Hardship support still uneven for small business borrowers, FCA report warns
Finance
Small Business
Cashflow
Posted By - Court Sayer-Roberts
29 July, 2026
0 Comments
Financial Counselling Australia says hardship support across banks, other lenders and debt collectors remains inconsistent, with its Rank the Banks, Other Lenders and Debt Collectors 2026 report finding the major banks continue to rate ahead of many other credit providers. The report, published by the FCA in July 2026, examines how financial counsellors rate creditors' responses to customers experiencing financial difficulty.
For small business owners, the findings are relevant because financial stress often spans both business and personal debts. FCA’s Small Business Debt Helpline data shows it handled 6,205 cases in the 12 months to 31 December 2025, up 21% on the previous year. The most common debts included ATO debt, business loans from bank and non-bank lenders, home mortgages, motor vehicle finance and supplier debts.
FCA says small business customers can face weaker or less accessible hardship protections than individual consumers, even though business owners may experience similar vulnerable circumstances. Industries most frequently represented in helpline data included construction, accommodation and food services, and personal and other services.
Why it matters: Small businesses under cash-flow pressure may receive different levels of support depending on whether their debt is with a major bank, non-bank lender, government agency, supplier or debt collector.
Who is affected: Sole traders, microbusinesses and SMEs carrying business loans, tax debts, vehicle finance, supplier debts or personal debts linked to the business, particularly where cash-flow stress has spilled into loan arrears, mortgage stress, tax debt or supplier pressure. FCA points small business owners in financial difficulty to the Small Business Debt Helpline on 1800 413 828, while individuals can contact the National Debt Helpline on 1800 007 007.
