Getting a small business loan in the United Kingdom has become harder and also more expensive due to high rejection rates and hikes in interest rates. According to a recent report in the Financial Times, more than half of the small business loan applications in the country were unsuccessful during the third quarter of 2022, compared to around one-third of unsuccessful applications before the pandemic. Realizing that the funding options have become scarcer and costlier, the Federation of Small Businesses (FSB) has started lobbying the government to increase tax credits for R&D, unveil an incentive for capital investment and introduce state-backed finance plans for small businesses.
