The government is calling on SMEs to share finance challenges – make sure your voice is heard

As part of a new consultation that could shape future policy, the UK government is seeking insights from small businesses, lenders, and industry experts to understand the challenges faced when accessing finance. It is a unique chance to share your experiences, and to help government better understand the real issues facing businesses like yours.

Launched on March 13, 2025, this open call for evidence aims to assess the current lending landscape and identify the barriers preventing small businesses from securing the financial support they need to grow. 

With a new industrial strategy expected in June and a dedicated small business strategy later in 2025, now’s the critical moment for entrepreneurs and SMEs to make their voices heard. 

By getting involved, you can directly influence policies that will shape the future of UK business finance.

Why it matters

The UK’s 5.5 million small businesses are the backbone of the UK economy. However, many struggle to access the external finance they need for investment, expansion, and cash flow management. 

The government’s consultation seeks to understand whether existing policies effectively address these challenges, and what more can be done to support businesses that struggle to access finance. Ultimately, the goal is to:

• Support business investment

• Ensure businesses can reach their growth potential 

• Help new businesses when they are starting out

It will also examine whether certain demographics, including women entrepreneurs, ethnic minority entrepreneurs, and businesses in deprived areas, face additional barriers when seeking finance.

Who can respond?

The government is encouraging a wide range of stakeholders to share their insights, including:

• Small business owners: Whether you’ve successfully secured a loan or struggled to find the right financial support, your experiences are valuable.

• Bank and non-bank lenders: Financial institutions can provide crucial data on lending trends and barriers.

• Industry experts: Those with expertise in business finance, policy, or economic development can offer informed perspectives.

Questions the government wants to answer

To gain a comprehensive understanding of the issues at hand, the consultation includes a range of questions, such as:

• What’s your experience of seeking debt finance, and why did you need it?

• Do you typically approach your existing bank, or do you explore other lenders?

• Have you worked with a commercial finance broker, and if so, what was your experience?

• Are there barriers preventing businesses from applying for loans, and how can these be addressed?

• How can financial education and information availability be improved?

• Why do some businesses remain “permanent non-borrowers,” and should this be a concern?

A full list of the questions can be found here.

Additionally, the consultation will explore alternative lending models, such as Community Development Finance Institutions (CDFIs), and consider whether policy changes are needed to stimulate competition in the finance sector.

For the time being, it’s also important for small businesses to consider what financial products, from savings accounts to loans or credit cards, could support them now. Government initiatives are valuable, but businesses also need to ensure they’re making the most of the financial options available to them today.

How to have your say

The consultation is open for responses until 8 May 2025, and you can share your insights by emailing accesstofinance@businessandtrade.gov.uk. 

The government is particularly keen to hear from under-served entrepreneurs, including women, disabled entrepreneurs, and ethnic minority business owners.

So, if you’ve ever faced difficulties securing finance or have ideas on how the system can be improved, now’s the time to speak up.

What happens next?

The government will assess the responses and decide whether additional policy measures are needed to improve access to finance for small businesses. This could include regulatory changes, new financial support initiatives, or efforts to enhance competition among lenders.

Access to finance is a critical factor in business growth, and this is your chance to make a difference. If you are able, take the time to respond to the consultation before 8 May 2025 and help create a financial environment that supports business success.