A strong December caps a modest year, with signs firms are preparing to spend in 2026
Australian businesses ended 2025 with a stronger appetite for credit, according to Equifax Business Market Pulse data, signalling a shift from cautious preservation to active preparation for the year ahead.
Overall business credit demand rose 5.1% in December 2025 compared with December 2024, driven by a 6.1% year-on-year increase in business loan applications and a 5.8% rise in asset finance demand, Equifax reported.
For the full 2025 calendar year, overall business credit demand increased 1.9% compared with 2024.
Professional services lead asset finance growth
The Professional, Scientific and Technical Services sector recorded the strongest growth in asset finance demand, rising 15.3% year-on-year in December 2025. Business loan demand in the sector increased 3.2%, while trade credit enquiries rose 0.4%.
Retail Trade also showed strong asset finance growth at 18.8%, alongside a 6.9% increase in business loan applications.
Brad Walters (pictured), general manager of commercial at Equifax, said the 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. “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.”
Hospitality and construction see trade credit spike
Accommodation and Food Services recorded a 28.8% surge in trade credit enquiries in December 2025 compared with the prior year, while Construction saw a 17.9% increase.
Walters said the spike “could indicate that these businesses were aggressively restocking and securing materials to capitalise on the holiday trading period.”
In contrast, Wholesale Trade saw trade credit enquiries fall 11.7%, while business loan demand declined 6.2%.
Payment times improve across most sectors
Australian businesses paid suppliers faster in November 2025, with average days beyond terms falling to 3.37 days, a 14% improvement from November 2024, according to Equifax.
Accommodation and Food Services showed the sharpest improvement, with payment delays falling 60% year-on-year to 1.64 days. Manufacturing improved 50% to 2.78 days.
Professional, Scientific and Technical Services was the only outlier, with days beyond terms rising 20% to three days.
