Business borrowing in Australia has seen a significant uptick over the past year, reflecting renewed confidence in growth and expansion opportunities. According to the Australian Bureau of Statistics, businesses borrowed a remarkable $10.05 billion in August 2024, marking the highest level of borrowing since early 2022.

Here’s a closer look at where that money went:

• $6.81 billion was used to purchase property, a 21.7% increase year-on-year.
• $3.24 billion went toward construction projects, an impressive 61.9% increase.

At the same time, Roy Morgan’s business confidence index has shown encouraging signs, climbing from 87.1 points in September 2023 to 94.3 points in September 2024—a rise of 8.3%. While this increase suggests growing optimism, confidence remains below the neutral benchmark of 100 points and the long-term average of 111.2 points, indicating room for further improvement.

Interestingly, Roy Morgan also found that 41.1% of businesses expect to be in a stronger financial position next year, while 25.0% are more cautious, forecasting a weaker outlook.

What Does This Mean for Your Business?

These trends reveal two key opportunities:

1. Access to Capital for Growth
   With borrowing activity surging, now may be an opportune time to explore financing options for your business. Whether you’re looking to acquire property, invest in new projects, or expand operations, securing the right loan structure can give you a competitive edge.

2. Balancing Confidence with Risk Management
   While business optimism is rising, uncertainty remains. Strategic borrowing aligned with a well-thought-out financial plan can help mitigate risks while positioning your business for long-term success.

How We Can Help 

If you’re ready to explore your financing options or want to discuss strategies for leveraging borrowing opportunities, get in touch with us today. Our Financing and Loans service is designed to help businesses navigate these opportunities with confidence. From identifying the most suitable financing options to securing competitive rates and managing repayment strategies, we’re here to support your financial goals.

Whether you’re considering property investments, funding construction, or need general working capital, our team of experts can tailor solutions to fit your unique needs.

Steven Papanastasiou – Principal, SCM Finance Solutions