Demand from SMEs for loans over £100k expected to ‘surge’ this year
Demand from SMEs for larger loans over £100,000 is expected to ‘surge’ in the next year, according to research by iwoca, one of Europe’s largest SME lenders.
Loans over £100,000 already make up over one third (36 per cent) of finance brokers’ most requested loan amounts in Q1 2025, the firm’s latest SME Expert Index showed.
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However, two in five (42 per cent) SME finance brokers said they now expect to see an uptick in demand for loans over this size, while two thirds (67 per cent) said they are recommending alternative lenders to their small business clients over high street banks.
Three quarters (74 per cent) of brokers reported that they are submitting the majority of finance applications to alternative lenders, up from 67 per cent in Q4 of last year.
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One of the main reasons SMEs are requesting larger loans is for business growth, with a quarter of brokers saying that firms are applying for loans over £100,000 to expand or move to new premises.
“The sustained high demand for six-figure loans shows that SMEs are once again betting on their own growth — and they’re turning to alternative lenders to fuel that ambition,” said Colin Goldstein, chief commercial officer at iwoca. “It’s a clear signal that SMEs need faster, more flexible capital — and traditional banks aren’t keeping up.”
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