Small businesses are tipped to face more hurdles in getting credit from a bank, with some marginal applicants at greater risk of being knocked back, following the royal commission's scrutiny of lending to small enterprises.

Although counsel assisting the commission, Michael Hodge, QC, did not call for extra regulation in his closing address on Friday, analysts say it is still likely the scrutiny of the past fortnight will make banks more conservative in lending to businesses.

Customers could be forced to submit extra paperwork, and more marginal loans may not be approved, analysts predicted. However, small business advocates argued there was no need for a retreat by banks, saying lending to small firms remained lucrative for banks, and tightening the screws would damage a key part of the economy.

Martin North, of consultancy Digital Finance Analytics, said despite Mr Hodge not recommending the extension of consumer credit laws to business, the commission had focused on the duty of banks to ensure loans could be repaid, rather than relying on taking security.

This could result in banks needing more detail on how loans will be repaid, which could lead to slower loan processing times, and some loan values being cut.