6 in 10 businesses missing out on independent finance
New data from independent lender, Time Finance, reveals that SMEs are not utilising their options when it comes to accessing alternative finance, with nearly 60% having never looked beyond their own bank for commercial finance solutions.
Urging SMEs to broaden their horizons when it comes to investing in growth, Time Finance’s new survey delves into SME decision makers’ awareness of independent finance and their attitudes towards lending.
The Finance Apathy Survey, undertaken in partnership with Censuswide, found that six in 10 UK businesses choose their main bank for commercial finance solutions, and only 27% of those turned down by their banks look elsewhere.
When analysed geographically, this data gap widens even further with over 70% of businesses in the East of England, East Midlands and North East having never looked elsewhere for their finance, compared with 50% of North West businesses also having never looked elsewhere.
Ed Rimmer, CEO at Time Finance comments: “Operating independently from high street banks, the alternative finance industry offers some of the most flexible commercial finance solutions on the market. With a manual underwriting process, which negates the need for strict lending criteria, independent lenders can also be more creative when packaging deals, and can offer solutions to businesses that may have been turned down elsewhere.
“Our recent figures show that a worrying six in 10 businesses are missing out on the possibilities of independent finance solutions. This tells me we have a job on our hands to reach those businesses opting to disengage. Without all options on the drawing board, many viable and growing businesses are simply not equipped with the knowledge they need to plan ahead.
“We know that brokers and intermediary partners play an integral role in educating and supporting UK SMEs, but our data revealed that only 28% of the SME decision makers surveyed had used a broker to access their finance. By working closely with broker partners we can equip UK SMEs with a better understanding of the various providers and types of specialist finance available to them, and help them thrive as a result.”