Report and publications
Our annual Small Business Finance Markets report provides a comprehensive and independent assessment of the funding landscape for smaller businesses in the UK.
This year’s report focuses on how lending to smaller businesses has changed since the Global Financial Crisis with increased entry by new challenger and specialist banks and non-bank debt providers increasing the range of finance options available to smaller businesses.
Key findings
- Smaller business lending markets have developed over the last 15 years from being dominated by the high street banks to now including challenger and specialist banks and a wider range of non-bank providers.
- Around half of smaller businesses seek external finance with increased use of flexible forms of finance in 2025 to support cash flows.
- New business start-ups are an important part of a dynamic economy, with signs of more UK startup activity in the last two years.
- Equity finance is important for supporting scale-up companies, but investment declined in 2025 and now stands at 2019 levels.
- Challenges in accessing finance remain for some under-represented groups and geographic areas.
British Business Bank 2025 Business Finance Survey
The Bank’s 2025 Business Finance Survey was conducted by Ipsos and surveyed 1,734 smaller businesses between September and December 2025. The survey covers topics including demand for finance, experiences when seeking finance, and awareness of finance options. The survey also explores business innovation, with questions on the use of AI in developing and introducing products and processes, as well as the extent of businesses’ interaction with the eight key sectors in the Government’s Industrial Strategy. The results are weighted to reflect the UK SME population.
Small Business Finance Markets 2025/26
Our annual Small Business Finance Markets report provides a comprehensive and independent assessment of the funding landscape for smaller businesses in the UK.