Research · Data to August 2026
Australian Business Lending Index
What Australian small businesses pay to borrow, how that compares with larger firms, and how fast SME credit is growing. Every number below is calculated from Reserve Bank of Australia statistical tables and refreshes when the RBA publishes.
The headline findings for August 2026
- A small business paid 1.72 percentage points more than a large business on outstanding loans (7.47% vs 5.75%). That premium is narrower than a year earlier (1.77 points).
- Over the past 12 months the small business rate moved +0.57 points, medium business +0.66 and large business +0.62.
- New small business loans were written at 7.23%, 0.24 points below the rate on the existing book, and −0.21 points on the prior month. New-loan pricing is the earliest signal of where the outstanding rate goes next.
- Small business credit outstanding was $209.8 billion, +8.8% on a year earlier. Medium business credit grew +9.4% over the same period.
The small business premium
The gap between what small and large businesses pay is the clearest measure of how lenders price small business risk. Over the 36 months shown it ranged from 1.30 to 1.85 percentage points.
| Spread | Latest | 12-mth change | 36-mth range |
|---|---|---|---|
| Small business premium over large business | 1.72 pts | −0.05 | 1.30 to 1.85 |
| Small business premium over medium business | 1.26 pts | −0.09 | 0.81 to 1.39 |
| Small business total vs residentially secured | 0.48 pts | −0.09 | 0.09 to 0.58 |
Business lending rates by size and type
Average interest rates on bank lending to businesses, per cent per annum. Changes are in percentage points. These are bank averages. Non-bank and unsecured lending is priced well above them; see our business loan interest rates page for indicative ranges by facility.
| Series | August 2026 | 1 mth | 3 mth | 12 mth | 36 mth |
|---|---|---|---|---|---|
| Small business, outstanding lending, total FLRBFOSBT | 7.47% | +0.01 | +0.08 | +0.57 | +0.58 |
| Small business, new loans, total FLRBFNSBT | 7.23% | −0.21 | −0.03 | +0.75 | +0.09 |
| Small business, outstanding, residentially secured FLRBFOSBR | 6.99% | +0.01 | +0.03 | +0.66 | +0.22 |
| Small business, outstanding, fixed-rate FLRBFOSBF | 7.59% | +0.01 | +0.19 | +0.31 | +2.04 |
| Small business, outstanding, variable-rate FLRBFOSBV | 7.42% | +0.01 | +0.03 | +0.66 | −0.15 |
| Medium business, outstanding lending, total FLRBFOMBT | 6.21% | 0.00 | +0.11 | +0.66 | +0.13 |
| Large business, outstanding lending, total FLRBFOLBT | 5.75% | +0.01 | +0.11 | +0.62 | +0.16 |
Business credit outstanding
Total credit outstanding to small and medium businesses, from RBA Table D14.
| Series | August 2026 | 1 mth | 12 mth | 36 mth |
|---|---|---|---|---|
| Small business credit outstanding, total | $209.8 billion | +1.2% | +8.8% | +27.6% |
| Medium business credit outstanding, total | $589.7 billion | +1.2% | +9.4% | +33.5% |
What this means if you are borrowing
The RBA averages describe bank lending, much of it secured against property. A residentially secured small business loan averaged 6.99%, 0.48 points below the small business average. If you are not offering property, expect to pay more than these figures, and considerably more for unsecured finance from non-bank lenders.
Equipment finance usually sits between the two, because the asset itself is the security. That is why a truck or excavator can often be financed at a rate closer to secured lending than an unsecured loan of the same size. Compare structures on our chattel mortgage vs hire purchase vs lease guide, or see equipment finance.
Method, sources and what is not here yet
- Rates: RBA Statistical Table F7, Business Lending Rates. Credit: RBA Table D14, Lending to Business by size. Latest F7 release 8 October 2026, D14 release 8 October 2026.
- Spreads are simple differences between published series in the same month. Growth rates are calculated from the published levels. Nothing is modelled, smoothed or estimated.
- The page is recalculated automatically after each monthly RBA release. Last verified 11 October 2026.
- This is the public-data edition. Avoir's own application data will be added when cells reach the 30-application minimum set out in our methodology. Until then we publish none of it.
- Free to cite with attribution: “Australian Business Lending Index, Avoir, data to August 2026, from RBA Tables F7 and D14.”
Sources: RBA F7 (CSV) · RBA D14 (CSV). General information only, not financial advice.
By James Baker · Founder, Avoir
Founder of Avoir and a commercial finance specialist focused on asset and equipment finance for Australian transport, civil and construction businesses.
Last reviewed: 11 October 2026