Empowering SMEs: 5 FinTechs offering asset-based finance in the UK

By Gloria Methri

Small and medium-sized enterprises (SMEs) are the cornerstone of the UK economy, making up 99.9% of businesses and contributing more than £2.3 trillion annually.

Despite their critical role, these businesses face significant cash flow challenges, with 62% of SMEs citing late payments as a major hurdle to growth (FSB, 2023). Compounding this issue is the reluctance of traditional banks to lend to smaller businesses, with lending hitting a post-pandemic low of £3.7bn in Q1 2023—nearly half of the £7.6bn recorded just two years earlier, according to UK Finance.

In response, asset-based finance has emerged as a vital solution, allowing SMEs to access funding by leveraging assets like invoices, inventory, and equipment. FinTech lenders, with their innovative approach, are stepping in to meet this demand, providing flexible financing options that traditional banks are unable or unwilling to offer. A recent report from Sonovate reveals that 40% of UK SMEs now prefer FinTech lenders over mainstream banks, finding the process quicker and more straightforward.

Let’s explore five FinTech firms that are transforming the SME financing space through innovative asset-based solutions.

• Capify

Capify is a pioneer in alternative financing for SMEs, offering tailored asset-based solutions to businesses across the UK. The platform provides loans secured against future card sales or revenue streams, making it ideal for businesses with predictable sales patterns. With quick approval times and a simple online application process, Capify bridges the gap for SMEs needing immediate access to working capital without the hassle of traditional banking procedures.

• Fleximize

Fleximize stands out with its personalised approach to SME financing, offering both secured and unsecured loans. Its asset-based finance options allow businesses to leverage valuable assets like equipment or real estate for funding. Fleximize uses advanced technology to streamline the underwriting process while maintaining a human touch to understand individual business needs. This blend of innovation and personalisation has made it a go-to choice for growth-focused SMEs.

• Lendscape

Lendscape is a cutting-edge asset-based lending platform designed to empower SMEs and financial institutions alike. Specialising in invoice finance and supply chain finance, Lendscape helps businesses unlock cash tied up in unpaid invoices. Its advanced digital tools offer real-time insights and seamless integrations, enabling SMEs to access funds quickly and efficiently while maintaining complete control over their cash flow.

• Simply Asset Finance

Simply Asset Finance focuses on helping SMEs acquire essential equipment and machinery through flexible financing solutions. By offering hire purchase and leasing options, Simply enables businesses to expand operations without straining cash flow. The company’s use of proprietary technology ensures quick decisions, making it an attractive partner for SMEs looking for hassle-free asset financing.

• Ultimate Finance

Ultimate Finance specialises in asset-based lending products, including invoice finance, asset finance, and bridging loans. Its tailored solutions help SMEs manage cash flow, fund equipment purchases, or cover unexpected financial gaps. Known for its personalised service, Ultimate Finance combines deep industry knowledge with flexible offerings, ensuring that businesses have access to the right financing at the right time.