Connective's Brent Starrenburg discusses the ups and downs of this corner of the broking market as 2026 approaches
As the year comes to a close, MPA catches up with the biggest names in mortgage finance to get the lowdown on the year that was, while looking towards the year ahead.
In this installment, Brent Starrenburg, Connective’s head of commercial and asset finance, discusses the challenges faced by the sector in 2025, while anticipating some cautious optimism in the year ahead.
What were the asset and equipment finance trends that defined the industry in 2025?
2025 was characterised by cautious decision-making among SMEs, with a clear shift toward funding solutions that protected cashflow in a higher-for-longer interest rate environment. Demand was about upgrading essential assets and not so much about expanding fleets or machinery.
Queensland and Western Australia stood out as growth markets driven by infrastructure activity and stronger business confidence, particularly with the long-term runway created by the 2032 Brisbane Olympics.
The market faced headwinds from multiple directions in 2025.
Previous asset write-off incentives had pulled demand forward, creating tougher conditions for business growth. The expected post-election and post-rate-cut recovery also proved disappointing, while the RBA’s concern over the ongoing inflation prevented the rate stability businesses were hoping for.
We did see steady adoption of EVs, solar and energy-efficient equipment driven by government incentives and ESG requirements, though overall market volatility kept this growth measured.
What were some of the biggest highlights for Connective over the year?
2025 was a strong year for Connective's commercial and asset finance (CAF) division. We experienced steady growth throughout the year, driven primarily by more brokers joining Connective and helping to grow our CAF capabilities.
Our dedicated CAF support team became a real differentiator, providing brokers with scenario work and lender-fit guidance.
We strengthened our lender engagement and improved our product breadth with an enhanced panel. A strategic move was positioning commercial and asset finance under one integrated banner with renewed focus and a dedicated team that can support both disciplines effectively.
Demand for CAF education grew strongly with our training programs, webinars and scenario support becoming increasingly valuable to our network. This commitment to broker capability was recognised externally as well. We were honoured to receive both the CAFBA Commercial & Asset Finance Aggregator of the Year award and the Commercial Finance Award Aggregator of the Year, reflecting the great work and the team behind it.
On a personal level, what were your career highlights over the year?
Personally, the biggest highlights were seeing the team grow and mature, as we successfully brought commercial and asset finance together under a single, aligned proposition.
Expanding our lender panel, particularly through stronger relationships with private commercial funders was another key milestone.
Industry awards were especially meaningful because they reflect the collective effort and commitment of the whole team and not just individual achievement.
Looking ahead, what factors will influence the asset and equipment finance space in 2026?
Rate stability should help restore a level of business confidence in 2026, although cost pressures will continue to influence how and when SMEs invest. We expect demand to centre on essential equipment upgrades rather than discretionary spending.
The transition toward greener energy and more sustainable equipment will continue, supported by ESG considerations and policy settings.
Tech-enabled finance, including the use of AI, will streamline how brokers operate and how quickly businesses can access funding.
Sensitivity to interest rate movements will remain high and the extension of the $20,000 asset write-off scheme could provide stimulus if implemented.
Longer-term, the infrastructure build-up toward the 2032 Brisbane Olympics will create ongoing equipment demand particularly in Queensland.
Are you optimistic for the sector, or do you expect headwinds to prevail?
I'd describe the outlook as cautiously optimistic. We're not expecting a sudden surge in volumes, but replacement cycles and demand for essential equipment should support steady, sustainable activity.
The reality is that asset finance uptake will remain closely tied to macro conditions.
Businesses with stable cashflow and good credit positions will weather volatility successfully, but weaker businesses may retreat from significant equipment investments.
The brokers who will outperform are those who specialise in CAF and can navigate these nuanced lending conditions, providing real value through expertise and lender relationships rather than just transactional service.
So yes, optimistic, but with clear recognition that this isn't a booming environment. It's a market that rewards specialisation and quality advice.
Are there any major milestones coming up for Connective in 2026?
We have several exciting initiatives planned for 2026. We're continuing our CAF expansion with deeper lender integration and building stronger community connections to bring brokers together for scenario workshopping and knowledge sharing.
We are also launching more structured CAF training and content programs designed to lift broker capability across the board. Education has become such a differentiator in this space and we want to ensure our brokers have the tools and knowledge to serve their clients at the highest level.
In addition, we are developing a dedicated marketing proposition for our asset finance brokers, which will help them better reach and engage in their target markets. It's about providing end-to-end support, not just lending solutions, but the business development and marketing tools brokers need to grow their CAF practices.
How are you personally spending the Christmas season?
I'll be spending the Christmas season with family and loved ones on the coast. It's important to recharge and enjoy quality time away from work during the break.
