‘Ideas without capital are like seeds without soil. It is capital that turns business potential into business productivity’. I read this quote from an American banker recently and it struck me as a real truism. Working with clients in a region dominated by manufacturing, agriculture and hospitality, three of our region’s strongest sectors, time and again I see the importance of maintaining a good working capital. Whether as a launch, fledgling firm or an established company embarking on a new venture, ensuring there is sufficient cashflow to cover stock, staff and space is vital to continuous success.

And it appears more UK companies are turning to commercial finance to keep business flowing with a raft of recent reports showing increased levels of lending. In March, the British Business Bank’s Small Business Finance Markets 2025/26 Report showed a nine per cent rise in SME bank lending to £68bn – the second highest level in 13 years, aside from the pandemic peak – as credit conditions eased last year.

Figures released last month by the Finance & Leasing Association (FLA) showed a one per cent increase in new business in 2025, representing £24bn of new asset finance lent to SMEs. Commenting on the report, Geraldine Kilkenny, FLA’s director of research and chief economist, said: “By enabling small businesses to invest in essential equipment, machinery and vehicles while preserving cashflow, the industry is supporting short-term liquidity and helping to strengthen long-term productivity across the economy.”

It still surprises me that some business owners will happily use an overdraft facility or company credit card to manage their cashflow, yet are reluctant to utilise asset finance, invoice discounting or a merchant cash advance to fund their operations and growth. Limiting the options available is like working with one hand tied behind your back, and that clearly doesn’t optimise productivity!

Understanding which product meets your company’s needs can be tricky and working with a brokerage can help to ensure the right type of funding is put in place. Again, research shows that more business are turning to brokers for expert advice. In February, the National Association of Commercial Finance Brokers (NACFB)’s Intermediary Market Outlook 2025/26 reported that broker-led SME funding was up 25 per cent year-on-year to £33bn in 2025.

The report noted a shift in the relationship between brokers and the businesses they support, from transactional to ongoing. In my opinion, this is key to getting the best outcome and a long-term approach to business finance will always achieve the best results for a company.

Beyond the report’s headline figure, the study revealed that brokers considered an average of six lenders per deal, with a quarter of clients having been declined elsewhere before being successfully funded when working with an intermediary. This clearly exemplifies the difference that expert advice can make to a company’s financial stability.

We live in uncertain times and many of the factors that affect our businesses are out of our direct control. Yet by working together, a company and its brokerage can identify and make the right choices to strengthen its resilience and forge success.