Member insights from Adrian Coles, Head of Growth Finance, Hexa Finance
Accessing finance has long been a hurdle for small and medium-sized businesses across the UK. In theory, there’s more funding available than ever. In practice, too many SMEs are still struggling to unlock it.
At Hexa Finance, we work with ambitious businesses across the UK every day, and the pattern is clear. While lenders are active, appetite for risk has tightened. That makes the market harder to navigate, especially for businesses with complex needs or limited time. The gap isn’t necessarily in the availability of funding, but in the clarity around how to access it.
Barriers SMEs are facing now
The most common issue we see is that many SMEs don’t fit into traditional lending criteria, even when they’re growing and profitable. Asset-light service businesses, scaleups without three years of trading history, or firms recovering from Covid-era setbacks often find that the banks say no.
There’s also a knowledge gap. Business owners are busy running their companies; they don’t always have time to map out the full funding landscape or understand the latest products, from revolving credit facilities to revenue-based finance. That’s where the value of a broker really comes into play. We act as a translator between lenders and businesses, helping both sides understand each other better.
Some business owners also underestimate what’s available to them. Just because a high street bank said no, doesn’t mean there’s no alternative. Often, it’s simply about being matched with the right type of funder.
Opportunities in the market
The good news is that the alternative finance market is maturing fast. There are more lenders willing to think creatively, and more products tailored to the real-world needs of SMEs; whether that’s funding for a management buyout, growth capital, or bridging a cashflow crunch.
We’re also seeing an increase in regional funding options, particularly in Wales and the South West, which is great to see. But again, these aren’t always obvious unless someone points them out.
What SMEs need next
Looking ahead, we’d like to see even more collaboration between the public and private sectors to support SME access to funding. Regional funding bodies, commercial brokers like Hexa, and private lenders all have a role to play in making the process more transparent and joined up.
From our side, we’re focused on demystifying the process. That means listening first, then matching clients with lenders who understand their goals and sector, not just those who tick boxes on a form.
If you’re hitting barriers when it comes to finance, don’t write it off. The solution may be closer than you think, and the right partner can help you get there.
Chambers Wales South East, South West and Mid member Hexa Finance can explore the finance options that are possible for your business. The team are always happy to talk things through and use their expertise and passion to help businesses, including SMEs, to overcome challenges, succeed and grow.
