July 7, 2025 • 10 mins
The new financial year seems as good a time as any for small businesses to get things in order for the year ahead.
Guy Callaghan, CEO of Banjo Loans, joins Sean Aylmer to discuss why FY26 is particularly challenging for SMEs, and shares some tips on how businesses should be preparing.
Find out more: https://fearandgreed.com.au
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
Welcome the Fear and Greed Business Interview. I'm Sean Aylmer.
The new financial year seems as good a time as
any for small businesses to get things in order for
the year ahead. Has always there's plenty of uncertainty about
what's going to come over the next twelve months, but
the twenty twenty six fiscal year is particularly challenging, shall
we say, because of the jab political climate and potential
(00:27):
for tariffs. Now, while tariffs may not directly impact a
small or medium sized business, they will impact the Australian economy.
So how should businesses prepare for the year ahead? To
help answer that question, I welcome Banjo Loan's CEO, Guy Callahan. Guy,
welcome to Fear and Greed.
Speaker 2 (00:43):
Hi Sean, thanks great to be here.
Speaker 1 (00:45):
Broadly, what's the state of the SME market at the moment?
Speaker 2 (00:50):
It is? It's tough. It's really really tough out there.
Speaker 3 (00:54):
They've been doing it pretty tough for five years and
probably the first time we've got a little bit of
a light at the end of the tunnel with some
interest rate drops, which I think will you know, hopefully
touch wood in the next few days. We might get
some more good news around that for the SMEs because
with getting a bit of debt funding and help them
sort of really power their growth where they have not
(01:15):
been able to do that lately. But yeah, believe me,
it's a tough environment. They've been doing it really tough
for a long time.
Speaker 1 (01:21):
We have discussed this before. But are they sect as
particularly finding it hard and others doing okay?
Speaker 3 (01:27):
Yeah, yeah, So construction is still really hurting, Manufacturing is
still hurting, and a bit of you know, sort of
wholesale logistics transport that side of things. Interestingly, there's been
a little bit and it's continued a little bit of
a rebound on retail and hospitality, not not not significantly,
(01:48):
but compared to where they were.
Speaker 2 (01:50):
So what we've kind of seen over the last.
Speaker 3 (01:53):
Four or five years as a real sort of jagged
sharks too, where there's a little bit of growth, then
it goes back down again a little bit of growth,
so then it goes back down.
Speaker 2 (02:01):
So it's been like that for a while.
Speaker 3 (02:03):
So no industries are really singing out. They're all hurting.
But interestingly, we just got some data out last week
for our last quarter. For the first time I sort
of saw services starting to hurt a little bit too.
Speaker 1 (02:16):
Okay, So cash flow is king in all businesses. Obviously,
take me through your views on how small businesses should
think about cash flow and running the business. Now I
know you off air we discussed there was five suggestions
to think about. The first one, take advantage of financial
(02:38):
support for SMEs.
Speaker 2 (02:40):
Yep.
Speaker 3 (02:41):
So look, no budget, not federal or state, have been
that kind to SMEs, I would say, out there, so
you've really got I would say, use the accountants that
you're working with and really look for what grants are available.
You know, we've got the energy rebate, that's probably about
the best thing that's out there at the moment. Stopped
doing the asset finance rebate, which was which was really
(03:04):
really great.
Speaker 2 (03:05):
For sms to help them.
Speaker 3 (03:06):
So what I would say is really use your accountants
and those people around you to try and find out
what grants, what grants are available, particularly within your state
where your head officers.
Speaker 1 (03:17):
Yeah, is it particularly it just doesn't seem to be
a lot out there at the moment. That's what seems interesting.
Speaker 2 (03:24):
It's been.
Speaker 3 (03:26):
It's been like a Christmas Grinch for a while in
those budget updates. I'll be honest, Yeah, all the state
ones this year have been pretty pretty poor for SMS
and the federal budget it had nothing had nothing about
from the electricity rebate.
Speaker 1 (03:39):
Okay, the second thing, the second suggestion complete the shift
to digital payments.
Speaker 2 (03:44):
Yep.
Speaker 3 (03:45):
So this is all about just making yourself as efficient
and operationally efficient as you possibly can. So getting as
digital with all of your payments, the ability to kind
of if you need to change financial institutions or anything
like that, just being in that position where you can
so you can look at what's best for you rather
than being beholden to slow systems and everything like that.
(04:10):
And then comes with that, I think another one we've
got down there is looking at compliance around fraud. So
all of that technology side of things is really important
to your business. So staying ahead of the game and
being as payment efficient as digitally efficient, fraud, all of
that stuff is super important. So it and technology, do
(04:32):
not skimp on it, that would be that would be
my advice.
Speaker 1 (04:34):
Do SMEs skimp on it? At the moment, I'd imagine
that it's kind of almost in the too hard basket
for some It is.
Speaker 2 (04:40):
Yeah, it is, it really is.
Speaker 3 (04:41):
So what we've kind of seen is a lot of
SMEs holding off hiring and when they're you know, hiring
for those resources that can help them achieve you know,
the efficiencies in the IT side of.
Speaker 2 (04:51):
Things the way SMEs you know.
Speaker 3 (04:54):
So we had had a look at when inflation first
started hurting, they all raise their prices. They stopped doing
that about eighteen months ago, and now they're looking at
seeing where they can cut costs. So things like spending
on a flash eyed new IT system. That's not happening right,
So so use what they're going to use what they've
got and try and be as effective as they can
with it. Yeah, but don't skimp on security. That would
(05:17):
be the one big thing.
Speaker 1 (05:18):
So with me, guy, we'll be right back. I'm speaking
to Guy Callahan, CEO of Ban Joe Loans. We're going
through a list of things that SM should at least
think about it as we head into the new year.
Manage the cost of lending is another one.
Speaker 3 (05:39):
Yeah, well, particularly now that interest rates are coming down
and hopefully sure and we get some really good news
in the next couple of days that are coming down again.
So it's time to sort of look around and seeing
if you're getting the best here with some of your funding.
Because believe me, the leander won't drop their rates pretty
quickly if you're sort of set set there. And that's
where being sort of with your digital set up, you're
(06:00):
able to sort of change. The other thing to do
here is to use your finance brokers that are around you.
So there's some really smart finance brokers who can who
know the different products that are out there, and they
know if you're getting a good deal or not, So
don't be afraid to engage them. And it's their job
to help you try and find the best deal for you,
(06:20):
the best type of loan and the best interest rate,
the best payments, the best repayments, all of that type
of stuff. So you again it's like the accountant, use
the financial advisors around you to really see if they
can get the best deal for you.
Speaker 1 (06:33):
I mean, I went to my lender two weeks ago
and said, hey, can I do any better than this?
And I threatened to change banks. I got an amazing
disco well not amazing disc games, but it was fifty
bases points less than what I was paying. That's on
a mortgage, So it's a bit the same in small
business loans.
Speaker 2 (06:50):
Absolutely.
Speaker 3 (06:51):
In fact, I would say it's more because what's happened
is the fighting all the banks that were fighting around
all the retail mortgages and stuff like that. Now that
they can make their money is in the business lending right,
So I think it's even more imperative now that people
go and look and see what's out there and just
see what the competition. And it's not just the banks.
I mean, we're a non bank lender, so you know,
(07:12):
blatant plug for us. We're not the chiefs out there,
but we will look for the right type of product
for you and what's there. So the financial institutions are
clambering over business loans. So it's so you tear advantage
of for an sme own it.
Speaker 1 (07:26):
Another one to invest in innovation and workforce development.
Speaker 3 (07:29):
So this is going back to the IT side of things.
It's really don't skimp on it. But then also, as
we touched on, SMEs aren't really going out there and
hiring a lot at the moment because it's really tough.
So you want to keep the workforce you've got, so
offering some smart incentives for them to stay, get them,
get them engaged in what your business is doing and
(07:51):
what the goals are, and get their goals aligned with
that with there and reward them. It doesn't have to
be financially but you know, just just different kind of incentives.
Whether it's an extra day off, whether it's sort of
wellness type activities, all sorts of stuff you can do
to incentivize you. You don't want to be out there
looking for new employees at the moment if a key
(08:12):
employee leaves you, you just don't.
Speaker 2 (08:14):
It's really hard.
Speaker 1 (08:16):
And finally we have touched in this one but bit
more details. Stay compliant with wage theft legislation and fraud management.
Speaker 3 (08:22):
Yeah, yeah, you've got to have You've just got to
have complete it systems around your fraud. So looking at
out of the side of things, we've just really upgraded
our the platform that we run our whole systems on
over the last it's actually taking us nearly twelve months to.
Speaker 2 (08:38):
Do slowly upgrade it. And one of the.
Speaker 3 (08:41):
Big things is fraud prevention for us of the security
for all of our customers. I mean, you just look
at Quantus has been it. There's been a lot of
large Australian corporation sets. So don't think the SMEs are
immune to being hit. If they can get into quantus.
They can get into your rights if you're not if
you're not careful. So you want to protect you, you
(09:03):
want to protect your clients data. That's just that's just
a given.
Speaker 1 (09:07):
And just the wage theft legislation, what is that.
Speaker 3 (09:10):
Oh, look, it's just it's making sure that you're.
Speaker 2 (09:12):
Paying right your employees well and right.
Speaker 3 (09:15):
You're not skimping on super or pay do anything like that.
So really just be right across it, making sure you've
got all your payments up to date. I mean even
like and this is not way, but looking at at
O debt, right, the ATO has now stopped having your
interest deductions on any debt you've got there, so so
the Bank of ATO, it's gone.
Speaker 2 (09:35):
It's a thing of the past.
Speaker 3 (09:36):
So you just want to keep ahead of all those
financial cup of payments. Thank you for talking to Fear
and Greed, No problem, Thanks not Sean, that was Guy
Callahan Banjo Loan CEO. This is the Fear and Greed
Business Interview. Join us every morning for the full episode
of Fear and Greed Business news.
Speaker 1 (09:51):
You can use I'm Sean Elmer. Enjoy your day,
Welcome the Fear and Greed Business Interview. I'm Sean Aylmer.
The new financial year seems as good a time as
any for small businesses to get things in order for
the year ahead. Has always there's plenty of uncertainty about
what's going to come over the next twelve months, but
the twenty twenty six fiscal year is particularly challenging, shall
we say, because of the jab political climate and potential
(00:27):
for tariffs. Now, while tariffs may not directly impact a
small or medium sized business, they will impact the Australian economy.
So how should businesses prepare for the year ahead? To
help answer that question, I welcome Banjo Loan's CEO, Guy Callahan. Guy,
welcome to Fear and Greed.
Speaker 2 (00:43):
Hi Sean, thanks great to be here.
Speaker 1 (00:45):
Broadly, what's the state of the SME market at the moment?
Speaker 2 (00:50):
It is? It's tough. It's really really tough out there.
Speaker 3 (00:54):
They've been doing it pretty tough for five years and
probably the first time we've got a little bit of
a light at the end of the tunnel with some
interest rate drops, which I think will you know, hopefully
touch wood in the next few days. We might get
some more good news around that for the SMEs because
with getting a bit of debt funding and help them
sort of really power their growth where they have not
(01:15):
been able to do that lately. But yeah, believe me,
it's a tough environment. They've been doing it really tough
for a long time.
Speaker 1 (01:21):
We have discussed this before. But are they sect as
particularly finding it hard and others doing okay?
Speaker 3 (01:27):
Yeah, yeah, So construction is still really hurting, Manufacturing is
still hurting, and a bit of you know, sort of
wholesale logistics transport that side of things. Interestingly, there's been
a little bit and it's continued a little bit of
a rebound on retail and hospitality, not not not significantly,
(01:48):
but compared to where they were.
Speaker 2 (01:50):
So what we've kind of seen over the last.
Speaker 3 (01:53):
Four or five years as a real sort of jagged
sharks too, where there's a little bit of growth, then
it goes back down again a little bit of growth,
so then it goes back down.
Speaker 2 (02:01):
So it's been like that for a while.
Speaker 3 (02:03):
So no industries are really singing out. They're all hurting.
But interestingly, we just got some data out last week
for our last quarter. For the first time I sort
of saw services starting to hurt a little bit too.
Speaker 1 (02:16):
Okay, So cash flow is king in all businesses. Obviously,
take me through your views on how small businesses should
think about cash flow and running the business. Now I
know you off air we discussed there was five suggestions
to think about. The first one, take advantage of financial
(02:38):
support for SMEs.
Speaker 2 (02:40):
Yep.
Speaker 3 (02:41):
So look, no budget, not federal or state, have been
that kind to SMEs, I would say, out there, so
you've really got I would say, use the accountants that
you're working with and really look for what grants are available.
You know, we've got the energy rebate, that's probably about
the best thing that's out there at the moment. Stopped
doing the asset finance rebate, which was which was really
(03:04):
really great.
Speaker 2 (03:05):
For sms to help them.
Speaker 3 (03:06):
So what I would say is really use your accountants
and those people around you to try and find out
what grants, what grants are available, particularly within your state
where your head officers.
Speaker 1 (03:17):
Yeah, is it particularly it just doesn't seem to be
a lot out there at the moment. That's what seems interesting.
Speaker 2 (03:24):
It's been.
Speaker 3 (03:26):
It's been like a Christmas Grinch for a while in
those budget updates. I'll be honest, Yeah, all the state
ones this year have been pretty pretty poor for SMS
and the federal budget it had nothing had nothing about
from the electricity rebate.
Speaker 1 (03:39):
Okay, the second thing, the second suggestion complete the shift
to digital payments.
Speaker 2 (03:44):
Yep.
Speaker 3 (03:45):
So this is all about just making yourself as efficient
and operationally efficient as you possibly can. So getting as
digital with all of your payments, the ability to kind
of if you need to change financial institutions or anything
like that, just being in that position where you can
so you can look at what's best for you rather
than being beholden to slow systems and everything like that.
(04:10):
And then comes with that, I think another one we've
got down there is looking at compliance around fraud. So
all of that technology side of things is really important
to your business. So staying ahead of the game and
being as payment efficient as digitally efficient, fraud, all of
that stuff is super important. So it and technology, do
(04:32):
not skimp on it, that would be that would be
my advice.
Speaker 1 (04:34):
Do SMEs skimp on it? At the moment, I'd imagine
that it's kind of almost in the too hard basket
for some It is.
Speaker 2 (04:40):
Yeah, it is, it really is.
Speaker 3 (04:41):
So what we've kind of seen is a lot of
SMEs holding off hiring and when they're you know, hiring
for those resources that can help them achieve you know,
the efficiencies in the IT side of.
Speaker 2 (04:51):
Things the way SMEs you know.
Speaker 3 (04:54):
So we had had a look at when inflation first
started hurting, they all raise their prices. They stopped doing
that about eighteen months ago, and now they're looking at
seeing where they can cut costs. So things like spending
on a flash eyed new IT system. That's not happening right,
So so use what they're going to use what they've
got and try and be as effective as they can
with it. Yeah, but don't skimp on security. That would
(05:17):
be the one big thing.
Speaker 1 (05:18):
So with me, guy, we'll be right back. I'm speaking
to Guy Callahan, CEO of Ban Joe Loans. We're going
through a list of things that SM should at least
think about it as we head into the new year.
Manage the cost of lending is another one.
Speaker 3 (05:39):
Yeah, well, particularly now that interest rates are coming down
and hopefully sure and we get some really good news
in the next couple of days that are coming down again.
So it's time to sort of look around and seeing
if you're getting the best here with some of your funding.
Because believe me, the leander won't drop their rates pretty
quickly if you're sort of set set there. And that's
where being sort of with your digital set up, you're
(06:00):
able to sort of change. The other thing to do
here is to use your finance brokers that are around you.
So there's some really smart finance brokers who can who
know the different products that are out there, and they
know if you're getting a good deal or not, So
don't be afraid to engage them. And it's their job
to help you try and find the best deal for you,
(06:20):
the best type of loan and the best interest rate,
the best payments, the best repayments, all of that type
of stuff. So you again it's like the accountant, use
the financial advisors around you to really see if they
can get the best deal for you.
Speaker 1 (06:33):
I mean, I went to my lender two weeks ago
and said, hey, can I do any better than this?
And I threatened to change banks. I got an amazing
disco well not amazing disc games, but it was fifty
bases points less than what I was paying. That's on
a mortgage, So it's a bit the same in small
business loans.
Speaker 2 (06:50):
Absolutely.
Speaker 3 (06:51):
In fact, I would say it's more because what's happened
is the fighting all the banks that were fighting around
all the retail mortgages and stuff like that. Now that
they can make their money is in the business lending right,
So I think it's even more imperative now that people
go and look and see what's out there and just
see what the competition. And it's not just the banks.
I mean, we're a non bank lender, so you know,
(07:12):
blatant plug for us. We're not the chiefs out there,
but we will look for the right type of product
for you and what's there. So the financial institutions are
clambering over business loans. So it's so you tear advantage
of for an sme own it.
Speaker 1 (07:26):
Another one to invest in innovation and workforce development.
Speaker 3 (07:29):
So this is going back to the IT side of things.
It's really don't skimp on it. But then also, as
we touched on, SMEs aren't really going out there and
hiring a lot at the moment because it's really tough.
So you want to keep the workforce you've got, so
offering some smart incentives for them to stay, get them,
get them engaged in what your business is doing and
(07:51):
what the goals are, and get their goals aligned with
that with there and reward them. It doesn't have to
be financially but you know, just just different kind of incentives.
Whether it's an extra day off, whether it's sort of
wellness type activities, all sorts of stuff you can do
to incentivize you. You don't want to be out there
looking for new employees at the moment if a key
(08:12):
employee leaves you, you just don't.
Speaker 2 (08:14):
It's really hard.
Speaker 1 (08:16):
And finally we have touched in this one but bit
more details. Stay compliant with wage theft legislation and fraud management.
Speaker 3 (08:22):
Yeah, yeah, you've got to have You've just got to
have complete it systems around your fraud. So looking at
out of the side of things, we've just really upgraded
our the platform that we run our whole systems on
over the last it's actually taking us nearly twelve months to.
Speaker 2 (08:38):
Do slowly upgrade it. And one of the.
Speaker 3 (08:41):
Big things is fraud prevention for us of the security
for all of our customers. I mean, you just look
at Quantus has been it. There's been a lot of
large Australian corporation sets. So don't think the SMEs are
immune to being hit. If they can get into quantus.
They can get into your rights if you're not if
you're not careful. So you want to protect you, you
(09:03):
want to protect your clients data. That's just that's just
a given.
Speaker 1 (09:07):
And just the wage theft legislation, what is that.
Speaker 3 (09:10):
Oh, look, it's just it's making sure that you're.
Speaker 2 (09:12):
Paying right your employees well and right.
Speaker 3 (09:15):
You're not skimping on super or pay do anything like that.
So really just be right across it, making sure you've
got all your payments up to date. I mean even
like and this is not way, but looking at at
O debt, right, the ATO has now stopped having your
interest deductions on any debt you've got there, so so
the Bank of ATO, it's gone.
Speaker 2 (09:35):
It's a thing of the past.
Speaker 3 (09:36):
So you just want to keep ahead of all those
financial cup of payments. Thank you for talking to Fear
and Greed, No problem, Thanks not Sean, that was Guy
Callahan Banjo Loan CEO. This is the Fear and Greed
Business Interview. Join us every morning for the full episode
of Fear and Greed Business news.
Speaker 1 (09:51):
You can use I'm Sean Elmer. Enjoy your day,
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