Small business surge creates 'golden opportunity' for mortgage brokers

Australian brokers have a growing incentive to sharpen their self‑employed expertise as a surge in new businesses reshapes the home‑lending landscape.

With almost 40% of Pepper Money’s home loan settlements now going to self‑employed borrowers (excluding SMSF and commercial real estate), chief executive of mortgages and commercial lending Barry Saoud (pictured) says brokers are uniquely placed to support this fast‑growing segment.

“Small businesses and sole traders are one of the most dynamic sectors of the economy, but they’re also among the most underserved when it comes to finance,” Saoud said.

The development comes as NAB’s latest survey shows business conditions at their highest since March 2024, with trading and profitability improving and confidence sitting above its long‑run average.

Half a million new ABNs – and rising

Australian Bureau of Statistics data and Lawpath’s New Business Index show more than 436,000 new ABNs were registered between July 2023 and June 2024. August 2025 alone saw a record 104,784 new business registrations – up 21% year‑on‑year.

That takes the tally to more than 500,000 new ABNs between April 2023 and October 2025, creating a deep pipeline of self‑employed and small‑business borrowers who may not fit traditional “vanilla” credit profiles.

“For 25 years we’ve helped self-employed Australians who’ve struggled to find a lender that understands how their business really works," Saoud said. "They’ve got the ambition and income to grow, but their numbers don’t always fit the traditional lender profile. That’s where our really helpful digital tools, like AltDoc Xpress, also come in – helping brokers, accountants, and self-employed borrowers manage documentation with ease and speed.”

Traditional lenders cautious; access to finance still a roadblock

While Reserve Bank data shows small‑business lending has risen modestly over the past year, Saoud notes that much of this growth has come from medium‑sized enterprises, not sole traders and new ABN holders.

For those newer and smaller businesses, access to credit remains one of the biggest roadblocks to growth – and a key area where brokers and non‑banks can differentiate.

“Real opportunity lies in helping clients tell the story”

Saoud said brokers add the most value when they can present the true picture of self‑employed income to lenders.

“The real opportunity lies in helping clients tell the story behind their income," the Pepper Money chief said. "Whether that’s through BAS, business statements, or alternative documentation, brokers who can translate the reality of self-employed earnings are the ones unlocking finance that fuels business growth.”

That includes knowing when to use full‑doc versus alternative‑doc options, and how to package fluctuating or lumpy earnings in a way credit teams will accept.

What this means for brokers

Pepper Money highlights three key themes for brokers:

• A booming pipeline: with more than 500,000 new ABNs generated between April 2023 and October 2025, brokers who specialise in the self‑employed space have a growing pipeline of opportunity.
• A gap to fill: traditional lenders often remain cautious around newer businesses or those trading with irregular cash flow. Brokers can bridge that gap with more flexible lenders like a non‑bank.
• A chance to lead: brokers who can approach “new ABN” borrowers with empathy, flexibility and practical know‑how are best placed to win new clients.

“We work with brokers to help them deliver real outcomes for their self-employed clients,” Saoud said.

“From higher LVRs to extended loan terms that help cash flow, we help brokers tailor finance solutions that let small businesses invest, expand, and get on with what they do best.”

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