ThinCats, the alternative lender focused on mid-sized SMEs, has announced a record year of lending for the 12 months to 30 June 2025, providing £381 million in funding to businesses across the UK.
The figures mark a marginal increase on last year’s £378 million and come despite significant macroeconomic headwinds affecting borrower demand.
The lender’s robust performance is particularly notable given the turbulent backdrop of rising business taxes, persistent global tariffs, and slower-than-expected base rate cuts. These pressures have weighed on the market overall — industry data from Experian reveals UK M&A activity has declined 24% year-on-year. Yet ThinCats has maintained its position as the UK’s leading debt provider for mergers and acquisitions.
The company’s results also shed light on shifting demand patterns. Lending to owner-managed businesses has risen sharply, particularly in the wake of last autumn’s Budget. There was also a notable uptick in use of ThinCats’ transactional capital facility, a flexible borrowing product designed to support ‘buy and build’ acquisition strategies. In contrast, the volume of private equity-sponsored deals remained steady.
In total, ThinCats has now lent over £2 billion to UK firms since its inception, with assets under management currently just under the £1 billion mark.
Mike Hackett, Chief Commercial Officer at ThinCats, said: “It’s been a hugely challenging year for UK companies. At home and abroad, we have seen enormous challenges, but adversity can often lead to opportunity. We’ve continued to see interest and borrower activity across sectors like healthcare, telecoms and B2B services.”
He added: “There continues to be huge resilience across the UK’s mid-sized SMEs — the backbone of the economy — who are still seeking capital to grow, invest and expand. Despite market uncertainty, sentiment is improving and we are already seeing increased activity and more deals in the pipeline.”
ThinCats’ consistent growth and strong performance in core segments like owner-managed and acquisition-driven businesses reinforce its role as a key non-bank finance partner for SMEs navigating a complex and shifting economic landscape.
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ThinCats hits record lending levels with £381m despite challenging UK business climate