Commercial loans key in driving business recovery 

The research, conducted by funding solution provider Time Finance, found the support will be required to aid in overcoming economic challenges prevalent in 2022. These include SMEs facing supply chain issues, high inflation, interest rate hikes, tax increases and fuel costs.

Commercial loans topped the list of what funding solution intermediaries thought would lead recovery, with 88% citing that as a key solution. Asset finance to support investment in essential business equipment came second, with 82% of intermediaries highlighting it as a key funding option.

Other options involved a reliance on existing cashflow (76%), overdraft facilities (64%) and invoice finance (59%).

Sharon Bryden, director of commercial loans & ABL at Time Finance, said: “UK businesses are facing an incredibly challenging time and the continued rise in costs will only serve to place additional pressure on firms.

“Unless they’re equipped with the right form of funding support, those businesses will be forced to make some serious sacrifices to offset and manage the increased cost of doing business.

“Hearing from our intermediary network that Commercial Loans will form one of the most valuable funding solutions comes as no surprise. With healthy facilities available, their swift set up and easy access makes this finance option a no-brainer for firms looking for a cash injection that supplies peace of mind and headroom for future growth.”