Record amount of commercial credit card debt surges as Australian businesses struggle to stay afloat in dire economy

Commercial Card Debt Hits Record $2.26 Billion as 23.7% of Business Balances Sit in High-Interest Debt.

Commercial card debt has reached a record $2.26 billion as businesses increasingly carry balances they cannot clear monthly, signalling emerging stress in the small-to-medium business sector.

• Commercial card balances accruing interest hit $2.26 billion, a 40% increase over two years versus 31% growth in transaction volumes
• 23.7% of all outstanding commercial card debt now sits in high-interest balances
• Annual commercial card spending grew from $96 billion to $125 billion in two years, with monthly transaction volumes rising from 222 million to 260 million
• Average commercial card transaction is nearly $500, well above personal card averages
• Active commercial card accounts remained flat over two years, indicating existing users are carrying more debt rather than new businesses adopting cards
• Total commercial card balances peaked in November before partial Christmas paydown, yet interest-accruing balances rose 4% since that peak
• Personal card stress remains steady, with the pressure concentrated exclusively in the commercial sector
• Businesses are distributing more cards per account and placing larger balances through existing arrangements

Why this matters

This is a liquidity crisis emerging at the business end of the economy, not a broad consumer phenomenon. Flat account numbers combined with rising debt concentrations prove this is not about adoption but deteriorating cash flow management among existing card users. The fact that interest-bearing balances continued rising after the natural December paydown window suggests structural stress—these businesses cannot clear their debt when conditions are most favourable. If this pattern extends to consumer cards, Australia faces a material credit stress event across both business and household sectors.

As Seen on Skynews Australia