UK business borrowing doubles as firms seek growth funding

Summarised from 2 outlets · Updated 12 Oct, 00:24 · Archive

The proportion of UK businesses taking on new borrowing has doubled this year to 56%, according to an HSBC survey.

The proportion of UK businesses borrowing money has doubled this year, with 56% of business leaders reporting new borrowing or credit arrangements, up from 28% in 2025, according to an HSBC UK survey of more than 1,000 leaders. The surge in borrowing demand follows increased costs many firms have faced, including higher inflation, utility bills, increased labour costs and a rise in fuel costs following the Middle East conflict.

82% of businesses identified reducing costs as a strategic priority, while 79% prioritised cashflow and liquidity. However, James Cundy, head of mid-market corporates at HSBC UK, said that whilst 'some businesses will have borrowed to manage ongoing cost pressures', investment is becoming increasingly important. He stated: 'We're seeing many businesses focus investment on productivity improvements through technology and workforce skills, while others are using finance to pursue consolidation opportunities and strengthen their market position.'

Firms targeting growth were more likely to take on new finance for mergers and acquisitions. Digital technology, research and development, product launches and expansion into new markets were the top planned uses of finance for the wider business population.

UK business borrowing doubles as firms seek growth funding — Image: Evening Standard

Comments (0)

How it is being reported

Firms taking on new borrowing has doubled this year, survey findsThe poll of more than 1,000 leaders at UK businesses signals demand for lending has surged this year.Evening Standard · 12 Oct, 00:01
Firms taking on new borrowing has doubled this year, survey findsThe poll of more than 1,000 leaders at UK businesses signals demand for lending has surged this year.Independent Business · 12 Oct, 00:01

In this story: HSBC UK · James Cundy · UK

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem