NACFB Members fuel 70% of UK’s £38bn broker-led SME lending
11 March 2025
On average commercial lenders rely on brokers for 67% of SME finance transactions, report reveals
LONDON, Tuesday 11th March 2025 – The National Association of Commercial Finance Brokers (NACFB) has today released findings from its annual impact report, highlighting the indispensable role of commercial finance brokers in empowering SMEs to access finance, bridging regional funding gaps, and driving innovation across the UK’s financial ecosystem.
With the trade body’s broker Members facilitating nearly three quarters (£26.5 billion) of the UK’s £38 billion broker-led SME lending market - and lenders attributing 67% of their SME portfolios to intermediaries on average - the data underscores brokers’ role as the linchpin of commercial finance. The 2024 survey was conducted in partnership with leading research consultancy Freshminds.
“The future belongs to relationship-led lending,” said Jim Higginbotham, CEO of the NACFB. “With 220 new clients per Member and £38 billion in intermediary-led lending last year, brokers should not just be seen as intermediaries - they’re growth partners. Their ability to match SMEs with the right solutions is why two-thirds of commercial lender portfolios flow through brokers.”
“In a world of algorithms, brokers prove that relationships matter,” added Higginbotham. “They’re not just navigating change - they’re redefining the role of the trusted advisor, becoming the modern-day bank manager who blends human insight with market expertise to help drive UK plc forward.”
The NACFB’s data also reveals brokers’ critical role in diversifying SME funding access, with 33% of deals facilitated by specialist lenders and 28% by challenger banks - a trend almost exactly mirrored by the British Business Bank’s latest findings, which show challenger and specialist banks now account for 60% of UK gross commercial lending, eclipsing the big five high street banks for the fourth consecutive year. Such alignment underscores brokers’ agility in tapping a widening ecosystem of lenders, from burgeoning fintechs (2%) to CDFIs (0.5%), to secure solutions for clients - including the 20% of SMEs who secured vital funding through NACFB brokers after initial rejections.
Brokers’ emphasis on tailored solutions shines through the data, with 25% of SME clients receiving an alternative form of financial product to their initial requests, whilst 33% of brokers expanded their service offering in 2024 to meet demand. Loyalty remains central, with nearly half (48%) of all brokers’ leads last year coming from returning clients - a testament to the trust forged through uncertain economic conditions.
The 2024 survey data reveal a noticeable shift in broker-led lending, indicating a move away from its traditional stronghold in London and the South East, which saw significant declines in market share (-7% and -6% respectively). In contrast, the West Midlands and South West gained ground (+4% and +1%). Such a redistribution reflects brokers’ ability to respond dynamically to local economic needs, unlocking opportunities outside more traditional financial hubs.
Looking ahead, brokers are poised to deepen their influence with commercial lenders investing in broker channels to harness intermediaries’ growing influence, with 83% of NACFB Patron lenders expanding broker panels in 2024 and 67% growing their broker-facing teams - now averaging 58 staff per lender - to streamline deal flow and responsiveness. Over a third (36%) of surveyed lenders diversified product lines in 2024 to align with broker demand for niche solutions, while 21% now view brokers as strategic partners in scaling sector-specific lending.
“Commercial finance brokers are the connective tissue of the UK economy,” said Adrian Coles, the NACFB’s interim Chair and himself a finance broker. “Our role isn’t static - it’s evolving. Whether navigating tighter lender criteria, diversifying product offerings, or championing underserved regions, our community is meeting challenges with professional agility. We don’t just facilitate transactions; we help build relationships that turn a ‘no’ into a ‘yes’ for UK SMEs seeking access to finance.”
The full report, published in the Q1 issue of the NACFB’s magazine, Commercial Broker, and can be found online here.
