Australian commercial credit demand has risen, spurred by relaxed monetary policy and improving business conditions. The Equifax Quarterly Commercial Insights for the September quarter revealed overall national demand growth of 3 per cent. Queensland and Western Australia both experienced a 5 per cent increase, while New South Wales saw a 4 per cent rise, and South Australia, 2 per cent. Equifax is a global data, analytics, and technology company, playing an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make informed decisions. Equifax provides insights that help businesses and consumers make more informed decisions.
Brad Walters, Equifax general manager commercial, noted that the increased demand reflects greater market confidence. This confidence is supported by the entry of high credit quality entities, indicated by steadily rising average credit scores. The report also indicated a decrease in commercial insolvencies, falling 2.1 per cent year-on-year. This marks the first quarterly decline observed since 2021.
While construction continues to lead in insolvencies, with 2630 reported between January and September, the total has decreased by 4.1 per cent compared to September 2024. Walters stated that although insolvencies remain a concern for the construction sector, their data shows a 4.1 per cent reduction in total insolvencies since September 2024, suggesting a gradual recovery in the sector.
Small to medium-sized enterprises (SMEs) in Queensland, Western Australia, and South Australia spearheaded the credit growth, registering increases above 5 per cent. SME credit demand in Victoria, however, remained subdued at negative 1 per cent, although this is an improvement from negative 3 per cent in the second quarter of 2025.
