Time Finance’s latest data has uncovered a revealing truth about UK SMEs—they’re reaching for the financial tools they know, not necessarily the ones that will drive growth. While loans dominate as the most used commercial finance product, the real opportunity lies in untapped alternatives that remain underutilised and misunderstood.
Time Finance, in collaboration with Censuswide, has released fresh insight into how UK SMEs think about and engage with commercial finance. The findings show a strong preference for traditional, consumer-style products, with loans being the most recognised (93%) and most used (40%). By contrast, awareness and usage of more specialist funding solutions, like Asset Based Lending (ABL), Invoice Finance and Asset Finance, remain markedly lower. Just 64% are aware of ABL, and a mere 19% are actively using it.
The data, drawn from 500 SME owners and decision-makers across the UK, paints a picture of financial familiarity overriding financial strategy. It echoes trends reported by the British Business Bank and the SME Finance Monitor, where credit cards, overdrafts and loans continue to feature as primary tools for funding. These are solutions built with consumers in mind, not growth-focused enterprises.
Time Finance CEO Ed Rimmer points to a critical need for education and a mindset shift. He underscores that while loans offer immediate cashflow support, more tailored solutions like ABL, Invoice Finance and Asset Finance are engineered specifically for business development. These tools allow businesses to unlock capital from unpaid invoices, invest in new equipment, or leverage existing assets—all methods that align finance with long-term business objectives.
Rimmer stresses that this underutilisation stems from a knowledge gap. SMEs are defaulting to what feels familiar, not what’s most effective. With only 19% uptake of ABL despite 64% awareness, there is clear untapped potential. Time Finance is encouraging businesses to move beyond their comfort zones, explore specialist funding options, and embrace financial solutions designed with business growth at their core.
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.
