UK's SME Financing Is Undergoing a Tech-Led Transformation

Smaller businesses continue to form a large part of the UK's economy and make an important contribution to economic growth. SMEs continue to account for 99.9% of the UK’s business population and account for almost half of the UK’s private sector turnover. The UK now has a record population of 5.4 million SMEs. However, access to finance to grow and scale these businesses remains an issue. Financing to small- and medium-sized businesses in the UK is improving significantly for the first time since the recession of 2008-09. Investments in smaller businesses grew by 43% in the year 2015 and the alternative finance sector saw business lending increase by 75% to £1.26 billion in 2015.

There is a £1-billion annual funding gap to be bridged to boost the SME market in the UK. Medium firms – those with a turnover of £10–£100 million – represent just 1% of the UK’s companies, but make up 22% of revenue and account for 16% o ...

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