SME Funding Sentiment Spring 2023

Overall, there was a mixed response to questions around SME funding appetite, but more than 55% of respondents reported greater demand for funding from mid-sized SMEs, despite a drop in M&A activity. This is seemingly driven by a perceived increase in requests for working capital and growth capital.

Advisers felt that funding availability from banks continues to trend down, but the slack hasn’t necessarily been picked up by alternative lenders where funding availability is largely perceived to be unchanged.

There is a strong belief that M&A activity will increase in the build up to the next general election, as business owners anticipate potential changes to Capital Gains Tax.