Two in five finance brokers expect surge in SME demand for loans over £100,000

Two in five (42%) brokers think loans above £100,000 will see the most growth in demand in the next twelve months, according to a quarterly survey conducted by iwoca. 

Currently, loans over £100,000 comprise over a third (36%) of brokers’ most requested loan amounts in Q1 2025, virtually unchanged in the last two quarters, suggesting sustained SME interest in big ticket finance.

In Q1 2025, 34% of brokers described SME demand for finance across all lenders as high, compared to 32% who said demand was lower than normal.

The survey suggests the sustained pivot to larger loans has coincided with a fall in recession worries among SMEs. Fewer than half (46%) of brokers now say their SME clients are concerned about the possibility of a recession — a 5pp drop on Q4, and the first fall in downturn anxieties since Q2 2024.

In fact, large loans for cash flow are becoming less common – just one in four brokers cite it as the most common loan purpose over £100,000, down 8pp since Q4 2024.

Instead, SMEs are requesting large loans to fund growth – a quarter (26%) of brokers say that firms are applying for loans over £100,000 to expand or move to new premises, up 8pp on Q4 2024. Similarly, seeking finance to fund stock or equipment purchases is up 3pp to 13% in Q1 of this year, indicating smaller firms are increasingly investing in their growth potential. 

Meanwhile, high street banks continue to lose their grip on SME lending. Over two thirds (67%) of finance brokers now recommend alternative lenders to their small business clients for loan applications over £100,000, compared to just 6% who recommend to high street banks.

Three in four (74%) finance brokers report submitting the majority of finance applications to alternative lenders rather than high street banks, up from 67% in Q4 2024, underscoring how high street banks are struggling to meet the needs of today’s growth-focused SMEs.

Colin Goldstein, chief commercial officer at iwoca, said: “The sustained high demand for six-figure loans shows that SMEs are once again betting on their own growth — and they’re turning to alternative lenders to fuel that ambition. It’s a clear signal that SMEs need faster, more flexible capital – and traditional banks aren’t keeping up.”