From rising costs to shifting workforce models, business owners are leaning on finance professionals not just for funding, but for strategy and support. At Connective, we’re seeing firsthand how brokers are leading from the front, and we’re backing them with the tools, tech, and training they need to succeed.
Here’s what’s happening across the market - and how our commercial members are helping SMEs to stay one step ahead.
1. Rising costs, rising opportunity
With wage growth and super increases squeezing profitability, SMEs are feeling the pinch. But for brokers, this is also an opportunity to help clients rethink their finance strategy and unlock cash flow.
For example, in the commercial property space, particularly in high growth sectors such as hotels, lodging assets, and manufacturing, Deloitte say 81% of businesses plan to increase their budgets on data and technology*.
Right now, our members are helping businesses access initiatives like the $20,000 Instant Asset Write-Off, so they maximise tax advantages while staying liquid. They’re also stepping in to restructure finance arrangements to reduce overheads, ease cash flow strain and concentrate investment on productivity-boosting areas.
2. Cash flow is now mission-critical
Across the board, SMEs are tightening their belts. Many are pausing hiring plans, shifting to contractors, and pulling back on capital investment. At the same time, non-bank lenders are gaining ground, accounting for more than half of new SME finance**.
This shift has created new demand for commercial brokers who can deliver fast, tailored finance solutions. With CitoPlus and Financeable in their toolkit, our members are responding quickly, offering everything from working capital and invoice finance to asset funding, backed by smart, automated workflows on Mercury Nexus. This equips brokers with the tools they need to secure the funding for their clients to continue growing.
Our members are also supporting businesses with unlocking equity from commercial property, enabling them to reinvest in growth or navigate leaner periods without taking on unsustainable debt.
3. Understanding client risk
One of the biggest risks facing SMEs today is overreliance on key customers. 17% say losing just one client would be enough to shut them down**. Combined with a sharp rise in business insolvencies, this is a major concern.
Our members are playing a proactive role in ensuring on-going success for their clients, having detailed discussions around their cash flow and business plan to strengthen their strategy. Backed by our diverse lender panel of 34 specialist lenders and expert support, our commercial members are ensuring clients have early access to working capital and the liquidity to overcome the challenges of rising costs.
4. Brokers are becoming strategic partners
More than ever, business owners want more than just a broker. They’re looking for a trusted partner - someone who understands the complexities they face and can offer strategic guidance that makes sense for their business.
Brent Starrenburg, Head of Commercial and Asset Finance at Connective, says: “Proactive finance planning is so important – brokers are now strategic partners, not just intermediaries.”
At Connective, we’re investing in our commercial members so they can step into that role with confidence. Through specialist training, an expanding lender panel, and advanced tools, we’re giving brokers everything they need to deliver fit-for-purpose solutions.
5. Rise in private lenders
Merricks Capital claim a rise in private funders within the agriculture sector - bridging the gap left by Australia’s retail banks, who are reducing their agricultural lending due to higher capital reserve requirements***. This shift is opening new opportunities for brokers to deliver flexible solutions, but it also means staying across the many different lender policies and deal structures.
Which is where our Commercial & Asset Finance team provide value. They offer guidance and support to commercial brokers based on their extensive experience and knowledge of lender policies. They will also connect brokers with the right lender BDMs to streamline the deal.
Looking to grow your commercial brokerage?
We’re here to help. With industry-leading support, award-winning technology, and an extensive, diverse lender panel, we are the partner commercial brokers trust to grow their business.
*Deloitte. 2025 commercial real estate outlook (September 2024). https://www.deloitte.com/au/en/Industries/financial-services/perspectives/commercial-real-estate-outlook.html
**ScotPac. SME Growth Index report (April 2025). https://www.scotpac.com.au/wp-content/uploads/2025/04/SMEGI-22nd-Edition-v2.pdf
***Mericks Capital. Grazing for Yield: Private Credit’s growing role in agriculture credit (February 2025). https://www.merrickscapital.com/insights/grazing-for-yield-private-credits-growing-role-in-agriculture-credit/?utm_source=chatgpt.com
