Commercial

About Commercial 

UK Finance represents the Commercial banking services sector in the UK. The sector provides essential day-to-day services to small and medium sized enterprises, corporates, and non-personal entities covering current accounts, lending, deposit-taking and other business banking products and services including international trade. All lending products fall with Commercial with the exception of Invoice Finance and Asset-Based Lending (IF/ABL) which has its own dedicated membership stream. Commercial services and products help businesses start, thrive and grow, ranging from sole traders focused on their home market to large corporates trading internationally. 

The Sector serves 5.6 million private sector businesses in the UK, 46,000 more than in 2022, of which over 99% are Small or Medium Sized businesses. Commercial lending mostly sits outside the regulatory perimeter; but several providers of business lending and banking facilities are signed up to the Lending Standard Board’s Standards of Lending Practice for business customers. The Standards are recognised by the FCA. 

The total stock of bank lending (comprising outstanding lending and overdrafts) in 2023 was £185bn, compared with around £209 billion in 2021. Gross lending (excluding overdrafts) to small and medium-sized businesses by banks was £59.2bn in 2023. This flow of bank lending was the joint third-highest on record in nominal terms, the same as in 2016.

The sector is comprised of more than 150 providers, including the large UK and international commercial and corporate banks, specialist, mid-tier and challenger banks, as well as a range of non-bank specialist finance providers.

Loans and overdrafts are the most popular forms of lending products, and extensive use is also made of invoice finance and asset-based lending, leasing, hire purchase and cards.

Work for members and their clients 

Commercial sector providers operate in a strongly competitive market, facing new and challenging environment, risks and regulations. The Commercial team supports members by providing policy and market expertise.

In addition to representing the sector through a single voice to advocate, influence and engage on behalf of members and their clients with policy-makers, politicians and stakeholders, UK Finance also supports members and stakeholders through the provision of an extensive programme of specialist Training and Education. This includes both online and face-to-face training, webinars and day courses, as well as formal qualifications. This programme is available to both members and non-members.