Key Facts:
- Non-bank lenders are increasing court enforcement actions to record levels while major banks reduce their activity, particularly through 2023-2025
- Overall insolvency rates continue to rise, with numbers in December 2025 exceeding 2024 levels and showing consistent upward trend since COVID
- The ATO remains the primary source of court actions, with continued high levels of recovery efforts against companies and individuals
- Over 32,000 businesses faced insolvency-related activity in late 2025, up from around 30,000 earlier in the year
- Major banks are focusing on low-risk lending, forcing SMEs towards non-bank lenders
Media release
16 January 2026
Non-bank lenders ramp…