Main non-bank lender Banjo Loans is urging small to medium companies (SMEs) to take 5 key actions earlier than June 30, so as to higher place themselves for fulfillment in what appears to be an ongoing difficult financial setting in FY2026.
In FY2025 lots of Australia’s small and medium companies (SMEs) had been pressured into survival mode, based on Banjo Loans CEO Man Callaghan.
Callaghan says massive falls in client confidence and consumption, stubbornly excessive inflation, excessive rates of interest and international financial uncertainty mixed to create an ideal storm of enterprise headwinds.
Additional, as income slowed and help decreased, most notably with the elimination of the $20,000 immediate asset write-off, SMEs are feeling the pinch and on the lookout for methods to maneuver ahead.
Regardless of the turbulence of the monetary 12 months that was, Man Callaghan outlines Banjo’s 5 key precedence actions for SME companies to maneuver ahead, stabilise, handle money stream and proceed constructing with confidence into FY2026:
- Take Benefit of Monetary Assist for SMEs
Prior to now, authorities help has been a lifeline for small companies, particularly given the pressures of inflation and rising prices. For instance, the $325 rebate on electrical energy payments that was out there final 12 months made a distinction for some SME companies. It’s important for SMEs to remain knowledgeable about monetary aid choices similar to rebates, grants and different help measures which might be out there in FY2026.
“If money stream is a problem for what you are promoting, be sure that to leverage these monetary help initiatives,” Callaghan stated.
“These helps may also help you handle operational prices and unlock assets to give attention to long-term development.”
- Full the Shift to Digital Funds
With the phase-out of cheques by 2030, sure they nonetheless exist, Banjo encourages SME companies to arrange as enterprise absolutely transitions to digital funds. Many companies nonetheless want help with this shift and there are grants and assets out there to assist with the adoption of digital cost programs.
“Shifting to digital funds isn’t nearly maintaining with trade requirements, it may dramatically assist enhance enterprise effectivity and ship higher money stream administration,” stated Callaghan.
“Discover assets that may help you with this transition and benefit from Open Banking to achieve extra management over your monetary information. These programs will provide you with higher visibility and make it simpler to handle your money stream.”
- Handle the price of lending
Regardless of latest drops in rates of interest, borrowing stays costly for a lot of companies. As SMEs proceed to face excessive borrowing prices, it’s important to search for methods to handle these bills.
“SMEs are feeling the pressure of excessive borrowing prices, and lots of are slicing prices to offset inflation and better rates of interest,” stated Callaghan. “If what you are promoting depends on loans to gasoline development or handle money stream, think about exploring low-interest loans or restructuring choices together with your lender. Refinancing might additionally assist scale back your curiosity burden. Search for lenders that take the time to know your state of affairs”
- Spend money on Innovation and Workforce Growth
Because the market evolves, it’s important for SMEs to remain aggressive by embracing new know-how and investing of their folks. Our newest SME Compass report confirmed SMEs are aware of simply how necessary office improvement is in reaching success. It discovered that 63% of companies plan to prioritise worker well-being and 46% plan to increase their workforce within the coming 12 months.
“Staying agile and revolutionary is vital to long-term development,” Callaghan stated.
“I’d encourage SME enterprise house owners to put money into upskilling your workers, whereas on the similar time adopting any new applied sciences that may assist enhance your operations. Whether or not it’s by coaching applications or adopting the most recent know-how, protecting your staff well-equipped and what you are promoting revolutionary will guarantee you’ll be able to reply rapidly to market adjustments.”
- Keep Compliant with Wage Theft Laws and Fraud Administration
Mid-way by FY2025, wage theft turned a legal offence, which, whereas necessary, can add strain to SME enterprise house owners, who want to remain vigilant in guaranteeing their payroll processes are compliant with the brand new laws.
“The wage theft legal guidelines imply companies should be extra diligent with payroll, and that comes with its personal challenges,” Callaghan stated.
“To keep away from penalties, make sure you’re updated with the Voluntary Small Enterprise Wage Compliance Code. There are assets and coaching out there that will help you keep on monitor, so be sure to benefit from them.”
Fraud and monetary crime additionally stay a key precedence with doctored monetary info, pretend invoices, phishing emails and different on-line scams as persevering with to develop in scope and complexity.
“We proceed urging SMEs to be vigilant round fraud detection, keeping track of any pretend invoicing or fraud dangers and reporting any suspicious or fraudulent exercise you may see. Analysis on fraud detection software program which may be appropriate for what you are promoting,” stated Callaghan.
Closing Tip: Plan and Evaluation for Success
As we transfer into BOFY2026, we might encourage SME companies to take the time to evaluate any enterprise plans, reassess your financials and establish areas in what you are promoting the place you’ll be able to actively and realistically drive development. With ongoing challenges, it’s essential to be proactive and strategic about what you are promoting route.
“Evaluation your financials, plan your development technique, and guarantee what you are promoting is prepared for what FY26 has in retailer. Be sure you have a base case, stretch and Armageddon plan,” Callaghan stated.
“By taking motion now, you’ll place what you are promoting for fulfillment, or generally survival, within the 12 months forward.”