For many business owners, finance is a constant consideration – it’s there when you’re trying to fund growth, pay a looming VAT bill, or simply keep the cash flowing when customers drag their heels on payment. Some days it’s just another line on the to-do list, on others it’s the only thing you can think about. Ask any business owner what keeps them awake at night and finance will almost always feature.
So, is it actually harder to secure business finance in today’s market than in years gone by? The short answer is – it depends. The longer answer is more nuanced, shaped by the lingering impact of higher interest rates, the cautious approach of traditional banks, and the rapid growth of alternative lenders and fintech solutions. The reality is that while borrowing may feel tougher, the sheer variety of funding options available has never been greater. The challenge is less about whether the money exists, and more about how you go about finding it.
A tougher climate, but a broader market
Let’s start with the climate. It’s true that business owners no longer have access to the kind of ultra-cheap credit we saw a decade ago. The Bank of England base rate has dipped slightly from the 2023–24 highs, but it remains well above the historic lows of the late 2010s. That means monthly repayments weigh more heavily on cash flow than they once did, particularly for small and medium-sized firms that don’t have the luxury of large reserves.
Traditional banks remain cautious. Their appetite for risk is limited, their lending criteria strict, and their decisions increasingly driven by algorithms rather than human judgment. For a business whose accounts don’t fit the neat boxes of predictable income and clean collateral, this can mean rejection before a conversation even takes place. It also means waiting weeks for a decision when what you really need is a rapid answer.
This is where frustration builds – businesses that are otherwise sound – profitable but seasonal, innovative but asset-light, or simply experiencing short-term cash flow pressures – can find themselves locked out of bank lending altogether. That can make the market feel hostile, even when the underlying business case for finance is strong.
But alongside this tougher climate, the market has broadened significantly. The British Business Bank recently reported that one in five SMEs plans to apply for external finance in the coming year. They’ll find a landscape that now includes established forms such as asset finance and invoice discounting, as well as a growing pool of challenger banks, specialist lenders, and fintech platforms offering faster, more flexible options. These funders don’t always come cheap, but they often come through where others won’t – particularly when speed is critical.
Take VAT or tax loans, for example – few banks would rush to provide a facility purely to cover a quarterly bill, yet specialist lenders have built products precisely for this need. Likewise, invoice finance has become far more accessible, with single invoice facilities and online platforms allowing businesses to unlock cash tied up in receivables without committing their entire ledger. Asset finance remains a strong choice for firms investing in equipment or vehicles, spreading costs in a way that matches income. For those pursuing growth projects, property-backed loans, development finance, and even niche products like SaaS or franchise finance are now on the table. The diversity of products available in 2025 is striking.
Why guidance matters more than ever
If the options are there, why do so many businesses still struggle? The real hurdle isn’t always access to money – it’s knowing where to look, and having the confidence to push beyond the obvious. A striking statistic from the British Business Bank is that 58% of businesses seeking external finance last year approached just one provider. If that provider said no, the process ended there. In other words, more than half of businesses gave up after a single attempt.
That’s where guidance becomes critical – because navigating today’s finance market can feel like entering a maze blindfolded. Every product has different criteria, every lender applies its own affordability tests, and every decision leaves a mark on your credit file. It’s little wonder that many owners stick with their bank, even when it isn’t the best fit.
Independent brokers change that equation because they’re not tied to a single lender, they can scan the whole market, match businesses to the right products, and negotiate terms that take account of quirks in trading patterns rather than penalise them. For an owner who doesn’t have the time – or the desire to shop around, this is often the difference between securing finance quickly and walking away empty-handed.
What also matters is perspective – a good broker will take the time to understand the pressures behind the request for finance. Are you facing a cash flow crunch caused by a late-paying customer? Looking to invest in new machinery to win a contract? Or trying to bridge a shortfall while raw material costs bite? Each scenario requires a different solution, and lenders are far more receptive when applications are framed clearly and backed with the right information. Preparing management accounts, cash flow forecasts and a realistic repayment plan can make the difference between a swift approval and a polite decline.
So, is it hard to get business finance in today’s market? It can be if you go it alone, rely solely on your bank, or approach the wrong lender with the wrong information. But the wider truth is more encouraging – finance is available for most viable businesses, often faster than you’d think, provided you know where to look and how to frame your case. The cost of borrowing may be higher than in years past, but the range of solutions is broader too.
For business owners, that means the question isn’t whether finance exists, but whether you’re asking in the right place. With the right guidance, the answer is often yes and that can turn financial pressure into the breathing space you need to stabilise, invest and grow.
