Lumi Market Pulse Report: EOFY Lending Trends Show SMEs Prioritising Growth Despite Cash Flow Pressures
With the end of financial year fast approaching, Lumi has released its Q2 2025 Market Pulse Report, offering a data-rich snapshot of small business sentiment and funding behaviour across Australia.
The findings, based on a survey of 571 SME owners conducted in April, reveal a confident yet cash-strapped sector. While 78% of respondents report strong demand for their products and services, and 64% have raised their growth targets for the year, most hold less than three months' worth of cash reserves — intensifying the need for fast, flexible funding.
Key findings from the report:
78% of SMEs report strong customer demand
64% have increased their growth targets for 2025
82% hold less than 3 months’ worth of cash reserves
55% plan to borrow in the next 12 months
44% require working capital before June 30
“EOFY is a natural inflection point for many businesses — a time when investment decisions, tax planning, and new opportunities converge,” said Lumi Founder and CEO Yanir Yakutiel. “The data shows that SMEs are optimistic, ambitious, and willing to reinvest — but they need finance partners who can move at their speed.”
The report also shows a growing preference for non-bank lending solutions, with 36% of SMEs planning to borrow from fintech lenders to gain faster access, better flexibility, and simpler processes.
“Small businesses are making bold moves — whether it’s hiring before the seasonal rush, pre-purchasing inventory, or investing in digital tools,” Yakutiel added. “Lumi’s role is to help them act with confidence. That means giving them funding that’s fast, fair and fit for their actual needs.”
The Market Pulse Report includes in-depth data across industries and offers practical insights to help SMEs, advisors, and brokers navigate EOFY and plan ahead for FY26.
Highlights include:
SME borrowing trends in Q2 and beyond
Key growth triggers and funding use cases
Tax-time pressures driving demand
Why more businesses are choosing fintech lenders
The full report is now available.
