The iwoca Q1 2024 SME Expert Index was conducted with SME finance brokers who collectively submitted over 2,500 loan applications over a four-week period.

According to the research Three-in-10 SME finance experts (28%) reported that the most requested loan amount at the start of 2024 was over £100,000, 56% higher than the same period last year. 

Almost two-in-five brokers (37%) said the number of finance applications they submitted for SMEs had increased since the last quarter, while 49% said the volume of applications had stayed the same.

Over two-fifths (41%) of brokers also reported that the primary purpose of the loans they were applying for was to help SMEs grow their businesses.

Almost nine-in-10 brokers (86%) predicted a demand for finance from SMEs over the next six months, the highest level over the last six quarters, according to iwoca.

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Fears of recession also fell the lowest level in almost two years, with 40% of brokers reporting that the SMEs they act for were still concerned about recession, down from the peak of 77% in Q2 2022 — despite this, inflation concerns remained with 38% of brokers saying increasing business running costs were their main worry for the SME owners they work with.

Sally Chesterton, head of operations at Love Finance, said: "We’re certainly seeing more optimism from small businesses this year, with customers increasingly citing growth as their reason for seeking finance — falling recession concerns have definitely helped."

Colin Goldstein, commercial growth director of iwoca, added: "The UK's SME lending market is experiencing a resurgence.

“We're seeing a significant rise in loan applications, with many businesses seeking larger sums to invest in growth.

“This coincides with low recession fears amongst SMEs — a positive sign that could point to a stronger year ahead for our economy and the small businesses underpinning it.”