SMEs face issues in accessing suitable finance

A recent report by the Financial Conduct Authority (FCA) found that whilst small and medium enterprises (SMEs) account for 60% of employment and 51% of turnover in the UK private sector, only 21% of the total value of UK business loans are provided to SMEs and 54% of SMEs are not using external finance in any capacity.

23 Sep 2026

A recent report by the Financial Conduct Authority (FCA) found that whilst small and medium enterprises (SMEs) account for 60% of employment and 51% of turnover in the UK private sector, only 21% of the total value of UK business loans are provided to SMEs and 54% of SMEs are not using external finance in any capacity.

The report found that SMEs face a number of challenges accessing finance with 26% stating that accessing SME credit was complex and 39% that the costs of finance were too high.

The report also details FCA's plans to reduce regulatory frictions and other challenges identified including exploring was to avoid duplication in customer checks through the use of digital verification, ensure the regulatory regime is proportionate and prioritising high-impact use cases.

Graeme Reynolds, FCA director of competition, said:

'Small businesses need to be able to access the finance they need at the right time to start up, grow and invest. Our regulation is not a major obstacle - that does not mean the system works as well as it could.'

Internet link: FCA