A new survey by independent lender Time Finance has revealed that nearly 60% of UK SMEs have never explored finance options beyond their main bank, potentially missing out on alternative funding solutions that could support their growth.

The Finance Apathy Survey, conducted in partnership with Censuswide, highlights a widespread reliance on traditional lenders, with only 27% of businesses that are turned down by their banks seeking alternative finance.

The figures suggest a lack of awareness around the flexibility and accessibility of independent finance providers.

REGIONAL DISPARITIES IN FINANCE AWARENESS

The survey also found significant regional variations in finance awareness. More than 70% of businesses in the East of England, East Midlands, and North East reported never considering alternative finance, compared with 50% in the North West.

Ed Rimmer, CEO of Time Finance, described the findings as concerning, noting that independent lenders can offer more flexible solutions tailored to individual business needs.

“Operating outside the high street banking system, the alternative finance industry provides businesses with options that don’t rely on rigid lending criteria. With a manual underwriting process, independent lenders can be more creative in structuring finance deals, making funding accessible to businesses that may struggle with traditional banks,” Rimmer said.

ROLE OF BROKERS IN FINANCE EDUCATION

The survey also revealed that only 28% of SME decision-makers had worked with a broker to source finance, despite brokers playing a key role in connecting businesses with suitable funding options.

Rimmer emphasised the importance of increasing awareness around specialist finance.

He said: “Without a full understanding of available finance solutions, businesses may be limiting their growth potential. By working more closely with brokers and intermediaries, we can help UK SMEs navigate the finance landscape and make informed decisions about their funding needs.”

Tim Finance said the findings underline the need for greater financial education and awareness among SMEs, ensuring they have access to the most suitable funding options to support their future growth.