UK SME lending climbs to £17.5bn

Q4 2025 alone recorded £4.6bn in gross lending from high‑street banks, marking the eighth consecutive quarter of year‑on‑year growth in business lending. (ukfinance.org.uk) Lenders and trade press link part of the credit uptick to targeted tech spending: HSBC launched a £5bn AI & Productivity Financing Initiative for firms to fund AI, automation and digital projects. (business.hsbc.uk) A British Chambers of Commerce survey found AI adoption among SMEs rose to about 35% in 2025, up from 25% in 2024, supporting lender demand for tech‑capex facilities. (britishchambers.org.uk) Asset finance activity shows sectoral nuance: FLA data put total asset‑finance new business up modestly in 2025 while new asset finance to SMEs grew materially, with SME asset finance rising over the year. (fla.org.uk) IT equipment finance volumes jumped sharply in mid‑2025 (reported IT finance up ~31% year‑on‑year in July), indicating tech purchases are a specific driver of equipment leases and hire purchase for small firms. (business-money.com) Automotive and wholesale/floorplan lines showed mixed signals: commercial vehicle finance reported declines (a 3% fall in new business in some monthly measures), even as business new‑car finance expanded in pockets during 2025. (fla.org.uk) Used light‑commercial vehicle values stabilised through 2025 according to BCA remarketing data, easing some floorplan margin pressure for dealers holding inventory. (fleetpoint.org) Working‑capital demand tightened even as lenders supplied more term and equipment credit: the British Business Bank’s market review documents uneven access to growth capital across smaller firms and notes many SMEs still under‑utilise external finance. (british-business-bank.co.uk) The UK Growth Guarantee Scheme and a wave of fintech funding rounds (for example, a £25m raise aimed at bridging a reported £22bn SME funding gap) reflect policy and private‑sector moves to plug working‑capital shortfalls. (greengage.co) (techfundingnews.com) Alternative lenders and fintechs are scaling AI‑driven underwriting and embedded finance partnerships to capture this SME flow, coinciding with a structural shift that leaves challengers and specialist banks supplying a larger share of SME lending than a decade ago. (ainvest.com) Market moves from competitors include AI underwriting platforms, merchant‑cash advances, and accounting‑embedded loans that target quick working‑capital and small‑ticket equipment deals. (ibsintelligence.com) Solifi evidence points to tactical wins aligned with these dynamics: ALL Capital adopted Solifi’s asset‑based lending platform to launch a £5m–£27m flexible debt product range and cited near‑real‑time data, borrower portals and automated AR reviews as core features. (equipmentfinancenews.com) Rosenthal & Rosenthal migrated equipment‑finance operations onto Solifi in an eight‑week implementation that finished two days ahead of schedule to support rapid diversification into short‑term working capital and equipment products. (abladvisor.com) Solifi’s 2026 Experience Hub and its 2025 acquisition of Leasepath expand its origination, digital engagement and mid‑market servicing capabilities — capabilities that parallel lender demand for faster onboarding, self‑service billing and tighter asset tracking. (prnewswire.com) (sfnet.com)