More lenders competing for business loans may create refinancing opportunities for SMEs.
Recent data from the Reserve Bank shows lending conditions have become more competitive.
Average rates on variable-rate business loans declined by around 85 basis points during 2025, according to the RBA – a slightly larger drop than the 0.75-percentage-point reduction in the cash rate over the same period.
At the same time, non-bank lending has grown strongly, particularly in segments traditionally underserved by banks.
That expansion has improved credit availability across the market.
What stronger lender competition means
When lenders compete more aggressively, it can create opportunities for businesses to:
- Refinance existing facilities.
- Restructure loans for greater flexibility.
- Access lenders with different risk appetites.
Banks and non-bank lenders often have very different policies, pricing structures and approval criteria.
That divergence means some businesses may now qualify for better terms than they previously expected.
A quick review of your current loan could reveal opportunities to reduce repayments or improve flexibility.
Keen to see what other lenders might offer? Let’s run through your options together.
