A national survey by the specialist small business lender found more than one in two (52%) small businesses are confident about trading conditions over the 12 months ahead. This optimism is reflected in 54% YoY growth in OnDeck’s loan originations for January 2025.
Key takeaways:
- Research by OnDeck Australia confirms the majority (52%) of small enterprises are confident about trading conditions over the 12 months ahead. This 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 lending growth at OnDeck, which recorded a 54% YOY increase in the volume of loans written in January 2025 compared to January 2024.
- OnDeck Australia has one of the nation’s fastest loan turnaround times, having cut their median approval time for its 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 in an OnDeck record time of 17 minutes.
Research by leading business lender OnDeck Australia, confirms a renewed sense of confidence across Australia’s small business sector.
Over half (52%) of the businesses surveyed report being confident about 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.
“Confidence is highest in the construction sector”
This was followed by the financial services sector (47%).
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 OnDeck’s 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.
Confidence drives lending growth at OnDeck Australia
The high level of small business confidence is driving lending growth at OnDeck Australia. This optimism is reflected in a 54% year-on-year growth in OnDeck’s loan originations for January 2025.
“Confidence is fueling a ‘go-for-growth’ attitude among many small business owners”
Mr Cameron Poolman, CEO of OnDeck Australia, said, “Lending growth was recorded across a broad range of sectors with construction, manufacturing, health services, transport and trade being particularly active.”
“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.
“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 small businesses to review their plans for the year. Fast, efficient funding can be the catalyst that allows businesses to kick their goals for 2025,” said Mr Poolman.
OnDeck slashes loan approval times
As a leading online lender, OnDeck is continually reinvesting in technology and data to support fast approval times for small business.
This investment has seen the median approval time for OnDeck’s 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.
“A recent loan was approved in a record-breaking 17 minutes”
“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.
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 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.
About the Research
The independent research was conducted online in October 2024 by Octopus Group across more than 500 small business owners Australia-wide.
Important: 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.
