Small businesses are adapting to move into growth gear in 2024. How you can help them on the journey?
The SME Affordability Report for 2024 is based on a series of research surveys and interviews, conducted with small and medium-sized businesses (SMEs) and credit providers summer 2024.
We asked small businesses how they are using credit, their experiences in accessing lending and how they are working to build resilience in a changing economy. Comparing versus 2023, we’re seeing dramatic changes in business approaches to lending at strategies for growth.
The research also asked lenders what changes they are seeing the SME lending market, how they are supporting small businesses, and the impact of technological transformation on their operations.
We also reveal how small businesses view affordability checks and the importance of data quality in lending decisions.
In this report, we cover:
Resilience
How small businesses are feeling more resilient and proactive in a persistently challenging economic climate
Lending demand
How lending demand and risk remain high, but motives for seeking credit are evolving
Good data quality
How lenders and small businesses see good data as the key to future resilience
Supporting SMEs
How small businesses are calling for more assistance to help them support their own customers
Take a sneak peek into:
SME Affordability Report 2024
Demand for credit remains strong as businesses switch into growth gear
This tallies with our commercial bureau data, which shows commercial search demand has remained strong this year, except for a minor blip during the general election campaign. Commercial lending data from recent months shows that the bounce back has continued.
What is striking is how the motives of SMEs seeking credit have changed from last year, reflecting their more proactive approach. Having borrowed money in 2023 largely to buffer themselves from cash flow problems and staff redundancies, now their number one motive is business expansion – another sign that they’re feeling stronger.
Increased demand for
Almost half (47%) of lenders anticipate the current economic and political landscape will lead to a greater demand for credit from UK SMEs over the next 12–18 months.
Did you enjoy the read?
Download the full UK SME Affordability Report 2024
Read our paper to find out how small businesses and lenders are adapting to ongoing affordability challenges in 2024.
Further reading
How to overcome the challenges of PEPs and sanctions
Conducting effective PEPs and sanctions screening can be difficult. Find out what the biggest challenges are and how to avoid them.
First-time buyers and the mortgage market – adapting to a changing mortgage scene
In this article, we dive into the latest trends for first-time buyers (FTBs) and the implications for credit risk strategies.
Machine learning and AI in fraud detection
Explore the advanced technologies reshaping fraud detection strategies and how integrating ML and AI is key for businesses looking to stay ahead of the curve.
Assessing commercial affordability using categorised bank account data
In this article, we explore how our categorisation engine can give a more granular view of SME accounts. Read more.
The Commercial Delphi Score explained
Find out all you need to know about the Commercial Delphi score - a rating system for business creditworthiness.
Assessing affordability using Commercial CATO and CAIS
In this article we take a close look at how current account turnover and commercial CAIS data are used to get a better picture of SME affordability.
The Ultimate Beneficial Owner Guide
You must know the UBO, or person with effective control, of the businesses you work with to ensure compliance with the Money Laundering Act.
Avoid foreseeable harm from credit data quality issues
We look at why the issue of data quality is important, and why it might be a ‘blind spot’ for firms responding to the Consumer Duty regulation.
A 5-step guide to improving your understanding of a player’s financial vulnerability
In anticipation of new regulation on the use of CRA data, Gaming Operators need get prepared for change. Read our 5 key steps to help get ahead.