Industry Insights

The £65bn Question: How Much Growth Are We Missing?

Allica Bank examines the £65bn SME funding gap and how brokers can help established businesses access finance and grow.

Britain’s established SMEs have never been short on ambition. But for too long, many have struggled to access the finance needed to turn that ambition into growth.

Businesses employing five to 250 people form the backbone of the UK economy. They create jobs, generate turnover and support local economies, especially in communities where they’re often among the largest private-sector employers. Despite their importance, many have spent the last two decades underserved by traditional banks.

While these businesses have shown remarkable resilience through economic uncertainty, rising costs and changing market conditions, the reality is that access to funding has become increasingly difficult.

Allica Bank’s research suggests lending to established SMEs is around £65 billion below where historical trends suggest it could be. As larger banks have reduced branch networks, relationship banking teams and appetite for serving this segment, many business owners have found themselves with fewer routes to secure the funding they need.

The market has changed as a result. Specialist and challenger lenders now account for the majority of established SME lending, giving borrowers more choice. But more choice can also mean more complexity.

For a business owner, knowing where to start can be difficult. Searching online gives countless options, with different criteria, products and processes. That’s where brokers come in.

Across the UK, brokers are helping business owners cut through complexity, identify right financing and connect with lenders that understand their needs. Brokers bring expertise, reassurance and insight at a time when many businesses need a trusted adviser more than ever.

As the market becomes more diverse, sourcing the right lender and structure has become a demanding process. Brokers are increasingly bridging the gap left by traditional banks, helping established businesses access the support they need to invest, expand and create jobs.

The impact of that work goes well beyond the individual business. Research by Oxford Economics, conducted alongside Allica Bank, shows the wider economic impact of lending to established SMEs. According to the study, lending supported by Allica contributed £8.4 billion to UK GDP and helped sustain 118,000 jobs during 2025. For every £1 million lent, it equated to £2.6 million in GDP, 36 jobs and approximately £700,000 in tax revenue.

The impact is being felt across the country. Around four in five jobs supported by Allica-backed businesses were outside London and the south-east, showing just how important established SMEs are to driving regional growth and prosperity.

For Fiducia members and the wider broker community, these findings are an important reminder that every successful lending decision has the potential to help a business grow, strengthen a local economy and create new opportunities for the people who live there.

The funding gap remains significant, but brokers continue to play a vital role in connecting established businesses with the finance they need to thrive. When those businesses succeed, the benefits reach far beyond the balance sheet.

About Allica Bank

Allica Bank is a UK bank built specifically for established businesses with between 5 and 250 employees. These businesses form a vital part of the UK economy, yet often receive impersonal and inflexible service from traditional banks.

Allica’s mission is to deliver no-nonsense banking that combines face-to-face support with modern technology. Through experienced business development managers and underwriters, the bank works closely with broker partners to provide clarity, consistency and collaboration throughout every case.

Allica Bank offers a range of lending solutions, including bridging finance, commercial mortgages, asset finance and growth finance, supporting brokers and their clients at every stage of the funding journey.

Any questions regarding Fiducia Commercial Network’s International and Ex-pat Property Finance proposition, please contact the BDM team – bdm@fiduciagroup.co.uk

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