Australia’s lending war just escalated. And Prime Capital is the latest player to fire a shot.
In response to growing competition and shifting borrower expectations in Australia's lending landscape, non-bank commercial lender Prime Capital has upped the ante, cutting its own rates by up to 50 basis points — double the Reserve Bank of Australia's (RBA) recent reductions — across its core commercial lending products. In addition, the Sydney-based firm is offering another 25 basis point discount exclusively through its digital approval platform Prime Approve. That equals total possible savings of up to 75 basis points.
The move positions Prime Capital — which offers a number of commercial loans and loans to small- and medium-sized enterprises (SMEs) — as the latest challenger in a market where banks and non-banks alike are slashing rates, waiving fees and accelerating approvals to win over brokers and borrowers.
“There’s a lot of noise in the market about the cost of living and how the RBA rate drop benefits consumers. We hardly hear anything about how the cost of living is affecting businesses, and clearly businesses need as much benefit as consumers do as their turnover decreases and costs rise," Steve Sampson, chief executive officer of Prime Capital, told Australian Broker.
Prime Capital’s latest play comes just weeks after the RBA trimmed the official cash rate (OCR) by 25 basis points, the second time the nation's central bank reduced rates in 2025.
The recent RBA movement sparked a flurry of rate cuts from lenders big and small, escalating the battle for borrower attention. But lenders are playing in a crowded field. In fact, more than 65 lenders made changes to their home loan rates following the RBA's May 20 meeting.
The list includes Commonwealth Bank (CBA), Westpac, National Australia Bank (NAB), ANZ, Suncorp Bank, ING, AMP, Athena Home Loans, Bluestone Home Loans, Pepper Money, MoneyMe, RACQ Bank, Bank of Sydney and Brighten, among others.
But Prime Capital has gone further. Business loan rates now start from 7.24% p.a., with maximum loan-to-value ratios (LVRs) lifted up to 80% and fees reduced across most products. The aggressive pricing aims to give brokers better tools to meet growing demand for fast, flexible commercial finance, Sampson said. The rate changes are effective immediately.
“Businesses have done it tough since COVID-19, and brokers know firsthand the challenges their clients still face,” he said, adding that the RBA's focus is often consumer-led.
“We believe it’s time to back Australian businesses," Sampson said.
Prime Capital’s entry into the rate-cutting race reflects a broader trend in the Australian mortgage and commercial lending space. Major banks are feeling the squeeze, with some majors recently reporting profit pressures amid cutthroat competition on home loans. Meanwhile, smaller lenders and non-banks are stepping up, leveraging technology, pricing flexibility and broker relationships to grow their market share.
For brokers, this environment has created unprecedented opportunity.
Sampson said Prime's newest rate reductions help brokers grow their businesses amid a continually changing economic landscape, one that is marked by a housing shortage, rising house prices and continued uncertainty from abroad.
“Movement in interest rates create great opportunity for brokers to 'freshen up’ their customers’ borrowings," he explained. "Being proactive with your customers creates customers for life by showing you care about your customers’ financial future. The dynamics of interest rate movements are that there is always an opportunity, whether the rates go up or down.
"The changes are designed to give brokers greater flexibility and better solutions for clients needing fast access to capital," Sampson added.
Prime Capital, which has been around for 25 years, launched its "business jumbo loans" earlier this year, which Sampson said has been gaining traction ever since. The product offers business loans between $5 million and $25 million. Interest rates start from 8.14%, down from 8.64%. The CEO added that more Prime products are coming in the back half of 2025.
In a further bid to differentiate, Prime Capital is offering an exclusive, limited-time 25 basis point discount for loans submitted via Prime Approve, its instant, digital credit approval platform. The system delivers full approvals, often within minutes, offering brokers and clients much-needed speed and certainty, the executive said.
"It's a game changer," Sampson said. “We’re seeing strong uptake of Prime Approve, especially from time-poor brokers who value speed, transparency and certainty."
