Wales SME Access to Finance Report: Sub-National and Devolved Nation Analysis (British Business Bank)

Summary

• Credit cards remained the most commonly used finance type in Wales with a 25% usage rate, followed by Covid-19 loans (23%) and business overdrafts (16%).p.12
• Around 21% of Welsh SMEs reported barriers to accessing finance, with the ability to obtain/repay finance cited by 40% of those facing obstacles.p.12
• Among Welsh smaller businesses holding debt, 91% perceived their current debt burden as manageable.p.12
• Around 21% of SMEs in Wales anticipated requiring additional financing over the next 12 months, with 64% of those needing £50k or less.p.12
• Business loans (56%) and grants (37%) were the most anticipated finance forms sought, primarily intended for working capital (46%) and capital expenditure (39%).p.12

Key insights

1. 2. South East Wales businesses were significantly less likely to use grants (3%) than businesses in any other region of Wales.p.13
2. 4. Debt manageability remained high, with 91% of indebted Welsh SMEs reporting their debt burden was manageable.p.26
3. 7. Planned use of finance for decarbonisation and net zero transitions among Welsh SMEs dropped sharply to 4%, down from 14% in 2023.p.33
4. 8. Over half (55%) of Welsh SMEs expected their business performance to remain stable over the next 12 months, while 26% anticipated growth.p.37