Lumi Q3 2025 Market Pulse Report: 42% of SMEs Planning to Seek Funding Within Six Months
Australian SMEs are entering the final stretch of 2025 with optimism – and an urgent need for capital. Lumi’s Q3 2025 Market Pulse Report, based on a survey of 545 SME owners across industries, shows a small business economy that is hungry for growth but constrained by fragile cash reserves and slow access to funding.
Headline findings:
74% of SMEs reported improved business performance over the past 12 months
49% have raised growth targets since January
84% operate with less than three months of cash reserves
62% missed a growth opportunity due to delayed or unavailable funding
42% plan to seek funding within the next six months
27% of SMEs regretted delaying funding
50% continue to cite customer acquisition as their top growth driver
Funding gaps remain a critical concern
Despite stronger performance, many SMEs are still leaning on unsustainable measures to manage liquidity: 57% are tapping personal savings and 31% are delaying supplier payments. In contrast, more sustainable tools such as short-term finance (38%) and lines of credit (27%) are increasingly being used to keep growth plans alive. With end-of-year deadlines looming, the speed of funding is becoming the decisive factor between momentum and missed opportunity.
End-of-year planning drives action
With the year-end rush approaching, SMEs are moving early to secure funding. The report shows that 42% plan to raise external capital within six months – and nearly one in four are already preparing for end-of-year requirements. The top priorities are tangible and time-sensitive: equipment and technology upgrades (32%), tax and compliance management (31%), seasonal stock purchases (24%), and marketing campaigns to capture holiday demand (21%).
Anna Hawter, Lumi Deputy CEO, said:
"This quarter’s Market Pulse shows the dual reality of Australian SMEs: three in four report stronger performance, yet over 80% still hold less than three months’ cash reserves. With 62% already missing growth opportunities because funding came too late, access to fast, flexible capital isn’t a nice-to-have – it’s the hinge between momentum and missed potential. At Lumi, our mission is simple: to ensure ambitious SMEs aren’t held back by timing, but empowered to grow with confidence."
The Q3 Lumi Market Pulse report highlights both the strength and fragility of Australia’s SME sector. By addressing persistent funding gaps with timely, transparent finance, Lumi is focused on unlocking the next wave of SME growth – giving business owners the capital they need, when they need it most.
About Lumi
Lumi is a leading Australian fintech lender providing fast, flexible, and transparent funding solutions. Leveraging real-time data, Lumi offers customised funding to help SMEs bridge cash flow gaps, support growth initiatives, and thrive in a competitive business environment.
The full Q3 2025 Market Pulse Report is now live.
