A new survey has found that more than 70% of small and medium-sized enterprises in the UK are missing out on the potential benefits of working with a finance broker, due to limited awareness of available services and funding options.
The research, conducted by Time Finance in partnership with Censuswide, surveyed 500 SME owners and decision makers across the country. It revealed that only 28% had ever used a broker to secure finance, despite many expressing a healthy appetite for business lending.
According to the findings, more than half of respondents – 52% – were aware of brokers but had never made use of their services, while a further 20% said they were entirely unaware that using a broker was even an option for accessing finance.
The results are part of Time Finance’s broader Finance Apathy Survey, which explored the extent to which SMEs understand the range of lending products available to them. The survey uncovered widespread gaps in awareness: 21% of SMEs did not know about asset finance, 24% were unfamiliar with invoice finance, and 36% were unaware of asset based lending.
Ed Rimmer (pictured), chief executive officer at Time Finance, said the results highlighted the importance of education and the role brokers could play in helping businesses navigate their options.
“Our survey has shown there is a real gap for businesses in their knowledge of the sheer variety of options they have when it comes to business finance,” he said. “It’s clear they would benefit from the guidance and support of our broker partners, all of which work with businesses to introduce them to solutions that suit their specific ambitions and circumstances.”
While Rimmer acknowledged that some in the 72% who had not used a broker may either not require finance or may have opted to deal directly with a lender, he stressed that many were likely struggling to know where to start.
“There will inevitably be a majority of businesses not quite knowing where to start with accessing finance,” he added. “We need to help bridge this gap. We want to work with our broker partners to help break down some of these barriers, to educate SMEs on the options available to them and help them access solutions that will ultimately fuel their growth.”
