Australian businesses are increasingly turning to credit to sustain their operations, with Equifax reporting a 6 per cent increase in business loan demand in July 2025 compared to July of the previous year. Overall commercial credit demand has also grown, rising 3.8 per cent year-on-year. This indicates a continued reliance on external funding sources as businesses navigate ongoing economic challenges. Equifax is a global data, analytics, and technology company. The organisation provides insights that help businesses and consumers make informed decisions.
According to Equifax data, asset finance enquiries saw a rise of 2.7 per cent in July. However, trade credit demand experienced a decline, falling 7.3 per cent compared to the same period last year. Brad Walters, Commercial General Manager at Equifax, noted that many businesses are seeking credit primarily to maintain operations or invest in core offerings. He added that this is often prioritised over investments in productivity-enhancing measures such as technology, training, or hiring.
The number of insolvencies has also increased, with 1,362 reported in July. This represents a 10 per cent increase compared to July 2024 and a 4 per cent increase compared to June 2025. The construction sector accounted for the highest number of insolvencies with 341 cases. The accommodation and food services sector followed with 226 insolvencies, and the retail sector recorded 91.
New South Wales recorded the highest number of insolvencies with 488 cases. Victoria followed with 410 insolvencies, and Queensland recorded 282. These figures highlight the financial strain being experienced by businesses across various sectors and states as they grapple with market uncertainty and economic pressures.
