‘Clients will not forget who stood by them in uncertain times’
March’s plummeting business confidence was hardly a shock, but that didn’t make it any less sobering.
The NAB Business Confidence index recorded its sharpest month‑on‑month fall in six years, pushing sentiment to lows not seen since the height of the COVID-19 pandemic.
Businesses have been rattled by the fallout from the ongoing war between the US and Iran, which has driven up input costs and sent consumer sentiment tumbling.
With peace talks showing little progress, there is a real risk that confidence will deteriorate further in the months ahead.
For Australian commercial brokers, this shifting landscape could have drastic implications as clients move into defensive mode and funding conditions tighten.
Yet it also creates a critical opportunity for brokers to deepen existing relationships and demonstrate their value as trusted advisers.
Read more: Westpac increases bad debt buffers as Iran war marches on
“Brokers play a critical role in times like these by going beyond just sourcing finance and acting as strategic partners to their clients,” says Anmol Dhingra (pictured), director of Victoria-based brokerage WIN Financial Group.
For many small businesses, uncertainty around cash flow and rising costs is the biggest concern, “so it’s about helping them understand their numbers, structure their lending correctly, and preserve liquidity”, says Dhingra.
This could mean restructuring existing debt, extending loan terms to improve cash flow, or even proactively reviewing facilities before issues arise.
“More importantly, it’s about education and reassurance helping business owners realise they’re not alone and that there are still viable funding options available,” adds Dhingra. “The brokers who add the most value right now are the ones staying close to their clients, communicating regularly, and thinking ahead rather than reacting late.”
A shift, not a shutdown
Around 70% of Dhingra’s clients are self-employed in industries such as construction, logistics and transport. His relationship with these clients has evolved significantly over the years.
“I realised a while back I need to understand things beyond home loans or doing an odd warehouse purchase,” says Dhingra. These days, he’s just as likely to be helping clients with invoice financing, or restructuring asset finance facilities, to reduce costs where possible. “We are working proactively with clients (and) their accountants to understand pain points.”
Dhingra is not oblivious to the challenges ahead as businesses weigh up their options in response to the ongoing Middle East conflict.
Although business conditions have yet to suffer the same decline as confidence, it’s likely only a matter of time.
Falling confidence is expected to lead to delays to planned business expansions and major investments as business owners become more cautious over spending.
While brokers’ deal flow would logically suffer in these conditions, “what we’re seeing is a shift rather than a drop-off”, says Dhingra.
He’s already seeing an increase in demand for refinancing, debt consolidation and working capital solutions as businesses look to stabilise rather than expand.
“For brokers, this means adapting the conversation. Instead of focusing purely on growth opportunities, it’s about helping clients navigate uncertainty and optimise their current position. Those who can pivot quickly will still see strong deal flow, just in different forms.”
“Clients will not forget who stood by them in uncertain times,” adds Dhingra. “An overdraft facility doesn’t make a lot of revenue for brokers but assisting clients as and when needed with the same energy is the key.”
Speed and flexibility to the fore
Small business owners often call brokers first when they feel pressure,” said Paul Evans, national sales manager at non-bank lender Prospa. “Right now, brokers help owners slow things down, clarify their numbers, and understand what options they can actually use.”
To maximise their impact, Evans recommends brokers proactively reach out to small businesses, offering insights and support before challenges escalate. “Encourage owners to book a call with you to review their financial situation and discuss tailored strategies now, rather than waiting until issues become critical,” he said.
Evans is seeing businesses prioritise flexibility and speed. “Products that help manage short-term cash flow, smooth out expenses or fund working capital without locking them into long-term commitments are at the front of mind. A flexible line of credit gives small businesses a simple safety net they can dip into when cash flow timing goes off, and only use when they actually need it.”
Shorter-term loans and solutions are also in demand, as they can plug gaps caused by slower payments or rising costs.
“Businesses are being far more selective,” said Evans. “They want confidence in outcomes, clarity on repayments, and lending that aligns with how their business actually operates, not a one-size-fits-all product. They want fast, flexible options.”
