In today’s economic climate, SMEs in the UK are under growing pressure to maintain cash flow, remain competitive, and invest in long-term growth all while navigating complex global markets. As a result, a rising number of SMEs are integrating business finance products into their financial strategies to help manage working capital, bridge operational gaps, and maintain momentum.

At Affinity Exchange, we recently launched a suite of business finance products following consultations with clients about the challenges and ambitions they foresee in the year ahead. These new solutions are designed to expand the scope of how we support businesses enabling us to play an even greater role in helping them achieve their growth targets, which has always been at the core of what we do.

A Growing Trend: SME Demand for Business Finance

Recent figures underline this trend. According to research from Shawbrook, around 78% of SMEs accessed alternative finance in 2024, up from 73% in 2023. Specifically, 56% reported using invoice finance, an increase from 48% the previous year. This suggests a growing reliance on alternative financing methods among SMEs. While traditional bank loans still remain a component of this picture, more dynamic products are becoming increasingly central to how SMEs operate and scale.

This growth is not just reflective of economic necessity, it also signals a shift in how smaller businesses are structuring themselves financially. Businesses are increasingly viewing finance not just as a contingency, but as a strategic lever to enable growth.

Why Certain Sectors Lead the Uptake

Some industries are more likely than others to embrace these solutions, and for good reason. Through our own research we have identified the three main industries leading the way in finance products.

1. Wholesale and Manufacturing
   These sectors face long payment cycles, needing to pay suppliers well before receiving payment from customers. This working capital gap puts strain on operations, especially when order volumes increase. Here, both supplier and trade finance are essential tools that allow firms to access capital tied up in supply chains, giving them the breathing space to fulfil larger contracts and expand.
   
   
2. Construction
   Payment lags, project-based revenue, and upfront material costs make construction one of the most cash-sensitive sectors. With razor-thin margins and significant upfront commitments, the ability to manage cash flow predictably is critical. Finance products help ensure continuity between project milestones and client payments.
   
   
3. Retail and eCommerce
   In highly competitive industries where price is a key differentiator, businesses often cannot afford to pass rising costs onto consumers. To avoid losing market share, many are turning to finance tools that help spread operational costs, manage inventory, and invest in customer acquisition while maintaining profitability.

How These Products Help Businesses Grow

Finance tools play a crucial role in smoothing cash flow, enabling businesses to take on larger orders, extend payment terms to clients, and negotiate better terms with suppliers. Crucially, they allow SMEs to stay agile and react quickly to market opportunities without being constrained by liquidity issues.

At Affinity Exchange, we work with businesses every day integrating these financial tools into their broader growth strategies. As an international payments and risk management provider, we help SMEs maximise working capital, reduce friction in cross-border transactions, and protect themselves against currency volatility. Whether a business is importing raw materials or expanding into new markets, we provide the strategic financial infrastructure that allows them to do so confidently.

The future of SME growth lies in smart, integrated financial models. Business finance products are no longer just a stop-gap measure, they’re part of a proactive strategy to ensure scalability, manage risk, and stay competitive in a fast-changing world.