Banking red tape continues to frustrate small businesses, with Avenue Bank research revealing the scale of the challenge. Almost one in three SMEs (29%) have been forced to defer an office move, while nearly half (46%) have faced disruption — delays directly tied to the cumbersome process of securing a bank guarantee.

As the first and only Australian bank dedicated exclusively to bank guarantees across all industries and purposes, Avenue Bank is highlighting how outdated systems are holding back SME growth.

In commercial real estate, a bank guarantee is the bank’s promise to pay the landlord if the tenant fails to meet their lease obligations. Rather than handing over a large rental bond, the tenant relies on the bank to provide that security.

For small businesses operating in competitive markets, delays in securing a guarantee can mean the difference between growth and stagnation. As Avenue Bank CEO Peita Piper notes: “Small businesses are stifled by unnecessary delays, uncertainty, and financial strains.

“Australia’s banking landscape has evolved, yet the bank guarantee market remains stagnant, burdened by outdated, paper-based processes.”

Why the current system fails SMEs

Bank guarantees are designed to protect landlords, but the traditional process places heavy burdens on tenants. SMEs face:

• traditional approvals that can stretch up to six weeks, slowing relocations and fit-outs.
• completing multiple forms, chasing various signatures, and in some cases even hand-delivering paperwork to the bank — an outdated requirement in 2025.

The result? Chris Nicholl, CEO of Raine & Horne said, “Commercial landlords are left frustrated, and SMEs lose precious time and money moving into a new location, whether it’s a shop, office or industrial unit.”

Peita Piper adds, “As bank guarantee specialists, we also help tenants avoid the high costs associated with amendments, top-ups or beneficiary transfers when a property is sold.”

A faster, digital alternative

Recognising the need for speed, Avenue Bank has reinvented the bank guarantee with a fully digital application process for tenants. Instead of waiting many weeks, tenants can secure a guarantee within 24 hours. For landlords, Avenue Bank offers the choice of digital or physical paper guarantees to meet their requirements.

Notably, tenants stand to benefit from a fully digital origination process too, marking a significant departure from traditional and worn-out processes that often hold up their next move.

Unlocking a $9 billion opportunity

The opportunity for change is significant. Avenue Bank estimates that around $9 billion is currently locked away in deposits tied to bank guarantees for tenants leasing commercial premises. While guarantees will remain a cornerstone of commercial property leasing, the fact that nearly half of SMEs report costly delays shows the traditional system is no longer fit for purpose.

As Avenue Bank CEO Peita Piper says, “This is only the beginning for Avenue. We are committed to delivering further innovation to the bank guarantee market.”

For all your commercial property sales and leasing needs, contact Raine & Horne Commercial.