorded a 54% YOY increase in the volume of loans written in January 2025 compared to January 2024. This growth is delivering opportunities for brokers to expand into commercial lending.
- OnDeck has one of the nation’s fastest loan turnaround times, having cut our median approval time for Lightning Loans (up to $175,000) from 9 hours in 2023 to 2.75 hours in January 2025 – one recent loan application was even approved on an OnDeck record time of 17 minutes.
This latest research conducted by OnDeck highlights a renewed sense of confidence across Australia’s small business sector.
Over half (52%) of the businesses surveyed report being confident of trading conditions for the 12 months ahead. Confidence is highest in the construction sector, where six out of ten (61%) small businesses report being confident about trading conditions in 2025. This was followed by the financial services sector (47%).
Confidence is highest in the construction sector, where six out of ten (61%) small businesses report being confident about trading conditions in 2025.
Sectors with potential for growth include hospitality, with 38% of surveyed businesses positive about their prospects in 2025, and manufacturing, where 40% of businesses are optimistic about future opportunities.
Only one in four surveyed businesses nationally report lacking confidence for the new year.
It should be noted that our survey was conducted prior to the Reserve Bank of Australia’s (RBA’s) rate cut in February 2025. Confidence levels are expected to rise following the 0.25% cut to the cash rate.
“This optimism is reflected in a 54% year-on-year growth in our loan originations”
Confidence drives lending growth at OnDeck
The high level of small business confidence is driving lending growth at OnDeck. This optimism is reflected in a 54% year-on-year growth in our loan originations for January 2025.
Mr Cameron Poolman, CEO of OnDeck Australia, said, “Lending growth was recorded across a broad range of sectors with manufacturing, health services, transport and trade being particularly active.”
Opportunities for brokers
Confidence across Australia’s small business community is creating opportunities for brokers.
“Confidence is fueling a ‘go-for-growth’ attitude among many small business owners, who are activating plans for expansion by accessing the funding they need to invest in new equipment, new technology and new people to grow skilled teams,” said Mr Poolman.
“This makes now a good time for brokers to re-engage with their small business customers or add commercial lending to their suite of services”
“Moreover, the 0.25% RBA rate cut will likely boost consumer confidence and spending, which will be a plus for many small businesses.
“This makes now a good time for brokers to re-engage with their small business customers or add commercial lending to their suite of services for the first time. Brokers can rest assured that OnDeck’s experienced team provide full support and training to new brokers moving into business lending, helping workshop scenarios before brokers submit applications,” noted Mr Poolman.
OnDeck slashes loan approval times
As a leading online lender, we are continually reinvesting in technology and data to support fast approval times for small business.
“A recent loan was approved in a record breaking 17 minutes – the fastest in the company’s history.”
This investment has seen the median approval time for our Lightning Loans (up to $175,000) slashed from 9 hours in 2023 to 2.75 hours in January 2025. In fact, a recent loan was approved in a record breaking 17 minutes – the fastest in the company’s history.
“We know that protracted loan approval times are a real pain point for small businesses. Our commitment to narrowing the gap between loan application and loan approval is one of OnDeck’s key points of difference – one that helps our small business clients achieve their goals sooner,” said Mr Poolman.
Our Lightning Loans, offer amounts from $10,000 to $175,000. These loans are tailored for small business needs, with a fast and hassle-free application process that requires just six months of business bank statements upfront. For businesses seeking larger amounts, our Lightning Loans Plus provides up to $250,000.
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Things you should know:
The independent research was conducted online in October 2024 by Octopus Group across more than 500 small business owners Australia-wide.
The information provided above is general in nature and does not constitute financial, legal, or tax advice. We recommend seeking independent professional advice before making any financial decisions.
