Home topics news Credit: Money Knack News News Australian businesses seek survival funding amidst rising credit demand Yajush Gupta August 29, 2025 Businesses are borrowing to stay alive, not grow. Brad Walters explains why July’s credit surge is actually a warning sign. What’s happening: Business loan demand surged 6% in July 2025 compared to the same month last year, while 1362 companies entered insolvency: a 10% increase. Construction sector leads both categories, showing stress across the economy. Why this matters: The credit surge represents survival borrowing rather than growth investment, with businesses seeking funds to maintain operations rather than enhance productivity, according to Equifax analysis of commercial credit trends. Credit demand rises Businesses seeking survival funding Australian businesses increased their demand for commercial credit by 3.8% in July 2025 compared to July 2024, driven primarily by a 6% surge in business loan applications. However, the underlying motivation appears to be operational survival rather than expansion. “In the face of ongoing market uncertainty, economic pressures and continued growth in insolvencies, we can see that many businesses are reaching out for credit often to maintain operations or invest in core offerings, rather than investing in productivity enhancing measures such as technology, training or hiring,” says Brad Walters, General Manager of Commercial at Equifax. Year-to-date commercial credit demand has risen 2.14% compared to the same period in 2024, with business loans leading the charge while trade credit demand declined 7.3% year-on-year in July. Asset finance demand increased by a more modest 2.7%, suggesting