iscover 
With tighter cash flow, more demanding borrowers, and firmer regulatory settings, brokers this year became indispensable to the SME ecosystem.
Insights Lumi collected across more than 1,500 SME customers in 2025 show how a year that began with confidence quickly evolved into one defined by urgency, speed, and strategic capital use.
The SMEs that outperformed in 2025 were the ones that moved decisively and worked with brokers who focused on understanding the complete funding requirements of the business rather than addressing a one-off need.
There were five big trends that shaped SME lending in 2025:
1. SME cash flow fragility spiked to post-pandemic highs
2025 delivered the toughest liquidity environment SMEs have faced since COVID-19. Customer payments slowed, ATO pressure intensified, and demand became unpredictable, leaving most SMEs (84 per cent) with less than three months of cash – and many (41 per cent) with under one.
SMEs in 2025 realised that growth ambitions are inseparable from cash flow realities – revenue matters, but only when liquidity can keep pace.
Key takeaway for brokers: Capital timing and access became the top priority, often outweighing growth ambitions.
2. Working capital dominated SME funding demand
Cash flow management drove the majority of SME finance activity in 2025. CPA Australia’s Asia-Pacific Small Business Survey shows that of SMEs seeking finance this year, 53 per cent aimed to fund business growth, 38 per cent aimed to cover rising expenses, with only 26 per cent looking to fund capital assets.
Key takeaway for brokers: Brokers who helped SMEs manage working capital became essential partners, enabling businesses to stay resilient and seize opportunities.
3. SMEs increasingly turn to non-bank lenders and expect brokers to manage the full capital picture
Broker reliance grew throughout 2025: By Q3, two-thirds of SMEs were using brokers for working capital, up from just over half earlier in the year, and 56 per cent named brokers as their most trusted source of financial guidance (Lumi data).
In 2025, over half of SMEs preferred non-bank capital options, relying on brokers specifically for faster access (55 per cent); expert guidance on complex decisions (37 per cent); and strategic advice on the optimal funding mix and end-to-end capital solutions that combine cash flow, asset, and mortgage financing needs (33 per cent, Lumi data).
Key takeaway for brokers: Brokers who delivered both end-to-end capital access and integrated advisory strengthened client trust and secured a clear market advantage.
4. Cost pressures forced SMEs to rethink pricing and growth pace
In 2025, SMEs reported that customers became more price-sensitive (46 per cent) and demanded more value for money (30 per cent), while 24 per cent were slower to make decisions. Although 49 per cent of SMEs raised growth targets during the year, many regretted not increasing prices sooner (28 per cent) and reported lack of working capital as their biggest blocker to growth.
Key takeaway for brokers: Advisory support on pricing, margins, and capital allocation became central to SME decision making – guiding clients through cost pressures was a defining trend of 2025.
5. Speed and timing proved more critical than ever
In 2025, many SMEs reported that timing – not just funding terms – made or broke growth. Twenty-seven per cent regretted delaying funding, and 62 per cent missed growth opportunities due to delayed or unavailable capital. Yet 25 per cent still rely on instinct or experience or do not forecast cash flow at all. Supplier dynamics worsened this: average payment terms now exceed 45 days, up 20 per cent year on year, and one in three SMEs say late payments have blocked new work.
ABS data underscores the stakes: while Australia added 437,150 new businesses in 2024–25 (16.4 per cent entry rate), some 370,500 exited (13.9 per cent exit rate) – a volatile SME landscape where liquidity and timing can determine survival.
The brokers who pre‑assessed early, partnered closely with lenders, and anticipated cash crunches dominated conversion.
Key takeaway for brokers: In a market of stretched supplier terms and volatile cash flow, proactive timing became as crucial as loan structure. Brokers who aligned funding with client cash cycles and anticipated gaps held a clear advantage.
2025 forced Australian SMEs to rethink how they fund, plan, and operate – and 2026 will raise the stakes even further.
Anna Hawter is the deputy CEO of non-bank lender Lumi and Ben Lamb is the chief commercial officer at Lumi.