The National Association of Commercial Finance Brokers (NACFB) members are responsible for 70% of the UK’s £38bn broker-led small and medium-sized enterprise (SME) lending market, according to its annual impact report.
Research found that commercial lenders relied on brokers for an average of 67% of their SME finance transactions in 2024.
Jim Higginbotham (pictured), CEO of the NACFB, said: “The future belongs to relationship-led lending. 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.”
Higginbotham added: “In a world of algorithms, brokers prove that relationships matter.
“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 data showed a shift in broker-led lending, with the West Midlands and South West gaining market share, while London and the South East saw declines.
Brokers facilitated 33% of deals through specialist lenders and 28% via challenger banks.
The British Business Bank’s findings also reflect this trend, with challenger and specialist banks accounting for 60% of UK gross commercial lending.
The report also highlighted that 20% of SMEs secured funding through NACFB brokers after initial rejections, and 25% received an alternative form of financial product than initially requested.
Nearly half of all broker leads last year came from returning clients, illustrating the trust developed under challenging economic conditions.
Commercial lenders are investing in broker channels, with 83% of NACFB patron lenders expanding broker panels in 2024 and 67% increasing broker-facing teams.
Over a third of lenders diversified their product lines to meet broker demand for niche solutions.
Adrian Coles, the NACFB’s interim chair, said: “Commercial finance brokers are the connective tissue of the UK economy. 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.”
