In response to the extensive economic disruption caused by the COVID-19 pandemic, the United Kingdom's Government created a range of measures to help support businesses survive the loss in revenues and cashflow. To help mid-sized and larger enterprises with a group turnover of more than 45 million British pounds, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) was set up.

The scheme operates through the British Business Bank via accredited lenders, which can provide up to 200 million British pounds in finance. These lenders can then provide finance in the form of term loans, revolving credit facilities (overdrafts), invoice finance and asset finance. For term loans and revolving credit facilities, finance that could be offered was increased from 50 million GBP after an announcement by HM Treasury on the 19th of May 2020.

Between the 10th of May, 2020 and the 31st of May, 2021, the cumulative number of approved facilities through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) in the United Kingdom (UK) has amounted to 753 at a cumulative value of more than 5.6 billion British pounds.

Due to the extensive economic disruption caused by the COVID-19 pandemic, the United Kingdom's Government created a range of measures to help support businesses survive the loss in revenues and cashflow. To help smaller businesses (SMEs), the Coronavirus Business Interruption Loan Scheme (CBILS) was set up. The scheme operates through the British Business Bank via more than 40 accredited lenders including high street banks, challenger banks, asset based lenders and smaller specialist local lenders. These lenders can then provide up to five million British pounds (GBP) in the form of term loans, overdraft, invoice finance and asset finance.

Between the 10th of May, 2020 and the 31st of May, 2021, the cumulative number of approved facilities through the Coronavirus Business Interruption Loan Scheme (CBILS) in the United Kingdom (UK) has reached more than 110,000 at a combined value of approximately 26 billion British pounds.

In response to the extensive economic disruption caused by the COVID-19 pandemic, the United Kingdom's government created a range of measures to help support businesses survive the loss in revenues and cashflow. To help businesses, the Bounce Back Loan Scheme (BBLS) was set up. The scheme, which is a part of a wider package of government support for UK businesses and employees allows lenders to provide a six-year term loan from two thousand British pounds up to 25 percent of a business' turnover. The maximum loan amount is currently fifty thousand British pounds.

Between May 10, 2020 and May 31, 2021, nearly 1.56 million businesses have been approved for finance with the cumulative value of lending through the Bounce Back Loan Scheme (BBLS) amounting to approximately 47.4 billion British pounds.

Mortgage rates increased at a record pace in 2022, with the 10-year fixed mortgage rate doubling between March 2022 and December 2022. With inflation increasing, the Bank of England introduced several bank rate hikes, resulting in higher mortgage rates. In September 2023, the average 10-year fixed rate interest rate reached 5.1 percent. As borrowing costs get higher, demand for housing is expected to decrease, leading to declining market sentiment and slower house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold declined in 2022, reaching close to 1.3 million. Despite the number of transactions falling, this figure was higher than the period before the COVID-10 pandemic. The falling transaction volume also impacted mortgage borrowing. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans fell year-on-year for fourth straight quarters in a row. How are higher mortgages affecting homebuyers? Homeowners with a mortgage loan usually lock in a fixed rate deal for two to ten years, meaning that after this period runs out, they need to renegotiate the terms of the loan. Many of the mortgages outstanding were taken out during the period of record-low mortgage rates and have since faced notable increases in their monthly repayment. About five million homeowners are projected to see their deal expire by the end of 2026. About two million of these loans are projected to experience a monthly payment increase of up to 199 British pounds by 2026.

After peaking in the second quarter of 2020, following the outbreak of the COVID-19 pandemic, lending to small and medium enterprises (SMEs) in the United Kingdom (UK) decreased overall. In the second quarter of 2023, lending to UK SMEs amounted to 4.8 billion British pounds, compared to 7.6 billion British pounds in the first quarter of 2021.

United Kingdom Coronavirus Business Interruption Loan Scheme (CBILS): Applications data was reported at 122,885.000 Unit in 16 Aug 2020. This records an increase from the previous number of 121,669.000 Unit for 09 Aug 2020. United Kingdom Coronavirus Business Interruption Loan Scheme (CBILS): Applications data is updated weekly, averaging 104,569.000 Unit from May 2020 (Median) to 16 Aug 2020, with 15 observations. The data reached an all-time high of 122,885.000 Unit in 16 Aug 2020 and a record low of 64,531.000 Unit in 10 May 2020. United Kingdom Coronavirus Business Interruption Loan Scheme (CBILS): Applications data remains active status in CEIC and is reported by HM Treasury. The data is categorized under Global Database’s United Kingdom – Table UK.KB043: Coronavirus Business Interruption Loan Scheme.

Over the five years through 2024-25, UK banks' revenue is expected to climb at a compound annual rate of 1.7% to £128.6 billion, including anticipated hike of 2% in 2024-25. After the financial crisis, low interest rates limited banks' interest in loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks have shut the doors of many branches and made substantial job cuts. Following the COVID-19 outbreak, the Bank of England adopted aggressive tightening of monetary policy, hiking interest rates to rein in spiralling inflation. The higher base rate environment lifted borrowing costs, driving interest income for banks, which reported skyrocketing profits in 2023-24. Although profit grew markedly, pressure to pass on higher rates to savers and fierce competition weighed on net interest income at the tail end of the year, the difference between interest paid and interest received. UK banks are set to continue performing well in 2024-25 as the higher interest rate environment maintains healthy interest income, aiding revenue growth. However, net interest income is set to dip marginally due to higher deposit costs and narrow margins on mortgage loans. With further rate cuts priced into markets, savings rates will drop in 2024-25, stemming the drop in net interest income. Over the five years through 2029-30, industry revenue is forecast to swell at a compound annual rate of 3.3% to reach £151.1 billion. Regulatory restrictions, tougher stress tests and stringent lending criteria will also hamper revenue growth. Competition is set to remain fierce — both internally from lenders that deliver their services exclusively via digital channels and externally from alternative finance providers, like peer-to-peer lending platforms. The possibility of legislation like the Edinburgh reforms will drive investment and lending activity in the coming years, if introduced. However, concerns surrounding the repercussions of less stringent capital requirements and the already fragile nature of the UK financial system pose doubt as to whether any significant changes will be made.

United Kingdom CBILS: Large Businesses: Applications data was reported at 938.000 Unit in 16 Aug 2020. This records an increase from the previous number of 896.000 Unit for 09 Aug 2020. United Kingdom CBILS: Large Businesses: Applications data is updated weekly, averaging 745.000 Unit from May 2020 (Median) to 16 Aug 2020, with 15 observations. The data reached an all-time high of 938.000 Unit in 16 Aug 2020 and a record low of 450.000 Unit in 10 May 2020. United Kingdom CBILS: Large Businesses: Applications data remains active status in CEIC and is reported by HM Treasury. The data is categorized under Global Database’s United Kingdom – Table UK.KB043: Coronavirus Business Interruption Loan Scheme.

The value of repayments on redemption of secured loans on dwellings in the UK increased slightly in the third quarter of 2023, but remained below the same period in 2022. At 37.7 billion British pounds, the figure was one of the lowest recorded since the COVID-19 pandemic outbreak. During the onset of the pandemic, repayments dropped to close to 26.8 billion British pounds in the second quarter of 2020, approximately ten billion U.S. dollars below the same period in 2019. Secured loans on dwellings include all home purchase loans and remortgaging.

United Kingdom CBILS: Approved Facilities: Value data was reported at 13.680 GBP bn in 16 Aug 2020. This records an increase from the previous number of 13.410 GBP bn for 09 Aug 2020. United Kingdom CBILS: Approved Facilities: Value data is updated weekly, averaging 11.070 GBP bn from May 2020 (Median) to 16 Aug 2020, with 15 observations. The data reached an all-time high of 13.680 GBP bn in 16 Aug 2020 and a record low of 6.090 GBP bn in 10 May 2020. United Kingdom CBILS: Approved Facilities: Value data remains active status in CEIC and is reported by HM Treasury. The data is categorized under Global Database’s United Kingdom – Table UK.KB043: Coronavirus Business Interruption Loan Scheme.

According to Cognitive Market Research, the global Revenue Based Financing market size will be USD 2985.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 61.80% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 1194.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 60.0% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 895.56 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 686.60 million in 2024 and will grow at a compound annual growth rate (CAGR) of 63.8% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 149.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 61.2% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 59.70 million in 2024 and will grow at a compound annual growth rate (CAGR) of 61.5% from 2024 to 2031.
The healthcare industry is the fastest-growing category in the Revenue-Based Financing market. The rising demand for healthcare services, especially after the global pandemic, has led to accelerated growth within the sector

Market Dynamics of Revenue Based Financing Market

Key Drivers for Revenue Based Financing Market

Increased Demand for Flexible Capital to Boost Market Growth

In the Revenue-Based Financing Market, one of the most significant drivers is the growing demand for flexible capital solutions among startups and small businesses. Unlike traditional financing methods that often require fixed repayments regardless of a company’s cash flow, revenue-based financing allows businesses to repay their investors based on their monthly revenues. This flexibility is particularly appealing to entrepreneurs who face seasonal fluctuations or unexpected market challenges. By aligning repayment schedules with revenue performance, businesses can manage their cash flow more effectively, reducing the financial burden during lean periods and fostering sustainable growth. This adaptability not only enhances the appeal of revenue-based financing but also empowers businesses to make strategic investments that can drive long-term success without the fear of crippling debt. For instance, in the UK, the government launched the future fund scheme on May 20, 2020, which offers convertible loans to startups based on their revenue

Increasing Adoption of Digital Platforms and Fintech Solutions to Drive Market Growth

The surge in digital platforms and fintech solutions is another key driver in the Revenue-Based Financing market. With advancements in technology, fintech companies have made it easier for businesses to access funding through online platforms, streamlining the application and approval processes. Digital platforms also provide investors with detailed insights into business performance, facilitating better decision-making and risk management. The scalability and transparency offered by these platforms have accelerated the adoption of RBF, making it a popular choice among tech-driven startups and e-commerce businesses looking for quick and hassle-free funding solutions.

Restraint Factor for the Revenue Based Financing Market

High Cost of Capital, will Limit Market Growth

One significant restraint in the Revenue-Based Financing (RBF) market is the high cost of capital associated with this financing model. While RBF provides flexibility in repayment structures, the overall cost can be higher than traditional loans. Investors often charge higher fees or revenue percentages in exchange for the lower risk they assume. For startups and small businesses with limited profit margins, this elevated cost can strain their financial resources and deter them from choosing RBF over other funding options. Consequently, the perception of RBF as a more expensive alternative may hinder its widespread adoption among potential borrowers.

Impact of Covid-19 on the Revenue Based Financing Market

The COVID-19 pandemic has significantly impacted the Revenue-Based Financing Market, catalyzing both challenges and opportunities for businesses seeking flexible capital solutions. As many startups faced unprecedented financial pressures due to lockdowns and ...

Since the start of the coronavirus (COVID-19) crisis, many businesses have had to close their doors or have struggled to pay rent. As a result, commercial property landlords suffered loss of income, leading to failure to repay mortgage loans. In 2020, the default rate of commercial real estate mortgages rose to 4.6 percent, which is the highest value observed since the global financial crisis.

Covid-19 has severely impacted employment opportunity and earning potential for workers in Cambodia's garment and footwear sector. Manifesting initially as an economic crisis, the impacts of manufacturing shutdowns and consumer lockdowns around the world slowed the garment sector's output. This led to employment suspensions and terminations affecting hundreds of thousands of workers in Cambodia alone. For two years, the ReFashion study has uniquely tracked the impacts of the pandemic on a cohort of 200 female workers in Cambodia, from January 2020 through to December 2021. The study combines a quantitative survey of female workers to measure monthly trends in employment, household finances, and wellbeing, with qualitative interviews to explore emergent themes in greater depth. Each of these components is repeated with the same cohort of participants at strategic intervals. The research methods are designed to capture an in-depth and long-term understanding of women workers' lives through the pandemic. Our findings indicate that the COVID-19 pandemic has exacerbated a crisis of over-indebtedness for workers in the garment industry, with severe consequences for the short and long-term health and wellbeing of workers and their families. Over-indebtedness is reached when a credit borrower 'is continuously struggling to meet repayment deadlines and has to make unduly high sacrifices related to his or her loan obligations'. Even before the COVID-19 pandemic, credit borrowing had become commonplace among low-income households in Cambodia, which has one of the largest microfinance industries in the world in terms of borrowers per capita. This widescale borrowing enables households to temporarily deal with the lack of social protection and public services in the country, allowing them to meet costs of health care and invest in housing in times of urgent need. High levels of borrowing by garment workers specifically, as evidenced in the ReFashion study, indicate that flagship efforts to foster 'Decent Work' in the garment sector in Cambodia have not precluded the need for some workers to take on significant loans to supplement their low wages and fill the gaps in social protection provision. During the COVID-19 pandemic, garment workers' 'financial inclusion' became even more vital to their ability to cope with the economic emergency they faced, by using access to credit to smooth short terms gaps in income caused by employment suspensions. Yet at the same time, reduced earning capacity hindered workers' ability to make existing loan repayments. To meet outstanding commitments, many resorted to reducing daily expenditure on necessities including food. Most workers reported their household food intake as inadequate and many reported experiencing hunger during the pandemic. Such unduly high sacrifices are neither just nor sustainable.The COVID-19 pandemic is having significant repercussions on the global garment industry, of huge importance not only to Cambodia's economy, but also to its 1 million workers, 80% of whom are women. Many garment factories are interrupting production with the effect that 1/4 of workers have been dismissed or temporarily suspended. Formal social protection in the sector, though improving due to multi-stakeholder efforts, is weak and fragile. Mixed-method longitudinal research will track and amplify the experiences and coping mechanisms of 200 women workers as they navigate the financial repercussions of the COVID-19 pandemic. The project's interdisciplinary team from human geography, political economy, and organisation studies will generate new knowledge on underlying and differentiating determinants of risk and resilience arising from formal and informal social protections. The ambitious study will focus its policy attention on learning to 'Build Back Better' social protection to prevent and mitigate longer-term impacts of the pandemic and future risk events. Our approach centres women's representation in planning and decision-making as critical to 'stitching back better' just and resilient garment supply chains to make progress towards gender equality (SDG5), inclusive economic growth and decent work (SDG8). The project's impact, within its 18-month lifetime, will be compelled by its partnerships with, and pro-active convening together, of government (Cambodian Ministry of Labor, British Embassy), regulators (ILO, Better Factories Cambodia), industry (Garment Manufacturers Association in Cambodia, H&M), think tanks (ODI), workers' organisations (CATU, the only female-led union in Cambodia), and women's media (Women's Media Center and the Messenger Band). Worker survey: A quantitative survey beginning with over 200 female workers participating, capturing data on work and home life. The survey was repeated three times with the same cohort of workers: in Oct/Nov ’20 (203 workers), Mar/Apr ’21 (150 workers), & Nov/Dec ’21 (100 workers). Our first survey round was conducted face-to-face but later rounds reverted to telephone interviewing to protect the safety of our research team and respondents. All names in are pseudonyms. Worker interviews: Semi-structured interviews with a sub-sample of 60 our original survey respondents. Interviews were again repeated three times with the same cohort of workers: in Dec ‘20/Jan ‘21 (61 workers), June/July ’21 (45 workers), & Dec ‘21/Jan ’22 (31 workers). Stakeholder interviews: Workers own perspectives on and experiences of the pandemic are supplemented by 39 key informant interviews conducted between January 2021 and January 2022 with a broad spectrum of industry stakeholders across the UK and Cambodia, including clothing and footwear brands and retailers; supplier representatives; industry regulators and monitors; labour rights organisations; and local trade unions.

The value of approvals issued for house purchase lending in the UK plummeted at the beginning of the COVID-19 pandemic, reaching a record-low of 1.9 billion British pounds in May 2020. In the second half of the year, the release of pent-up demand led to the value of approvals spiking at close to 22 billion British pounds in December 2020. With mortgage rates increasing in response to stubborn inflation, the value of mortgage approvals saw a substantial decrease in 2022 and an uptick in 2023. Remortgage approvals followed a similar trend.

United Kingdom Gross Lending to Individuals: Consumer Credit (CC): Total data was reported at 31,732.000 GBP mn in Jan 2025. This records a decrease from the previous number of 32,324.000 GBP mn for Dec 2024. United Kingdom Gross Lending to Individuals: Consumer Credit (CC): Total data is updated monthly, averaging 16,645.000 GBP mn from Apr 1993 (Median) to Jan 2025, with 382 observations. The data reached an all-time high of 33,432.000 GBP mn in Jul 2024 and a record low of 5,030.000 GBP mn in May 1993. United Kingdom Gross Lending to Individuals: Consumer Credit (CC): Total data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB039: Lending to Individuals: Gross: Consumer Credits. [COVID-19-IMPACT]

The average value of mortgage loans granted in the UK since 2016 ranged between 156,000 British pounds and 203,000 British pounds. In the third quarter of 2024, the average mortgage loan amounted to nearly 196,390 British pounds - the second-highest figure on record after the third quarter of 2022. The overall increase in the average value of mortgages granted can be explained by the accelerated increase in house prices since the outbreak of the coronavirus (COVID-19) pandemic.

The total value of mortgage repayments in the United Kingdom (UK) picked up in the third quarter of 2023, after falling to one of the lowest values since the (COVID-19) pandemic. Secured loans on dwellings includes all home purchase loans and remortgaging. In the third quarter of 2023, the repayments of secured loans on dwellings in the UK reached a total value of nearly 59.5 billion British pounds.