iwoca SME Expert Index data

Our quarterly survey on 100s of UK SME finance brokers who collectively submit ~3,000 - 5,000 small business finance applications a month.

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How would you describe your SME client demand for finance over the past quarter?

1. When presenting two competing loan offers for unsecured finance to
your clients, which factor would you say is the most impactful?

*From Q1 21 until Q1 23, we had these four options instead of "Cost of finance": "Monthly repayment amount", "Total cost of borrowing", "APR", "Monthly interest rate". In Q1 23 we removed these options and added "cost of finance". We've added up the four old options to provide historical data for the new "cost of finance" category, as all four of the options were related to cost.

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
Approved amount	29%	25%	14%	22%	25%	28%	27%	30%	18%	17%
Cost of finance	53%	50%	62%	58%	52%	49%	55%	53%	55%	55%
Length of loan	12%	12%	13%	12%	9%	14%	9%	10%	11%	14%
Flexibility of product	6%	14%	12%	9%	13%	10%	9%	7%	16%	13%

2. In the last 4 weeks, which of these factors most often impacted the lender you chose to send an application to? (you can select more than one option)

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
No arrangement fee	--	--	--	--	7%	6%	3%	11%	8%	7%
Speed of receiving a decision	61%	69%	61%	58%	70%	70%	63%	73%	72%	64%
Duration requested meets lender's offering	24%	26%	40%	21%	29%	29%	38%	28%	22%	37%
Amount requested meets lender’s offering	42%	39%	49%	26%	41%	42%	45%	43%	48%	47%
Commissions available	16%	18%	14%	10%	19%	19%	23%	10%	24%	16%
Level of operational support provided by the lender	9%	9%	7%	13%	12%	15%	10%	11%	21%	13%
Number of documents required by the lender compared to size of loan	19%	14%	18%	27%	18%	24%	20%	24%	24%	21%
Pricing	63%	69%	69%	69%	69%	71%	66%	77%	73%	64%
Lenders reputation	13%	13%	11%	8%	9%	11%	11%	11%	16%	8%
Other	--	2%	1%	6%	4%	6%	2%	2%	2%	5%

3. For unsecured finance, how does the total number of applications you submitted in the last 4 weeks, compare to the 4 weeks before that?

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
Significantly fewer (down by over 50%)	7%	4%	2%	0%	5%	3%	4%	7%	9%	1%
Fewer (down by 10% to 50%)	13%	11%	11%	8%	11%	9%	22%	34%	24%	12%
Broadly the same (give or take 10%)	47%	46%	49%	60%	45%	44%	35%	41%	40%	33%
More (up by 10% to 50%)	18%	24%	30%	22%	26%	28%	27%	14%	24%	34%
Significantly more	15%	15%	7%	10%	13%	16%	12%	4%	3%	20%

4. In the past 4 weeks, what's the most commonly requested unsecured loan amount you’ve applied for on behalf of your clients?

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
Up to £25,000	18%	14%	7%	10%	11%	7%	7%	5%	6%	4%
£25,001 to £50,000	30%	26%	24%	35%	19%	27%	30%	19%	20%	24%
£50,001 to £100,000	37%	35%	40%	26%	33%	31%	27%	39%	29%	38%
£100,001 to £200,000	11%	20%	18%	22%	24%	25%	25%	30%	32%	26%
£200,001 to to £500,000	3%	6%	10%	8%	12%	8%	9%	6%	11%	7%
Over £500,000	--%	--%	--%	--%	1%	2%	2%	1%	1%	1%

5. How concerned are your small business clients about the possibility of a recession?

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
Very concerned	9%	8%	5%	5%	10%	8%	9%	11%	8%	9%
Concerned	56%	41%	36%	29%	37%	43%	37%	33%	40%	33%
Neither concerned nor unconcerned	32%	41%	41%	53%	40%	37%	37%	43%	38%	43%
Unconcerned	4%	8%	16%	12%	10%	11%	14%	12%	9%	14%
Very unconcerned	0%	2%	2%	1%	1%	1%	2%	1%	5%	0%

6. What do you feel small business owners are most concerned about at the moment? (Pick one option only)

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
Increased business running costs	41%	45%	38%	40%	42%	53%	52%	52%	48%	58%
Recession	3%	4%	1%	1%	1%	3%	6%	2%	2%	3%
Having to close their business	5%	2%	3%	0%	2%	4%	1%	2%	2%	3%
Higher interest rates	14%	24%	17%	22%	16%	13%	10%	10%	10%	9%
Access to finance	15%	11%	10%	12%	11%	7%	8%	7%	2%	8%
Ability to hire or retain staff	4%	3%	1%	3%	2%	1%	2%	4%	2%	0%
Supply chain issues	4%	2%	1%	0%	0%	0%	3%	5%	2%	1%
Decrease in consumer spending	4%	3%	9%	6%	6%	5%	2%	4%	4%	4%
Repaying loans	2%	1%	6%	5%	2%	1%	1%	4%	2%	5%
Political uncertainty	3%	1%	3%	9%	13%	7%	8%	5%	23%	8%
Inflation	4%	2%	6%	0%	2%	3%	4%	1%	2%	1%
Other options (combined)	0%	2%	3%	3%	2%	2%	2%	5%	0%	0%

7. To what extent do you agree with the following statement: ‘High street banks are reducing their appetite for funding SMEs’

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
Strongly agree	33%	38%	33%	45%	30%	31%	24%	33%	27%	21%
Agree	50%	39%	44%	29%	45%	46%	46%	39%	44%	36%
Neither agree nor disagree	14%	17%	13%	14%	17%	15%	19%	22%	20%	28%
Disagree	3%	7%	8%	6%	9%	6%	10%	5%	8%	14%
Strongly disagree	0%	0%	0%	5%	0%	2%	1%	2%	1%	1%

8. Do you expect demand for finance from SMEs to rise or fall over the next 6 months?

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
Significantly rise	26%	26%	16%	33%	21%	24%	21%	19%	14%	13%
Slightly rise	57%	52%	70%	51%	55%	58%	60%	57%	52%	61%
It will not change	12%	14%	8%	5%	11%	11%	7%	12%	14%	16%
Slightly fall	4%	5%	3%	4%	9%	3%	7%	7%	15%	7%
Significantly fall	0%	0%	1%	0%	2%	1%	1%	0%	0%	0%
Don’t know	2%	3%	1%	6%	2%	3%	4%	5%	6%	4%

9. Did more of your clients’ applications get rejected for finance in the past 4 weeks compared to the previous 4?

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
Significantly more	11%	13%	11%	6%	3%	7%	9%	7%	6%	5%
Slightly more	24%	31%	28%	31%	28%	31%	30%	39%	29%	29%
There was no change	46%	45%	44%	49%	51%	47%	40%	40%	47%	46%
Slightly fewer	9%	4%	15%	5%	10%	11%	12%	11%	13%	13%
Significantly fewer	6%	2%	1%	3%	3%	2%	1%	2%	2%	3%
Don’t know	4%	5%	1%	6%	5%	2%	7%	1%	3%	4%

10. What is the most common reason small businesses get rejected for finance?

	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	Q3 25	Q4 25
Short trading history	13%	15%	14%	6%	7%	8%	9%	7%	5%	8%
Poor credit history	24%	24%	22%	31%	21%	22%	21%	19%	16%	13%
Ongoing debt obligations	12%	14%	16%	14%	13%	18%	16%	13%	27%	26%
Poor cash flow	10%	16%	15%	12%	25%	24%	28%	20%	22%	24%
Insufficient income	14%	8%	10%	6%	12%	7%	11%	16%	10%	9%
Industry is deemed too risky	4%	5%	0%	4%	5%	6%	3%	7%	3%	5%
Late payments	1%	2%	3%	1%	1%	1%	2%	0%	1%	0%
Not a homeowner	--%	--%	--%	--%	13%	11%	5%	13%	14%	12%
Other options (combined)	4%	2%	2%	8%	3%	3%	4%	4%	2%	3%