Access to finance has become the single greatest obstacle for SMEs, and the gap left by traditional banks is only widening. For many small and medium-sized enterprises, securing the right funding is no longer just difficult, it is a defining factor in whether they can grow, adapt or even survive.
SMEs remain the backbone of the UK economy. They fuel jobs and growth. Yet, despite their vital role, they continue to struggle to access the finance necessary to grow, adapt or invest.
Traditional banks are often unable to deliver on those priorities. They can lack the speed and flexibility needed to support modern SMEs, particularly where a bespoke structure is required. As a result, many businesses are looking to specialist lenders and newer banks for alternatives.
It is in this space that lenders like Recognise Bank have stepped in. Launched in 2017 and banking licensed in 2021, we focus on lending and savings products built around the real-world needs of business owners.
The impact of this approach can be seen in practice. One recent example highlights how bridging can make a difference. We provided a £1.75 million bridging loan to Lowe & Simpson Group, a Teesside-based manufacturer and retailer. The facility enabled the new owners to settle a deferred acquisition payment that other lenders had been unable to support. Delivered within deadline and structured at 70% LTV, the funding allowed the business to complete a strategically important acquisition and integrate smoothly into its wider portfolio.
Recent research makes the challenge clear. In a recent survey by Millbrook Business Finance, 35% of respondents identified affordable finance as the single biggest issue facing their business, well ahead of rising operational costs and economic uncertainty, both cited by 14%. When asked what would provide the greatest benefit today, 38% pointed to easier access to finance, compared with 29% for lower costs and 16% for faster payments from clients.
This view is echoed in the survey commentary. As Justin Amos, managing director at Millbrook, put it: “Finance is the top concern. SMEs seek two things: faster cash inflows and affordable borrowing. Costs and uncertainty follow close behind, but the priority is clear, businesses need fast access to fair finance.”
Meanwhile, market data underscores the growing role of bridging finance. The Bridging & Development Lenders Association (BDLA) reported that in Q2 2025, completions reached £2.3 billion, with applications climbing to £10.2 billion and total loan books surpassing £13.1 billion.
The direction of travel is clear. Bridging, once seen as a product tied to residential property, is increasingly being used by SMEs for refinancing, acquisitions and working capital. Its versatility and speed are making it a mainstream option for business finance.
That said, bridging is not a one-size-fits-all solution. Used in the right circumstances, it can unlock opportunities and support sustainable growth. Used without clarity on cost and structure, it risks creating short-term relief at the expense of long-term stability. That balance matters, particularly in a sector as vital to the UK economy as SMEs.
Taken together, the survey data, case examples and market trends send a consistent message: SMEs need flexible, fast finance, solutions often unavailable through traditional banks. Specialist lenders and new banks are stepping up, offering support that is agile, structured to business realities, and delivered promptly.
If SMEs are to continue driving the UK economy, finance will need to adapt at the same pace they do, and bridging is already showing its potential to fill that role.
