Small and medium-sized enterprises (SMEs) across the UK have maintained steady use of external finance in 2024, according to the British Business Bank’s latest Nations and Regions Tracker. The report shows that 45% of smaller firms accessed external finance during the year, a marginal drop of one percentage point compared to 2023, following the sharp rebound seen the previous year.
Regional performance was mixed. Northern Ireland recorded the highest proportion of firms using finance at 52%, while the North West and East of England saw modest increases. The East Midlands, North East, and Wales registered notable declines. Credit cards remained the most common form of borrowing, followed by overdrafts and leasing or hire purchase arrangements.
The appetite for growth funding has improved. The proportion of businesses open to using finance rose to 38%, with the West Midlands showing the largest regional rise. Despite this, nearly a fifth of firms still expect difficulties in obtaining finance.
Equity investment fell by 2.5% to £10.8bn, with deal activity returning to pre-pandemic levels. However, the North West, South West, and East of England showed stronger investment intensity, supported by active venture capital presence and local innovation hubs.
During 2024/25, the British Business Bank directed 84% of its new finance outside London, supporting 22,100 jobs and contributing an estimated £4.7bn in additional GVA. The Bank’s financial capacity has expanded to £25.6bn, with new regional investment funds announced for the East and South East, alongside further backing for angel networks and innovation-led businesses.
 across the UK have maintained steady use of external finance in 2024, according to the British Business Bank’s latest Nations and Regions Tracker.){kind=link}