On 31 October 2025, we highlighted the potential risks to businesses choosing expensive short-term debt rather than a flexible and longer-term loan that could better meet their needs.
The UK Government has now acknowledged that SME owners – who are busy running their businesses – are not always aware of the most suitable finance options, nor where to find them.
In a joint response to a call for evidence on access to finance, the Department for Business & Trade (DBT) and HM Treasury (HMT) said: “Several respondents expressed a view that, where credit is available, interest rates and fees often seem prohibitively high. This increases the total cost of borrowing and was felt to outweigh the expected benefits of investment.”
At LendingCrowd, affordability is at the heart of our lending decisions. As a responsible lender, we focus on the borrower’s ability to repay their business loan when assessing each application. Rates are fixed for the term of the loan (up to 60 months) and we allow overpayments and early repayment in full – with no early repayment charges.
We know that partnerships have an important role to play in bridging the funding gap faced by so many SMEs. We are proud to have forged strong links with a growing community of commercial finance brokers and introducers.
The DBT and HMT noted that respondents to the call for evidence recognised that brokers can help SMEs to navigate the commercial finance market. However, concerns were raised that some brokers may “prioritise larger loans and lenders that are easier to work with, driven by commission incentives, which can result in small businesses missing out on better-value options”.
LendingCrowd believes in a culture of “doing the right thing” – helping our businesses and partners to grow and deliver wider benefits to the British economy. We only work with professional commercial finance brokers that have passed our rigorous onboarding process.
Running a business can be difficult enough, so accessing fast and affordable finance needs to be as straightforward as possible. LendingCrowd’s simple online application process and case-by-case approach give our highly experienced Credit Team the ability to provide businesses a quick decision.
It takes just minutes to apply for a LendingCrowd business loan – start your journey today.
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