Banjo Loans CEO Guy Callaghan shares New Year Wish List for SMEs
With the festive season upon us, leading non-bank lender, Banjo Loans is looking ahead to the New Year, and how SMEs can position themselves for success in 2025.
Banjo Loans CEO Guy Callaghan has revealed the “New Year Wish List” that he hopes will bring essential relief to SMEs, and support their growth in the coming year. It’s all about an interest decrease to help all.
- A Continuing Decline for Core Inflation
With core inflation expected to continue its decline in 2025, SMEs will have the chance to regain stability in pricing.
“My hope for 2025 is that further reductions in inflation rates will support SME businesses, allowing them to plan with greater confidence and to set prices without the fear of sudden, unexpected increases,” Guy Callaghan said.
This potential shift could be the key to navigating the uncertainties of the market in 2025.
- A Pause in Government Spending
As the federal election begins to take shape, government spending may increase as a strategy to provide relief.
However, Callaghan urges caution and is asking the government to pause any unnecessary spending into 2025.
“While in the short term, government support might feel beneficial to consumers, increased spending will only serve to exacerbate or negatively affect core inflation. This will continue to delay much-needed interest rate cuts. For SMEs to thrive, we need a stable economic environment nationally before we consider any additional government handouts,” Callaghan said.
- Hope for Interest Rate Cuts Early in 2025
As we enter the New Year, many SMEs are optimistic about potential interest rate cuts. An early-2025 rate cut would also be a pivotal moment for businesses to reassess their financial strategies and invest in growth opportunities.
“If the data trends favourably, a reduction early in 2025 could deliver the relief that SMEs desperately need,” Callaghan said.
“I am hopeful for an interest rate cut early next year, as this would bring some well needed relief and help SMEs start the year well.”
- Job Market Data That Pleases the RBA
The job market will play a crucial role in shaping the economic landscape in 2025. Callaghan notes that a slowdown in wage growth could positively impact both the RBA’s decisions and the financial pressures faced by SMEs.
“Job market data is another key focus area for the RBA. They want to see some of the strength coming out of the market that is driving wage growth and productivity climb. Wage growth continuing to slow will not only please the RBA, but should also please SME business owners and take some pressure off their finances.”
- Embracing the Future
Callaghan says SMEs can position themselves for a successful 2025 by staying proactive and adaptable.
“With insights into inflation, government spending, interest rates, and job market dynamics, businesses can better prepare for the challenges and opportunities on the horizon. As we look ahead to the New Year, it’s clear that addressing these critical factors will be vital for the resilience and growth of SMEs in Australia.”
