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Small Business Finance Markets Report 2026 Infographic

9%

Gross SME bank lending increased by 9% to £68bn.

314,000

314,000 new business start-ups, up 1% on 2024.

Note: Start-ups measured by VAT and PAYE registrations.

50%

Around 50% of smaller businesses used external finance in Q3 2025, with credit cards (19%), overdrafts (16%), and leasing and hire purchase (12%) most used.

62%

62% of smaller businesses said they knew where to obtain information on different types of finance, five percentage points higher than in 2024.

60%

Challenger banks accounted for 60% of gross SME bank lending, up from 39% in 2012.

43%

Since 2013, 43% of the 28 new providers that have entered the smaller business banking market are, or have been, British Business Bank delivery partners.

£2.9bn

AI companies raised £2.9bn across 323 equity deals in Q1-Q3 2025, accounting for around two-fifths of total UK equity investment.

71%

71% of Ethnic Minority-led businesses aim to become significantly larger (vs 40% of White-led businesses), and 52% are willing to use external finance to grow (vs 35% of White-led businesses).