Home topics news Alex Molloy, CEO and Co-founder Valiant Finance News News Asset finance surges 41% as SME working capital enquiries turn negative Yajush Gupta January 29, 2026 Asset finance volumes jumped 41% in Q3 2025 whilst working capital enquiries turned negative by year’s end, according to Valiant Finance’s Alex Molloy. What’s happening: Asset finance volumes surged by 41% in Q3 and 33% in Q4 of 2025, driven by rate cuts and the Instant Asset Write-Off extension. Why this matters: The diverging trends reveal how Australian SMEs are adapting to economic uncertainty by prioritising long-term productivity investments whilst pulling back on short-term debt. Asset finance has emerged as a clear growth story heading into 2026, with businesses continuing to invest in essential equipment despite broader economic headwinds. According to new market data from Valiant Finance, funded asset finance volumes surged 41% in Q3 and 33% in Q4 of 2025, whilst enquiries grew steadily between 9% and 14% year on year, signalling sustained confidence in long-term productivity investments. “In a reduced rate environment, we saw SMEs prioritise investments that directly support revenue and efficiency,” said Alex Molloy, Co-Founder of Valiant Finance. “Equipment, vehicles and technology are no longer ‘nice to haves’—they’re critical to staying competitive, and businesses are willing to finance them when the numbers stack up.” The growth came after the Reserve Bank cut rates early in 2025 and the government extended the Instant Asset Write-Off scheme, creating favourable conditions for capital investment. Competitive pricing emerges Lender competition intensified throughout