Australian finance brokers are increasingly steering small and medium-sized business (SME) clients toward non-bank lenders, attracted by quicker turnarounds and smoother processes.
New broker research from non-bank lender Banjo Loans shows that more than 40% of experienced brokers (with eight or more years’ professional experience) now prioritise non-bank lenders in their business lending mix.
That shift is playing out against a more cautious backdrop, with many Australian businesses delaying major investments but still pursuing growth. Recent data from Banjo Loans also shows SME borrowing softened in late 2025 as inflation and interest rate uncertainty made owners more selective about when and how they take on debt.
According to the study, brokers identify speed, operational efficiency, and frictionless workflows as the main reasons they favour non-banks over traditional banks for many SME deals.
The findings reveal that while mainstream banks still dominate multi‑million‑dollar facilities, non-bank lenders are increasingly becoming the first port of call for smaller business loans, where rapid access to capital and flexible structures are critical.
Brokers particularly value fast credit decisions, simple application lodgement, and streamlined document upload when choosing a lender.
“Experienced brokers want lenders who can move quickly, communicate clearly, and provide certainty for their clients,” said Brendan Widdowson (pictured), chief commercial officer at Banjo Loans. “We are seeing more brokers prioritising Banjo Loans and other non-bank lenders in their lending mix to meet these expectations.”
The research shows brokers are most likely to choose a non-bank for loans under $500,000, where speed and adaptability matter most.
For loans between $100,000 and $250,000, nearly half (48.7%) of brokers nominate a non-bank lender as their first choice. In the $250,000–$500,000 band, 43.5% say they would go to a non-bank first.
Around one in four brokers (26.2%) would opt for a non-bank lender first for loans under $100,000. At the other end of the spectrum, loans above $2 million remain largely the domain of traditional banks, with just 3.1% of brokers saying they would use a non-bank lender for that size transaction.
Among brokers who have actively lodged applications with Banjo Loans over the past two years, satisfaction scores were strong across key operational touchpoints.
Qualitative feedback described the broker experience with Banjo as “seamless,” “outside the box” and “fantastic,” often linking positive sentiment to relationship management and decision-making.
Widdowson said the results underline shifting expectations among brokers and their SME customers, who are looking for lenders that can deliver speed, reliability, and a smooth end-to-end experience.
“SMEs often need capital quickly within defined limits,” he said. “This is where non-bank lenders like Banjo Loans can add the most value for brokers and their clients.”
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