New research from independent lender Time Finance has unveiled a striking trend—nearly 60% of small and medium-sized enterprises (SMEs) have never considered funding options beyond their primary bank. With alternative finance solutions offering more flexibility, many businesses could be missing out on vital opportunities for expansion and sustainability.
Time Finance’s latest survey, conducted in partnership with Censuswide, highlights the lack of awareness and engagement among SME decision-makers when it comes to independent finance. The Finance Apathy Survey found that six in ten UK businesses rely solely on their bank for commercial finance solutions, and of those that were turned down, only 27% sought alternative funding options.
A closer look at regional data further underscores the disparity. Over 70% of businesses in the East of England, East Midlands, and North East have never explored alternative finance, while 50% of North West businesses report the same. This suggests a significant knowledge gap that may be preventing businesses from accessing the funding they need to grow and succeed.
Ed Rimmer, CEO of Time Finance, emphasised the advantages of alternative finance, stating that independent lenders operate outside the rigid constraints of traditional banks. Their manual underwriting process allows for greater flexibility, enabling them to craft tailored funding solutions even for businesses that have been rejected elsewhere. He also pointed out that the reluctance to explore these options is hindering the ability of many SMEs to make informed financial decisions.
The survey also revealed that brokers and intermediary partners play a crucial role in bridging this knowledge gap. However, only 28% of SME decision-makers had used a broker to secure finance. By fostering stronger relationships between SMEs and brokers, more businesses could gain access to a wider range of funding solutions, empowering them to drive growth and innovation.
As businesses navigate an evolving economic landscape, understanding all available financial options is crucial. Independent lenders offer adaptable and strategic financing solutions that could help SMEs thrive. Greater awareness and engagement with these options could unlock untapped potential and fuel long-term business success.Time Finance plc (LON:TIME) is an AIM-listed business specialising in the provision or arrangement of funding solutions to UK businesses seeking to access the finance they need to realise their growth plans. Time Finance can fund businesses or arrange funding with their trusted partners through Asset Finance, Invoice Finance, Business Loans, Vehicle Finance or Asset Based Lending.
