Small Business Finance Markets Report 2025 Infographic

60%

Challenger and specialist banks accounted for 60% of all lending drawn from banks in 2024.

£37.3bn

of lending to smaller businesses by challenger and specialist banks in 2024, 8% higher than in 2023.

59%

of total gross lending in 2023 provided by challenger and specialist banks, exceeding the big five banks for the third consecutive year.

+7%

The value of equity investment in smaller businesses increased to £6.9bn in the first three quarters of 2024, up 7% on the same period in 2023.

£10.4bn

The value of exits of venture capital-backed companies in 2024 doubled from £5.2bn in 2023.

41%

of smaller businesses used finance in Q2 2024, down from 50% in Q3 2023.

£23.5bn

of asset finance to smaller businesses in 2024, increasing for the fourth year in a row.

£12.3bn

Total estimated investment by smaller businesses in 2024.

0.8%

increase in the level of smaller business investment compared to 2023.

53%

of smaller businesses are prioritising environmental sustainability in the next 12 months, up from 50% in 2023.

71%

of smaller businesses have undertaken at least one action to become more environmentally sustainable.

67%

of Ethnic Minority-led businesses have a long-term ambition to be significantly bigger, compared to 38% of White-led businesses.

45%

of Ethnic Minority-led businesses are willing to use external finance to help their business grow, compared to 31% of White-led businesses.