With SME Confidence Falling, Now Is The Time to Focus on Cashflow Finance
The latest Quarter One Economic Survey from the London Chamber of Commerce and Industry (LCCI) reveals continued pressure on small and medium-sized enterprises (SMEs) across the capital. Rising operating costs, ongoing inflation, and reduced access to traditional finance are combining to create a challenging environment for business owners in 2025.
Just 25% of London-based SMEs surveyed expressed optimism for the year ahead, down from 31% in Q4 2024. The most significant drop in business confidence was seen among micro businesses, those with fewer than 10 employees, highlighting the urgent need for proactive financial planning.
Operating Costs and Inflation Continue to Hurt SMEs
According to the LCCI report:
63% of SMEs reported rising energy costs in Q1 2025
57% cited inflation as their primary concern
Skills shortages remain a persistent challenge
These issues are expected to worsen following the recent increases in National Insurance Contributions (NICs) and the national minimum wage, both of which came into force last week.
As cost pressures continue to mount, cashflow management becomes more critical than ever. SMEs that fail to address short-term funding needs in a timely manner risk unnecessary strain or worse, disruption to their operations.
Why Traditional Bank Lending May Not Be the Answer
While many businesses still look to high street banks for funding, the reality is that banks have continued to pull back from SME lending. Approval processes can be lengthy, with stricter credit requirements and reduced appetite for risk.
This makes it essential for business owners to consider non-bank funding options and work with a specialist business finance broker to explore fast, flexible solutions.
Access Alternative Business Funding with Tor Business Finance
At Tor Business Finance, we specialise in helping SMEs across London and the UK secure tailored finance solutions outside the traditional banking system. Whether you need support with:
Cashflow finance
Working capital loans
Short-term business funding
Invoice finance
Merchant cash advances
Or other alternative finance options
…we can connect you with the right lenders and ensure your business stays financially resilient.
We work with a wide panel of trusted non-bank lenders who understand the needs of growing businesses and offer fast approvals, flexible repayment terms, and funding solutions built around your goals.
Need help navigating today’s funding landscape?
Contact Tor Business Finance today for expert advice on the full range of non-bank finance solutions available to your business.
