Main non-bank lender Banjo Loans is urging small to medium companies (SMEs) to take 5 key actions earlier than June 30, with a view to higher place themselves for achievement in what appears to be an ongoing difficult financial surroundings in FY2026.
In FY2025 a lot of Australia’s small and medium companies (SMEs) had been pressured into survival mode, in keeping with Banjo Loans CEO Man Callaghan.
Callaghan says giant falls in shopper confidence and consumption, stubbornly excessive inflation, excessive rates of interest and world financial uncertainty mixed to create an ideal storm of enterprise headwinds.
Additional, as income slowed and help decreased, most notably with the removing of the $20,000 instantaneous asset write-off, SMEs are feeling the pinch and on the lookout for methods to maneuver ahead.
Regardless of the turbulence of the monetary yr that was, Man Callaghan outlines Banjo’s 5 key precedence actions for SME companies to maneuver ahead, stabilise, handle money circulate and proceed constructing with confidence into FY2026:
- Take Benefit of Monetary Assist for SMEs
Previously, 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 yr made a distinction for some SME companies. It’s important for SMEs to remain knowledgeable about monetary reduction choices resembling rebates, grants and different help measures which can be out there in FY2026.
“If money circulate is a problem for your enterprise, be sure to leverage these monetary help initiatives,” Callaghan mentioned.
“These helps may help you handle operational prices and unlock sources to give attention to long-term progress.”
- 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 sources out there to assist with the adoption of digital fee programs.
“Shifting to digital funds isn’t nearly maintaining with trade requirements, it could possibly dramatically assist enhance enterprise effectivity and ship higher money circulate administration,” mentioned Callaghan.
“Discover sources that may help you with this transition and make the most of Open Banking to achieve extra management over your monetary knowledge. These programs offers you higher visibility and make it simpler to handle your money circulate.”
- 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 plenty of are reducing prices to offset inflation and better rates of interest,” mentioned Callaghan. “If your enterprise depends on loans to gasoline progress or handle money circulate, take into account exploring low-interest loans or restructuring choices together with your lender. Refinancing might additionally assist cut back your curiosity burden. Search for lenders that take the time to know your scenario”
- Spend money on Innovation and Workforce Improvement
Because the market evolves, it’s important for SMEs to remain aggressive by embracing new know-how and investing of their individuals. Our newest SME Compass report confirmed SMEs are acutely aware of simply how necessary office growth is in attaining success. It discovered that 63% of companies plan to prioritise worker well-being and 46% plan to develop their workforce within the coming yr.
“Staying agile and modern is essential to long-term progress,” Callaghan mentioned.
“I’d encourage SME enterprise house owners to spend money on upskilling your employees, whereas on the similar time adopting any new applied sciences that may assist enhance your operations. Whether or not it’s by means of coaching applications or adopting the newest know-how, maintaining your group well-equipped and your enterprise modern will guarantee you’ll be able to reply rapidly to market modifications.”
- Keep Compliant with Wage Theft Laws and Fraud Administration
Mid-way by means of FY2025, wage theft turned a prison offence, which, whereas necessary, can add stress to SME enterprise house owners, who want to remain vigilant in making certain 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 mentioned.
“To keep away from penalties, make sure you’re updated with the Voluntary Small Enterprise Wage Compliance Code. There are sources and coaching out there that can assist you keep on monitor, so be sure to make the most of 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 that could be appropriate for your enterprise,” mentioned Callaghan.
Remaining Tip: Plan and Overview for Success
As we transfer into BOFY2026, we’d encourage SME companies to take the time to evaluation any enterprise plans, reassess your financials and establish areas in your enterprise the place you’ll be able to actively and realistically drive progress. With ongoing challenges, it’s essential to be proactive and strategic about your enterprise course.
“Overview your financials, plan your progress technique, and guarantee your enterprise is prepared for what FY26 has in retailer. Be sure you have a base case, stretch and Armageddon plan,” Callaghan mentioned.
“By taking motion now, you’ll place your enterprise for achievement, or typically survival, within the yr forward.”