Running a small business has always meant balancing money coming in with bills going out. In 2026, that balancing act has become harder for some with the likes of Payday Super, higher fuel costs and card surcharge changes all placing more pressure on business cash flow.
Luckily, there are now more avenues for businesses looking to borrow, but the environment those businesses are borrowing into has changed considerably.
Business loans are getting bigger
Savvy's own settlement data shows businesses taking on larger loans.
Among business loans settled through Savvy, the median loan was around $50,000 for enquiries made in 2024 and 2025. For enquiries made since April 2026, that has increased to around $75,000.
The change is also visible at the higher end. Around a quarter of settled business loans from 2024 and 2025 were worth $100,000 or more. Since April 2026, that share has risen to nearly four in ten.
Commercial loans, which include vehicle and equipment finance, have been more stable, with the median remaining around $55,000.
These figures only cover loans that ultimately settled, so they can't tell us whether businesses are applying for more finance overall or why individual borrowers have taken out larger loans.
They do show, however, that businesses successfully borrowing through Savvy are taking on considerably larger balances than they were a year or two ago.
Costs are increasing from every direction
Even with more finance options available, the cost of borrowing and running a business has increased.
- Interest rates: the RBA lifted the cash rate to 4.60% on 29 September, taking this year’s increases to a full percentage point. That can hit smaller businesses faster, particularly those with variable-rate loans or borrowing secured against the owner’s home. That pressure can spill into personal finances, with 47% of small business owners already using personal funds to support working capital.
- Energy and fuel: household price data from the ABS shows electricity prices rose 13.2% and automotive fuel 13.5% in the 12 months to August 2026. While these aren't direct measures of business costs, the pressure is showing. COSBOA found 85% of regional small businesses were paying more for electricity than a year earlier, while 37% said fuel costs were having a significant or critical impact on their business.
- Payday Super: since 1 July, Payday Super has required super to be paid within seven business days of payday. It doesn't increase the amount of super a business owes, but it does bring the payment forward and reduces the buffer some employers previously had between paying wages and paying super.
- Card costs: from 1 October, eftpos, Mastercard and Visa introduced no-surcharge rules, meaning businesses generally can’t pass the cost of accepting those card payments directly onto customers. Those processing costs don’t disappear, so businesses need to absorb them or recover them elsewhere. At the same time, some business credit cards are offering shorter interest-free periods, giving businesses less time to repay purchases before interest starts accruing.
Together, these changes can leave less room in the cash flow for larger loan repayments or unexpected costs, especially for smaller businesses with thinner cash buffers.
ATO debt is another pressure
Small businesses also carry a large share of Australia's unpaid tax debt.
According to the Australian National Audit Office, small businesses accounted for $35.9 billion of the ATO's $54.2 billion in collectable tax debt in 2024-25, around two-thirds of the total.
The general interest charge (GIC) is 11.51% for the October to December 2026 quarter and continues to accrue while a debt is on a payment plan, compounding daily. At that rate, $10,000 of tax debt would attract around $1,220 in interest over a year if the balance remained unchanged.
That interest is also no longer tax-deductible for GIC incurred from 1 July 2025.
On top of this, the special fuel-response payment plan closed to new applications on 30 June this year, and from July 2027, the ATO will stop accepting credit card payments.
While some business owners used credit cards solely to load up on rewards points, for others it’s another squeeze, forcing them to explore a payment plan with the ATO or taking on a loan for tax debt.
For a business with $50,000 in tax debt, a business loan at 9% p.a. would result in around $2,471 in interest over one year, rising to about $12,275 over five years.
There are more ways for small businesses to borrow
According to the RBA, business credit has been growing strongly, rising 10.9% over the year to August 2026. That growth has been supported by increased competition among banks, improvements in loan application processes and the growth of non-bank lenders.
Automation has also helped increase the supply of credit to some smaller businesses and self-employed borrowers, making it possible for more applications to be assessed quickly.
That doesn't mean the bar for getting a loan has suddenly dropped. The RBA found that lenders' criteria and appetite for risk have remained largely unchanged.
However, for businesses that do meet lending criteria, there is now a broader mix of bank and non-bank options than there was a few years ago. That can include everything from traditional term loans to more flexible options such as lines of credit, which allow businesses to draw funds when they need them rather than taking the full amount upfront.
There are signs that some businesses have been putting that credit to use as costs rise. The RBA reports that some firms have taken on additional debt to increase their working capital and bring forward purchases ahead of expected cost increases, particularly higher energy costs.
Savvy Managing Director Bill Tsouvalas said businesses should think carefully about both the timing and structure of finance.
“While it’s fantastic that businesses have more loan options than ever, they still need to consider what type of finance suits their needs and when to arrange it.
“Waiting until your business is really tight on working capital can limit your options or see you receive a higher interest rate.
“A line of credit, for example, can give businesses more flexibility because it can be arranged in advance and only drawn down when the funds are actually needed.
“That means the business has access to funding if an unexpected expense comes up or cash flow tightens, without necessarily taking on the full debt from day one.”
