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An increasing number of small businesses are looking to take out finance in the next year, according to Lumi.
More than half (55 per cent) of small and medium-sized enterprises (SMEs) plan to borrow in the next year, with a growing number relying on brokers for finance, according to new data from SME lender Lumi.
The non-bank’s Market Pulse Report – Q2 2025 found that 52 per cent of SMEs rely on brokers for finance, citing trust, speed, and access to better options as key reasons.
Lumi’s nationwide survey of 571 SME owners, conducted in April, revealed that opportunities for brokers in the space may also be set to grow, with the end of the financial year acting as a trigger for SMEs to take out finance. Indeed, Lumi found that 44 per cent of SMEs said they would need working capital before 30 June.
Almost two-thirds (65 per cent) of small businesses said brokers give them better access to lenders and funding options, while 39 per cent said expert guidance on complex decisions was the main driver for using brokers.
It also found strong growth targets for 2025 from businesses but flagged that thin cash reserves were a recurring problem, with 82 per cent holding less than three months’ worth of reserves.
Rising operational costs, growing tax burdens, and tight cash reserves are putting pressure on SMEs, Lumi said, with rising costs listed as the top concern by 61 per cent of SMEs, while 59 per cent said cash flow management was their biggest problem.
In spite of the increasingly challenging environment, SME confidence remains high, with 64 per cent having increased their growth targets for 2025.
Describing the end of the financial year as a “high-stakes moment”, Lumi’s head of broker John Clifford said: “We’re seeing opportunity across every industry – from trades to transport, retail to hospitality.”
Speaking to The Adviser, he said that more than half of SMEs were using personal savings to cover shortfalls due to a lack of cash reserves.
“That pressure is creating urgency – and opportunity – especially for brokers,” Clifford said.
“With tailored funding, fast approvals and deep industry insight, brokers are in prime position to help clients navigate tax obligations, preserve cash flow and seize growth opportunities during this critical end of financial year window.”
Lumi’s deputy CEO Anna Hawter said: “Mid-year confidence is holding strong, but pressure points like tax obligations and tight cash flow are intensifying.
“That’s why brokers who move early and offer flexible solutions will be best positioned to win – not just during the end of the financial year, but into financial year 2026 and beyond.”
Lumi founder and CEO Yanir Yakutiel said: “This report reflects exactly why Lumi exists: to help brokers empower growing businesses with smart, flexible finance, and to evolve with the market.
“We’re backing brokers with more than insights – we’re building new tools, faster platforms and tailored solutions to help them convert more clients and unlock bigger opportunities.”
Brokers have flagged the biggest challenges facing their clients as the need to manage cash flow, navigate cost pressures, and access capital, according to new research from non-bank lender Shift.
You can find out more about the challenges and opportunities for SME finance in the May edition of The Adviser magazine, out now.
[Related: The funding formula]
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