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Australian Business Lending Sees Robust Growth in June 2025

Exploring the 9.2% Year-on-Year Increase and Its Implications

Australian Business Lending Sees Robust Growth in June 2025?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In June 2025, Australia's non-financial business lending reached a record $1.14 trillion, reflecting a 9.2% increase compared to the same month in 2024.
This growth rate nearly doubles that of housing credit, which expanded by 5.6% year-on-year, highlighting a renewed appetite for corporate borrowing.

The Australian Prudential Regulation Authority (APRA) reported that this surge in business lending is the strongest since September 2022, when growth peaked at 14.3%. The acceleration suggests that businesses are increasingly confident in leveraging debt for expansion, investment, and operational needs, despite the prevailing interest rate environment.

Michael Johnson, Director at Agile Market Intelligence, commented that the near double-digit growth in business lending indicates a return of confidence and resilience within the corporate sector. This trend underscores a shift in the credit market dynamics, where corporate borrowing is emerging as a significant driver of growth, while housing credit maintains a steady, albeit slower, pace.

For small and medium-sized enterprises (SMEs), this environment presents opportunities to access capital for growth initiatives. However, it's crucial for business owners to assess their financial health, understand the terms of borrowing, and ensure that debt levels remain manageable. Engaging with financial advisors and exploring various lending options can aid in making informed decisions that align with long-term business objectives.

Published:Thursday, 5th Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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