Bank lending to SMEs across Great Britain down 30% in three years, analysis reveals
Analysis of UK Finance data from money.co.uk showed outstanding SME loans and overdrafts dropped by 30%, from £89.5bn H2 2022 to £62.6bn at the end of 2025.
High street bank lending to small and medium-sized enterprises (SMEs) across Great Britain fell by £26.8bn between 2022 and 2025, analysis from money.co.uk found.
Analysis of UK Finance data showed outstanding SME loans and overdrafts dropped by 30%, from £89.5bn in the second half of 2022 to £62.6bn at the end of 2025.
Lending fell by a further £6.5bn (9.5%) during 2025.
Nine in 10 of the more than 8,500 postcode sectors with active data recorded a decline between 2022 and 2025.
The average fall was 36% per sector.
Lending also contracted in 78% of postcode sectors during 2025.
Outstanding lending in 2025 was 14.5% below its pre-pandemic level of £73.3bn in the fourth quarter of 2019.
Tom Luth, chief executive of money.co.uk, said: “The lending market is changing, and it’s giving small businesses more options when it comes to financing their growth.
“But with more providers, products and terms to consider, finding the right source of finance can be challenging.
“SMEs are the backbone of the UK economy, and access to finance can be an important part of turning growth ambitions into reality.”
Luth added: “For businesses operating outside areas where lending is most concentrated, understanding the options available is particularly important.
“That’s where money.co.uk can help. Our eligibility checker allows business owners to explore their options and see whether they may be eligible for a loan in minutes, without affecting their credit score.”
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