Date published:04/09/2025
Numbers of credit broker firms have fallen by more than a fifth (-20.5%) in the past year to 3,388 in Q3 2025 as businesses seek options for refinance and funding, according to data obtained from the Financial Conduct Authority (FCA) by MAF Finance Group.
MAF Finance Group, which is part of Begbies Traynor Group, also discovered that this number has been falling each quarter since Q1 2020, with a drop of 47.5% from 6,449 in Q1 2020 to 3,388 in Q3 2025, highlighting a need for remaining brokers to deliver services for more businesses.
During the past year, this trend was fastest amongst sole traders, which often provide services for growing SMEs, where numbers contracted 22.7% (Q3 2024 - 4,503, Q3 2025 - 2,244).
However, Partnerships (-15.6%, Q3 2024 - 1,144, Q3 2025 - 1,355) fell at a slower rate, coupled with credit broker administrations in the hundreds since 2020, suggesting consolidation or growth of many firms.
Since Q1 2020, both Partnership and Sole Trader categories have declined each quarter, with sole trader numbers experiencing their fastest quarterly drop in Q2 2025, when it peaked at 9.1%.
Meanwhile, the total number of sole traders, partnerships, and ‘other’ firms with credit broker permissions, which includes the likes of retailers with broker permissions, has fallen 27.7% from 32,910 to 23,803.
Dave Chapman, Managing Director at MAF Finance Group, said:
“Finance brokers perform a vital role in arranging funding for small, medium and large businesses at an affordable, sustainable rate. With a shrinking market of options it is vital that businesses have firms that understand and grow with their business, as sole traders often do. This understanding delivers the best credit applications resulting in the best deals from alternative as well as high-street lenders.
“In this current climate we are seeing healthy businesses taking opportunities to build stronger foundations. Many are looking at opportunities to acquire rivals on a less sound footing to expand their offerings. To do that they need good quality brokers to get them the best refinance and funding options by having a deep understanding of their history, and access to a large panel of funders.
“As broker numbers fall it is more important than ever that businesses understand where they can get the finance to grow, restructure, refinance and thrive.”
Recent BTG press releases
© 2026 BTG Consulting plc - Incorporated and registered in England and Wales - VAT Number: 880996072 - Company Registration Number: 05120043
This site uses cookies to monitor site performance and provide a mode responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies, please read our Privacy Policy.