You can use the search function to find a range of UK Finance material, from consultation responses to thought leadership to blogs, or to find content on a range of topics from Capital Markets & Wholesale to Payments & Innovation.
UK Finance’s latest Business Finance Review shows that gross business lending by the high street banks increased from £16.1 billion to £17.5 billion in 2025 compared to 2024.
In the final quarter of 2025 gross lending was £4.6 billion, the eighth consecutive quarter of year-on-year growth.
The increase in lending in 2025 was strongest amongst small businesses (up to £2 million annual turnover). Lending to these businesses increased by more than a quarter compared with a year ago and was supported by increases in new loan approvals throughout the year.
Lending to medium-sized businesses increased by four per cent.
Lending was evenly spread across UK regions, highlighting broad support for SMEs across the country.
Overall, 2025 was a stronger year for new loan approvals compared with overdraft facilities, a reversal of the trend seen in 2024.
The utilisation of existing overdrafts remained below pre-Covid levels, suggesting SMEs are continuing to retain significant headroom amongst uncertain demand and pressure on margins.
David Raw, Managing Director of Commercial Finance at UK Finance:
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.“Despite ongoing uncertainty in the wider economy, SMEs are maintaining a stable financial position. “Lenders have finance available for SMEs, enabling them to invest and grow and support jobs and growth across the country.
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.
“Despite ongoing uncertainty in the wider economy, SMEs are maintaining a stable financial position.
“Lenders have finance available for SMEs, enabling them to invest and grow and support jobs and growth across the country.
The full Business Finance Review can be found here.
The data is provided by the following institutions:
For more information please call the UK Finance press office on 020 7416 6750 or email press@ukfinance.org.uk
12.03.26
16.04.26
08.04.26
By downloading this document, you understand and agree that any sharing, distribution or republishing of the content, without prior written authorisation from the author or content managers at UK Finance, shall be constituted as a breach of the UK Finance website terms of use.
