New data from small business lender OnDeck reveals key insights into the funding priorities of small businesses in 2025, highlighting a strategic focus on growth, improvements, and financial stability.
- One in five (20.1%) small businesses are directing loan funds towards equipment purchases.
- One in seven (15.4%) small businesses are using loan finance to enact plans for expansion.
- Over one in ten (12.9%) are putting loan funds to work buying inventory and stock.
- Other key uses of business finance include employee hiring (5.8%) and fit outs/renovations (6.6%) signalling optimism and a growth focus across the sector.
Sydney (10/3): Leading small business lender OnDeck Australia, reveals that small businesses nationally are using loan funding to achieve growth goals.
Based on OnDeck’s own lending data, the most popular use (20.1%) of commercial funding to date in 2025 is for the purchase of equipment, likely driven by business growth, technology upgrades, tax benefits, rising costs, and the need to preserve cash flow.
“The most popular use of commercial funding is for the purchase of equipment.”
A robust 15.4% of small business borrowers are using loan funds to achieve expansion. Other growth-focused uses of loan finance include fitting out or renovating premises (6.6%) and hiring new staff (5.8%).
Funding is also being used to manage the day-to-day needs of small businesses such as purchasing inventory (12.9%) and paying suppliers (12.4%).
A further 11.3% are using loan finance to consolidate debt, suggesting a goal of improving the businesses financial standing.
Mr Cameron Poolman, CEO of OnDeck Australia, says, “Our results indicate that the majority of small businesses come to OnDeck seeking funding for growth.
“This is deeply rewarding to see as it indicates a healthy small business community that has a focus on expansion – and is taking steps to make those growth goals a reality.”
Source: OnDeck Australia lending data (direct channel applications). Note: Customers could select multiple funding purposes.
OnDeck’s data also underscores that Australian small businesses are actively enhancing customer experience and marketing (7.8%) and overall operational efficiency.
“Investments in equipment purchases, inventory management, and stock replenishments indicate the efforts of businesses to future-proof their businesses amidst evolving economic conditions,” noted Mr Poolman.
“These trends demonstrate a clear strategic intent to build resilience, drive innovation, and ensure steady cash flow.”
“These funding trends demonstrate a clear strategic intent among Australian small businesses to build resilience, drive innovation, and ensure steady cash flow. They recognise the importance of investing in their business and are positioning themselves strongly for future opportunities.”
Opportunities for small businesses
Small businesses can achieve their critical goals for 2025 with the support of fast, efficient funding.
Mr Poolman said, “In today’s fast-paced commercial environment, businesses can miss out on opportunities when they face a complex and time-consuming loan application process or a prolonged approval period.”
“OnDeck achieved a median approval time in January 2025 of just 2.75 hours.”
As a non-bank business lender, OnDeck achieved a median approval time in January 2025 of just 2.75 hours for OnDeck’s Lightning Loans (up to $175,000).
“We are committed to helping small businesses achieve growth with our fast and hassle-free application process that requires just six months of business bank statements upfront. For an even simpler process, I encourage small businesses to talk to their broker about the ease and speed of financing through specialist lenders such as OnDeck,” concluded Mr Poolman.
OnDeck’s Lightning Loans, offering amounts from $10,000 to $175,000, are tailored for small business needs, with a fast and hassle-free application process. For businesses seeking larger amounts, OnDeck’s Lightning Loans Plus provides up to $250,000.
