Markets Update, June 2017

This February we published our latest comprehensive report on small business finance markets in the UK, Small Business Finance Markets 2016/17. As part of our ongoing monitoring of market conditions, our quarterly Markets Updates provide an overview of SME finance markets, drawing on the latest evidence on estimates of stocks and flows of external finance used by SMEs in the UK. This includes bank lending, use of external finance and the number and value of equity deals.

Aggregate flow and stock of finance to smaller businesses

The table below brings together the latest data from multiple sources, to present a snapshot of the current values of various types of external finance – and the number of reported deals for equity investment – provided to UK smaller businesses. Please note that (a) flows of different types of finance are not directly comparable, since data sources may duplicate funding sources, and (b) consistent and comprehensive data outlining the value of the aggregate stocks and flows for all products is not readily available.

Estimates of the flow and stock of external finance for SMEs, £ billions

 
  2013201420152016YTD 2017YTD change on previous year
Bank lending stock
Source: BoE
Outstanding amount £bn166167164165164 (Apr)+1.9%
Bank lending flows
Source: BoE
Net flows £bn (a)-2-2230.0 (Apr)-1.1
Gross flows £bn (b)4353585919 (Apr)-8%
Other gross flows of SME finance
Private external equity investments
Source: Beauhurst
Investment value £bn 1.532.313.583.420.93 (Apr)-3.9%
No. of reported deals 972130914081148297 (Q1)-2.0%
Asset finance flows £bn
Source: FLA
12.914.415.816.94.5 (Mar)+11%

The information contained in this table should be viewed as indicative as data and definitions are not directly comparable across different sources. There can be some double counting across estimates in different parts of the table. Flows data are cumulative totals for the year or to the date stated. Non-seasonally adjusted.

(a) Net flows figures do not always reconcile with change in stock because of differences in statistical reporting.

(b) Data exclude overdrafts and covers loans in both sterling and foreign currency, expressed in sterling.

Analysis