Member insights from Stephen Deakin, Chief Executive, BCRS Business Loans
Looking back on 2025, Welsh small businesses have continued to demonstrate confidence, adaptability and a willingness to move forward, even as conditions and the economic landscape have evolved.
From a BCRS perspective, it has been a strong year, with the last financial year being our second-best ever, and this year we are currently tracking around 10 percent ahead again. That matters not because of the headline figures, but because it reflects the sustained demand from Welsh SMEs for finance that is fair and genuinely supportive.
Like many lenders, we’ve seen a stop-start pattern throughout 2025. Periods of strong appetite for investment have been followed by hesitation, often driven by wider economic uncertainty, particularly around the Budget, when many businesses chose to pause until they had clarity.
That caution is understandable. Welsh SMEs, like those across the UK, have faced years of disruption – from the pandemic to rising costs and shifting market conditions. And yet, what continues to impress me is their resilience. These are adaptable, determined businesses that keep moving forward, even when conditions are far from easy.
A different approach to finance in Wales
One of the strengths of Wales’ business ecosystem is its diversity, and at BCRS, we reflect that by being sector-agnostic. Even in industries facing headwinds, there are always strong, well-run Welsh businesses doing exceptional things and those are the enterprises we exist to support.
What sets community development finance institutions apart is our personal, relationship-led approach. We take the time to understand businesses properly, rather than relying on tick-box lending. One customer recently described our support as “first-class finance” – a phrase that sticks with me and captures exactly what we aim to deliver: finance that puts people first.
That approach is particularly important in Wales, where geography can present challenges and where access to mainstream finance isn’t always straightforward. Having a full, experienced team on the ground allows us to reach businesses in both urban centres and rural communities alike.
Investing now to support growth later
Internally, 2025 has also been a year of investment. Like many SMEs, we’ve been focused on strengthening our systems and infrastructure so that we can grow sustainably. Implementing a new IT platform hasn’t been easy, but it is a critical step in ensuring we can support more Welsh businesses more efficiently in the years ahead.
Those foundations put us in a strong position for 2026. With the groundwork largely in place, we can focus more on marketing, refreshing our brand and, crucially, telling the stories of the Welsh entrepreneurs we support. Our role is often to facilitate the brilliant things our customers go on to achieve – and their voices are always the most powerful.
Why 2026 feels like a turning point
Looking ahead, there is a growing feeling that 2026 could be a year of renewed momentum. While challenges remain, particularly in sectors such as hospitality, many business owners seem ready to move beyond waiting and start investing again.
At BCRS, our ambition for Wales reflects that optimism. We want to grow our lending and reach more SMEs across the country, while ensuring that growth goes hand in hand with impact. That means supporting under-represented entrepreneurs, strengthening local supply chains and helping viable businesses access finance earlier, before they reach a crisis point.
Too often, we see businesses come to us after being weakened by high-cost, short-term lending. One of our priorities for the year ahead is ensuring more Welsh SMEs know there is an alternative and that they don’t have to wait until options have run out.
For me, 2025 has reinforced something fundamental about who we are. BCRS exists to make a difference, not just through finance, but through our commitment to communities across Wales. Whether that’s reinvesting profits, supporting charitable partners or embedding ourselves locally, those actions are central to our purpose.
If I had to sum up our focus for the year ahead, it would be this: help more Welsh SMEs access more first-class finance. If we can achieve that, 2026 really could be the year Welsh businesses kick on again.
Chambers Wales South East, South West and Mid member BCRS Business Loans supports small and medium sized enterprises in Wales and the West Midlands that are looking to grow and prosper. BCRS has been an accredited delivery partner for the British Business Bank since 2012 and is the fund manager for the Investment Fund for Wales, supporting SMEs across the region with loans from £25,000 to £100,000.
