SME Funding: Frustration or Flexibility?

While 89% of surveyed decision-makers felt confident navigating financing options, nearly half (46%) reported their recent funding fell short of their specific needs.

This suggests a potential knowledge gap, with many businesses overlooking the intricacies of different financing products.

The research also highlights dissatisfaction with the application process itself. A significant portion (44%) of those who applied for funding lamented the lack of personalised support from lenders. Impersonal structures and rigid processes often fail to address the unique challenges faced by growing businesses.

The survey underscores the demand for a more personalised approach.  SMEs are seeking "creative solutions" that extend beyond traditional loans. Business owners crave a "personal touch" – a financing partner who understands their vision and crafts a strategy that addresses both immediate needs and long-term aspirations.

This might involve a bespoke blend of financing options, such as debt and equity, tailored to fuel sustainable growth. Unfortunately, the report suggests mainstream lenders often fall short in this area.
The consequence? Many business owners resort to personal savings or credit cards – risky and unsustainable strategies for long-term growth. The in-depth analysis and personalised support that SMEs crave seem reserved for larger corporations, leaving many feeling stuck in a financing maze.

However, Rudge suggests a solution. "Business owners are willing to pay a premium for a service that truly understands their business and helps them achieve their goals." 

Perhaps the answer lies in a shift towards a more collaborative funding landscape, where lenders like Shawbrook become trusted partners in the growth journey of ambitious UK SMEs.