Only 15% of small employers sought external finance in the year before they were interviewed, according to the government's Small Business Survey 2025. Those that did typically asked for £50,000. The survey was published on 15 October.
It also found fewer first-time applicants. That matters if you are thinking about borrowing for the first time.
01What the Small Business Survey found
The survey interviewed 8,022 employers with 1 to 249 staff between 27 October 2025 and 30 April 2026. Its figures describe the year before each interview, not conditions today.
- Who applied: 15% sought external finance, the same share as in 2024.
- How much: the median amount sought was £50,000. For businesses with fewer than 10 staff it was £40,000.
- What they asked for: 39% of applicants sought a bank loan and 39% an overdraft. Leasing or hire purchase came next, at 22%.
- First-timers: 16% of applicants were applying for the first time, down from 23% in 2024.
The survey also gives an average of £481,000. A few very large requests push that number up. The report itself says the median better reflects a typical business.
02Businesses with no employees
A separate report covers businesses with no employees. Of these, 16% sought finance, up from 12% in 2024.
For 41% of them, it was the first time they had applied. A loan from a bank or similar lender was the most common choice, sought by 34%.
03Before you apply
A median is a benchmark, not a target. The right amount for your business depends on what it can repay from its profits.
Our new guide explains how lenders decide how much your business can borrow. It also covers why asking for too much or too little can both cause problems.
If you already trade and want to grow, a broker can look across a wider range of lenders for you. Here is how growth finance works with bizbritain.
