Financing SMEs and Entrepreneurs 2024

3. Australia

Key facts on SME financing

According to the Australian Bureau of Statistics (ABS), there were 2 565 367 SMEs in Australia in 2021-22. SMEs accounted for 99.8% of all enterprises in Australia and employed more than 8.1 million people in 2021-22sa, which equates to around 66% of employment in the private sector.

The Australian economy has shown resilience to global headwinds, supported by a post-pandemic rebound in household spending, strong employment growth and a rise in wages. According to economic forecasts produced by the Australian Department of the Treasury, most recently reported in the 2023-24 Budget in May 2023, real GDP growth is expected to slow to 1½% in 2023-24, and then strengthen to 2¼% in 2024–25. This near-term outlook for Australia is unchanged from the October Budget.

Interest rates for both SMEs and large businesses have returned to pre-pandemic levels. SME interest rates in Australia increased from 3.10% in 2021 to 5.48% in 2022. The interest rate spread between SME loans and large enterprise loans, which remained elevated at above 160 basis points since 2012, declined to 99 basis points in 2022. The small spread between interest rates for large and small businesses mainly reflects the fact that a high share of SME credit was fixed at low interest rates during the pandemic, and some of these loans have yet to roll off onto higher interest rates.

New lending to SMEs increased from AUD 104.4 billion in 2021 to AUD 116.1 billion in 2022, mostly driven by lending to medium-sized businesses. In 2021-22, the share of SME outstanding loans stood at 45.1% of total outstanding business loans. Growth in new lending to SMEs was strong in the first half of 2022; however, it slowed down significantly since October 2022 given higher borrowing costs and a weaker appetite for new finance.

The total amount of venture capital invested by registered Early-Stage Venture Capital Limited Partnerships (ESVCLPs) and Venture Capital Limited Partnerships (VCLPs) increased in 2019-20 by 54.6%, totalling AUD 1.5 billion, decreased in 2020-21 by 8.0% to AUD 1.4 billion, before rising to a high of AUD 2.1 billion in 2021-22, an increase of 48.4%. In 2021-2022, Australia saw a record surge in venture capital investment driven by an increased number of mega deals (AUD 50 million and above). This momentum did not carry forward into the second half of 2022, with both the number of deals and average deal size declining sharply – especially in later-stage funding rounds. Despite this, downturn investment levels continue to exceed those observed pre-COVID, helped in part by a rise in deal size at the pre-seed and seed stage.

Leasing and hire purchase volumes dropped by 13.4% through the year to AUD 8.9 billion in 2022, this compares to an increase of 4.8% in 2020 and a decrease of 1.9% in 2021.

The number of bankruptcies per 10 000 businesses fell from 53 in 2012 to 29 in 2019, then continued to decrease during the pandemic in response to COVID-19 related policies before reaching its historical low of 15 in 2021-22. In March 2020, the Australian Government announced a series of temporary changes to bankruptcy law to protect otherwise viable businesses from bankruptcy. These measures expired on 31 December 2020. Permanent reforms, including a new formal debt restructuring process and a simplified liquidation pathway, came into effect on 1 January 2021, which are available to incorporated businesses with liabilities of less than AUD 1 million.

The Australian Government has a comprehensive SME agenda aimed at promoting growth, employment and opportunities across the economy. Its policies for promoting SMEs focus on improving the operating environment for businesses, increasing incentives for investment, and enhancing rewards and opportunities for private endeavours. Policies aiming to increase long-term opportunities for SMEs include taxation and business incentives, export financing, and small business assistance.

Table 3.1. Scoreboard for Australia

Indicator			Unit	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
		Debt
Outstanding business loans, SMEs			AUD billion	189	204.6	204.7	225.2	235.9	239.9	243.1	251.4	261.5	271.4	281.4	283.7	426.6	421.3	436	476.2
Outstanding business loans, total			AUD billion	629	690.8	653.3	636.4	665.5	685.7	694.5	723.5	764.1	800.4	820.1	861.3	873.0	877.6	941.3	1056
Share of SME outstanding loans			% of total outstanding business loans	30.0	29.62	31.33	35.38	35.46	35.00	35.01	34.75	34.22	33.91	34.31	32.94	48.86	48.01	46.33	45.09
New business lending, total			AUD billion	375	336.1	265.5	265.8	310.7	273.8	292.4	360.5	391.7	341.8	346.0	346.9	..	517.3	426.8	612.9
New business lending, SMEs			AUD billion	77.5	79.9	69.6	82.5	81.6	73.7	79.1	85.4	91.2	86.7	79.7	76.7	..	80	104.4	116.1
Share of new SME lending			% of total new lending	20.7	23.77	26.20	31.04	26.25	26.91	27.06	23.69	23.27	25.37	23.03	22.11	..	15.50	24.46	18.94
Non-performing loans, total			% of all business loans	0.50	2.07	3.27	3.55	3.16	2.68	2.03	1.39	1.01	1.13	0.78	0.81	0.92	1.08	0.98	0.90
Interest rate, SMEs			%	8.66	8.04	7.60	8.40	8.02	7.13	6.54	6.27	5.63	5.36	5.28	5.33	4.18	3.40	3.10	5.48
Interest rate, large firms			%	7.95	6.34	5.94	7.02	6.74	5.50	4.77	4.60	3.90	3.49	3.43	3.72	2.48	1.63	1.50	4.50
Interest rate spread			% points	0.71	1.70	1.66	1.38	1.28	1.62	1.77	1.67	1.73	1.86	1.85	1.61	1.70	1.77	1.60	0.99
		Non-bank finance
Venture and growth capital			AUD billion	516	373	259	126	451	250	234	293	554	909	947	1 190	1 032	1 596	1 469	2 179
Venture and growth capital (growth rate)			%, Year-on-year growth rate		-27.7	-30.6	-51.3	257.94	-44.6	-6.40	25.21	89.08	64.08	4.18	25.66	-13.3	54.65	-7.96	48.33
Leasing and hire purchases			AUD billion	9.25	9.28	6.73	6.55	6.90	8.75	7.34	8.77	9.86	8.89	10.14	9.71	10.04	10.53	10.33	8.95
Factoring and invoicing			AUD billion	54.76	64.99	63.10	58.66	61.42	63.36	63.27	62.39	64.40	..	..	..	..	..	..	..
		Other indicators
Payment delays, B2B			Number of days	..	..	..	..	22	20	20	15	13	14	12	11	10	11	11	..
Bankruptcies, Unincorporated			Number	5 045	4 427	4 426	5 616	5 266	5 858	4 761	4 007	4 088	4 350	4 168	4 291	3815	3 353	2 265	2 321
Bankruptcies, Unincorporated			Per 10 000 enterprises	42	36	36	45	43	50	42	35	34	36	34	36	26	23	24	16
Bankruptcies, Corporates			Number	7 489	9 067	9 465	9 605	10 439	10 583	10 854	8 822	10 093	8 511	7 819	8 052	8 324	4 943	4 511	4 912
Bankruptcies, Corporates			Per 10 000 companies	48	55	56	54	57	55	54	41	45	36	31	31	30	17	16	14
Bankruptcies, Total			Per 10 000 businesses	45	47	47	50	51	53	49	39	41	36	32	32	29	19	18	15
Invoice payment days, average			Number of days	53	56	54	53	54	53	54	53	47	..	..	..	..	..	..	..
Outstanding business credit, Unincorporated business			AUD billion	111	117	119	122	125	131	136	142	150	157	164	165	244	246	266	281
Outstanding business credit, Private trading corporations			AUD billion	500	555	514	500	514	524	531	556	592	626	636	663	619	621	664	688

Note: Data from 2019 onwards in the indicators of outstanding stock of loans and new lending are collected using a revised SME definition, so caution is necessary when conducting any comparison across time.

Source: See Table 3.4.

Macroeconomic and financing conditions

The below economic forecasts are produced by the Australian Department of the Treasury, most recently reported in the 2023-24 Budget, which was released in May 2023.

The Australian economy has shown resilience to global headwinds, supported by a post-pandemic rebound in household spending, strong employment growth and a pick-up in wages. National income is also being supported by elevated commodity prices. Real GDP growth is expected to be 3¼ in 2022-23.

However, the economy is not immune to the global slowdown, and there are clear signs that domestic demand is responding to higher interest rates and other cost-of-living pressures. This is being offset by a stronger-than-expected rebound in service exports following the reopening of international borders. Overall, the near-term outlook for real GDP growth is expected to slow to 1½ per cent in 2023–24, and then strengthen to 2¼ per cent in 2024–25.

Inflation peaked at the end of 2022 and is now moderating. The labour market has remained tight but is expected to gradually soften in response to slowing demand. The unemployment rate is expected to remain at 3½ per cent in the June quarter of 2023. As economic growth moderates, the unemployment rate is forecast to rise modestly to 4½ per cent by the June quarter of 2025. The strength of recent labour market outcomes is flowing through to wages, with growth projected to reach 4 per cent in 2023–24, its fastest pace since 2009.

The Government’s fiscal policy response has been central to Australia’s economic performance throughout the pandemic and underpins the recovery over the forecast period.

Table 3.2. Key domestic economic forecasts for Australia (a)

Indicators	Outcomes(b)	Forecasts
	2021-22	2022-23	2023-24	2024-25
Real gross domestic product	3.7	3¼	1½	2¼
Household consumption	3.7	5¾	1½	2½
Dwelling Investment	2.9	-2½	- 3½	-1½
Business investment (c)	6.1	3	2½	2
Mining investment	8.4	0	2	1½
Non-mining investment	5.4	4	2½	2
Public final demand (c)	6.5	1¾	1½	2
Net exports (d)	-1.3	0	½	0
Nominal gross domestic product	11.0	10¼	1¼	2½

(a) Percentage change on preceding year unless otherwise indicated. (b) Calculated using original data unless otherwise indicated. (c) Excluding second‑hand asset sales from the public sector to the private sector. (d) Percentage point contribution to growth in GDP.

Note: The forecasts for the domestic economy are based on several technical assumptions. The exchange rate is assumed to remain around its recent average level – a trade‑weighted index of around 60 and a $US exchange rate of around 67 US cents. Interest rates are informed by the Bloomberg survey of market economists. World oil prices (Malaysian Tapis) are assumed to remain around US$87/barrel.

Source: ABS Australian National Accounts: National Income, Expenditure and Product; Balance of Payments and International Investment Position, Australia; Labour Force Survey, Australia; Wage Price Index, Australia; Consumer Price Index, Australia; unpublished ABS data and Treasury

Non-mining business investment is expected to be the main driver of growth in business investment in the coming years, increasing by 4% in 2022-23, 2 ½ per cent in 2023-24 and 2% in 2024-25. Ongoing upgrades to machinery & equipment investment and continued expenditure on construction projects is driving growth throughout these years.

Figure 3.1. Business investment in Australia as a share of GDP

Source: ABS cat. no. 5204.0 and the Treasury, Australian Government.

Notes: Calculated as a share of nominal GDP

Statlink

SMEs in the national economy

According to the Bureau of Statistics (ABS), there were 2,565,367 small and medium sized enterprises (SMEs) in Australia in 2021-2022, accounting for 99.8% of all businesses. The majority of Australian businesses are non-employing (60.3% of businesses, or 1,550,151). Most businesses that employ people (71.5% of employing businesses or 728,759) employed between 1 and 4 people, whilst 0.2% (4,533) of all businesses employed more than 200 people (Table 3.3).

In 2021-22, SMEs employed more than 8.1 million people, which equates to around 66% of employment in the private sector. SMEs contributed AUD 851 billion to the Australian economy or 54% of total private sector output.

The contribution of Australian SMEs to exports is disproportionately low. In 2019-20, their contribution to the value of exports was only about 3.8%, falling steadily from 5.4% in 2015-16. Over the last five years, the value of SMEs’ exports has increased by only around 10%, while the value of exports of large businesses has increased by nearly 60%.

Table 3.3. Distribution of firms in Australia, 2021-22

Firm size (employees)	Number	%
All firms	2,569,900	100
SME (0-199)	2,565,367	99.8
Non-employing (0)	1,550,151	60.3
Micro (1-4)	728,759	28.4
Small (5-19)	227,102	8.8
Medium (20-199)	59,355	2.3
Large (200+)	4,533	0.2

Note: Data excludes public sector enterprises. As of 2021-22, data excludes superannuation funds.

Source: Australian Bureau of Statistics, Counts of Australian Businesses, including Entries and Exits.

SME lending

New lending to SMEs increased from AUS104.4 billion in 2021 to AUS116.6 billion in 2022. In 2022, the share of SME outstanding loans stood at 45.09% of total outstanding business loans, a decrease of 1.24 percentage points over the share from 2021. It should be noted that data from 2020 onwards is based on new data collection, which included a revised definition of SME lending, so a comparison with lending data before 2020 is not applicable.

The Reserve Bank of Australia, noted that business demand for finance generally remains high. Businesses are accessing or considering accessing finance to support growth and significant changes to their businesses, particularly to meet demand.

However, the RBA’s liaison program and available data suggest that Australian SMEs find accessing finance through the banking system with terms that suit their needs challenging. Access to finance tightened for businesses in response to the pandemic, mostly for those that were more affected by the economic conditions and for businesses approaching a given bank for the first time. However, policy measures introduced to support the flow of low-cost funds to the economy helped to mitigate the tightening in access to finance for SMEs.

It has been reported that business owners may find it hard to obtain additional finance without using their real estate as collateral, with around half of small business loans being residentially secured (RBA). While residentially secured interest rates are typically lower than for other SME lending, small business owners may be concerned about borrowing against the family home.

Credit conditions

Total business credit grew by 12% in the twelve months to December 2022. Strong growth in business credit has been supported by lending to the property services industry, as lenders have financed a large pipeline of commercial property transactions. Businesses have also drawn down on their existing credit facilities in order to manage liquidity challenges arising from supply chain disruptions.

Business borrowing rates increased for SMEs in 2022, reflecting cash rate increases by the RBA. Data from the RBA shows that SME interest rates in Australia increased from 3.1% in 2021 to 5.5% in 2022. Larger businesses saw a greater increase in their borrowing rates over this period (an increase from 1.5% to 4.5%). The interest rate spread between SME loans and large enterprise loans, which remained elevated at above 160 basis points since 2012, declined to 99 basis points in 2022. The low spread between interest rates for large and small businesses mainly reflects the fact that a high share of SME credit was fixed at low interest rates during the pandemic and some of these loans are yet to roll off onto higher interest rates.

Alternative sources of SME financing

The total amount of venture capital invested by registered Early Stage Venture Capital Limited Partnerships (ESVCLPs) and Venture Capital Limited Partnerships (VCLPs) increased in 2019-20 by 54.6%, totalling AUD 1.5 billion, decreased in 2020-21 by 8.0% to AUD 1.4 billion, before rising to a high of AUD 2.1 billion in 2021-22, an increase of 48.4%.

Leasing and hire purchase volumes dropped by 13.4% through the year to AUD 8.9 billion in 2022, this compares to an increase of 4.8% in 2020 and a decrease of 1.9% in 2021.

SME lending remains challenging due to the greater difficulty in assessing credit worthiness of small businesses. At the same time new SME lending opportunities have been created by others including non-banks through data availability and technology. According to Productivity Commission (2021), combining new data sources with innovative analytical tools (such as artificial intelligence and machine learning) has given many lenders the information and confidence to lend to SMEs without the security of property.

Other indicators

The number of bankruptcies per 10,000 businesses decreased from 19 in 2020 to 15 in 2022. The decline in corporate insolvencies could be attributed to a range of factors, including the provision of temporary COVID-19 relief, and leniency and forbearance from creditors (primarily the Australian Tax Office and banks). Non-performing loans as a percentage of total outstanding business loans also decreased following the pandemic, from 1.08% in 2020 to 0.9% in 2022.

Government policy response

The Australian Government has a comprehensive SME agenda aimed at promoting growth, employment and opportunities across the economy. Its policies for promoting SMEs focus on improving the operating environment for businesses, increasing incentives for investment, and enhancing rewards and opportunities for private endeavour. The government’s financial, taxation and competition policies are also designed to increase long-term opportunities for SMEs.

The challenge of obtaining finance has been a consistent theme of the RBA’s Small Business Finance Advisory Panel. The challenges faced by small businesses when borrowing include access to finance for start-ups, the heavy reliance on secured lending, the role of housing collateral and personal guarantees in lending and the loan application process, including the administrative burden and the ability to compare products across as well as to switch lenders. The Australian Government’s recent reforms (discussed below) aim to improve access to finance including by lowering capital requirements for small business lending.

Loan guarantee schemes

The Australian Government implemented several loan guarantee schemes between 23 March 2020 and 30 June 2022 to encourage lending to SMEs during the uncertain economic conditions imposed by COVID-19. The loan guarantee schemes introduced by the Australian Government included the SME Guarantee Scheme (Phases 1 and 2), the Show Starter Loan Scheme and the SME Recovery Loan Scheme.

Under Phases 1 and 2 of the SME Guarantee Scheme, the Australian Government guaranteed 50%of eligible new loans issued by participating lenders to SMEs with an annual turnover of up to $50 million, which was later increased to AUS250 million. Phase 2 of the Scheme supported secured and unsecured loans for up to AUS1 million (increased from AUS250,000) for terms of up to 5 years (increased from 3 years) with a new cap on interest rates.

Under the Show Starter Scheme, the Australian Government guaranteed 100%of new loans taken out by eligible arts and entertainment businesses to deliver new productions or events for live audiences.

The SME Recovery Loan Scheme included a government guarantee of 80%of loans of up to AUS5 million, for terms of up to 10 years and a repayment holiday of up to 24 months for SMEs that received JobKeeper payments in the March quarter 2021. This scheme was expanded to include SMEs that were economically affected by the floods in March 2021 and were located in eligible Local Government Areas. The SME Recovery Loan Scheme was further expanded to include a 50 %guarantee (reduced from 80 %) on loans for SMEs economically affected by COVID-19.

Capital requirements for small business lending

From 1 January 2023, the Australian Prudential Regulation Authority (APRA) introduced its Unquestionably Strong Framework for Bank Capital to strengthen the resilience of the Australia financial system. In the design of the new framework, APRA has sought to improve the sensitivity of capital requirements to the level of risk, including by reducing capital requirements to support small business lending.

Liaison with industry

A strong financial system that facilitates the flow of savings to efficient investment opportunities assists SMEs to invest in new technologies, fund innovative practices and expand. Government authorities regularly monitor developments in SMEs’ access to finance. The RBA annually hosts a Small Business Finance Advisory Panel, while both the RBA and the Australian Treasury regularly speak with Australian banks, non-bank lenders and businesses about business financing conditions, as well as the broader economic environment for businesses. APRA's liaison with banks and other market participants also considers access to finance for SME borrowers as well as the performance of SME loans more generally. APRA is also monitoring the increased digitisation of credit assessment for smaller SME borrowers.

Export financing

The global economy provides Australian SMEs with an opportunity to access new markets and the Government is committed to helping SMEs reach their export potential. The Export Market Development Grants (EMDG) program provides targeted financial assistance to help small to medium businesses market and promote their goods and services internationally.

Export Finance Australia is Australia’s export credit agency. Export Finance Australia supports Australia’s trade and infrastructure agenda by providing commercial finance for exporting businesses, including those participating in export supply chains, and Indo-Pacific infrastructure development. Export Finance Australia supports Australian businesses, from SMEs to large corporates, and has a range of loan, bonds and guarantee solutions and a dedicated team of SME experts located across Australia. In 2021/22, Export Finance Australia provided AUS254 million in support to SMEs and enhanced its online Small Business Export Loan, funding a wider range of purposes.

Improving payment times

In addition, three measures aim to improve payment times for small businesses:

• The Payment Times Reporting Scheme, where transparency around payment performance encourages large businesses and government enterprises to improve their payment practices.

• On 6 December 2022, the Australian Government announced an independent review of the Payment Times Reporting Act 2020 as required under the legislation.

• The Payment Times Procurement Connected Policy, which leverages Australian Government procurement to improve payment times to small businesses in the supply chains of government contracts.

• The Supplier Pay On-Time or Pay Interest Policy, which requires Australian Government agencies pay invoices in 20 calendar days (and invoices in 5 calendar days) or pay interest on late payments.

Broader response

Along with direct SME financing programs, Australia is progressing in several other initiatives to improve the operating environment for SMEs, for example, reducing energy price pressures, and reducing the time businesses spend on doing taxes. Several of these measures will boost business cashflow, reduce compliance costs, promote business investment, and/or ameliorate the need for business finance. These initiatives include:

• Providing electricity bill relief to eligible small businesses and households through the Energy Bill Relief Fund, in partnership with state and territory governments. Approximately one million small businesses will receive support through this fund.

• Introducing the Small Business Energy Incentive, a bonus 20 %tax deduction for eligible assets to help small and medium businesses with an annual turnover of less than AUS50 million electrify and save on their energy bills. Subject to the passage of legislation, the incentive will apply from 1 July 2023 until 30 June 2024. This builds on the Energy Efficiency Grants Program committed in 2021-22.

• Establishing the Industry Growth Program from 2023-24 to support SMEs and startups.

• Increasing the instant asset write-off threshold to AUS20,000 from 1 July 2023 until 30 June 2024. Subject to the passage of legislation, the AUS20,000 instant asset write-off will allow small businesses with an annual turnover of less than $10 million to immediately deduct eligible assets each costing less than AUS 20,000.

• Tax measures to lower the tax-related administrative burden for small businesses:

  • Expanding the number of tax clinics nationwide from 1 January 2025 and opening grant funding to Technical and Further Education providers to assist small businesses and individuals (sole traders) who do not currently receive professional tax assistance.

  • Reducing single touch payroll red tape. From 1 July 2024, employers will be able to provide a single touch payroll (STP) engagement authority to their tax agents for extended periods, which will reduce the amount of paperwork for STP lodgements.

  • Expanding access to Australian Taxation Office (ATO) audit reviews to reduce tax disputes for small businesses. From 1 July 2024, the ATO will trial an expansion of their independent review process to include small businesses with aggregated annual turnover between $10 million and $50 million who are subject to an ATO audit. This can achieve better outcomes for taxpayers by delivering quicker and cheaper resolution of disputes.

  • Reducing the ATO’s use of cheques. From 1 July 2024, the ATO will reduce the use of cheques for income tax refunds by encouraging greater use of electronic funds transfers to bank accounts which will result in time and cost savings to taxpayers.

  • Simplifying late amendments to tax returns for small businesses. From 1 July 2025, the ATO will extend the time that small businesses can make amendments to their income tax returns from 2 to 4 years, which should reduce processing times and paperwork for the majority of late amendments.

• Providing funding over 3 years from 2023-24 for a cyber wardens program to support small businesses to build in-house capability to protect against cyber threats.

Figure 3.2. Trends in SME and entrepreneurship finance in Australia

Note: Data from 2019 onwards in the indicators of outstanding stock of loans and new lending are collected using a revised SME definition, so caution is necessary when conducting any comparison across time.

Source: See Table 3.1

Statlink

Table 3.4. Sources and definitions of Australia Scoreboard

Indicator	Definition	Source
Debt
Outstanding business loans, SMEs	Business loans and bills outstanding of banks and non-bank financial institutions to businesses with turnover of less than $50 million. Prior to 2019, banks’ business loans and bills outstanding under $2 million (stock).	APRA; RBA
Outstanding business loans, total	Banks’ and non-bank financial institutions’ total credit outstanding to businesses; including loans and bills. Prior to 2019, includes commercial paper and promissory notes (stock).	APRA; RBA
New business lending, total	Banks’ new commercial loan approvals for fixed and revolving facilities (flow).	APRA; RBA
New business lending, SMEs	Banks and non-bank financial institutions' new business loan commitments for fixed facilities to businesses with turnover of less than $50 million; excluding refinancing. Prior to July 2019, banks’ new commercial loan approvals for fixed and revolving facilities under $2 million (flow).	APRA; RBA
Non-performing loans, total	Banks' impaired (in arrears or otherwise doubtful, and not well-collateralised) and past due (in arrears for 90+ days but well-collateralised) business loans.	APRA; RBA
Interest rate, SMEs	Weighted-average interest rate on business loans and bills outstanding of banks and non-bank financial institutions to businesses with turnover of less than $50 million. Prior to 2019, weighted-average interest rate on banks’ business loans and bills outstanding under $2 million.	APRA; RBA
Interest rate, large firms	Weighted-average interest rate on business loans and bills outstanding of banks and non-bank financial institutions to businesses with turnover of $50 million or more. Prior to 2019, weighted-average interest rate on banks’ business loans and bills outstanding $2 million and over.	APRA; RBA
Non-bank finance
Venture and growth capital	Total new investment by registered Early Stage Venture Capital Limited Partnerships and Venture Capital Limited Partnerships during the year. Data correspond to Australian financial years, e,g. 2020 will be data from July 2019 to June 2020.	DISER
Leasing and hire purchases	Banks’ and non-bank financial institutions’ total new business lease commitments for finance leases, including refinancing (flow). See ABS publication 5601.0 - Lending Indicators for further breakdowns.	ABS; RBA
Factoring and invoicing	Factoring and invoice discounting turnover volumes of resident debtor finance providers (flow).	DIFA
Other indicators
Payment delays, B2B	Average late payment time (days after an invoice is due) for an Australian business.	Illion
Invoice payment days, average	Average invoice settlement times for Australian business (days from transaction). Survey data from debt collection agency.	Dun & Bradstreet
Bankruptcies, Unincorporated	Number of business related personal insolvencies. Prior to 2020, the number of unincorporated business bankruptcies.	AFSA
Bankruptcies, Unincorporated (per 10 000 enterprises)	Number of unincorporated business bankruptcies per 10 000 entrepreneurs.	ABS; AFSA; RBA
Bankruptcies, Corporates	Number of corporate insolvencies	ASIC
Bankruptcies, Corporates (per 10 000 companies)	Number of corporate insolvencies per 10 000 enterprises.	ABS; ASIC; RBA
Bankruptcies, total (per 10 000 businesses)	Number of corporate insolvencies and unincorporated business bankruptcies per 10 000 enterprises.	ABS; AFSA; ASIC; RBA
Outstanding business credit, Unincorporated business	Banks’ and non-bank financial institutions’ total credit outstanding to unincorporated business; including loans and bills. Prior to 2019, includes commercial paper and promissory notes (stock).	APRA; RBA
Outstanding business credit, Private trading corporations	Banks’ and non-bank financial institutions’ total credit outstanding to private trading corporations; including loans and bills. Prior to 2019, includes commercial paper and promissory notes (stock).	APRA; RBA

References

Reserve Bank of Australia (RBA), 2022, The Current Climate for Small Business Finance, https://www.rba.gov.au/publications/bulletin/2022/sep/pdf/the-current-climate-for-small-business-finance.pdf (accessed 9 June 2023).

Reserve Bank of Australia (RBA), 2023, Recent Developments in Small Business Finance and Economic Conditions, https://www.rba.gov.au/publications/bulletin/2023/sep/recent-developments-in-small-business-finance-and-economic-conditions.html (accessed 5 October 2023).

Reserve Bank of Australia (RBA), 2022, Statement on Monetary Policy – August 2022, Domestic Financial Conditions chapter https://www.rba.gov.au/publications/smp/2022/aug/domestic-financial-conditions.html (accessed 5 October 2023).

The Productivity Commission, 2021,Small business access to finance: The evolving lending market, 2021, https://www.pc.gov.au/research/completed/business-finance/business-finance.pdf (accessed 3 November 2023).