Why SMEs Should Explore Alternatives to High Street Bank Finance
The recent Finance Apathy Survey conducted by independent lender Time Finance, in collaboration with Censuswide, revealed some surprising insights about the funding behaviour of SMEs in England and Wales. The survey found that nearly 60% of small and medium-sized enterprises (SMEs) rely exclusively on their own high street bank when seeking a commercial finance solution.
Even more startling is the fact that approximately 70% of businesses in regions like the East of England, East Midlands, and North East have never considered looking beyond their traditional bank for financial support.
However, this reliance on high street banks comes with a downside. Given that approval rates are below 50%, per the Small Business Access to Finance Survey published by HM Government on 31st March 2025 ( Small business access to finance - GOV.UK ) and I would suggest that, in the real world the ratio will actually be much lower than that ( lies, damned lies and statistics and all that… ), according to the survey, only 27% of businesses that were turned down by their own bank then explored alternative funding options. This could be a significant missed opportunity for SMEs.
Why Relying Only on High Street Banks Could Limit Your Business’s Growth
In today’s fast evolving financial landscape, relying solely on high street banks for funding may not be the best strategy, especially for SMEs looking to scale, expand, or even survive in challenging times. Traditional banks often restrict more flexible financing options, such as Revolving Credit Facilities or Lines of Credit, to larger corporate clients. This leaves many small businesses without access to essential funding that can support growth.
Moreover, many high street banks have rigid lending criteria that are difficult for SMEs to meet, particularly when businesses are in their early stages or facing cash flow challenges.
Discovering Alternative Finance Solutions for SMEs
Thankfully, there’s a whole world of alternative finance options beyond the high street banks, offering much needed flexibility and variety. Whether you’re a start up, in the early stages of growth, or a well established business, alternative lenders provide financing solutions tailored to your specific needs.
Some of the most popular alternative finance solutions include:
Business Loans: Short term and long term loans tailored to suit your business’s requirements.
Cash Flow Finance: Flexible finance options to smooth out cash flow gaps and keep your operation running smoothly.
Export Funding: Financing specifically designed to support international trade and export growth.
Asset-Based Finance: Loans secured against your business assets, such as equipment, inventory, or receivables.
Many of these financing options are simply not available through traditional high street banks, and they can be the key to unlocking your business’s full potential.
The Role of a Commercial Finance Broker
This is where a professional commercial finance broker like Tor Business Finance can help. Working with an experienced broker opens doors to a wide range of alternative lenders who can offer creative and flexible financing solutions. This includes lenders with specific appetite for working with SMEs across the UK, who often have a more forgiving approach compared to traditional banks.
At Tor Business Finance, we work with a network of innovative lenders to help businesses of all sizes access the right working capital. Whether you're looking for a quick cash injection or long-term financing to fuel your growth, we can help you find the right solution.
Many businesses that have been turned down by their own banks find success with alternative finance providers, who are more willing to consider the unique challenges faced by SMEs. With Tor Business Finance by your side, you’ll have access to financing options that might not be available through traditional bank routes.
Conclusion: Don’t Limit Your Business’s Potential to High Street Banks
SMEs that limit themselves to seeking finance only from high street banks may be missing out on valuable opportunities for growth. By exploring alternative finance options, businesses can access the flexibility and funding they need to thrive.
If your business has been turned down by your bank or you’re simply looking for more flexible financing options, it’s time to explore the world of alternative finance. Tor Business Finance can help you navigate this landscape and connect you with the right solutions for your unique needs.
Contact Tor Business Finance Today
Ready to explore your options? Get in touch with Tor Business Finance to learn more about how we can help your business access the best alternative finance solutions available.
