Scotland SME Access to Finance Report (British Business Bank)

Summary

• Business credit cards were the most commonly used finance form among Scottish smaller businesses at 37%, followed by business overdrafts at 30% and personal credit cards at 15%.p.12
• Only 13% of smaller businesses in Scotland reported experiencing barriers to accessing finance, down significantly from 42% in the 2024 survey.p.14
• 85% of Scotland-based smaller businesses perceived their cash flow position as positive, while 49% of those with negative views cited the increased cost of doing business as the top factor.p.12
• Slightly under half (47%) of smaller businesses in Scotland reported requiring additional financing over the next 12 months, with 58% of these needing £50k or less.p.12
• Among Scotland-based businesses anticipating finance needs over the coming year, 85% felt confident in their ability to secure it, the highest rate among Devolved Nations.p.14
• Business loans were the most anticipated finance type for the next year at 33%, followed by business credit cards (32%) and business overdrafts (28%).p.12

Key insights

1. Scotland had the highest overall proportion of smaller businesses using external finance at 69%, compared to 56% in Northern Ireland and 66% in Wales.p.14
2. External finance usage varied sub-nationally, remaining lowest in the Highlands and Islands at 52% and joint highest in Aberdeen and North East and Scotland South at 79%.p.16
3. Aberdeen and North East reported the highest share of businesses viewing their cash flow position as positive at 97%, compared to a nation-low 81% in Glasgow and Strathclyde.p.26
4. Among businesses anticipating future finance needs, 50% planned to use it for investment in R&D, while 46% planned to use it for working capital.p.36
5. Of the SMEs reporting access barriers, the most common issues were ability to obtain/repay finance (32%) and time/complexity of finance applications (26%).p.23
6. Business overdraft usage experienced the largest annual increase among finance types, rising from 22% in 2024 to 30% in 2025.p.17