After a difficult few years, the commercial lending market has begun to turn a corner. In 2024, loan approvals to SMEs increased by 23% while gross lending was up 13% to £16bn, according to UK Finance.

Activity picked up towards the end of year: Atom Bank’s SME Pulse survey revealed 56% of commercial finance brokers saw an increase in demand from commercial clients in Q4 2024 compared to 45% in Q4 2023.

This revival has been driven by rising confidence among SMEs now looking for growth opportunities as inflation falls and interest rates come down.

That confidence is matched by growing lender appetite for commercial business – as David Raw, MD for commercial finance at UK Finance, confirmed this March: “We know the economic outlook remains challenging, but lenders are ready to support SMEs with their plans for 2025 and beyond and help them succeed.”

So too are numerous non-bank lenders and building societies.

Despite global uncertainties, borrowers, investors and lenders alike have stopped waiting for a return to the old ‘normal’ and are moving forward.

The resurgence of activity in commercial lending is testament to this change of strategy, and offers great opportunities to brokers –  both those who already specialise in the sector, and others looking for ways to diversify their income streams.

For busy commercial brokers, increased in activity can be a double-edged sword – welcome but painful.

Mainstream brokers on the other hand can feel unprepared or even panicked when they encounter demand for commercial loans.

Both could benefit from partnering with a ‘broker’s broker’ to help place a case, or even arrange the whole thing.

The commercial lending arena is large and hugely varied, and borrowing needs span everything from modest loans to multi-million-pound financing for diverse projects.

There are very few assets which no lender will consider funding – but you need to know which lender will be open to which type of lending, and how to present the case with the right amount of detail and in the right light.

A ‘broker’s broker’ like Crystal Specialist Finance connects brokers with lenders ranging from high-street banks to private funders and niche specialists, who between them can provide finance for almost any case.

For example, we are currently seeing a huge amount of demand for funding on owner-occupied retail property, offices and industrial units, which the mainstream providers are largely happy to supply. But we also regularly come across applications involving more weird and wonderful properties or assets, which require the attention of more specialist lenders.

Recent examples include a fishing lake, a small rugby stadium in Wales and a company car park.

Other complex cases we have placed include a wedding venue in Yorkshire needing to shut its doors to customers (and their accompanying income) for six months for a refurbishment and a successful central London business with a 42-year leasehold, which falls outside most lenders’ official criteria.

The wedding venue required a specialist lender who accepts projected income in its assessments.

The short lease involved a blue-chip corporate applicant buying premises in a prime location, so the merits of the case had to be properly spelled out by a broker to the relationship manager at the right lender - a mainstream bank in this case.

Helping clients secure funding—especially when others have failed—is highly rewarding and builds long-term loyalty.

United Trust Bank research shows 96% of brokers believe specialist clients are more likely to return in part due to the extra work they put in, and often because they are helping clients who think they have no chance of success, especially if they have been previously rejected elsewhere.

The same thinking reads across to those with commercial needs outside the mainstream.

The takeaway? Commercial clients are valuable, and their deals can almost always be placed.

Whether you're a seasoned commercial broker facing capacity challenges or new to the sector and unsure where to start, expert support is available.

Partnering with the right specialist ensures no deal is out of reach—helping you serve clients better, close more deals, and grow your business with confidence.

Jason Berry
Group Sales Director