Non-Bank Lending to SMEs Reaches Record 47% Demand

Small Businesses Embrace Alternative Financing Options

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Australian small and medium-sized enterprises (SMEs) are increasingly turning to non-bank lenders for their financing needs, with demand reaching a record high of 47%, marking a 50% year-on-year increase.

This trend signifies a threefold rise since September 2018, highlighting a significant shift in the SME financing landscape.

The latest SME Growth Index by ScotPac reveals that 60% of SMEs plan to invest in their businesses over the next six months, up from 55% in March 2022. Notably, SMEs experiencing declining growth are more inclined to seek non-bank lending solutions, with nearly 90% of this group opting for alternative lenders over traditional banks.

Despite the growing preference for non-bank lenders, 41% of SMEs not considering this option cite a lack of familiarity with non-bank businesses or brands as a major factor. This underscores the need for increased awareness and education about the benefits and offerings of non-bank financing.

For SMEs, the rise in non-bank lending presents an opportunity to access more flexible and tailored financing solutions. As the financial landscape evolves, exploring alternative lending options can provide businesses with the necessary capital to support growth and navigate economic challenges.

Published:Sunday, 19th Apr 2026
Author: Paige Estritori

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