The Times Australia
Small Business News

.

Banks shun SME lending demand: fin tech survey

  • Written by Darren Moffatt


The big banks are significantly underservicing the credit demand from Australian small and medium size enterprise (SMEs), according to a survey of twenty-nine lender CEO’s conducted by loan matching app eBroker.com.au.

eBroker.com.au CEO Simon Isaacs said the inaugural eBroker Non-Bank Business Lender’s Survey found an industry-wide consensus among fin tech and non-bank lenders that the banks’ appetite for lending to small business was 'weak’.

“Even as an insider, I’m surprised by just how poorly the banks seem to be servicing the credit needs of small business,” said Mr Isaacs.

“SME’s have long been crying out for better access to capital, and it’s this demand which has prompted the recent flood of new lenders into the market.

“Banks have failed to evolve their products and policies to meet a new generation of entrepreneurs hungry for finance. Whether it’s by accident or design is hard to tell, but their loss of market share to alternate lenders is now well-advanced.”

The survey found that 62.5 per cent of lender CEOs rated the banks’ appetite for SME lending as ‘weak or ‘very weak’. Mr Isaacs argues that although this creates a golden opportunity for fin tech and non-bank lenders, the real losers are small business and the economy.

“Banks have been letting down small business for long time. But it’s only now through innovation and digital disruption that their inflexibility and intransigence is being exposed.

“Imagine how much growth could have been generated for the economy, had the banks met the real funding needs of small business? Instead they’ve become obsessed with housing credit. It’s so disappointing.”

The inaugural eBroker Non-Bank Business Lender’s Survey also found that 50 per cent of loan applications received by non-bank business lenders have previously been declined by a bank. 

“The fact that so many applicants ‘rejected’ by the banks are obtaining credit though alternative lenders shows just how out of touch the banks have become,” said Mr Isaacs.


About the survey

The inaugural “eBroker Non-Bank Business Lender’s Survey” attracted twenty-nine responses from the CEOs of lenders who process a combined estimated monthly total of 11,600 loan applications from Australian businesses each month. Based on average loan size extrapolated from the survey data, this group is responsible for processing total business loan applications in excess of $1.13 billion each month. The survey was conducted in the week of May 4th to May 11th 2016. All respondents were CEO’s of Australian non-bank business lenders, which included most of the emerging ‘fintech’ providers servicing the SME market with unsecured business credit.

About eBroker.com.au
eBroker is a ‘fintech’ app that connects small business with unsecured lenders. Over 500 entrepreneurs per month are currently using eBroker to source cash-flow funding, equipment finance, invoice discounting and trade finance. SMEs can access loans up to $1 million via eBroker, across a panel of 45 lenders. It is a free service.  CEO Simon Isaacs is an emerging ‘fintech’ leader and seasoned entrepreneur with more than 20 years’ experience in digital platforms. He was previously the founder of Check-In.com.au, one of Australia's leading accommodation booking sites.

Property Times

Rubber vs Concrete Wheel Stops: Which is Better for Your Car Park?

When it comes to setting up a car park in Perth, wheel stops are a small feature that make a big difference. From improving driver accuracy to preventing costly damage, the right choice between rubber and concrete wheel stops could save you time, mon...

What Is the Australian Government First Home Buyers Scheme About?

For many Australians, buying a first home can feel like a daunting task—especially with rising property prices, tight lending rules, and the challenge of saving for a deposit. To ease this burden, the Australian Government has introduced a First ...

Flipping vs. Holding: Which Investment Strategy Is Right for You?

Are you wondering whether flipping a property or holding onto it is the better investment strategy? The answer isn’t one-size-fits-all. Both strategies have distinct advantages and risks, and choosing the right one depends on your financial goals, ...

A Guide to Smarter Real Estate Accounting: What You Might Be Overlooking

Real estate accounting can be a complex terrain, even for experienced investors and property managers. From tracking rental income to managing property expenses, the financial intricacies of real estate demand more than just basic bookkeeping. A si...

Food & Dining

Not all processed foods are bad for you. Here’s what you can tell from reading the label

If you follow wellness content on social media or in the news, you’ve probably heard that processed food is not just unhealthy, but can cause serious harm. Eating a diet dominated by highly processed foods means you’re likely to consume more kil...

Italian Street Kitchen: A Nation’s Favourite with Expansion News on Horizon

Successful chef brothers, Enrico and Giulio Marchese, weigh in on their day-to-day at Australian foodie favourite, Italian Street Kitchen - with plans for ‘ambitious expansion’ to be announced in the coming months.  Italian Street Kitchen: A slice o...

Après Skrew: Peanut Butter Whiskey Turns Australia’s Winter Parties Upside Down

This August, winter in Australia is about to get a lot nuttier. Skrewball Whiskey, the cult U.S. peanut butter whiskey that’s taken the world by storm, is bringing its bold brand of chaos to Aussie shores with Après Skrew: a mash-up of alpine energy...

450 people queue for first taste of Pappa Flock’s crispy chicken as first restaurant opens in Queensland

Queenslanders turned out in flocks for the opening of Pappa Flock's first Queensland restaurant, with 450 people lining up to get their hands on the TikTok famous crispy crunchy chicken tenders. The highly anticipated opening comes after months of d...

Business Times

From Farms to Festivals: How Regional NSW Is Repurposing Shipping…

Regional NSW communities are repurposing containers for farms, tourism, and events Farmers and small businesses use them...

Nail it with points: Flybuys members can redeem points for instan…

Flybuys launches new in-store redemption at Bunnings stores across Australia Tuesday 19 August, 2025 – Flybuys, Australia’s ...

Understanding Energy Use Patterns by Season

Australia’s climate changes noticeably across the year. These seasonal changes don’t just affect what we wear or how we trave...

The Times Features

Wedding Photography Trends You Need to Know (Before You Regret Your Album)

Your wedding album should be a timeless keepsake, not something you cringe at years later. Trends may come and go, but choosing the right wedding photography approach ensures your ...

Can you say no to your doctor using an AI scribe?

Doctors’ offices were once private. But increasingly, artificial intelligence (AI) scribes (also known as digital scribes) are listening in. These tools can record and trans...

There’s a new vaccine for pneumococcal disease in Australia. Here’s what to know

The Australian government announced last week there’s a new vaccine[1] for pneumococcal disease on the National Immunisation Program for all children. This vaccine replaces pr...

What Makes a Small Group Tour of Italy So Memorable?

Traveling to Italy is on almost every bucket list. From the rolling hills of Tuscany to the sparkling canals of Venice, the country is filled with sights, flavors, and experiences ...

Latest data suggests Australia is overcoming its sugar addiction

Australia is now meeting the World Health Organization’s (WHO) guidelines[1] on sugar, which recommend keeping sugar below 10% of daily energy intake. New data[2] published ...

Do you really need a dental check-up and clean every 6 months?

Just over half of Australian adults[1] saw a dental practitioner in the past 12 months, most commonly for a check-up[2]. But have you been told you should get a check-up and c...