Why 2025 Was a Turning Point for Australian Business Insolvencies
At Mercer Funding Group, we’ve spent the last twelve months on the front lines with business owners across Australia. What the headlines call "statistics," we see as real stories of hard-working people navigating a truly unprecedented economic shift.
As we close out 2025, it’s clear this year wasn't just another cycle—it was a structural reset for the Australian economy.
The Reality Behind the 1,500 Monthly Collapses
The data from late 2025 is stark: company collapses peaked at nearly 1,500 in a single month. According to official ASIC insolvency statistics, these numbers are the highest we’ve seen in 35 years.
But here is what the data doesn't tell you: many of these businesses were profitable on paper. The "perfect storm" that hit this year—high energy costs, the ATO's aggressive debt recovery, and the tightening of traditional bank credit—simply drained their liquidity before they could complete their projects.
The Victorian Pressure Point
While we serve clients nationwide, we have a deep connection to the Victorian market. In 2025, Victoria experienced the steepest increases in business distress in the country.
For our clients in the Greater Geelong region, we’ve seen these pressures hit the construction and manufacturing sectors particularly hard. The "Geelong Gap" is real—where local growth is high, but the capital needed to fund that growth has become harder to find through traditional channels.
Our View on 2026: Solutions over Statistics
Insolvency is often a timing issue, not a business failure. We’ve spent much of 2025 helping directors move away from the "liquidation cliff" by using private capital to buy them the most valuable asset of all: time.
Whether it’s clearing a mounting ATO debt to stop a Director Penalty Notice (DPN) or releasing equity from property to bridge a cash flow gap, our focus is on keeping the doors open and the wheels turning.
As we look toward 2026, my advice to any business owner is simple: Act while you still have equity. The earlier we can look at your position, the more options we have to protect your personal assets and your business's future.
Is your business feeling the 2025 liquidity squeeze? Don’t wait for a Director Penalty Notice to act. Whether you are dealing with mounting ATO debt or a bank that has stopped saying "yes," we can help you explore asset-based lending solutions that protect your future.
Book a Confidential 15-Minute Strategy Call Or call us directly on 1300 636 170.
About Mercer Funding Group
Based in Geelong and serving business owners and developers Australia-wide, Mercer Funding Group is a specialist provider of private commercial capital. We bridge the gap where traditional banks fall short, providing the speed, flexibility, and transparency required to move projects forward.
Whether you’re navigating a property development in a growth corridor or require an equity release for a new business venture, we provide the strategic bridge to your next milestone.
Disclaimer: This article is provided by Mercer Funding Group for informational purposes only. The content is general in nature and does not constitute financial, legal, or taxation advice. Because commercial lending is complex and every business situation is unique, you should consult with a qualified professional before making any financial commitments. Mercer Funding Group facilitates commercial transactions only and does not provide or assist with consumer credit.
