"SMEs are a vitally important part of the UK economy and the banking sector is proud to support them. It was good to see gross lending increasing for another consecutive year of growth in 2025, driven by stronger demand from the smallest businesses and support from high street lenders."
"The increase in lending was driven overwhelmingly by smaller businesses, particularly those with annual turnover of up to £2 million, reflecting both stronger demand and improving approval rates."
In 2025, high street bank lending to UK businesses increased to £17.5 billion, reflecting a second consecutive year of growth. Gross lending rose from £16.1 billion in 2024, with £4.6 billion lent in the final quarter. Smaller businesses, particularly those with annual turnover up to £2 million, saw lending rise by over 25%. Medium-sized firms experienced modest growth of 4%. Despite increased lending, overdraft usage remains below pre-pandemic levels, indicating businesses are cautious amid economic uncertainty.
Read at Business Matters
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