Business · Companies · 1 hr ago
UK businesses’ borrowing doubled to 56% in the past year, survey finds
A survey of more than 1,000 UK business leaders found that 56% had taken on new borrowing or credit in the past year, compared with 28% in 2025.
Businesses have faced higher costs, including for inflation, utilities, labour and fuel.
Many are borrowing to manage those pressures and keep cash available.
But borrowing is also increasingly being used for investment, including technology and workforce skills.
Other planned uses include research and development, new products and expansion into new markets.
Firms aiming to grow were more likely to borrow and use funds for mergers and acquisitions.
The survey suggests that lending demand has risen as businesses balance cost control with plans to improve productivity and expand.
Around 56% of UK business leaders said their businesses took on new borrowing or credit in the past year, up from 28% in 2025.
The findings come from an HSBC UK survey of more than 1,000 business leaders.
Businesses cited cost pressures and investment, including spending on technology, as reasons for borrowing.
Reducing costs was a strategic priority for 82% of businesses, while 79% prioritised cashflow and liquidity.
Planned uses of finance included digital technology, research and development, product launches and expansion into new markets.
- Who
- UK businesses, represented by more than 1,000 business leaders surveyed.
- What
- The share reporting new borrowing or credit arrangements doubled to 56%.
- When
- In the past year, compared with 28% in 2025.
- Where
- United Kingdom.
- Why
- Businesses borrowed to manage cost pressures and fund investment, including technology and workforce skills.
This story does not have two clearly opposing sides.
some businesses will have borrowed to manage ongoing cost pressures
Evidence suggests that investment is becoming an increasingly important driver of borrowing demand.
28% of surveyed business leaders said their businesses had taken on new borrowing or credit arrangements.
56% of surveyed business leaders said their businesses took on new borrowing or credit arrangements.
- Borrowing in past year
- 56%
- Borrowing in 2025
- 28%
- Survey size
- More than 1,000 UK business leaders
- Cost reduction priority
- 82% of businesses
- Cashflow and liquidity priority
- 79% of businesses
Sources
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