Why Business Owners Should Think Twice Before Relying on the Banks
In 2025 we find ourselves with more lending options than ever before – but also more confusion for business owners. Traditional banks might still dominate the high street, but they’re far from the most supportive option when it comes to helping SMEs fund growth, manage cashflow, or weather a tough quarter.
Let’s be honest, if you’re a business owner hoping your bank will come to the rescue this year, you might be waiting a while.
Despite what the headlines say about gross lending being “up,” most SMEs I speak to tell a different story. The overdraft’s still frozen. The call backs don’t come. And when they finally do? It’s a polite no, or a request for paperwork that would take a team of lawyers and a time machine to dig out.
Here’s the thing… business owners are under pressure. Rising costs, tax bills that don’t wait, and opportunities that need acting on quickly. But high street lenders are still playing by the same old rules – slow, rigid, and out of touch with the reality of running a business today.
The Big Shift: Why Alternative Lenders Are Booming
I’ve seen too many businesses struggle with this exact issue. You’ve got a great opportunity, maybe it’s new equipment, bringing on a key hire, or simply smoothing out your working capital – but the traditional route just isn’t cutting it.
And it’s not just my opinion. Over 60% of SME lending now comes from outside the big five banks. That’s a massive shift. Why? Because platforms offering things like revenue-based lending, invoice finance, and merchant cash advance are stepping up. They’re quicker, more flexible, and crucially, they actually understand what it’s like to run a growing business.
Whether it’s a working capital loan to manage the VAT bill, or an asset finance facility to invest in new kit, the right lender can give your business breathing space – not pile on more pressure.
Tech Is Changing the Game (But People Still Matter)
It’s not just who’s lending that’s changed… it’s how they’re doing it.
Some of the best lenders we work with now use real-time data, open banking, and machine learning to make lending decisions. That means less reliance on outdated credit scores and more focus on your actual trading performance. It’s faster, more accurate, and opens the door to businesses who might have been overlooked in the past.
But let me be clear… the tech’s great, but it doesn’t replace people. You still need someone who can look at your business with experience and empathy and help you find the right fit. That’s where a good finance broker comes in.
Why a Broker (Like Us) Makes All the Difference
Working with Howe Commercial isn’t about pushing products. It’s about helping you make informed decisions with confidence. We’re FCA authorised, we know the lenders, and we understand what makes them tick.
More importantly, we take the time to understand you plus your business, your goals, and the pressures you’re under right now.
We don’t just find you a lender. We plan the details of our approach to strategically help you put your ‘best foot forward’. That means preparing your application properly – presenting the right information in the right way, and making sure your case is strong before it even lands on a lender’s desk.
We’ve helped clients who were told “no” by their bank turn things around in under a week. Not because we’ve got a magic wand, but because we know which doors to knock on – and how to knock loud enough to get a result.
What Happens If You Do Nothing?
I say this with all the care in the world – standing still in business is a dangerous game.
If you don’t access the funding you need:
Competitors will steal your clients
Key staff might move on
Opportunities will pass you by
And perhaps the hardest part? You’ll feel like you’re constantly on the back foot, firefighting problems instead of building the business you know you’re capable of.
The Better Way Forward
Look, I get it. Finance can feel like a headache. Especially when the banks have already knocked you back or you’re unsure what options are even out there.
But that’s exactly why we exist. To take the pressure off, to make the process quicker, and to help you secure the funding you need. Whether that’s a small business loan to fuel growth, a business growth loan for a big leap, or just a bit of support to get through a sticky patch.
So if you’re wondering, “What if I can’t pay my tax bill?” or “How do I grow my business without the banks?” we should talk.
Because the question isn’t whether finance can help, but how you use it.
Need to talk things through?
You don’t need to have all the answers, and it’s normal to have some questions or concerns. Book a call, and let’s find the right way forward for your business.
