Equifax’s December 2025 Business Market Pulse shows business credit demand finished the year strongly, with December applications up 5.1% year on year and business loans leading the gains. Across the full 2025 calendar year, demand was 1.9% higher than in 2024, signalling resilience despite broader economic headwinds.
Building on this, ABS data show 2.5% growth in actively trading businesses in 2024–25, with a 16.4% entry rate and 13.9% exit rate, underscoring ongoing business formation and resilience.
Sentiment is also improving. Roy Morgan reports business confidence jumped 6.3pts to 105.0 in December 2025, its highest level in nine months, driven mainly by stronger expectations for firms’ own financial prospects over the next year, even though confidence remains slightly below its long‑term average.
Brad Walters (pictured), Equifax general manager of commercial, said the figures mark a shift in mindset. “Equifax Business Market Pulse December data reveals a strong finish to 2025, with overall credit demand surging +5.1% and business loan applications up +6.1% compared to the same time last year. This is a good signal that Australian businesses are shifting gears from preservation to preparation,” Walters said.
Retail and professional services lead asset finance growth
Asset finance demand climbed 5.8% across 2025, with retail trade up 18.8% and professional, scientific, and technical services rising 15.3%.
“The solid +5.8% rise in asset finance, led by double-digit growth in retail and professional services, indicates that business leaders in these sectors are confident enough to commit capital to new equipment, technology, and fleet upgrades as they position themselves for 2026,” Walters said.
The data paint a softer picture for the wholesale sector, with asset finance demand down 0.5%, business loans falling 6.2%, and trade credit enquiries dipping 11.7% year on year in December.
Across the combined retail and wholesale trade sector, Walters noted a shift away from trade credit and towards direct funding.
“Interestingly, in the combined retail and wholesale trade sector saw a -4.6% reduction in trade credit demand in December, while their demand for asset finance (+12.1%) and business loans (+2.6%) grew, suggesting that consumer facing businesses were seeking direct injections of cash into their businesses rather than opening a line of credit to manage inventory and stock over the holiday period,” he said.
Equifax also reports that Australian businesses are paying their bills faster. November 2025 data shows average days beyond terms dropped to 3.37 days, a 14% improvement year‑on‑year, with accommodation and food services showing a 60% improvement in payment speed.
Combined with rising credit demand, these shifts suggest healthier liquidity and more confidence in day‑to‑day operations as businesses gear up for 2026.
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