SMEs Are Scrambling for Credit, Here’s What It Means for Your Business
The latest data from Equifax’s Business Market Pulse (Q1 2026) paints a clear picture of where Australian small businesses are right now, and frankly, it’s not an easy one.
High-risk SMEs are now shopping around for credit at nearly three times the rate of their low-risk counterparts. While overall SME credit enquiries dropped 7% year-on-year, the businesses still seeking credit are often doing so more frequently, especially in higher-risk segments.
What’s Actually Happening Out There
According to Equifax’s Q1 2026 Business Market Pulse, credit shopping among subprime borrowers (those with credit scores between 301–600) has jumped to 33%, compared to just 7% for low-risk businesses. That’s a massive gap, and it tells you a lot about the pressure smaller operators are under right now.
Rising fuel costs, inflation, interest rates, and global uncertainty (including supply chain issues flowing from Middle East tensions) are squeezing margins hard. In construction alone, non-company insolvencies rose 16% year-on-year in Q1 2026, and ATO tax debt disclosures jumped 49% in the same period.
What This Means If You’re a Business Owner
If you’re an SME owner trying to access finance right now, here’s the honest truth: lenders have become more cautious. Credit assessments are more thorough. And simply shopping around without a clear strategy can actually hurt your credit profile; multiple enquiries in a short timeframe leave a footprint that lenders notice.
This is where a broker can help improve outcomes by aligning strategy, timing, and lender selection.
At Safehaven Finance, we work with business owners to take a smarter approach, not just finding a lender, but making sure you’re going to the right one, with the strongest possible application, at the right time.
The Businesses Getting Finance Are the Prepared Ones
Equifax data also shows that stronger-quality SMEs are still accessing credit. Average business loan credit scores actually rose by four points over the past year. These businesses aren’t just lucky. They’re prepared. They know their numbers. And most importantly, they’re often working with advisers to structure their applications effectively.
If your business is feeling the squeeze, now is not the time to go it alone or start lodging applications with every lender you can find. That approach is costing businesses more than they realise.
Ready to Take the Next Step?
Whether you’re looking to grow, manage a cash flow gap, or simply make sure your finance structure is working for you, we’re here to help.
Book a free consultation with Safehaven Finance and let’s look at your situation properly. Call us at +61 433 564 936, or book a free 30-minute consultation at a time that suits you. Follow us on Instagram and LinkedIn for regular updates on the lending market and practical finance tips for business owners.
