Australia’s small businesses are under mounting financial pressure. Rising costs, delayed payments and tighter credit conditions are combining to widen the SME funding gap in Australia.
In a recent Australian Broker article, Craig Stuart, Head of Commercial at MA Money, outlined the scale of the challenge.
“Over 89% of SMEs have faced rising business costs in the past year, and 75% report that late payments have disrupted their operations.”
At the same time, traditional lenders are becoming increasingly inaccessible. As Craig explains, “The biggest gaps for SME clients today stem from a mix of rising business costs and tightening credit from traditional lenders.”
The result is clear: more SMEs need funding, but fewer are fitting conventional lending models. As a result of this SME funding gap, more business owners are turning to non-bank lenders with flexible policy and broader credit assessment frameworks.
For brokers, this presents an opportunity. Expanding into commercial lending and incorporating SMSF structures into funding discussions allows them to support clients who no longer fit standard lending criteria. Working with non-bank lenders such as MA Money, which offer streamlined processes and responsive credit decisions, makes that expansion seamless.
Commercial lending is already gaining ground
Craig Stuart notes, “Broker-settled commercial mortgages have reached record levels.”
Commercial lending is becoming embedded in mainstream broker practice. More brokers are incorporating it into their core offering as business owners seek funding beyond standard residential structures to fill the SME funding gap.
This is being driven by real client needs. Many residential clients also run small or medium-sized businesses. As funding requirements evolve, brokers who can support both personal and commercial lending are retaining a greater share of the client relationship.
For brokers looking at how to diversify loan offerings, commercial lending is a practical extension of existing conversations. It allows them to respond to tighter credit conditions while expanding into broader business loan opportunities for brokers.
The opportunity already inside your client book
The scale of the SME market alone highlights the size of the opportunity presented by the SME funding gap.
“As of June 2025, Australia has more than 2.7 million self-employed businesses.”
“SMEs remain the backbone of the Australian economy, contributing over $500 billion and employing more than five million people.”
For many brokers, these business owners are already clients: the café operator with a home loan, the contractor who refinanced last year, the director building a property portfolio.
As their businesses expand or face cash flow pressure, funding needs become more complex. Craig Stuart notes, “SMEs are refinancing out of costly private credit, pursuing expansion where rates have stabilised and, conversely, seeking working capital as cash flow tightens.”
This is where cross-selling commercial loans becomes a clear revenue opportunity. Brokers who understand their clients’ business structures are well positioned to introduce commercial facilities, warehouse purchases or working capital solutions as part of a broader funding strategy.
SMSF commercial: a long-term ownership strategy
Craig Stuart observes, “Cost-of-living pressures and tighter personal borrowing conditions make SMSFs an attractive pathway for SMEs to purchase business premises or for PAYG investors to pursue higher yields through commercial assets.”
For many business owners, the conversation is moving beyond short-term funding and towards asset ownership to bridge the SME funding gap. Rather than continuing to lease premises, some are looking at purchasing through their superannuation structure as part of a broader wealth strategy.
Craig adds, “We’re also seeing strong broker engagement with commercial SMSF lending.”
Commercial property held within an SMSF requires coordination across accountants, financial advisers and lending partners. The broker plays a central role in structuring the funding solution and aligning it with the client’s wider financial position.
Because of this, SMSF lending opportunities for brokers extend beyond a single transaction. Supporting both personal lending and superannuation-backed commercial purchases allows brokers to participate more broadly in their clients’ funding strategy.
Looking ahead
Demand for commercial and SMSF lending is expected to remain strong over the next two years.
“[MA Money] expects to see continued expansion over the next 12 to 24 months, driven by rising SME numbers, growing SMSF activity and investors seeking stronger yields.”
For brokers, taking advantage of the SME funding gap and expanding into commercial and SMSF lending supports sustainable growth. The process works best when it is straightforward.
MA Money’s commercial products run through the same application framework as its residential loans, so brokers can work within a familiar system. Applications are paperless and a 48-hour SLA to conditional approval supports timely decisions.
With a broad product suite and dedicated BDM support, brokers can step into commercial and SMSF lending without adding unnecessary complexity.
Information for broker use only. This article does not constitute financial, tax or legal advice and does not take into account personal objectives, financial situation or needs. You should seek independent advice from a licensed professional before making any financial decisions. Applications for credit are subject to eligibility and lending criteria. Fees, charges, T&Cs apply (available on request). MA Money Financial Services Pty Ltd ACN 639 174 315 Australian Credit Licence 522267.
