More than 40,000 UK SMEs could lean on finance providers to help support their businesses amid the current challenges around rising costs, new research has indicated.

A study by fintech lender, Nucleus Commercial Finance, found that 15% of small and medium sized UK businesses expect to need a loan to support the running of their business.

While just 1% of sole traders expect to have to go down this route, this figure rose notably to 16% among smaller businesses, that employ between 50 and 249 staff.

The research, which was carried out in August and based on findings among 512 senior decision makers in UK small and medium enterprises, also revealed that two thirds (66%) of SMEs are worried about the prospect of rising business costs over the next 12 months.

Nucleus Commercial Finance’s study also found that confidence levels increase in line with business size. Around three in five (57%) of medium sized businesses are confident that they could secure affordable finance, compared to less than a quarter (22%) of sole traders.

Founder and CEO of Nucleus Commercial Finance, Chirag Shah, commented: “UK SMEs have been through the ringer over the past couple of years. COVID pushed many to the brink and just as they are getting back on their feet, their costs are rising exponentially. With no energy price cap for businesses and the prospect of blackouts over winter, the year ahead could prove to be one of the toughest.

“But businesses are not on their own. Having gone through the challenges of COVID, finance providers and government must work together to ensure that those lessons are learnt to deliver the necessary support. Doing so means that the UK’s battle-hardened SMEs can lead the recovery on the other side.”

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