Small Business Finance Markets Report 2023 Infographic

Challenger and specialist bank lending reached record high


lent by challenger and specialist banks in record year, exceeding lending by the major UK banks


increase in gross bank lending to smaller businesses in 2022 versus 2021, to £65.1bn


fall in net lending, in large part reflecting repayment of Covid loans


increase in transactions in the smaller business asset finance market, reaching a new high of £22.1bn in 2022

Demand for smaller business finance is down


of smaller businesses were using external finance in Q3 2022, compared to 44% the year prior


success rate for those seeking loans, sharply falling from 80% year on year

Net zero deal numbers outperforming the wider equity market


of all current smaller business equity deals are net zero-related deals, compared to just 5% in 2018


rise in investment value of net zero-related deals over the past year to a new record level of £1.7bn


of UK net-zero related deals and a third of net-zero related investment value took place in London

Greater share

of net zero-related deal count or investment value than share of UK turnover from low-carbon businesses in Scotland and South East of England

Innovation required to boost productivity and economic growth


of innovative businesses use external finance compared to 58% of non-innovators


of non-innovating smaller businesses cited the availability of finance and 8% the cost of finance as significant barriers to innovation