In Q1 2025 over half (53%) of commercial mortgage brokers reported seeing a growing demand for external funding from their commercial clients, according to the latest SME Pulse survey from Atom bank.

This was a fall from the previous quarter, down from 56%, instead, the proportion of advisers reporting unchanged demand from SMEs increased by 5%, reaching 44%.

Tom Renwick, Head of Business Lending at Atom bank, said: “It’s enormously encouraging that so few brokers in our latest SME Pulse are reporting a drop in demand from their business clients, despite the various economic headwinds they have faced at the start of 2025. This shows the level of confidence among British businesses at the moment, and suggests they believe this is the right time to raise the funds needed to support their growth plans

“It’s also good to see that access to funding is becoming easier. While it’s disappointing that a quarter of brokers are experiencing issues in securing the funds their clients need, the sharp drop reported from Q4 2024 suggests that lender appetites are improving.”

Of those experiencing increased appetite from business clients, lower interest rates are a big driving force. More than half (57%) of respondents cited the reduced cost of borrowing as the reason appetite for commercial finance has grown.