ISCOVER
The major bank’s new report has underscored the ways commercial brokers can provide strategic support for SME clients.
Small and medium-sized enterprises (SMEs) are increasingly turning to commercial brokers to help them navigate challenges such as trade uncertainty, cash flow pressure, and succession planning, according to a new report from National Australia Bank (NAB).
Released today (9 July 2025), NAB Commercial Broker’s report, Capital confidence: Trade and working capital strategies for business growth, outlines the strategic role brokers can play for SME clients amid market uncertainty, supply chain volatility, and rising operational costs.
Strategic support
Cross-border supply chains were one of the key examples highlighted in the report, with global trade uncertainty making long-term business continuity and expansion more complex, particularly across sectors such as healthcare, construction, manufacturing, and agribusiness.
The report also underscored the opportunity for brokers to play an important role in SME succession planning.
Australian Small Business and Family Enterprise Ombudsman (ASBFEO) data has shown the average age of small-business owners is now 50 years – up from 45 years in 2006 – and almost a quarter (22 per cent) of all small-business owners are aged 60 and over.
NAB cited a case study involving a professional services firm where one of its brokers facilitated a transition through a combination of debt and vendor finance, enabling the next generation of leaders to take ownership without disrupting business operations.
Chris Thomas, NAB executive commercial broker and equipment finance sales, said the report emphasised the importance of brokers being proactive in their solutions for clients.
“Imagine a business customer returning from the US to find the tariffs have changed overnight. Suddenly, their stockists are rethinking orders, and their cash flow is under pressure,” Thomas said.
“In situations like that, business owners are often making tough decisions – sometimes about keeping staff or scaling back operations.
“A broker who understands the full working capital cycle and broader market pressures can offer guidance and perspective at a critical time – helping customers consider their options and make informed decisions.”
Jasmine Ashton, NAB executive, specialist bank, business and private lending, added that brokers who understand the nuances of the environments their clients operate in will be best placed to provide support, whether in the form of invoice finance or structured short-term funding.
“Access to specialist skills, knowledge and solutions can make the difference between a missed opportunity versus customers acting with confidence on a well-informed growth strategy,” Ashton said.
“Brokers who understand the global context their clients operate in can help businesses more effectively utilise cash flow to improve funding for growth – by streamlining the way they manage their working capital cycles and unlocking value through their business operations and improving cost efficiencies.”
Thomas concluded: “Whether it’s succession planning, managing offshore risk or funding growth, brokers who bring context, clarity and solutions will continue to be vital to their clients’ success.
“At NAB, we’re committed to being the bank behind the broker, providing deep expertise, long-term partnership, and practical support to help brokers grow their businesses and provide strong outcomes for their customers.”
Challenging environment for SMEs
The SME sector has proven resilient – nearly six in 10 small- to medium-sized enterprises (SMEs) plan to invest in the next 12 months, according to NAB’s SME Business Insights report for the first quarter of 2025.
Moreover, on Tuesday (8 July), the major bank released the June NAB Business Survey, suggesting that business conditions are stabilising, if not starting to turn around after a “disappointing start to the year”.
Price growth has eased, suggesting ongoing profitability pressures, while business conditions spiked higher in June to 9 index points.
NAB acknowledged that monthly gains of this magnitude have “typically only partially reversed the next month”, but added that the June gain was enough to pull the trend higher.
However, while the improvement in conditions marked the first uptick this year, it remained below average.
Business confidence also rose 3 points in June and for the third consecutive month in June. In trend terms, it is now at its highest level in over a year (but is also still below its long-run average).
NAB’s head of Australian economics, Gareth Spence, stated: “After a volatile but soft year for business confidence, we have seen a trend improvement over the past three months.
“It is now around its long-run average of 5 index points.
“Business conditions increased sharply in the month driven by notable improvements in trading conditions and profitability, and while we wouldn’t overplay monthly moves, the uptick in trend conditions is welcome given the softening trend through early 2025.
“Overall, the survey is encouraging that sluggish momentum in early 2025 will improve into the second half, with a notable increase in conditions in the month. An improvement in confidence is also welcome given the raft of negative headlines globally over recent months.
“While there were large moves in the month, and we know that the monthly survey can be volatile, the hope is at least some of these trends will be sustained over coming months.”
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