Providing Consistency in Uncertain Times: Addressing SMEs’ Growing Need for Funding

As UK SMEs navigate 2025’s high-cost environment, the pressure to manage cashflow while pursuing growth is more intense than ever. The recent Spring Statement reaffirmed the fiscal constraints and rising costs facing small businesses and offered little relief.  At the time of writing global trade tariffs are also creating huge amounts of uncertainty and volatility across markets.

Yet despite the headwinds, there’s a strong sense of ambition among SMEs. Our latest SME Confidence Tracker, surveying a thousand businesses, revealed 66% expect sales to grow over the next six months. 87% are planning to invest in their business and many are aiming to attract new customers.

However, this optimism is tempered by persistent challenges around high costs and cashflow. 66% of businesses cited inflation and high costs as their biggest challenge, whilst a third reported insufficient cashflow to grow.

This context helps explain why 44% of SMEs say they are more likely to use external finance, and 41%  have seen their need for it increase over the past six months. As demand for flexible funding rises, the value of having the right partner and the right products becomes even clearer.