Equipment purchases, expansion, and cashflow management among top funding priorities for SMEs
Australian small businesses are increasingly using commercial loan funding to expand and strengthen their operations, according to new data from non-bank lender OnDeck Australia.
The company’s lending figures for 2025 show that 20.1% of small business borrowers have used financing to purchase equipment, likely driven by technology upgrades, tax incentives, rising costs, and cash flow management.
Another 15.4% of businesses are using loan funds specifically for expansion, while 6.6% are investing in premises upgrades or renovations. Hiring new staff accounted for 5.8% of loan usage, reflecting ongoing business growth.
Loans are also supporting operational needs, with 12.9% of small businesses using funds to buy inventory and 12.4% allocating financing to supplier payments. Additionally, 11.3% of borrowers are consolidating debt, suggesting a focus on improving financial stability.
“Our results indicate that the majority of small businesses come to OnDeck seeking funding for growth,” said OnDeck Australia chief executive Cameron Poolman (pictured above). “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.
“Investments in equipment purchases, inventory management, and stock replenishments indicate the efforts of businesses to future-proof their businesses amidst evolving economic conditions.
“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.
“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.”
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