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 February, 2026
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