High street banks account for a shrinking share of UK SME lending — their criteria are rigid, their processes slow, and their product range limited. Yet many business owners apply to their own bank first, out of habit or loyalty.
What to do instead: Approach the whole market through an independent broker. The right lender for your profile may be a challenger bank or specialist lender — not your high street bank.
Finance arranged in a hurry — because the business has hit a crisis — is almost always more expensive and harder to obtain. Lenders can identify stress in bank statements and applications.
What to do instead: Plan 3–6 months ahead. Approach lenders from a stable position, not when you're two months from running out of cash.
Many businesses use a term loan when invoice finance would serve better — or vice versa. Getting this wrong means paying more than necessary and potentially taking on unnecessary risk.
What to do instead: Talk to an independent broker before committing to any product. A 30-minute conversation can save thousands.
Commercial lending rates vary enormously between providers — far more than most business owners realise. Two lenders looking at identical applications might offer rates differing by 3–5 percentage points. On a £200k loan over 3 years, that's a significant sum.
What to do instead: Get at least 3 competing offers before accepting. A broker does this simultaneously, in days not weeks.
Many business owners ask for less than they need, thinking it improves approval chances. In practice it often backfires: the business comes back 6 months later needing a top-up — requiring a second application, second fees, and potentially a second charge on security.
What to do instead: Borrow what you actually need with a sensible buffer. Lenders assess affordability, not amount. If you can comfortably service £250k, apply for £250k.
Our brokers will help you approach the right lenders with the right product at the right time — and ensure genuinely competitive terms.
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