Core Insights - The resilience of SMEs is attributed to their experience in navigating a challenging environment over the past 10-15 years, influenced by austerity measures, referendums, Covid, and inflationary pressures [1] Group 1: Current Economic Climate for SMEs - The Small Business Index from the Federation of Small Businesses (FSB) has dropped to -58 points in Q3 2025 from -44 in Q2, indicating a deteriorating sentiment among SMEs [2] - Despite the negative index, many SMEs remain optimistic about their growth prospects, although they are delaying investment decisions due to higher costs and economic uncertainty [2] - A survey by Simply Asset Finance reveals that 42% of SMEs want the government to prioritize tax and costs in the upcoming Budget, with other concerns including business tax reform (36%), business rates (35%), and access to finance (26%) [3] Group 2: Government Budget Expectations - SMEs are anticipating targeted protections in the forthcoming Budget, particularly regarding business rates and employment allowances [5] - The small business sector is preparing for Rachel Reeves' Autumn Budget statement on November 26th, with a focus on addressing the challenges faced by SMEs [6] Group 3: Challenges Faced by SMEs - A survey of 1,000 SME lenders indicates that small businesses are impacted by rising employer NICs (73%), corporation tax (69%), national minimum wage (64%), and capital gains tax (59%) effective from April 2025 [4] - SMEs are facing significant pressures from evolving employment legislation and rising operational costs, which demand considerable time and resources [7] Group 4: Financing and Support for SMEs - Time Finance successfully structured a £1.6 million asset-based lending solution for a furniture manufacturer facing insolvency, highlighting the importance of well-structured business finance [8] - 37% of firms surveyed by Bibby Financial Services want the government to cut business rates, and a quarter seek a reversal of the employer NIC rise [9] - SMEs are also seeking clearer measures to support international trade and targeted help to offset international tariffs, particularly on exports to the US [10] Group 5: Government's Role and Expectations - Lenders are seen as crucial in providing flexible funding to support SME growth, while the government is urged to ensure a competitive lending environment [11] - SMEs desire clarity from the government regarding future employment costs and do not expect reversals of recent tax increases [11][12] - The government is encouraged to address the persistent issue of late payments, which severely constrains cash flow and growth for many SMEs [12][13] - There is a call for the government to back the British Business Bank's efforts and to provide a business-friendly budget to instill confidence in SMEs [14][15]

Core Insights - Allica Bank's lending to established SMEs in Britain contributed £5.8 billion ($7.6 billion) to GDP in 2024, with £2.2 billion direct, £1.8 billion indirect, and £1.8 billion induced contributions [1] - The bank's lending generated £1.4 billion in tax revenues and supported over 84,000 jobs, equating to one job for every 440 jobs in the country [1] Lending Growth and Impact - Since its inception five years ago, Allica Bank has issued over £3.5 billion in loans to SMEs, with more than £1.5 billion provided last year alone [2] - The bank's lending has supported nearly 10,000 jobs in the North West, 8,900 in the West Midlands, and 7,700 in the East Midlands [2] Employment and Regional Impact - The highest employment share impact from Allica Bank's lending was observed in Wales and the North East [3] - The bank's strategy combines technology with a dedicated relationship manager team, which is expected to double in size within the year [3] Strategic Goals and Market Penetration - Allica Bank aims to capture 10% of the established SME finance market by the end of 2028, facilitating an initial £1 billion in working capital finance for SMEs [4] - The CEO emphasized the importance of established SMEs as the backbone of the UK economy and the need for challenger banks to better serve them [4] Financial Performance - Allica Bank reported a 55.2% increase in profit after tax, reaching £29.8 million ($39.54 million) in 2024, compared to £19.2 million in 2023 [5] - Each £1 million in lending enables SMEs to contribute £2.4 million to UK GDP, create 35 jobs, and generate £600,000 in tax revenue [5]

Digital bank Zempler has joined forces with iwoca, a financial lender specialising in small and medium-sized enterprises (SMEs), to provide more lending choices for UK startups and microbusinesses. Through this collaboration, Zempler’s customers will be able to access iwoca’s loans via the bank’s marketplace platform. Loan amounts range from £1,000 up to £1m, with varied repayment schedules available. According to details released, businesses may use these loans for a range of purposes including stock p ...