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Online small business lender OnDeck Australia (OnDeck) has found that 52 per cent of small businesses have expressed confidence about the year ahead, with this number expected to rise following the Reserve Bank of Australia’s (RBA) recent rate cut.
The research was conducted in October 2024 by Octopus Group, gathering responses from over 500 small-business owners across Australia.
According to OnDeck, the highest levels of confidence were seen in the construction sector, with 61 per cent of respondents being confident about trading conditions over the year, followed by the financial services sector at 47 per cent.
The findings further highlighted sectors with potential for growth, including hospitality with 38 per cent of businesses expressing positivity about their prospects over 2025, while 40 per cent of respondents from the manufacturing sector said they were optimistic about future opportunities.
Meanwhile, one in four businesses surveyed nationally reported a lack of confidence for the year ahead.
According to OnDeck, this rise in confidence was a driving force behind its year-on-year lending growth. This was reflected through a 54 per cent rise in loan originations for January 2025.
CEO of OnDeck, Cameron Poolman, said that this lending growth was recorded across a “broad range of sectors, [with] manufacturing, health services, transport, and trade being particularly active”.
Poolman shed light on how this confidence can create great opportunities for brokers.
“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,” Poolman said.
“Moreover, the 0.25 per cent 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 brokers to re-engage with their small business customers or add commercial lending to their suite of services for the first time.
"Brokers can rest assured that OnDeck’s experienced team provide full support and training to new brokers moving into business lending, helping workshop scenarios before brokers submit applications.”
This research comes seemingly contrary to research released by Banjo Loans in its SME Business Barometer report for 2Q25, which revealed that loan applications and deal volumes among SMEs have “flatlined”.
According to the report, borrowing activity at the end of 2024 very much mirrored the same levels at the start of 2024, with new loan applications only shifting 1 per cent across the year.
Quarterly, loan amounts changed by 2 per cent and painted a picture of “flatlining business conditions – and confidence”, according to Banjo Loans.
[RELATED: SME loan applications and volumes ‘flatline’]
