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Business loan statistics
How have UK businesses fared with their borrowing?
Businesses all over the UK face financial instability daily, which often requires outside funding in the form of a business loan. We have looked into how the state of borrowing for these businesses differs between industries over the years as well as how it differs depending on the size of the business.
The value of all business loans has increased. Among large businesses in May 2019, the real estate, professional services and support activities industry had the largest gross lending at almost £4 billion, of which it repaid three quarters (77%). Meanwhile, the smallest lending came from the education sector.
The latest facts
The forecasted value of business loans in the UK
Business loans during the coronavirus outbreak
There are tough times for any business, especially for those who are reliant on customers. The UK government has stepped into the rescue with £330 billion to open up the possibility for businesses to survive by applying to the Coronavirus Business Interruption Loan Scheme (CBILS). Small- to medium-sized businesses with an annual turnover of up to £45 million affected by the coronavirus are eligible to apply. Each business that is eligible to get the loan may be approved to borrow up to £5 million, and as icing on the cake, the government will cover the interest fees for the first 6 months.
Bigger companies with an annual turnover between £45 million and £500 million who are affected by COVID-19 can also apply for a loan. They can apply through the CCFF (COVID Corporate Financing Facility) scheme but are eligible for up to £25 million and will be paying interest until the loan is repaid.
These loans can be applied for with one of the 40 accredited lenders and the loans are either term loans, overdrafts, invoice finance or asset finance. Lending under the Coronavirus Business Interruption Scheme has now passed £5.5 billion according to data released on May 7th.
With almost 34,000 loans now approved within the scheme, the average amount lent is a little over £164,000.
Lenders have also stepped up the approval rate of the loans. As recently as April 14th, only 21% of loans applied for were being approved. As of May 7th, the loan approval rate has soared past 1 in 2 with 54% of loan applications being approved
|Date||Number of loans approved||Value of loans approved in £ billion|
Large business lending and repayments by industry
The gross lending and repayment amounts of large businesses by industry in May 2019 are shown below.
|Real estate, professional services and support activities||£3,797mill||£2,916mill|
|Wholesale and retail trade||£2,860mill||£3,018mill|
|Public administration and defence||£1,503mill||£355mill|
|Transport, storage and communication||£1,453mill||£1,064mill|
|Mining and quarrying||£879mill||£734mill|
|Accomodation and food service activities||£665mill||£579mill|
|Electricity, gas and water supply||£608mill||£608mill|
|Human health and social work||£154mill||£132mill|
|Recreational, personal and community service activities||£94mill||£190mill|
|Agriculture, hunting, forestry and fishing||£74mill||£55mill|
Repayments and gross lending of SMEs in the UK
From July 2017-April 2018, the monthly repayment and lending of small and medium enterprises has fluctuated.
The number of finance providers contacted by SMEs in 2018
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