By:
Roberto Sanz
Sales & partnerships general manager, Prospa
“Rate matters and speed matters. But they’re table stakes now. The brokers that are winning right now are the ones that understand their customers’ high-yield need, combined with certainty of outcome, saving time and providing peace of mind. That’s where the conversation has moved,” Sanz says.
It’s a trend backed by data. Prospa’s latest SME Sentiment research, conducted in partnership with YouGov, paints a picture of a small business sector under growing pressure, with confidence dropping and businesses making more defensive decisions as they head into the new financial year.
Confidence among Australian SME owners in their ability to stay cash flow-positive over the next 12 months has dropped to 60 per cent, down from 70 per cent just three months earlier. The data highlights a sector feeling the squeeze:
“We see this every day,” Sanz says. “A business owner who’s doing well on the surface, but behind the scenes, they’re pulling from their own pocket to cover a gap. That’s exactly the moment when a broker can step in and change the trajectory. Not just with a loan, but with the right solution that gives that business owner breathing room to focus on what they do best.”
Despite the pressure, demand for external finance remains solid, pointing to both a need and an opportunity for brokers to reach the smaller end of the market:
Sanz says this is showing up in Prospa’s own numbers.
“We’re seeing increased demand for working capital products, such as our line of credit, where business owners want the flexibility to draw down when they need it rather than committing to a lump sum, giving them the freedom to borrow for days, months or years as they need. At the same time, our Small Business Loan remains the go-to for owners who know exactly what they need the funds for, whether that’s a new fitout, a piece of equipment, or a marketing push into the new financial year. The conversations our BDMs are having with brokers have evolved from ‘Can my client get approved?’ to ‘Which product is the best fit for what they’re trying to achieve?’” Sanz says.
Payday Super landed on 1 July. Employers now have to pay superannuation at the same time as wages, one of the biggest compliance changes for SMEs in years. The May data shows a lot of businesses went into it underprepared. A quarter (25 per cent) were still unaware of the change, and a further 11 per cent did not fully understand it.
Readiness had actually gone backwards since February. The proportion of businesses saying they were not prepared rose from 19 per cent to 23 per cent, with a further 14 per cent unsure. Nearly four in 10 headed into the deadline without a clear plan.
The impact was already showing up in behaviour before the change took effect. One in five (19 per cent) SME owners said they had delayed or reduced planned investments in response, and over two in five (44 per cent) expected one or more negative impacts, including increased cash flow pressure (24 per cent), the need to update payroll systems (18 per cent), and additional admin burden (18 per cent).
“Payday super is here now, and plenty of clients are still catching up,” Sanz says. “For brokers, that’s a natural conversation starter. If your client hasn’t worked through how this affects their cash flow week to week, that’s the opening. The ones who get on the front foot now will strengthen those relationships through the year.”
The next regulatory change is already on the horizon. From 1 October 2026, businesses will no longer be able to surcharge for EFTPOS, Mastercard, and Visa card payments. The cost has to be absorbed or built into pricing.
More than three in five (62 per cent) SMEs currently accept card payments through a merchant service, and among them, the change is not well understood. While 43 per cent are aware and understand what it means for their business, 23 per cent are aware but unclear on the implications, 20 per cent have heard of it but don’t know the details, and 15 per cent are not aware at all.
We’re seeing increased demand for working capital products, such as our line of credit, where business owners want the flexibility to draw down when they need it rather than committing to a lump sum, giving them the freedom to borrow for days, months or years as they need
- Roberto Sanz
Over half (54 per cent) expect the ban to affect how they set prices. Most anticipate only slight increases (41 per cent), while 13 per cent say they will need to increase prices significantly, and two in five (40 per cent) plan to absorb the cost and keep prices the same.
“This is the next one coming down the line, and it’s another reason to be in front of clients early,” Sanz says. “Brokers who understand what’s changing can help clients think through the cash flow impact before October, not after.”
Half (49 per cent) of Australian SME owners say they have used or implemented AI tools in the last six months to help manage admin or predict cash flow gaps. But the adoption is uneven. Non-sole traders are well ahead at 62 per cent, compared to just 40 per cent of sole traders. AI-powered assistants are the most common tool (44 per cent of non-sole traders versus 28 per cent of sole traders).
“That tells you these businesses are looking for smarter ways to operate,” Sanz says. “Brokers who understand that and truly get their clients’ needs and how to solve for them, are the ones who will win in this environment.”
This is where it gets practical. With confidence dropping and costs rising, SME owners are actively looking for ways to manage pressure. For brokers, Sanz says the opportunity is in how you approach the conversation, not just whether you have one.
Brokers who understand what’s changing can help clients think through the cash flow impact before October, not after.
- Roberto Sanz
“If you’ve got clients who haven’t reviewed their finance position in 12 months, the start of the financial year is the time to pick up the phone. Even if they’re not actively looking for a loan, chances are they’re managing cash flow pressure and haven’t considered how the right product could help. That’s where brokers add enormous value,” Sanz says.
He points to Prospa IQ as an example of how the tools available to brokers have evolved to support this.
“Prospa IQ gives brokers a way to have a smarter, faster conversation with their clients. It’s real-time insight into a customer’s business health, which means you’re not going in blind. You can tailor the recommendation, and the client sees that you genuinely understand their situation. That builds trust in a way that a rate comparison never will,” Sanz says.
Eligible customers can earn 1 Qantas Point for every dollar funded on an eligible Prospa Business Loan (up to 500,000 Qantas Points per loan).
For brokers, this appeals to clients on the move, growing businesses, and Qantas Business Rewards members wanting more value from daily decisions. These points can be redeemed for flights, upgrades, accommodation, and other rewards, adding value beyond the loan.
“Brokers who mention Qantas Points see stronger engagement, especially from clients new to non-bank lending,” Sanz says. “It’s a powerful way to help SME clients get more from funding decisions and for brokers to stand out. It also helps businesses reduce their expenses by putting those points to work. You’re not just offering finance; you’re providing real value.”
With a fresh financial year underway and confidence softening, Prospa knows SME owners are under more pressure than they were three months ago. For brokers, Sanz says the timing couldn’t be better.
If you’ve got clients who haven’t reviewed their finance position in 12 months, the start of the financial year is the time to pick up the phone. Even if they’re not actively looking for a loan, chances are they’re managing cash flow pressure and haven’t considered how the right product could help. That’s where brokers add enormous value.
- Roberto Sanz
“The new financial year is a natural trigger point. Business owners are thinking about their finances, their tax position, and where they want to be over the next 12 months. Payday Super is already here, the surcharging ban is coming in October, and confidence is soft. That’s a lot for a small business to carry on their own. Brokers who start those conversations now are the ones clients will remember,” Sanz says.
To discuss how these trends impact your specific client base and how we can support you, reach out to your Prospa BDM today.
Qantas Points are available on eligible Prospa Business Loans when customers opt in to Qantas Business Rewards. Terms and conditions apply. Fees may apply.
Data referenced in this article is sourced from Prospa’s SME Sentiment Report (May 2026 and February 2026), conducted in partnership with YouGov. The study surveyed a nationally representative sample of 500 Australian business owners and primary decision-makers of businesses with fewer than 50 employees.
Payday Super is already here, the surcharging ban is coming in October, and confidence is soft. That’s a lot for a small business to carry on their own. Brokers who start those conversations now are the ones clients will remember.
- Roberto Sanz
Roberto Sanz
Sales & partnerships general manager, Prospa
