New research from independent lender Time Finance reveals that nearly 60% of small and medium-sized enterprises (SMEs) in the UK have never explored alternative finance options, relying solely on their main bank for commercial funding. This reliance could be limiting business growth, as many SMEs fail to consider more flexible funding solutions available beyond traditional lenders.
The Finance Apathy Survey, conducted in partnership with Censuswide, highlights a significant lack of awareness among SME decision-makers regarding independent finance providers. The findings show that only 27% of businesses rejected by their banks sought funding from other sources. In certain regions, the trend is even more pronounced. Over 70% of SMEs in the East of England, East Midlands, and North East have never looked beyond their primary bank, whereas businesses in the North West are more open to alternative finance, with only 50% remaining bank-dependent.
Ed Rimmer, CEO of Time Finance, underscores the advantages of independent lenders, which provide greater flexibility by operating outside rigid traditional banking structures. With a manual underwriting process that considers individual business needs rather than fixed lending criteria, independent lenders can offer tailored finance solutions to businesses that may otherwise struggle to access capital.
The survey also reveals that only 28% of SME decision-makers have utilised a broker to navigate finance options. Rimmer stresses the importance of education and support in increasing awareness of alternative finance. Brokers and intermediaries play a key role in guiding businesses through the financial landscape, helping them secure the funding necessary to drive expansion. Strengthening these partnerships could unlock significant growth potential for SMEs that may have previously believed funding opportunities were out of reach.
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.
