One-third of broker clients have secured finance after being declined elsewhere

A recent survey highlights the benefits of using a commercial finance broker when seeking funding for your business.

The latest National Association of Commercial Finance Brokers (NACFB) membership survey of over 2,400 commercial brokers and 155 lenders found that commercial finance brokers facilitated a significant £38 billion in lending to small and medium-sized enterprises (SMEs) in 2023.

One-third (32%) of new clients successfully funded by NACFB members had previously faced capital refusals elsewhere. However, with the help of a NACFB broker, the client was able to secure the finance they needed for their business.

Other findings from the survey highlight more challenging lending conditions and a strengthening of broker/lender relationships. Key statistics include:

• 52% of surveyed brokers observed decreased lending appetites across all lender types.
• 69% of total lending from commercial lenders was conducted via their broker channels in 2023.
• 61% of surveyed commercial lenders reported increased collaboration with brokers in 2023 as a direct response to economic challenges.
• 98% of surveyed commercial lenders expected their relationships with brokers to either strengthen or, at the very least, remain consistent in 2024.

This data, combined with banks and lenders reducing their presence on Britain’s high streets and high interest rates, highlights the broker role’s ever-increasing importance. The ability of commercial finance brokers to turn a ‘no’ into a ‘yes’ has never been more crucial.