Will AI change the way your business gets a loan?

AI is transforming all aspects of life, and commercial finance is no exception.

Traditionally, applying for a business loan has been a complicated process involving filling out forms, underwriters scrutinising every detail, and long waits. However, all of that is changing with the development of AI. From accelerating decisions to transforming the risk assessment process, artificial intelligence is reshaping how lenders operate. What impact does this have on how your business could secure funding?

Faster, smarter decisions

Some lenders are now using AI-driven models to analyse applications. This new process takes minutes rather than days or weeks, and the systems can analyse a much wider range of data, including:

• Real-time transaction history
• Sector performance trends
• Cash flow forecasts
• How quickly invoices are paid

This could lead to faster access to funds and fewer repeated requests for documentation.

More objective risk assessment

In theory, AI is more objective when it comes to assessing risks by analysing more data and recognising patterns that humans might miss. This objectivity could benefit businesses that have struggled to secure finance due to rigid or outdated criteria.

However, there’s a flip side. If the algorithms are trained on biased or limited data, the system could replicate the same problems, but more quickly.

“Computer says no”

A significant concern with AI-led lending is that if a computer decides your business isn’t creditworthy, how can you challenge it? For this reason, traditional commercial brokers remain crucial. They can help you navigate both traditional and AI-driven lenders, ensuring you don’t miss out because of an algorithm. Understanding your goals, explaining the “why” behind the funding need, and structuring a deal that genuinely suits your business requires human expertise.

What does all this mean for your business?

To summarise, the impact of AI in commercial finance means:

• You might get a funding decision more quickly.
• You could have more finance options, especially from digital-first or alternative lenders.
• You may need help navigating a more complex landscape.

AI is changing the way lenders operate, but that doesn’t mean you should go it alone. In fact, now more than ever, working with a commercial finance broker can give you a real advantage. A good broker understands the landscape, knows which lenders (traditional or tech-driven) are the right fit, and can present your business in the best light.

Whether a person or an algorithm makes the decision, a good broker can ensure your application stands out and you get the right deal for your business.