Business finance a flexible, cashflow-friendly solution for Aussie SMEs

A 2025 study by UNSW Business School and Commonwealth Bank found that the number of SMEs that had experienced an impact on their cashflow over the previous 12 months sat at almost 80%. 27% of small business owners either used personal savings, didn’t pay themselves a salary or both to combat cashflow issues.

In 2026, life is becoming more challenging for small businesses, with repeated rate hikes, Payday Super, changes to ATO tax debt payments and the removal of credit card surcharges all adding up to increasing pressure on SMEs and commercial loans surging to $1.47 trillion.

Maintaining healthy margins is challenging at the best of times, let alone when you’re swimming against the tide. That’s why the role of accountants and other financial professionals is so crucial when it comes to pointing businesses in the right direction. 

What levers are able to be pulled when cashflow is tightening? Is a loan the right move for the business to help with some of these issues? These are just some of the questions accountants and SME owners must ask themselves when assessing their financial situation.

Finding the right loan

The key consideration for businesses looking into commercial finance solutions is what they’re looking to take out the loan for. Business finance is designed to be versatile and malleable to suit a wide range of commercial needs, so they’re able to shape agreements to suit their situation. 

Whether they opt for a standard, lump sum loan or a line of credit or overdraft comes down to how the business plans to use it. 

Perhaps your client is looking to consolidate debts and space out the repayment over a more manageable cycle. A standard unsecured or secured business loan will allow them to do just that, clearing their balances owed to creditors and streamlining it into a single payment.

A business may also be in the market for an asset, such as a vehicle or specialised piece of equipment. Just like an individual can with a private-use car loan, the most common way to finance a vehicle is through a secured commercial car loan.

Alternatively, is your client wanting to top up their cash reserves or boost their cashflow? For recurring costs that keep popping up, a line of credit offers access to funding when you need it. This offers more flexibility in how they not only obtain their funds, but also how they repay them.

One of the roles of a loan here is to keep cash reserves intact as much as possible. Taking out a huge sum to buy a new ute could leave you vulnerable if you get hit with an unexpected bill or backlog of unpaid invoices.

“Accountants can work through the logistics of a loan with their client to help them structure their business finance and understand not only what they need, but also what they’re likely to be able to get,” Savvy Managing Director Bill Tsouvalas said.

“For example, if your client’s business is still in its infancy and they don’t have much in the way of solid financials to fall back on, you’re more likely to point them in the direction of a low doc commercial loan.”

Helping clients navigate loan tax implications

It goes without saying that one of the key roles of an accountant is to have a clear hold on the tax implications of their clients’ financial decisions. This is just as important for businesses as it is for individuals.

The crucial thing for SME owners here is to understand what can and can’t be claimed as a tax deduction on their loan agreement. 

The biggest one is interest, which could potentially save thousands, or even tens of thousands, of dollars over the life of the loan. For example, a $30,000, five-year car loan at 7.50% p.a. would cost $6,068 in interest overall, but using it for business purposes means up to 100% of that sum becomes tax-deductible.

GST is another eligible expense, with up to $6,353 able to be claimed as a credit as of the 2026-27 financial year, while depreciation of the vehicle is one that many won’t be as aware of.