Lenders are competing again, a bathhouse opens its doors, and where SMSF money is heading
Through August, the clearest pattern in our conversations with lenders was divergence. Some are pulling back, others are leaning in, and appetite for the same deal now varies more between lenders than it has in years. This edition covers what that means for your facilities, a client whose Melbourne bathhouse has opened its doors two years after buying the site vacant, where SMSF property money is heading now that new residential borrowing inside super is closed, and a big month for the acquisition community.
Lenders are competing for business again
Through August, the clearest pattern in our conversations with lenders was divergence. Some are pulling back, with credit teams looking harder at marginal deals than they were a year ago. Others are leaning in: business and commercial books grew at several banks even as their home lending shrank, and non-bank lenders keep taking share in small business lending.
For business owners, the practical point is that appetite for your deal varies more between lenders right now than it has in years. The same facility can get a tired renewal from the incumbent and a sharp offer from a bank that wants the sector, and I've had a number of these conversations this past month. If your facilities have not been tested against the market in the past year, that gap is worth checking.
From an empty shopfront to open doors
I recently shared on LinkedIn about Navia, a client we helped out with financing. Their second bathhouse, after Byron Bay, is now open for business in Melbourne.
The property was bought vacant in 2024. No tenant, no lease, no income, backing what was effectively a start-up with limited trading history. When it came to financing the construction and fit-out, most lenders and valuers found it difficult to support, due to a lack of comparable assets and a lack of track record. Two years later it is a purpose-built bathhouse with its doors open. Deals like this get done on positioning and I'm proud of the work we were able to do to support their launch: presenting the operator, the asset, and the plan in a way a credit team can back.
Congratulations to the team at Navia. I shared the full journey in the link below.
See the full story on LinkedIn →
Where SMSF property money is heading
One of the quieter consequences of this year's superannuation changes is now showing up. New borrowing inside a self-managed super fund to buy residential property is no longer available, while commercial property lending inside SMSFs was left untouched. Industry reporting through August points to trustees redirecting toward commercial assets as a result.
For business owners, the most common version of this is buying your own premises through your fund and leasing it back to the business. That path remains open, and done correctly it can be one of the more structurally sensible uses of SMSF lending. The lender panel for SMSF commercial is narrower than standard commercial lending and policies differ meaningfully between them, so the structure needs to come first, and your accountant and financial adviser belong in the conversation early.
We recently did a write up on how the lending side works, including what lenders look for and where the borrowing rules sit.
How SMSF commercial lending works →
A big month for the acquisition community
In early August we sponsored a panel evening at Melbourne Business School with the ETA community. A full room of searchers, operators, and advisers, and the conversations have carried on well past the night. It was great to meet many of you, both existing and new faces and we continue to be excited about the growing community and interest in business acquisitions. If you'd like to chat about a potential acquisition, book some time with us.
On 2 September, we'll host the inaugural ETA Academy with TEN13, a full-day program for people seriously exploring buying a business. Applications are closed as we had incredibly strong demand from applicants. We will share how the day went in next month's letter including key learnings, and the detail of what the Academy covers is on our website below.
Australia ETA Community
If you're exploring business acquisition in Australia, the Melbourne ETA community is a good place to start. Resources, upcoming events, and connections in one place. Visit the Australia ETA Community.
Want to talk through your position?
If any of this overlaps with what you are working on, whether that is an acquisition, a commercial property purchase, or a facility worth reviewing, get in touch. Replies come back within one business day.
The information in this article is general in nature and does not constitute financial advice. Please consider whether it is appropriate for your circumstances before acting on it. Jonathan Chan is a Credit Representative (Number 559372) of Finsure Finance and Insurance Pty Ltd (Australian Credit Licence 384704).