Scotland SME Access to Finance Report 2025 (British Business Bank)

Summary

• Around 42% of smaller businesses in Scotland reported facing barriers to accessing external finance.p.12
• Among Scotland-based businesses with debt, 92% perceived their current debt burden as manageable.p.12
• A total of 41% of smaller businesses in Scotland reported requiring additional financing over the next 12 months, with 63% requiring £50k or less.p.12
• Confidence in securing additional required finance stood at 70% among Scottish SMEs expecting a finance need.p.12
• External finance usage was lowest in the Highlands and Islands region, where 38% of smaller businesses reported using finance.p.13

Key insights

1. Business loans were the most anticipated finance form for Scottish SMEs over the next 12 months at 43%, followed by overdrafts at 28% and credit cards at 25%.p.12
2. Working capital (48%) and capital expenditure (45%) were the primary planned uses for additional SME financing in Scotland.p.12
3. SMEs in Tayside, Central and Fife showed a statistically significant higher propensity (25%) to consider equity finance than the rest of Scotland.p.13
4. In the Highlands and Islands, 80% of SMEs needing finance intended to use it for working capital.p.13
5. Scotland recorded a higher share of SMEs reporting barriers to external finance (42%) than Northern Ireland or Wales.p.14
6. Scottish SMEs reported the highest level of confidence (70%) in meeting their future financing needs among all Devolved Nations.p.14
7. The inability to obtain or repay finance was the most frequently cited barrier theme among Scottish SMEs experiencing access issues, reported by 51%.p.23