Following the RBA’s February rate cut, small business lender OnDeck Australia reports a 40% YoY increase in the total value of loans funded, signalling renewed confidence for small business.
- OnDeck reports a 40% increase in the value of business loans funded since the Reserve Bank’s February rate cut, compared to the same 3-month period in 2024.
- Lower interest rates are fuelling stronger consumer sentiment, which is driving renewed confidence among small business.
Leading small business lender OnDeck Australia has reported a 40% year-on-year increase in the value of loans funded during the three months following the Reserve Bank of Australia’s (RBA) February 0.25% rate cut [2], as business confidence rebounds heading into the new financial year.
This surge in demand comes amid a reported rise in consumer confidence[1] and growing optimism among small business owners, driven by easing interest rates and signs of macroeconomic stability.
“Lower interest rates are a key driver of both consumer and business confidence,” said Mr Cameron Poolman, CEO of OnDeck Australia.
“We are seeing renewed confidence flow directly into increased business lending over the past quarter. That’s great news for the broader economy – when small businesses feel optimistic, they invest, hire, and grow.”
Recent research commissioned by OnDeck found 51% of small business owners identified interest rates as a key issue ahead of the Federal election, while 61% remain concerned about rising business costs.
However, the RBA’s 0.25% rate cut in February has provided much-needed relief for all and empowered business owners to move forward with investment and expansion plans – a trend OnDeck expects to continue following the recent 0.25% rate cut in May [3].
“Across our portfolio, we’re seeing growth across all industries, especially in Retail Trade with an increase of almost 50%,” Mr Poolman added.
OnDeck also saw growth in Professional & Tech Services (36%), Construction (22%), and Hospitality (14%).
“Business owners are using funds for everything from hiring staff and purchasing stock to investing in productivity-enhancing technology,” said Mr Poolman.
To support this momentum, OnDeck offers business owners fast, unsecured finance through its Lightning Loans product – providing small business owners with access to funding in a matter of hours.
“This speed of funding enables small businesses to embrace opportunities when they arise – whether that’s negotiating supplier discounts or managing seasonal demand,” concluded Mr Poolman.
About the Research
Independent research was conducted in March 2025 by Octopus Group on behalf of OnDeck Australia, surveying over 500 small business owners nationwide.
Sources
[1] https://roymorgan-cms-prod.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2025/05/19234352/9735-ANZ-Roy-Morgan-Consumer-Confidence-May-18.pdf
[2] https://www.rba.gov.au/media-releases/2025/mr-25-03.html
