FCA publishes SME access to finance review
The review found no evidence that regulation was a major barrier to SME finance, but it stated that SMEs faced wider market, information and capability challenges.
The Financial Conduct Authority (FCA) has published its FS26/2 ‘Supporting SME access to finance’ review.
The review found no evidence that regulation was a major barrier to small and medium-sized enterprise (SME) finance.
However, it stated that SMEs faced wider market, information and capability challenges.
Samuel Edwards, head of client portfolio management at Ebury, said: “The FCA’s review lays bare the challenges many SMEs face when trying to access the finance they need.
“For some, it can be difficult to know which funding options are best suited to their business, while others can face lengthy application processes, extensive checks or find that traditional lending is less accessible without significant assets or a long trading history.
“The FCA’s review is therefore welcome, particularly its focus on making the process easier to navigate and reducing unnecessary barriers.”
Edwards added: “This matters even more in the current environment.
“Tariff volatility, geopolitical turbulence, rising input costs and a more restrictive tax environment have all put pressure on SME cash flows in recent years, meaning more businesses need access to flexible finance to manage working capital and keep pace with changing conditions.
“In response to these challenges, we’re seeing increasing demand at Ebury for unsecured, flexible supplier financing, as SMEs look for ways to manage cash flow without tying up working capital.”
He said: “This growing demand underlines the importance of ensuring SMEs have access to a wider range of flexible funding options, helping this important sector navigate ongoing pressures while still having the headroom to invest and reach full growth potential.”
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