Credit, Collections & Insolvency News
New research by challenger business, Allica Bank, has shown a sharp rise in broker confidence for the months ahead. Though just over 18% expressed concern for the next six months, over half (51.2%) of brokers said they had a positive outlook, a significant increase on Quarter 4, when confidence was just 24%. A further 30%…
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New data from Millbrook Business Finance has found that four in ten (35%) said access to affordable finance is one of their biggest challenges. The survey data asked SMEs what the single biggest challenge facing their business right now, with 14% highlighting rising operational costs, whilst 14% noted economic uncertainty, and 13% cited late payments. A…
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New research by Capital on Tap has found that 46% of business owners don’t have a business credit card, with 54% of consumers actively avoiding them For business owners, cash flow management is the main purpose of a credit card, with 80% highlighting this as their reason for use. Employee-related expenses such as payroll and…
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UK Finance’s latest Business Finance Review shows that SME lending by the main high street banks increased by 8 per cent in the second quarter of 2025 to £4.24 billion, compared with the same period last year. Within this total, gross lending to small businesses (with a turnover of up to £2 million) increased the…
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Almost two-thirds (61%) of SME finance brokers report submitting over half of their loan applications to alternative lenders in the last four weeks, according to research by Iwoca. Iwoca says that the shift underlines a change in business attitudes, with demand for modern, tailored financial solutions now outpacing traditional banking options. Speed of decision-making is…
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Online businesses in the North West are securing much larger advances than their southern counterparts, reflecting the region’s growing digital economy and the impact of regional investment in tech hubs. The median advance approved for online businesses in the North West of the country has now increased by 483% year-on-year, to an amount of £175,000…
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Lending to small businesses by high street banks hit the highest level since 2022, a sixth consecutive quarterly rise in the opening three months of 2025. UK Finance data showed that lenders issued £4.6 billion worth of loans in Quarter 1 (Q1), with this a 14% year-on-year jump. This represents a 14 per cent increase…
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New research by ThinCats has found that mid-sized companies that borrow are sixteen times more likely to achieve growth than face insolvency. The data found that companies that borrowed were more likely to achieve growth than non-borrowers, with the level of borrowing proportional to growth potential. Nearly 40% of mid-market SMEs have achieved revenue growth…
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Despite an uncertain economy, applications for personal guarantee-backed business loans rose by 9% year-on-year in the first quarter of 2025. This is according to the Q1 2025 Personal Guarantee Insurance (PGI) Monitor from Purbeck Personal Guarantee Insurance, the UK’s only provider of PGI to SMEs. The 9% rise suggests that the appetite for finance remains…
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Research by Allica Bank has advised that the SME lending market needs a full reboot, with the UK having the lowest business investment rate in the G7. The report highlights how small businesses invest at only a third of the level of large corporate businesses, with a clear link between low levels of SME finance,…
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Gross lending to SMEs rose by 13 per cent year-on-year to just over £16 billion in 2024 according to latest UK Finance data. The research showed that in each quarter of last year gross lending was up compared to the same quarter in the previous year. However, lending remains significantly below levels reported in the…
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The Department for Business and Trade is launching a review into SME lending, due to the increase in the price of debt in recent years. Commenting on the Government’s publication of a call for evidence on SME access to finance, Emma Lovell, Lending Standards Board (LSB) Chief Executive, said “SMEs are the backbone of the…
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A new EY ITEM Club forecast has predicted bank-to-business lending growth to increase from 2.9% in 2024 to 4.5% in 2025 – the highest rate since 2020 – and 5.6% in 2026 as borrowing rates continue to fall Bank lending to UK businesses grew by 2.9% in 2024, as falling interest rates boosted market confidence…
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