Despite the soft economy, many SMEs are upgrading vehicles, machinery and technology – but doing it in a way that protects cash reserves.
 
The Australian Bureau of Statistics reports that loans for plant and equipment were 9.4% higher in the September quarter than the year before and 36.9% above the 10-year average.
 
That’s not a business sector pulling back – that’s a sector investing, carefully and deliberately.
 
Why more SMEs are choosing finance instead of cash
 
Rather than pay upfront, businesses are spreading the cost of upgrades over the life of the asset. That makes it easier to:
  • Keep cash available for wages and operating costs.
  • Align repayments with the income the asset brings in.
  • Avoid relying on credit cards or overdrafts for short-term funding.
Lenders are competing for this business
 
Banks and non-banks are leaning in with sharper structures and faster turnaround times. Depending on the lender, you may have options like seasonal repayments, balloon amounts or longer terms – all designed to keep cash flow predictable.
 
If you’re planning an upgrade, fit-out or vehicle purchase in 2026, contact me and I’ll show you how to structure asset finance so your cash buffer stays intact.