The National Association of Commercial Finance Brokers (NACFB) has revealed that its members were responsible for £26.5bn of the £38bn UK SME lending market, accounting for 67% of business.
The NACFB said the findings, revealed in a survey carried out last year, showed that brokers were the “linchpin” of commercial finance.
Jim Higginbotham, CEO of the NACFB, said: “The future belongs to relationship-led lending.
“With 220 new clients per member and £38bn 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.”
He 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 adviser, becoming the modern-day bank manager who blends human insight with market expertise to help drive UK plc forward.”
Shaping the mortgage market around today’s first-time buyer
Sponsored by Newcastle for Intermediaries
The survey also found that brokers played a key role in diversifying access to SME lending, with a third of deals facilitated by specialist lenders and 28% through challenger banks.
This trend aligned with findings from the British Business Bank, which showed challenger and specialist banks accounted for 60% of gross commercial lending.
Some 2% of loans were provided by fintechs, while community development financial institutions (CDFIs) made up 0.5% of lending.
Further, a fifth of SMEs managed to secure funding through the NACFB’s advisers after being rejected by another lender.
A quarter of clients managed to get another type of financial product than what they originally sought, and to match this, a third of brokers expanded their proposition to meet client demand.
Brokers also expressed the importance of client loyalty, as nearly half – 48% – said their leads last year came from returning clients.
Going forward, 83% of NACFB patron lenders said they would be expanding their broker panels, while 67% planned to grow their broker-facing teams.
Some 36% of lenders surveyed said they would diversify product lines to meet demand for niche solutions, while 21% said they saw brokers as “strategic partners” in growing specific kinds of lending.
Adrian Coles, finance broker and interim chair of the NACFB, 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 under-served 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.”
