Falling inflation and lower interest rates are driving plans for growth across an optimistic small business community – and this provides opportunities for brokers.
A recent survey of small business owners by research group Fifth Quadrant, confirms that small business revenues are holding firm as we head into 2025.
Revenues for January were remarkably unchanged from December, which is the peak trading period of the year for many businesses.
In more good news, the hospitality sector was the big outperformer in January, with these businesses reaping the rewards of strong holiday trading.
More broadly, the survey revealed that small businesses hold a positive outlook for the year ahead buoyed by expectations of falling inflation, and a view that lower interest rates will support business growth.
Let’s take a closer look at how brokers can tap into this optimism.
A record focus on growth
A record two in five (39%) small businesses have a growth focus for 2025, and reflecting this, over one in ten small enterprises will be expanding their headcount over the year ahead. Business growth is also reflected in capital expenditure plans.
Fifth Quadrant found investment in equipment looks especially promising for the next quarter, with 42% of surveyed businesses planning to invest in office equipment and IT solutions.
One in four (26%) will invest in machinery and/or plant equipment, while over one in ten (14%) enterprises will expand their fleet of passenger vehicles.
42% of surveyed businesses are planning to invest in office equipment and IT solutions.
Source: https://www.fifthquadrant.com.au/sme-growth-outlook-continues-to-strengthen
Small businesses rely on finance to kick their 2025 goals
One in two (53%) of small businesses will use finance to fund cashflow and working capital needs. However, over one in four (28%) will use finance to fund domestic growth, and 11% will use loan funding to expand into global markets.
Source: https://www.fifthquadrant.com.au/sme-growth-outlook-continues-to-strengthen
OnDeck reports high levels of confidence
Cameron Poolman, OnDeck CEO, says, “Fifth Quadrants findings match a national survey conducted by OnDeck, which found elevated levels of confidence across the small business community.
“Nationally, more than one in two (52%) small businesses told us they are confident about trading conditions over the 12 months ahead.“
This optimism has been reflected in a 54% year-on-year growth in OnDeck’s loan originations for January 2025, and as a dedicated small business lender, we are delighted to support Australia’s small business sector – and their broker partners – by providing fast, efficient funding through our Lightning Loans.
“52% of small businesses told us they are confident about trading conditions over the 12 months ahead.“
Amplified opportunities for broker
“For brokers who haven’t considered adding commercial lending to their suite of services, now is a good time to diversify into this area of finance,” says Cameron.
OnDeck’s Lightning Loans are especially appealing to small businesses, offering amounts from $10,000 to $175,000.
What makes Lightning Loans so useful for brokers is that they 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, OnDeck’s Lightning Loans Plus provides up to $250,000.
For fast funding for your business goals, talk to OnDeck direct by calling us on 1800 676 652 or visit www.ondeck.com.au to find out more about how our turbo-charged finance can help your small business clients achieve their plans for growth.
