The survey found that 29% of respondents SME demand for loans between £50,001 and £100,000 to see the biggest growth over the next year.

Of the respondents, 28% saw the biggest growth to come from demand for loans above £100,000, which signalled broker belief in the re-emergence of small business ambition growth, according to iwoca.

Brokers have also reported a rise in small business application with over nine in 10 (92%) respondents seeing the same or a greater number of loan applications from SME clients in July compared to June, up 6pp from March and February.

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One in three respondents (33%), predicted that finance demand for small businesses will ‘significantly’ rise, more than doubling from 16% last quarter — iwoca saw the rise in demand as a signal that SMEs are refocusing on growth or expansion as the economy starts to stabilise following the last two years.

Brokers also reported longer waiting times for SMEs waiting for a final decision on finance applications, which iwoca described as a possible symptom of larger loan requests, due to less automation than smaller requests.

The proportion of finance brokers reporting an average decision wait-time of four to seven days grew to 45%, up 9pp since Q1 2024.

Similarly, the number of experts saying they saw quick loan decisions, of three days or fewer, shrank by 9pp to 37% in Q2 2024.

Colin Goldstein, commercial growth director at iwoca, said: “It’s heartening to see brokers report the return of a healthy appetite for finance among SMEs.

“Now the economic storm is beginning to clear, SMEs should refocus on growth ambitions, by working with lenders and brokers to realise their business goals.”