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Brokers are becoming growth partners for SMEs

The numbers don’t lie: according to The National Association of Commercial Finance Brokers (NACFB) 2024 Impact Report*, 67 per cent of all SME finance transactions are now being facilitated by brokers.

How much is that worth? £26.5 billion out of a £38 billion market handled by NACFB members alone. This figure tells a story about how small and medium-sized enterprises are accessing the capital they need to thrive.

The statistics point to SMEs needing more guidance in a market that is growing more complex. The days of business owners going to their bank asking for money (and accepting the bank’s answer one way or another) are almost completely over. SMEs are increasingly leaning on their relationships, particularly with brokers, to help them make the deals they need to grow. What does this trend tell us about the future of finance?

The rise of relationship-led lending: unpacking the shift

Several factors are working together to make funding a habitat in which brokers can thrive. First, the funding landscape has evolved dramatically, becoming much more complex: SMEs can tap into a diverse range of products, from asset finance and bridging loans to intricate working capital solutions, government grants and R&D tax credits. Navigating this complexity alone can be daunting and brokers provide the expert guidance needed to identify the most suitable options.

The next factor is appetite. While high street banks are showing renewed interest in SME lending, their risk appetite can still be frustratingly conservative. Brokers can connect SMEs with lenders in their wider network who have specific mandates and a greater understanding of niche sectors or unique business models. The NACFB report cites 33 per cent of deals involving specialist lenders and 28 per cent involving challenger banks, demonstrating the value brokers bring in accessing a broader spectrum of capital providers.

Risk is, however, omnipresence in lending. Lenders, whether traditional or alternative, want to deploy capital efficiently and with confidence. Brokers act as gatekeepers, working with SMEs to prepare robust applications, understand their financial position and present a compelling case. By pre-vetting applications, brokers help to de-risk the deal for lenders, making them more likely to approve funding. The fact that 83 per cent of NACFB Patron lenders have expanded their broker panels and 67 per cent have increased their broker-facing teams underscores this growing reliance on the broker network.

Finally, there is the human factor. While technology plays a growing role in finance, human judgement remains vital, especially when assessing the nuances of an SME’s potential. Brokers bring industry knowledge, understanding of lender criteria and the ability to articulate a business’s story beyond the numbers. As Jim Higginbotham, CEO at NACFB rightly stated:

“The future belongs to relationship-led lending. Brokers should not just be seen as intermediaries – they’re growth partners.”

The headlines and conversation may have all been about AI and technology, but to over-emphasise a purely algorithmic approach at the expense of the human decision-makers behind the scenes would be to miss the bigger picture.

What this means for SMEs, brokers and lenders

This shift towards broker-led lending has significant implications for all stakeholders:

SMEs will be able to access a wider range of funding options, expert guidance in navigating complex products and a higher likelihood of securing the right finance at the right terms. A strong broker becomes a trusted advisor and a genuine growth partner, not just someone who facilitates an introduction. Brokers are increasingly playing a broader advisory role, helping SMEs identify savings in areas including insurance, energy and FX, which can significantly strengthen their overall financial position and borrowing power.

Brokers have a significant opportunity to solidify their position as essential partners for SMEs. By expanding their product knowledge, deepening their understanding of various lending criteria and embracing technology to streamline processes, brokers can unlock new revenue streams and build stronger, more valuable client relationships. The increasing complexity of the market and the demand for expert guidance create a clear opportunity for brokers to demonstrate their value.

Lenders who cultivate a strong broker network will have efficient access to a pipeline of “money-ready” businesses, reducing their acquisition costs and improving the quality of applications. By collaborating effectively with brokers, lenders can tap into a wider market segment and deploy capital more strategically.

How Swoop empowers the future of relationship-led lending

At Swoop, we understand the power of connection and the critical role brokers play in the SME finance ecosystem. Our Swoop Broker Suite and platform are specifically designed to empower both brokers and SMEs in this evolving landscape.

For brokers, Swoop provides:

• Access to a vast network of lenders and funding options, including traditional banks, challenger banks, specialist lenders and alternative finance providers.
• Streamlined application processes and powerful tools to efficiently manage client needs and track deals.
• The ability to offer a wider range of services, including support with grants, equity and other financial solutions, expanding their value proposition to SMEs.

For SMEs, Swoop offers:

• A central platform to explore various funding options and connect with experienced brokers who understand their specific needs.
• Increased transparency and access to a wider range of potential lenders, beyond their traditional banking relationships.
• Support in preparing strong applications and navigating the complexities of the funding process.

The rise of broker-led lending is a testament to the enduring value of human expertise and strong relationships in the ever-evolving world of SME finance. As the market continues to change, Swoop’s platform is playing a crucial role in empowering brokers and SMEs alike, ensuring that businesses have the support they need to access the funding that fuels their growth and drives the economy forward.

Brokers are becoming growth partners for SMEs

The numbers don’t lie: according to The National Association of Commercial Finance Brokers (NACFB) 2024 Impact Report, 67 per cent of all SME finance transactions are now being facilitated by brokers. 

How much is that worth? £26.5 billion out of a £38 billion market handled by NACFB members alone. This figure tells a story about how small and medium-sized enterprises are accessing the capital they need to thrive.

The statistics point to SMEs needing more guidance in a market that is growing more complex. The days of business owners going to their bank asking for money (and accepting the bank’s answer one way or another) are almost completely over. SMEs are increasingly leaning on their relationships, particularly with brokers, to help them make the deals they need to grow. What does this trend tell us about the future of finance?

The rise of relationship-led lending: unpacking the shift

Several factors are working together to make funding a habitat in which brokers can thrive. First, the funding landscape has evolved dramatically, becoming much more complex: SMEs can tap into a diverse range of products, from asset finance and bridging loans to intricate working capital solutions, government grants and R&D tax credits. Navigating this complexity alone can be daunting and brokers provide the expert guidance needed to identify the most suitable options.

The next factor is appetite. While high street banks are showing renewed interest in SME lending, their risk appetite can still be frustratingly conservative. Brokers can connect SMEs with lenders in their wider network who have specific mandates and a greater understanding of niche sectors or unique business models. The NACFB report cites 33 per cent of deals involving specialist lenders and 28 per cent involving challenger banks, demonstrating the value brokers bring in accessing a broader spectrum of capital providers.

Risk is, however, omnipresence in lending. Lenders, whether traditional or alternative, want to deploy capital efficiently and with confidence. Brokers act as gatekeepers, working with SMEs to prepare robust applications, understand their financial position and present a compelling case. By pre-vetting applications, brokers help to de-risk the deal for lenders, making them more likely to approve funding. The fact that 83 per cent of NACFB Patron lenders have expanded their broker panels and 67 per cent have increased their broker-facing teams underscores this growing reliance on the broker network.

Finally, there is the human factor. While technology plays a growing role in finance, human judgement remains vital, especially when assessing the nuances of an SME’s potential. Brokers bring industry knowledge, understanding of lender criteria and the ability to articulate a business’s story beyond the numbers. As Jim Higginbotham, CEO at NACFB rightly stated: 

“The future belongs to relationship-led lending. Brokers should not just be seen as intermediaries – they’re growth partners.” 

The headlines and conversation may have all been about AI and technology, but to over-emphasise a purely algorithmic approach at the expense of the human decision-makers behind the scenes would be to miss the bigger picture.

What this means for SMEs, Brokers and Lenders

This shift towards broker-led lending has significant implications for all stakeholders:

SMEs will be able to access a wider range of funding options, expert guidance in navigating complex products and a higher likelihood of securing the right finance at the right terms. A strong broker becomes a trusted advisor and a genuine growth partner, not just someone who facilitates an introduction. Brokers are increasingly playing a broader advisory role, helping SMEs identify savings in areas including insurance, energy and FX, which can significantly strengthen their overall financial position and borrowing power.

Brokers have a significant opportunity to solidify their position as essential partners for SMEs. By expanding their product knowledge, deepening their understanding of various lending criteria and embracing technology to streamline processes, brokers can unlock new revenue streams and build stronger, more valuable client relationships. The increasing complexity of the market and the demand for expert guidance create a clear opportunity for brokers to demonstrate their value.

Lenders who cultivate a strong broker network will have efficient access to a pipeline of “money-ready” businesses, reducing their acquisition costs and improving the quality of applications. By collaborating effectively with brokers, lenders can tap into a wider market segment and deploy capital more strategically.

How Swoop empowers the future of relationship-led lending

At Swoop, we understand the power of connection and the critical role brokers play in the SME finance ecosystem. Our Swoop Broker Suite and platform are specifically designed to empower both brokers and SMEs in this evolving landscape.

For brokers, Swoop provides:

• Access to a vast network of lenders and funding options, including traditional banks, challenger banks, specialist lenders and alternative finance providers.
• Streamlined application processes and powerful tools to efficiently manage client needs and track deals.
• The ability to offer a wider range of services, including support with grants, equity and other financial solutions, expanding their value proposition to SMEs.

For SMEs, Swoop offers:

• A central platform to explore various funding options and connect with experienced brokers who understand their specific needs.
• Increased transparency and access to a wider range of potential lenders, beyond their traditional banking relationships.
• Support in preparing strong applications and navigating the complexities of the funding process.

The rise of broker-led lending is a testament to the enduring value of human expertise and strong relationships in the ever-evolving world of SME finance. As the market continues to change, Swoop’s platform is playing a crucial role in empowering brokers and SMEs alike, ensuring that businesses have the support they need to access the funding that fuels their growth and drives the economy forward.

Staying on top of tax deadlines is critical for businesses and individuals in the UK. Missing deadlines for tax, VAT, PAYE, or corporation tax can result in fines and extra costs. This blog covers key deadlines and practical tips to help you comply with HMRC.

The UK tax year starts on 6 April and ends on 5 April next year. Businesses and individuals must keep correct records and accounts for submission to HMRC throughout this period.

Key Tax Deadlines in 2025

Here are the important dates for 2025, categorised for individuals, businesses, and employers.

Self-Assessment Tax Deadlines

Limited Companies Deadlines

For dormant companies, accounts must be submitted 9 months after the financial year-end.

Limited Liability Partnerships (LLP) Deadlines

Employer Deadlines (PAYE, NICs, and CIS)

 

VAT Deadlines

Businesses registered for VAT must file returns and make payments either quarterly or annually (under the VAT Annual Accounting Scheme). The deadline is one month and seven days following the end of the period. For instance, VAT must be submitted by 7 May 2025 for the period ending 31 March 2025.

Handling Missed Deadlines and Payment Issues

Penalties may be imposed for missing a deadline. For example:

• For late self-assessment submissions, there is a £100 fine and additional charges apply if the delay is more than three months.
• Companies House fines for late account filings ranging from £150 to £1,500, based on the duration of the delay.

If you cannot pay on time, contact HMRC promptly to arrange a payment plan. Companies can create an online payment plan if they owe less than £30,000 for self-assessment, £100,000 for PAYE or VAT, and meet other requirements. However, companies in certain accounting schemes are required to get in touch with HMRC directly.

Making Tax Digital (MTD)

MTD is designed to make tax compliance easier by requiring digital record-keeping and online submissions. Here’s what it means for you:

• VAT-registered businesses: MTD compliance is mandatory.
• Self-employed and landlords: Starting April 2026, if you earn over £50,000, you’ll need to use MTD for Income Tax. By April 2027, this threshold will drop to £30,000.

Contact the professionals at DataTracks today to learn more about the tax dates and deadlines for UK businesses! You can reach us at [email protected] or +442088349596

According to HM Revenue and Customs (HMRC), an estimated 1.1 million people missed the HMRC tax return deadline recently. This means that thousands are now facing an initial penalty of £100 for failing to file their annual tax return on time, unless they can provide a valid excuse. In contrast, over 11.5 million individuals completed the self-assessment process, with more than 31,000 filing during the final hour before the deadline.

What This Means for You?

For many self-employed individuals or those with multiple income streams, filing a tax return is an annual requirement. The rush to complete these filings is understandable given the complexities involved, and for some, the pressure was compounded by unexpected issues such as IT problems at Barclays.

Although the payment deadline was set for 31 January, HMRC has been clear that late payment penalties won’t be applied until 1 March. Barclays has reassured customers that no one will incur extra costs due to delays from their technical difficulties.

Understanding the Penalties

For anyone who missed the deadline, HMRC has outlined a structured penalty system to encourage prompt submission:

• Initial Penalty: A minimum of £100, even if no tax is due.
• Daily Penalties: An additional £10 per day after three months, capped at a maximum of £900.
• Six-Month Penalty: A further charge of 5% of the tax due or £300—whichever is greater.
• Twelve-Month Penalty: An additional charge at the higher of another 5% of the tax due or £300.

HMRC’s Director General for Customer Services, Myrtle Lloyd, emphasized the importance of filing as soon as possible to avoid escalating penalties. In addition to filing penalties, there are fines and interest charges for late payment of tax owed.

Tips to Avoid Further Issues

• File Early: With the HMRC tax return deadline looming every year, filing early can help you avoid the last-minute rush and potential IT issues.
• Check Your Information: Ensure that all details on your tax return are correct to avoid delays in processing.
• Prepare for Payment: Organize your finances ahead of the tax payment deadline to prevent any late payment charges.
• Appeals Process: If you have missed the deadline, remember that you can appeal against a fine by submitting a form or writing to HMRC. However, you must have already completed the self-assessment before making an appeal.

Seamless iXBRL Filing with DataTracks

For those looking for a smoother and more efficient way to manage their tax filings, particularly ixbrl filing services, DataTracks offers industry-leading solutions:

• Fast Turnaround: Get iXBRL-ready files in 1-3 days (express delivery) or 10 days (standard delivery).
• 19+ Years of Expertise: Trusted by 7 of the top 10 UK accounting firms.
• End-to-End Support: Comprehensive services including CT600/CT1 filings.
• Flexible Solutions: Ideal for handling one file or many—customized to your specific needs.

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The Bank of England’s third interest rate cut in six months will mean more than simply cheaper loans.

On 6 February 2025, The Bank of England reduced its base rate by 0.25%, bringing it down to 4.25%. This marks the third reduction in six months and while the immediate impact might seem small, the long-term implications, particularly for those seeking commercial property finance, could be significant.

With further rate cuts predicted, should business owners hold fire on property purchases? Those who already have mortgages at a higher fixed rate won’t benefit from these changes immediately , while variable-rate borrowers will see some relief in their monthly payments (provided their product is linked to the BoE base rate). But that’s only part of the story: the repeated rate reductions are also positively impacting stress testing that will profoundly affect future lending.

The longer-term implications: The real story

The most significant impact of these rate cuts – and those predicted in the near future – will be felt in the gradual easing of affordability assessments. Over the past couple of years, as base rates rose, lenders significantly tightened their stress test requirements. At Swoop, our customers found it harder to reach agreements as the typical interest rate used as part of the  affordability assessment rose from around 5% when the base rate was near zero, to as high as 9%  in 2023. This dramatic increase in stress test thresholds inevitably limited the amount businesses could borrow, as affordability calculations were based on these much higher theoretical rates.

The recent base rate reductions, and the possibility of further cuts, could significantly alter this landscape. If base rate continues to fall and stabilise closer to 3-4% as predicted, we could see stress tests being further adjusted. For those wondering when interest rates will go down and how that impacts the wider economy, lower stress test thresholds could reignite activity in the commercial property market, making borrowing more accessible and stimulating investment.

Lenders have already been exploring ways to mitigate the impact of their affordability assessments, such as extending loan terms and offering slightly more lenient stress tests in sectors that have proven to be more resilient, such as healthcare and professional services. This flexibility demonstrates that lenders want to lend and will find opportunities to do so; with lower base rates and the potential for less stringent stress tests, we could soon see a more favourable environment for borrowers.

Sector-specific considerations

As we have seen, some sectors have already had more favourable treatment than others. Over the coming months, different sectors of the commercial property market will likely experience a quicker return to more accessible financing. Understanding these nuances is crucial for any business considering a commercial property investment, so while keeping an eye on the headline commercial mortgage interest rates is essential for any investor, the borrower waiting for the right time to buy will look further into the detail. This is where Swoop’s experience can be particularly helpful.

Looking ahead: Navigating the changing landscape

The recent base rate cuts are a positive and welcome signal for the wider economy, but uncertainty remains: factors such as inflation and potential recessionary pressures, will also play a crucial role in shaping the market. Mortgage interest rate predictions come with a disclaimer for a reason.

The landscape is evolving and those best placed to help businesses contemplating commercial property investment are experienced finance professionals who live and breathe the world of commercial mortgages. Borrower and broker should always work together to assess available options, particularly when so many factors can make a significant difference to viability. 
To explore a range of competitive commercial mortgage rates and have the support of the Swoop Funding team, create a free account today, and you’ll be matched with financing options across the whole of the market.