Australia’s appetite for commercial credit lifted in August 2025, with total demand up 4.7% year-on-year, according to the latest Equifax Business Pulse.
The growth was driven by a 7% jump in business loan applications, while asset finance demand also increased 3% compared to August 2024. Trade credit applications, however, fell by 2.3% over the year.
Year to date, commercial credit demand is also higher, up 2.7% compared with the same period in 2024.
Equifax data also revealed that businesses are taking longer to pay their bills. Average days beyond terms (DBT) rose to four days in July 2025, up 17.9% compared to a year earlier.
Sectors with the longest DBT included:
Despite the July spike, average DBT for the year to date (January to July) was lower at 3.5 days, a 17.1% fall compared to the same period last year.
Brad Walters (pictured), general manager of commercial at Equifax, said business loan demand was underpinning overall growth.
“Demand for commercial credit rose in August, driven by growth in demand for business loans – the continuation of a trend that we’ve seen emerging throughout the first half of this year,” Walters said.
“While some businesses, particularly those in capital-intensive sectors, are using this credit to invest in core offerings, those in consumer-reliant sectors are more likely to be seeking funds to maintain operations amidst ongoing economic uncertainty.”
But he warned that rising payment delays were concerning, particularly in construction and property-related industries.
“Concerningly, we’ve seen an uptick in days beyond terms (DBT), which measures how long it’s taking for businesses to pay their suppliers,” Walters said. “The overall DBT has increased to four days, with both the construction and rental, hiring, and real estate sectors taking on average more than double that time to pay.”
Walters pointed to heightened consumer anxiety about the construction industry.
“We know from the latest iCIRT consumer research that nine in ten Australians are concerned that builders will cut corners to reduce costs or deliver homes faster, and half (51%) are more concerned about builders going bust before completing a project than they were a year ago,” he said.
“Construction DBT sitting at 8.15 days suggests ongoing cash flow issues and could be seen as a concerning sign by already worried consumers.”
However, Walters said new tools were improving consumer trust.
“The good news is tools like iCIRT are having a marked impact in raising the perception of the construction industry and helping consumers make big property decisions with greater confidence,” the Equifax leader said.
“Over two-fifths (44%) of Australians have a positive perception of the construction industry, up from 32% in 2024. The construction industry has an exciting opportunity to ensure the emerging positive perception of the sector continues to grow.
“By engaging with tools like iCIRT, construction professionals can showcase their trustworthy status, build stronger relationships with Australians looking to build, buy, or renovate, and help enhance the reputation of the entire industry.”
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