As Australian businesses move into the Christmas shutdown period – when cashflow tightens and trading slows across most industries – Moneytech, one of Australia’s leading non-bank lenders to SMEs, says too many business owners are still approaching finance reactively, leaving themselves exposed at the very time their operations face the greatest strain.

Reece Ketu, Group Head of Sales & Distribution at Moneytech, said the December–January period remains the most challenging window for businesses managing supplier costs, payroll, slower receivables and holiday closures. Yet many still seek finance only once they are already under pressure. “We see businesses wait until they’re in a cashflow crunch before asking for help. By that point, their options shrink and the cost of funding inevitably increases. The SMEs that enter the new year strongest are the ones thinking twelve to twenty-four months ahead, not just plugging gaps as they appear,” Ketu said.

Andrew Beckett, Head of Broker and Third-Party Distribution at Lend, said the most common issue they encounter in December is SMEs applying for funding when their financial profile no longer supports the size of the facility they need. He said many business owners are addressing an immediate cash shortage without considering how the next year of trading will unfold. “A lot of clients come in wanting a quick capital injection, but their bank statements show months of diminishing balances. If you wait until you need money yesterday, the servicing position simply isn’t there anymore,” Beckett said.

Beckett notes this becomes particularly problematic when SMEs treat finance as a short-term fix rather than a strategic tool. “Many are trying to solve today’s problem without addressing the underlying issue. They’re putting a Band-Aid on something that really needs a long-term plan,” he said.

Beckett added that operators in the strongest position heading into 2026 are those reviewing their facilities early, increasing limits before peak trading hits, and ensuring their structures can scale with growth. “The good operators don’t hit December in panic mode. They’re forecasting costs, anticipating delays, and working with brokers to strengthen their position long before the pressure arrives,” he said.

The seasonal squeeze is especially acute for industries heavily affected by long payment terms, contract delays and even weather events. Construction remains one of the hardest-hit sectors, with businesses frequently carrying unpaid invoices from head contractors while still needing to pay subcontractors and suppliers. Transport operators have faced similar challenges this year.

Cyclone-related road closures in Queensland earlier this year, left one transport operator unable to complete deliveries for weeks, extending payment delays while supplier costs continued. It’s the kind of seasonal disruption that puts sudden strain on cashflow at this time of year.

Ketu said situations like this highlight how quickly seasonal disruptions can tighten cashflow. “When events like storms, flooding or heatwaves interrupt work for several weeks, the gap between payments going out and payments coming in widens very quickly,” he said. “Businesses need enough headroom in their cashflow planning to absorb those shocks, particularly over summer.”

“The strongest operators we work with treat cashflow as a forecast, not an emergency,” Ketu said. “They map out their working capital needs across seasons, projects and payment cycles, and they review their facilities well before any pressure hits. Taking that approach gives businesses more control and more confidence, particularly at this time of year.”

Despite these pressures, both organisations say the biggest hurdle facing SMEs is not access to capital, but a lingering misunderstanding of how commercial finance works. Many still assume non-bank lending is too costly, too complicated or only for struggling businesses – a misconception that can lead to worse outcomes. Beckett said many SMEs lack awareness of the options available. “Some business owners still believe only the majors are credible. But in the commercial world, things aren’t black-and-white. A bank might reject a perfectly good client because of rigid policy, while a non-bank lender can support them with a structure aligned to their cashflow needs. Education is the missing piece here,” he said.

A core part of that education gap lies in understanding the role of brokers. “Most people know mortgage brokers, but very few SMEs know commercial or asset finance brokers exist. Once they understand how these structures support their business, they don’t just use them once – they come back again and again,” Beckett said.

Beckett noted that in recent months the creditworthiness of many applicants has actually improved, pointing to early signs of economic uplift. This, he said, is why forward-looking SMEs are focused on strengthening their position now rather than waiting for pressure to build.

Ketu said forward planning becomes especially valuable heading into summer. “December and January tend to expose any gaps in planning. The more visibility SMEs have over the commitments they’re taking on, the easier it is to manage the natural ebb and flow of this period,” he said. “A bit of forward thinking can make the difference between starting the new year under pressure or starting it with momentum.”