Finance brokers “the unsung heroes when it comes to SME finance”

19/08/2020

A senior figure at Aldermore has labelled finance brokers “the unsung heroes when it comes to SME finance”, and said they’ll be needed “more than ever to help businesses secure the funding they’ll need” to recover from the impact of the Covid-19 pandemic.

It follows research from the bank, which reveals SMEs are expected to borrow £48.3 billion in order to get back on track, with many likely to turn to a broker to help them find the right funding.

Statistics prior to the pandemic showed that SMEs who used a broker to access funding were able to secure an average of £93,000 per business.

Using a broker also made the process easier for many businesses, with 27% of respondents who used a broker saying they felt more supported and had access to a tailored process which was specific to their business’s needs. Additionally, 28% said that using a broker allowed them to consider multiple funding options, and 28% also said that they experienced an easy process.

The survey showed that 33% of SMEs have previously used a finance broker, and that this enables them to access a more diverse range of funding options, such as commercial mortgages (54%), start-up loans (52%) and asset finance (49%).

When it comes to choosing a suitable broker, 20% of SMEs rely on personal recommendations from friends, 19% based their decision on credentials and 17% went with a broker that was willing to negotiate fees and services.

Tim Boag, group managing director, business finance, at Aldermore, said: “Brokers are often the unsung heroes when it comes to SME finance. In the months ahead, they will be needed more than ever to help businesses secure the funding they need.

“Many SME owners are still relying on personal loans which can often be expensive and unsuitable. Understanding more about the finance options available means small businesses will be able to make more informed decisions about how to survive in the challenging months ahead.”

If you’re looking for a commercial finance broker to help you secure funding, Hilton-Baird Financial Solutions are totally independent and authorised by the FCA, so you can be sure that you’ll be talking to a broker you can trust when you come to us.

Take a look at how we’ve helped our clients in our recent success stories, or give us a call on 0800 9774833 to discuss your requirements.