Non-bank lender OnDeck Australia reported a 42% year-on-year increase in loan applications during the December quarter of 2025. Notably, 34% of these applicants sought funds specifically for business expansion, up from 23% in the previous year. This change suggests that more SMEs are focusing on growth opportunities, such as hiring additional staff, upgrading equipment, or entering new markets.

Western Australia led this surge, with loan application volumes nearly doubling compared to the prior year. South Australia also experienced a notable shift, with expansion-related applications rising from 15.5% to 37.2%. These figures highlight a nationwide trend of SMEs moving beyond mere survival strategies to proactive growth initiatives.

Several factors contribute to this positive shift. Economic stability, favourable lending conditions, and increased consumer demand have likely bolstered business confidence. Additionally, the availability of diverse financing options, including those offered by non-bank lenders, provides SMEs with the necessary resources to pursue expansion plans.

For SME owners, this environment presents an opportune moment to evaluate growth strategies and consider how additional financing can support their objectives. Engaging with financial advisors or brokers can help identify suitable loan products that align with specific business needs and goals.

In conclusion, the increasing focus on growth among Australian SMEs is a promising sign for the broader economy. It underscores the resilience and ambition of small business owners and highlights the critical role of accessible financing in facilitating business expansion.