Lending to Australian businesses grew 11.3% in the year to September 2026, according to the Reserve Bank of Australia's Financial Aggregates release published on 30 October 2026. On the RBA's D1 growth table, that is the fastest annual pace for business credit since January 2023. For business owners weighing up equipment, vehicle or machinery finance, the figure is useful background, not a signal about how any one application will be treated.
This article sets out what the September numbers show, what they cannot tell you, and a worked repayment example using the RBA's latest published small business lending rates.
Business credit growth: the September 2026 numbers
The RBA's September 2026 summary reported:
- Business credit (lending to non-financial businesses): up 0.9% in September and 11.3% over the year, compared with 9.4% in the year to September 2025.
- Total credit: up 0.6% in the month and 8.4% over the year.
- Housing credit: up 0.4% in the month and 7.0% over the year.
- Personal credit: up 0.3% in the month and 4.8% over the year, easing from 5.1% in the year to August.
Within housing, the D1 table shows investor credit growth slowed to 9.0% over the year, from 9.6% in August, while owner-occupier credit grew 6.1%. The RBA says all of these growth rates are seasonally adjusted and adjusted for breaks in the series, and that historical figures were revised in this release. We covered the August release for household borrowers in our article on personal credit growth in August 2026.
What faster business credit growth does and does not tell you
Business credit growing faster than housing and personal credit means more of the economy's new borrowing is going to businesses. That is our reading of the figures, and the release itself does not explain why businesses are borrowing more.
Some limits are worth keeping in mind:
- The RBA notes its credit aggregates measure credit provided by financial institutions operating domestically, and do not capture cross-border or non-intermediated lending.
- The data covers all lending to non-financial businesses. It does not separate equipment finance or chattel mortgages from overdrafts, property-secured loans or large corporate borrowing.
- Aggregate growth does not mean lenders have relaxed their criteria. Each application is still assessed on the business, the asset and the people behind it, as our business equipment finance guide explains.
What the RBA's latest business lending rates show
The RBA's Lenders' Interest Rates page gives average rates for August 2026, the latest month available. Small businesses paid an average of 7.47% on outstanding loans and 7.23% on new loans. Medium businesses paid 6.21% and 6.18%, and large businesses 5.75% and 5.54%.
The underlying Table F7 data splits new small business loans in August into an average of 8.09% for fixed-rate loans and 6.81% for variable-rate loans. New small business loans secured by residential property averaged 6.98%, so the all-loan averages include borrowing backed by a home, which may price differently from a loan secured only by equipment.
Two qualifications matter. These are averages across many loan types and lenders, not quotes. And August predates the RBA's decision to lift the cash rate target to 4.60%, effective 30 September 2026.
Worked example: $100,000 of equipment over five years
To show how much the rate matters, we calculated repayments on $100,000 financed over 60 monthly repayments. Assumptions: no deposit, no balloon, no fees, no GST effects and the same rate for the whole term. This is our illustration, not a quote or an estimate of what any lender would offer.
- At 7.23% (August average for new small business loans): about $1,991 a month, with about $19,459 in total interest.
- At 8.09% (August average for new fixed-rate small business loans): about $2,032 a month, with about $21,917 in total interest.
- At 8.34% (the fixed average plus 0.25 percentage points): about $2,044 a month, with about $22,637 in total interest.
- At 9.09% (the fixed average plus one percentage point): about $2,080 a month, with about $24,812 in total interest.
On these assumptions, each 0.25 percentage points adds roughly $12 a month per $100,000 borrowed over five years. A quote one percentage point above the fixed average costs about $48 a month more, or about $2,900 over the term. Fees, a balloon or a different term can change the total as much as the rate, which is why our guide to comparing asset finance with a business loan recommends comparing dated cash flows and the total amount payable.
The RBA decision on 3 November 2026
The RBA's calendar shows the Monetary Policy Board meeting on 2 and 3 November 2026, with the decision on 3 November. The cash rate target currently sits at 4.60%. We do not forecast the outcome. If you are close to signing, ask whether a quoted rate is fixed for the term and how long the quote is held.
A checklist before applying for business credit for equipment
- Separate the asset from other costs. List the equipment, installation and any working capital need on their own lines, so each is matched to a suitable product.
- Prepare the file. Our commercial asset finance documents guide lists the records lenders commonly ask for.
- Test the repayment. Put the quoted repayment, and one at a higher rate, into your cash-flow calendar alongside wages, rent and tax commitments.
- Ask about the full cost. Confirm whether the rate is fixed, every fee, any balloon and the cost of paying out early.
- Read the security. Check what assets secure the loan and whether a director's guarantee is required.
- Compare relevant products. Use our commercial asset finance lenders guide to compare providers for the asset you are buying.
For tax treatment, our article on the instant asset write-off for vehicles and equipment is a starting point, and your accountant can confirm how it applies to your business.
This article is general information, not financial advice. If you are buying equipment for your business, you can compare options through Loanseekers business equipment finance, or machinery finance for heavier plant.
