New data from Banjo Loans has revealed an increase in funding demand from construction services, manufacturing, retail trade, and professional services.
Small and medium-sized enterprises (SMEs) have continued to turn to non-bank lenders for funding, with recent data from SME lender Banjo Loans revealing a significant spike in demand for the expanded new Express Loans product it launched in September.
The non-bank lender has reported a 300 per cent spike in applications since it doubled the maximum amount available from $250,000 to $500,000.
Speaking to The Adviser, Brendan Widdowson, Banjo Loans’ chief commercial officer, said demand had been strongest among SMEs in construction, manufacturing, retail trade, and professional services, with particularly high uptake in administrative and support services.
“Demand has surged because these industries typically need to borrow more at this time of year. At the same time they continue to face elevated input costs,” he said.
“Additionally the increase in our Express Loan limit to $500,000 offers them quick access to funds, helping them manage cash flow.”
Widdowson noted SMEs typically experience cash flow challenges in the holiday season and added: “Construction and professional services experience a cash-flow gap over January as invoicing pauses but wages and expenses continue. At the same time, retailers are increasing stock purchases to ensure they can meet strong Black Friday and Christmas demand.
“All of these sectors are facing pressure from higher labour and material costs, pushing them to seek larger loans to pursue new opportunities. With higher loan limits, businesses can now take on opportunities they may previously have had to forgo.”
He also noted that while SME borrowing across the market remained cautious, the Express Loan product – which eliminates the documentation burden through data-driven assessments and human review – had grown significantly faster than system.
“Our Express Loans rely primarily on bank-statement data, giving us a real-time view of a business’s cash flow without the burden of producing traditional financial statements,” Widdowson added.
“That speed and reduced admin is critical for time-poor SME business owners.”
He said a key differentiator is Banjo’s ability to support borrowers at loan sizes where many lenders may require property security.
“Most lenders turn to property once you get above $250,000,” he explained.
“Our methodology allows more businesses, especially those that have invested heavily into their operations to access the funding they need.”
Brokers embracing non-banks
Banjo Loans’ latest data arrives as brokers increasingly look to the non-bank sector to find solutions for their clients.
Broker usage of non-banks hit a three-year high in October 2025, according to the latest Broker Pulse: Residential Lending report by Agile Market Intelligence.
The survey – which collected responses from 316 residential brokers between 1 and 17 November 2025 – found that 53 per cent had used at least one non-bank lender in October 2025.
This is the highest proportion recorded since mid-2022.
The main reason brokers are turning to non-banks is their policies’ alignment with clients’ circumstances, according to Agile Market Intelligence, cited by 83 per cent of respondents.
Widdowson noted non-banks such as Banjo Loans were often a good match for SMEs.
“Banjo is well-suited to servicing these businesses because we offer fast turnaround times through a streamlined application process built for busy business owners,” he said.
“Our experienced finance team also works directly with brokers and business owners to guide them through the borrowing process, ensuring we find a lending solution tailored to their needs.”
[Related: Banjo doubles Express Loan limit amid strong demand]
