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.
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