Recent research from iwoca indicates a surge in interest for large loans among SMEs, with a notable 42% of finance brokers anticipating a rise in demand for loans exceeding £100,000. This growth comes amidst a declining concern about recession, with only 46% of brokers reporting SME apprehension regarding economic downturns. The iwoca SME Lending Thermometer reveals a score of 5.23, indicating a balanced demand for finance. Notably, SMEs are now more focused on loans for growth rather than merely cash flow, reflecting a more optimistic outlook on business expansion.
Currently, loans over £100,000 comprise over a third (36%) of brokers' most requested loan amounts in Q1 2025, virtually unchanged in the last two quarters.
In Q1 2025, 34% of brokers described SME demand for finance across all lenders as high, compared to 32% who said demand was lower than normal.
Fewer than half (46%) of brokers now say their SME clients are concerned about the possibility of a recession - a 5pp drop on Q4.
Instead, SMEs are requesting large loans to fund growth a quarter (26%) of brokers say that firms are applying for loans over £100,000 to expand or move to new premises.
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