The British Business Bank’s Small Business Finance Markets 2016/17 report shows that credit conditions for small businesses continue to improve, with a notable increase in the volume of asset finance and peer to peer business lending. Economic uncertainty has, however, had an impact on small business confidence, with a drop in the number of smaller firms expecting to grow in the coming year.  Many small businesses are wary about seeking external finance, reflected in a continued trend of falling application rates.

The report also finds that equity investment, which can be especially important for growing businesses, remains clustered in London and the South East. The Bank says it will continue to focus on three broad areas: 1. Supporting scale-ups, closing regional imbalances and raising awareness.