Why more UK businesses now use a commercial finance broker - London Business News

UK · 2026-10-05

1. Step 1 · The triggerNACFB members arrange £33bn of SME lending in 2025, up 25% YoY, as owners route around the big five high-street banks
2. Step 2 · Knock-onchallenger and specialist banks take 60% of gross SME bank lending (up from 39% in 2012) and non-bank lenders supply 68% of lending outside the big five, so the broker panel — not the high-street rate card — sets the marginal price
3. Step 3 · Knock-onthe SME borrower's search cost falls (one soft-search footprint instead of multiple hard searches) but the broker-arranged facility prices wider than a direct deal, so the all-in cost of credit rises even as access widens
4. Step 4 · Reaches youthe SME's effective cost of working capital and asset finance rises, compressing net margin on any debt-funded expansion or refinancing

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: Google News UK Business

This is automated analysis for information only. It is not investment advice, not a recommendation, and not a solicitation to buy or sell any security. Branch² is not authorised or regulated. Do your own research.