Why are mid-sized businesses turning to specialist lenders?

As businesses grow, their funding needs become more complex. Shawbrook research shows that 71% of UK mid-sized businesses are considering working with specialist or alternative lenders, while fewer than one in five (19%) believe their current provider truly understands their business. 

The findings highlight a growing demand for funding partners that offer specialist expertise, greater flexibility and a deeper understanding of their sector.

Explore the full findings in the Shawbrook M Agenda Report.

Why are businesses reconsidering their funding partner?

As businesses scale, they often require funding solutions that reflect increasingly complex ambitions and operating models.

Shawbrook's research found that:

• 71% are considering specialist or alternative lenders
• Only 19% believe their current provider fully understands their business
• Only 22% believe their lender understands the market they operate in 

These findings suggest that many mid-sized businesses are reassessing what they need from a funding partner as they enter their next phase of growth.

What do businesses value most in a funding partner?

The research highlights a clear shift towards relationship-led support and specialist expertise.

Businesses say they are looking for:

• Greater personalisation (29%)
• More flexibility (27%)
• Faster decision-making (27%)
• Dedicated sector expertise (25%) 

Rather than simply securing funding, businesses increasingly want a funding partner that understands their sector, can respond quickly and provide support tailored to their growth ambitions.

Why does sector expertise matter?

As businesses become larger and more complex, generic funding solutions may no longer meet their needs.

Whether expanding into new markets, investing in new capabilities or responding to changing customer demand, businesses increasingly value finance partners who understand the commercial realities of their sector and can tailor support accordingly.

The findings suggest that relationship-led approaches and specialist expertise are becoming increasingly important as businesses scale.

What does this mean for growing businesses?

The findings suggest that choosing the right funding partner is becoming an increasingly important strategic decision for mid-sized businesses.

As businesses scale, they often outgrow standardised funding approaches and need support that reflects the pace, complexity and ambitions of their next stage of growth. This creates an opportunity for lenders who combine flexible funding with sector expertise and a relationship-led approach.

Neil Rudge, Chief Banking Officer at Shawbrook, said:

"The UK lending landscape offers medium-sized businesses more choice than ever before, from sector-specialist lenders and flexible funding structures to relationship-led approaches designed to support growing firms.

As businesses grow in scale and complexity, they need partners who offer more than just capital - they need speed, deep sector expertise, and hands-on support. There is a significant opportunity for brokers and finance partners to help firms better understand the breadth of funding solutions available and identify the right support at the right stage of growth." 

Why does this matter?

The research shows that access to finance is only part of the picture. As businesses grow, choosing a funding partner with the right expertise, flexibility and understanding can help unlock the next stage of growth.

For lenders, brokers and advisers alike, there is an opportunity to better support the UK's mid-sized businesses with solutions that reflect their increasing complexity and ambition.