British Business Bank (BBB) reports increase in loan volumes despite challenging conditions
The UK’s start up scene was given a boost last week with the news that The British Business Bank, a government-owned bank helping UK businesses access financial support, revealed that its Start Up Loans programme saw a nine per cent rise in loan volumes in 2024, compared to the previous calendar year.
The BBB’s Start Up programme provides finance and support to businesses across the UK that have been trading for 36 months or less (or 60 months for second loans). In 2024, the Start Up Loans programme provided 10,432 loans to business owners. The BBB said the fact that business loan volumes are rising means that entrepreneurship in the UK is also on the up.
The 2024 calendar split into quarters also saw demand for these loans remain consistent in each quarter:
- January to March: 2,673 loans
- April to June: 2,621 loans
- July to September: 2,627 loans
- October to December: 2,511 loans
While the uptake in business loans points to a promising trend, other separate findings suggest this demand is not in line with general expectations in the UK.
The British Chambers of Commerce found business confidence to be low, finding that only 49 per cent of firms say they expect their turnover to increase in the next twelve months, down from 56 per cent in Q3. Meanwhile, accountancy body, ICAEW’s Business Confidence Monitor (BCM) for Q4 2024 put sentiment at just 0.2 on the index, the weakest reading since Q4 2022 and down from 14.4 in the previous quarter.
Richard Bearman, co-chief banking officer at British Business Bank, said: “It’s reassuring to see that demand for small business start-up finance is holding up. There are many reasons to possibly put people off starting a business, but our data shows many potential business owners are actively seeking out business planning tips and templates.
December and January is a period when many people have the time and motivation to explore setting up their own business and change direction. With demand for small business finance from Start Up Loans ticking up, we look forward to supporting more entrepreneurs during 2025.
Paul Beare says the news that loan volume increased last year showed that, despite the challenging economic environment, there remains energy in the UK start up landscape. “There’s no doubt 2024 was tough for many businesses, with inflation still lingering and investment decisions being delayed, but the BBB’s figures do suggest that if you’ve got the right product or service then the UK is a fertile place to do business.
Certainly our clients are reporting that it’s competitive out there, but for most the UK’s thriving tech sector and strong demand is still underpinning some serious growth.
There’s no doubt that 2025 will be challenging for growing businesses. That’s why at Paul Beare Ltd we work closely with clients to ensure they have everything they need to chart a safe course. Whether that’s tax and payroll or accounting and banking, we have you covered.