Advisers well positioned to fill SME lending gap left by banks

Small businesses are finding it tougher to get bank loans, leaving some struggling to manage their cash flow.

According to Reserve Bank data, the compound annual growth rate of bank lending to businesses has slowed from 6% in 2013 to just 1.5% today. Business lending from ANZ has declined, while Westpac’s SME lending has remained flat since 2020. With banks increasingly favouring capital-efficient home loans over commercial credit, many small business owners are left with fewer funding options.

Despite this, small businesses aren't losing hope. In fact, the latest research paints a picture of resilience and renewed ambition.  Prospa’s SME Sentiment Tracker revealed 63% of Kiwi small business owners feel optimistic about their growth over the next 12 months, and 57% rate their current business health as “good” or “very good.”

The latest 2degrees’ Shaping Business study, reported New Zealand’s highest level of business optimism since 2021 with 45% of business leaders more upbeat about this year compared to last and 65% expecting revenue growth in the year ahead.