SMEs are being let down by traditional lenders - we are filling the gap: Nick Smith
Today’s economy is built on speed, instinct and decisive action. Yet, the finance system that supports it feels like it is still stuck in the past.
Access to capital has always been the lifeblood of growth, and for centuries our economy has been driven by innovative entrepreneurs supported by banks willing to lend them cash to achieve their goals.
But, for many SMEs – particularly those in sectors unfairly considered high-risk, such as hospitality – securing funding can be a huge hurdle. More and more, we’re seeing a culture clash between traditional lenders and the fast-paced reality of running a business in today’s climate. Whether it’s demanding every single receipt before making a decision, or a reluctance to properly understand a business, the system presents unnecessary obstacles to funding. Ambition, instinct and opportunity from SMEs are often met with risk-aversion, slow processes and ‘one-size-fits-all’ criteria from high street banks.
This is where alternative lenders, like Reward Funding, step in to fill the gap. Traditional lenders see risk as something to avoid. We see it as something to understand. Where others see a red flag, we see an opportunity – if you know how to structure the deal right. That’s a mindset built for growth, not caution.
Banks have long been the first port of call for businesses seeking finance, but the landscape has shifted. Since the 2008 financial crash we’ve seen lenders become increasingly reluctant to support SMEs – a situation that has only been worsened by the recent shocks of COVID and global instability. Add to this a climate of economic uncertainty, regulatory tightening and stricter compliance frameworks – we’re seeing it’s becoming harder for businesses to secure funding.
Many otherwise viable businesses are left without the funding they need to innovate, hire, seize opportunities or cover unexpected costs, limiting the potential for a more dynamic economy and regional growth.
Alternative lenders have emerged to meet the needs of businesses overlooked by traditional finance. Reward Funding is a prime example of this shift. Pioneering the sector, Reward was founded in 2010 and since then we’ve built our reputation on agility, speed and pragmatism, offering asset-secured loans designed to get businesses moving faster.
We were founded on the belief that funding should move at the speed of ambition. That instinct has fuelled 2,000-plus deals and provided over £1.45bn in funding – because when others ask for proof, we look for potential.
At Reward, decisions are made faster through streamlined processes that put opportunities back within reach and loan structures are tailored to the specific needs of each business, rather than applying a one-size-fits-all approach. We work with businesses and sectors that mainstream finance often dismisses, ensuring ambition isn’t held back by rigid criteria. More than that, we rely on instinct over automation. Where others let algorithms decide, we pick up the phone.
In this uncertain economy, businesses can’t wait for high street banks to catch up, the choice is clear. Speed and flexibility have always been cornerstone values at Reward. With over 2,000 deals done, we’ll continue delivering decisive funding that keeps SMEs moving. Because in a market ruled by processes, it’s instinct that wins.
Nick Smith is MD of Reward Group