Commercial finance settlements surge 20% as healthcare and agriculture lead industry growth: Valiant Finance
Commercial finance settlements surged nearly 20% in Q2 2025, with healthcare, agriculture, and construction leading industry growth as improved lender appetite and rising business confidence drive increased SME investment across Australia.
New quarterly data from Valiant Finance, which has facilitated over $2.5 billion across 90+ lenders, reveals significant shifts in the SME lending landscape, with some sectors experiencing dramatic growth while others face continued challenges.
Despite enquiry volumes remaining relatively flat, the substantial increase in settlements reflects a fundamental shift in the market, according to Valiant Finance.
“While overall enquiry volumes have remained relatively flat, we’ve seen a positive increase in lender appetite for SME loans, particularly from non-bank lenders,” said Alex Molloy (pictured), Co-Founder and CEO of Valiant Finance. “That shift is being driven by a combination of factors, including recent rate cuts and improving business sentiment. Lenders are more open to funding growth as confidence builds, and that’s translating into more deals getting over the line.”
Healthcare and Social Assistance led growth with a 40% increase in funded loans, while Agriculture demonstrated remarkable resilience with a 50% surge in total funding. Construction maintained its position as the top industry by volume.
However, the data reveals sector-specific challenges, particularly in transport and logistics and hospitality, which saw enquiries drop, where access to finance remains constrained.
“In areas like hospitality, especially for less established businesses, access to finance remains tough. Lenders are still cautious there, and we’ll likely need to see clearer signs of recovery before that changes,” Molloy noted.
The improved settlement rates reflect broader technological advances in the SME lending space. Valiant has invested heavily in AI-powered tools to improve product matching and streamline applications, contributing to better outcomes for small businesses seeking finance.
“We’re continuing to double down on our AI investments because technology-supported lending platforms will always deliver better outcomes,” said Alex. “Our proprietary platform gives businesses access to more tailored solutions, and we’re seeing the impact of that in both the quality and volume of settled deals.”
Q2 2025 key data points:
- Overall settlements up nearly 20% year-on-year
- Healthcare and Social Assistance: +40% in funded loans
- Agriculture: +50% surge in total funding
- Construction: Maintained #1 position
- Professional Services: 20%+ growth indicating business reinvestment
Looking ahead, Valiant Finance expects commercial financing growth to continue, though with sector-specific variations. Recent modelling from the Productivity Commission suggests Australia could see longer-term gains despite global economic disruption.
“We think growth will continue, but it won’t be uniform across the board,” added Molloy. “We’re expecting continued demand for asset finance as businesses look to invest in productivity, whether that’s better equipment or new technology. Sectors like construction and healthcare are also expected to keep growing, driven by underlying demand.”
