Aussie business owners confident despite credit squeeze

Aussie business leaders are made of tough stuff. Even with high interest rates, fussy lenders and cost-of-living pressures biting, most believe the year ahead looks bright, according to research from CreditorWatch.

The CreditorWatch study suggests that optimism is running high with small businesses across the country, despite many business owners still digging into their own pockets to stay afloat.

Growth on the horizon

According to CreditorWatch’s 2025 National Business Sentiment Survey, three-quarters (76 per cent) of business decision-makers are optimistic about growth over the next 12 months. That’s up from 72 per cent last year.

Meanwhile, 61 per cent rated their performance as “good” or “very good”, which is another jump from the 2024 figures.

CreditorWatch CEO Patrick Coghlan says Aussie business owners have proven they can handle a rough patch or two.

“The results highlight the resilience of Australian businesses and increasing confidence in the future, even with stubbornly tight financial conditions,” he says.

Credit still a killer hurdle

For all that confidence, getting finance remains a headache.

More than half of businesses (56 per cent) say they’re struggling to access credit, with high interest rates, red tape, and the need to put up collateral topping the list of complaints.

“Access to finance remains the critical bottleneck,” says Coghlan. “Without easier pathways to funding, many businesses risk being held back from realising their full growth potential. Given the challenging conditions businesses have faced post-COVID, it’s crucial they’re provided with as much support as possible.”

Large and medium-sized businesses actually reported the toughest time getting credit, with 76 per cent and 72 per cent respectively saying they faced challenges. Small businesses and sole traders fared a little better, but even then, around half said it wasn’t easy to get a loan over the line.

Manufacturing firms were hit the hardest, with seven in ten reporting that they struggled to access finance. Finance and insurance businesses followed close behind (63 per cent), while retail and hospitality weren’t far off (56 per cent).

Dipping into their own wallets

Tight credit has pushed many owners to reach into their own savings to keep their operations humming.

A whopping 60 per cent said they’d used personal funds to support working capital in the past 12 months. That might mean paying suppliers, covering wages or just keeping the lights on until the next invoice clears.

It’s a reminder that for many small and micro business owners, the line between business and personal finances remains pretty blurry.

Working capital confidence lifts

There is some good news, though. Businesses are feeling more comfortable about their cash flow position overall.

Satisfaction with working capital jumped from 69 per cent in mid-2024 to 80 per cent in September 2025, that’s a hefty 11-point boost.

Small businesses saw the biggest improvement, up 14 percentage points, while sole traders also made strong gains. Coghlan says this shows a real improvement in cash management post-pandemic.

“At CreditorWatch, we’re seeing strong demand for tools that give businesses confidence in who they trade with – whether that’s through real-time credit monitoring, debtor management or payment forecasting,” he explains.

Confidence varies by industry

Not everyone’s feeling the love equally.

Finance and insurance businesses are the most upbeat about the year ahead, with 89 per cent saying they’re optimistic about growth. Manufacturing businesses are also positive, but they’re juggling high costs and heavy reliance on personal funds.

On the other hand, transport and logistics operators are the least confident, with fewer than half rating their performance positively. Given the ongoing fuel costs and labour shortages across the sector, it’s no surprise they’re finding it hard to stay cheerful.

State of the states

Confidence levels also vary wildly depending on where you hang your hat.

Queensland and South Australia are leading the pack, with around 65 per cent of businesses in those states reporting a good year. New South Wales came out on top for optimism about the year ahead (78 per cent), followed by Victoria and SA (77 per cent).

Over in WA, it’s a different story. Only 49 per cent of business leaders there rated their performance positively, and just 69 per cent are feeling upbeat about 2026.

South Australia also saw a big jump in the number of businesses reporting trouble accessing credit, up from 39 per cent last year to 56 per cent now.

A growth mindset

Despite the headaches around credit, most Aussie business owners aren’t letting a few hurdles dampen their spirits.

They’re finding ways to adapt, manage their cash flow more smartly and plan for growth, even if that means dipping into their own pockets to get there.

“Australian businesses are resilient and resourceful. They’ve weathered the storm and are looking forward with confidence — now they just need the right support to turn that optimism into action,” Coghlan concludes.

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