Small business lending is booming. According to the March 2025 “Unsecured Business Loans - Global Strategic Business Report” from Research and Markets, the global market for unsecured business loans is valued at $5.5 trillion in 2024. Steady growth is expected, with projections showing that the unsecured business loan market could reach $9.3 trillion by 2030. Despite these positives, struggling to access credit is still a common experience.  

Difficulties Accessing Credit  

Small businesses around the world may face a number of difficulties accessing credit. Whether it’s meeting the stringent requirements of traditional lenders or finding affordable terms, many SMBs are locked out of opportunities that could help them grow.  

According to World Bank Group data, small and medium-sized enterprises (SMEs) make up 90% of businesses and 50% of employment worldwide. Despite their reach, they struggle to access financing and are less likely to qualify for bank loans. In fact, access to financing is the second most common obstacle SMEs face when trying to grow their business. 

A 2025 survey from Goldman Sachs states:  

  • 53% of small business owner respondents are unable to afford a loan due to current interest rates 
  • 88% of them note that it would be beneficial if interest rates fell 
  • 35% of businesses applied for a new business loan or line of credit within the last year 
  • 80% report facing difficulties accessing affordable capital   

Small Business Economic Growth  

Small and medium-sized businesses (SMBs) play a significant role in economic growth and a country’s gross domestic product (GDP). In the United States, small businesses make up 43.5% of the country’s gross domestic product, according to data from the Small Business Administration (SBA).  

SMEs, a term often used in a global context and that can be synonymous with SMBs, make up 40% of the GDP in emerging economies worldwide, according to the World Bank Group. If you include informal SMEs, that number is significantly higher.  

Micro, small and medium enterprises (MSMEs) make up 30% of India’s GDP, according to the Economic Times. That number could grow to 40% by 2030. In Mexico, MSMEs contribute 52% to the country’s GDP, while in Canada, they contribute 50%, according to the report “Mexican MSMEs: The Engine of our Economy.”

SMB Lending Trends Around the World in 2025  

Here are some SMB lending trends changing the small business landscape across the globe.  

Increase in Digital Lending Platforms 

Small business owners around the world typically face challenges getting financing. But the increase in digital lending options makes small business lending more accessible. These platforms use the latest fintech innovations and blockchain technology to transform the small business lending process.  

Last year, Reuters reported on India’s Unified Lending Interface (ULI), a platform that extends credit to small and rural borrowers. Thanks to the Reserve Bank Innovation Hub, which is a wholly owned subsidiary of the Reserve Bank of India, the site is live. The mission of the Unified Lending Interface (ULI) is “to enable the frictionless delivery of credit for a billion Indians.” 

The platform uses standardized APIs that lenders can use seamlessly, making it easier for them to extend credit to small business borrowers.  

Automation, AI, and Alternative Data 

Three major things are transforming small business lending around the world: automation, AI, and alternative data. Automation and AI speed up underwriting and loan processing times. These tools can collect and analyze borrower data and review multiple risk factors beyond just credit scores.  

Many fintech lenders are using alternative data sets that can increase borrower eligibility and expand access to capital. According to a November 2023 report from the Federal Reserve Bank of New York, instead of looking at only credit score and the ability to repay, lenders could also look at: 

  • Education 
  • Industry trends 
  • Revenue forecast 
  • Cash flow  
  • Monthly bills 
  • Occupation  
  • Social media 
  • Consumer banking information 
  • Peer-to-peer lending history 
  • Inquiries to specialty lenders, such as payday lenders  

The Unified Lending Interface (ULI) is also looking at alternative data for rural borrowers, such as state land records, satellite data, and milk pouring data from milk federations.  

Embedded Finance  

The future of SMB lending is embedded finance. Banks won’t be the only place business owners will turn to get business financing. Instead, they can turn to the online tools they’re using to manage their operations and payments to secure financing.  

A prime example of this is PayPal, which allows users to send and receive payments or make payments for purchases. PayPal recently surpassed $30 billion in global small business lending. The company has extended 1.4 million loans and cash advances to over 420,000 business accounts across the globe since 2013.  

The Bottom Line

Small and medium-sized businesses keep the global economy running. They’re an asset to each country — providing jobs, community, and resources. But oftentimes, they need more support and resources themselves, so they turn to small business lending solutions.  

Banks can help fill that gap. But they need to meet borrowers where they are and adapt to the latest technological innovations. Lenders who want to have a global imprint and help borrowers can use digital tools like the Biz2X lending platform to get started.