SMEs are not utilising their options when it comes to accessing alternative finance, new research from Time Finance has indicated.

Findings by the lender showed that 60% of SMEs have never looked beyond their own bank for commercial finance solutions.

Time Finance’s study, undertaken in partnership with Censuswide, also showed that just 27% of those turned down by their banks go on to look elsewhere.

When analysed geographically, this data gap widened further with over 70% of businesses in the East of England, East Midlands and North East having never looked elsewhere for their finance, compared with 50% of North West businesses who had never looked elsewhere.

“Our recent figures show that a worrying six in 10 businesses are missing out on the possibilities of independent finance solutions,” Time Finance CEO, Ed Rimmer, commented. “This tells me we have a job on our hands to reach those businesses opting to disengage.

“Without all options on the drawing board, many viable and growing businesses are simply not equipped with the knowledge they need to plan ahead.”

Rimmer added that brokers and intermediary partners have an “integral role” in educating and supporting UK SMEs, after the study also found that 28% of the SME decision makers surveyed had used a broker to access their finance.

“By working closely with broker partners we can equip UK SMEs with a better understanding of the various providers and types of specialist finance available to them, and help them thrive as a result,” Rimmer added.

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