Over the past few months the Chancellor, Rachel Reeves, Government Ministers and others have voiced concerns over the increasing difficulties SMEs are encountering when seeking financial support, particularly with the tightening of traditional channels leaving many businesses struggling to secure the capital they need to grow.
Traditional banks, once the primary source of business financing, have become increasingly risk-averse, limiting their lending appetite and withdrawing support from many SMEs. This shift has created an urgent need for independent alternative lenders providing financing solutions, ensuring businesses have the confidence, stability and agility they require.
Matt Greenhalgh, Sales Director (North West & Scotland), Praetura Commercial Finance comments: “We believe that lending should not be a rigid, impersonal process but rather a collaborative effort to support growth and sustainability. SMEs account for three-fifths of the employment and around half of the private sector turnover*. They are the backbone of the economy, driving innovation, employment and growth and there is a critical need for flexible and accessible funding solutions delivered with certainty and at pace.”
“With mainstream lenders withdrawing support, the role of alternative lenders has never been more crucial. We’re proud to address this gap at Praetura and operate with a fleet-of-foot approach, ensuring that SMEs have immediate access to decision-makers and receive prompt funding decisions. This agility allows businesses to plan with confidence, knowing they have the financial backing required to seize opportunities and navigate challenges.”
Praetura Lending offers a range of products to meet the needs of SMEs from asset-based lending, invoice finance, asset funding to business loans.
UK Finance reported gross lending to SMEs was up overall in 2024. Invoice finance and asset-based lending remains strong with total advances reaching £21.2 billion, a 4.4% increase compared to the previous year*. Over half (56%) of bank loan applications were unsuccessful while in contrast only 4% were unsuccessful for asset finance. These figures reinforce the vital importance of alternative lenders to step-in and support SMEs.
“The appetite for asset-based lending continues to grow and our 73% growth in Praetura Commercial Finance’s lending portfolio last year is testament to this,” comments Matt.
Praetura Lending consists of five companies that work collaboratively together to offer structured individualised solutions for SMEs: Praetura Commercial Finance, Praetura Invoice Finance, Praetura Asset Finance, Kingsway Finance and Zodeq.
References: * Federation of Small Businesses and UK Finance
