Overall business credit demand in Australia rose by 5.1 per cent in December 2025 compared to the previous year, according to Equifax’s Business Market Pulse. This increase was primarily driven by a 6.1 per cent surge in business loan applications, signalling renewed confidence among Australian businesses. Equifax is a global data, analytics, and technology company, that provides insights for businesses. Its Business Market Pulse analyses credit application data.
For the entire year, business credit demand saw a 1.9 per cent increase, demonstrating resilience despite broader economic challenges. Asset finance demand experienced significant growth of 5.8 per cent, particularly in the retail trade sector (18.8 per cent) and professional, scientific, and technical services (15.3 per cent). This suggests increased investment in equipment and infrastructure as businesses prepare for 2026.
Trade credit enquiries, an indicator of operational restocking, showed strong gains in accommodation and food services (28.8 per cent) and construction (17.9 per cent). Furthermore, businesses demonstrated improved financial management by settling debts more quickly. Average days beyond terms decreased by 14 per cent year-on-year, reaching 3.37 days.
According to Equifax general manager of commercial Brad Walters, these trends suggest that Australian businesses are transitioning from a focus on preservation to preparation. Business leaders in key sectors are displaying confidence by allocating capital to new equipment, technology upgrades, and fleet improvements, positioning themselves strategically for the coming years.
