More than seven in 10 medium-sized businesses are considering using specialist or alternative finance providers as they look for funding partners that better understand their needs, new research from Shawbrook suggests.
The lender’s latest report, The M Agenda: The Medium-Sized Business Gap, found that 71% of medium-sized businesses are looking to incorporate specialist or alternative providers into their funding strategy.
The research also highlights a disconnect between businesses and their existing finance providers. Fewer than one in five (19%) respondents said their current provider truly understands their business, while only 22% believe their lender fully understands the market in which they operate.
According to the findings, businesses are increasingly seeking funding partners that can offer a more tailored approach as their operations expand and financing requirements become more sophisticated.
Greater personalisation was identified as the most important factor by 29% of respondents, followed by flexibility and faster decision-making, both cited by 27%. A quarter (25%) said dedicated sector expertise was a priority when choosing a lending partner.
Neil Rudge, chief banking officer at Shawbrook, says: “The UK lending landscape offers medium-sized businesses more choice than ever before, from sector-specialist lenders and flexible funding structures to relationship-led approaches designed to support growing firms.
“As businesses grow in scale and complexity, they need partners who offer more than just capital – they need speed, deep sector expertise, and hands on support.
“There is a significant opportunity for brokers and finance partners to help firms better understand the breadth of funding solutions available and identify the right support at the right stage of growth.”
The findings suggest there is an increasing role for brokers and specialist lenders in helping medium-sized businesses navigate a wider range of funding options as they pursue their next phase of growth.
