< Previous20 Business Link www.blmforum.net FINANCE A ccess to finance has always been a defining factor in how businesses grow, survive or disappear. In 2025, the challenge feels sharper than in recent memory. Economic turbulence, stubborn inflationary pressures and a cautious banking sector have created conditions where the old routes to capital no longer appear straightforward. Businesses that once relied on traditional loans or overdraft facilities are finding banks more reluctant to extend credit, and that hesitation is forcing them to look elsewhere. Conversations with owners and advisers reveal a consistent frustration: the bar for approval has risen, even for firms with solid trading records. Banks point to higher regulatory scrutiny and their own need to manage risk in a volatile environment. For many entrepreneurs, however, it feels like a loss of trust. The result is a widening gap between the demand for capital and the willingness of mainstream lenders to provide it. In this space, alternative providers are stepping in, offering speed and flexibility at a price. The growth of peer-to-peer lending platforms, specialist finance houses and non-bank lenders has been notable. These organisations position themselves as responsive to the needs of small and medium-sized enterprises, promising rapid decisions and fewer bureaucratic hurdles. Their rise has not gone unnoticed by traditional institutions, some of which are beginning to partner with or mimic these models. Yet the very popularity of alternatives underlines the frustrations businesses feel with mainstream banking. Entrepreneurs are The struggle to fund growth Companies across the UK are finding access to finance more difficult, prompting a shift towards non- traditional sources with mixed consequences. www.blmforum.net Business Link 21 FINANCE often willing to accept higher interest rates or stricter repayment terms if it means they can access funds when opportunities arise. For companies in sectors such as manufacturing, hospitality and retail, this search for funding is not only about expansion but survival. Rising energy costs, supply chain disruptions and wage pressures have stretched cash flows thin. Many firms have little room for error, and a delayed loan decision can mean missed contracts or deferred investment. The sense of fragility is compounded by uncertainty about consumer confidence. Even as some headline indicators show resilience, day- to-day trading remains unpredictable, making it harder for businesses to present the kind of assured forecasts banks prefer. Private equity and venture capital continue to play a role, particularly for firms with scalable models or strong intellectual property. However, the number of businesses that fit those categories is relatively small. For the vast majority, what is needed is working capital to bridge the gap between invoices and payments or to fund equipment upgrades. Here the squeeze 22 Á22 Business Link www.blmforum.net is most visible. Invoice financing and asset-based lending are growing in importance, but they are often seen as last resorts rather than first choices. The stigma attached to such tools, though gradually fading, still lingers. The state of the wider economy is an unavoidable backdrop. Inflation has moderated from the peaks of recent years but remains sticky, eroding margins and complicating planning. Interest rates, though expected to ease gradually, are still higher than many managers have experienced in their careers. These conditions shape the lending landscape in ways both obvious and subtle. On the one hand, banks must preserve capital ratios and avoid risky exposures. On the other, businesses are desperate for credit to navigate precisely the uncertainties that make lenders nervous. The mismatch is structural, not temporary, and it is redefining the relationship between finance and enterprise. Against this backdrop, the financial services industry faces its own set of difficulties. Profitability has been squeezed by regulatory compliance costs, technology investment and competition from fintech entrants. At the same time, public trust remains fragile. High-profile mis-selling scandals may be years behind us, but scepticism lingers. For younger business owners in particular, loyalty to a single bank feels outdated. They are more inclined to shop around, compare online options and question fees. This shift in attitude compounds the pressure on traditional institutions, which must reinvent themselves while maintaining stability. Technology is both a disruptor and an enabler in this environment. Digital-first lenders use algorithms to assess creditworthiness, often drawing on alternative data such as payment histories or online sales patterns. This can open doors for businesses that struggle with conventional metrics, such as limited collateral or short trading www.blmforum.net Business Link 23 FINANCE Givingyourbusinessahelping hand Tofindouthowwecanhelpbuildyourbusinessvisit www.dextersharpe.co.uk Officesin Boston,Bourne,Horncastle, Lincoln,Louth&Skegness CHARTEREDCERTIFIED ACCOUNTANTS Accounts-TaxReturns TaxPlanning-Book-Keeping Audits-BusinessAdvice histories. Yet the reliance on data-driven decisions raises questions about transparency and fairness. An opaque algorithm can be as frustrating as an unresponsive loan officer, especially if the outcome is negative. Regulation is still catching up, leaving borrowers to navigate a complex and sometimes confusing marketplace. There is also a cultural dimension to the funding landscape. British businesses have traditionally been more cautious about borrowing compared with their counterparts in the US. The preference for organic growth or self-funding is deeply ingrained. But as pressures mount, that conservatism is being tested. More owners are finding themselves compelled to explore financial tools they once dismissed, from revenue-based financing to crowdfunding. Each carries its own risks, but the very fact they are being considered shows how necessity is reshaping attitudes. What emerges from this picture is a financial ecosystem in flux. The boundaries between banks, fintechs, investors and alternative providers are blurring, each competing to fill the gaps left by the others. For businesses, this creates both opportunity and complexity. Choice has expanded, but so has the need for careful comparison. The cheapest option is rarely the fastest, and the fastest is rarely the cheapest. Advice, whether from accountants, brokers or peer networks, has never been more important.24 Business Link www.blmforum.net EXPORTING The export opportunity www.blmforum.net Business Link 25 EXPORTING D amaged in the wake of Brexit, the pandemic, and a volatile global landscape in which tariffs are being thrown back and forth, for many local businesses the last few years has seen exporting become significantly more difficult. New red tape forced numerous firms out of Europe, while for others COVID-19 disrupted supply chains and lowered demand, and recently the USA’s actions have led to increased costs and constant uncertainty. Against the backdrop of these precarious conditions and sluggish growth in-country, the UK Government is attempting to take steps to bring new life to international trade, to support firms to reach novel markets. At the forefront of this is the newly released Trade Strategy, which includes £5bn into a new ‘Ricardo Fund’ to support UK regulators and overseas trade teams in removing regulatory barriers for UK businesses trading abroad. It also details the expansion of the credit capacity of UK Export Finance (the UK’s export credit agency) to £80bn, a new Small Export Builder to give smaller firms better access to export protection insurance, and introduces improvements to help overseas buyers finance repeat orders from trusted UK suppliers in a more streamlined way. The Trade Strategy additionally targets more mutual recognition of qualifications to enhance the UK’s status as a superpower in services exports. It follows the unveiling of a new Board of Trade, earlier in the year, made up of a range of CEOs and business leaders to help boost companies’ exports. The Government is meanwhile looking to power forward trade deals to support export growth, with agreements with India, the US and the EU perhaps most significant - announced in quick succession back in May. The UK-India Free Trade Agreement (FTA) is set to add £4.8bn to the economy and £2.2bn to wages each year, while India’s average tariff on UK products will drop from 15% to 3%, which means British companies selling products to India from soft drinks and cosmetics to cars and medical devices will find it easier. Aligned with the UK’s Industrial and Trade Strategies, the deal is touted to support the sectors which drive the most growth for the economy. Manufacturing sectors, for example, will benefit from tariffs cut on aerospace (as high as 11% slashed to 0%), automotives (up to 110% down to 10% under a quota) and electrical machinery (from up to 22% down to either 0% or a 50% reduction). For clean energy, the industry will have new access to India’s vast procurement market as the country makes the switch to renewable energy, and for life sciences, reduced tariffs on medical devices that take the UK’s complex supply chains into consideration will unleash novel opportunities. Moreover, services sectors will benefit from market certainty when trading into the expanding Indian market. Lowered tariffs combined with a reduction in regulatory barriers to trade are estimated to increase UK exports to India by nearly 60% in the long run; equivalent to an additional £15.7bn of UK exports to India when applied to projections of future trade in 2040. Currently the largest country in the world by population, India is projected to move from the fifth-largest global economy to third in the next three years. By the end of the decade, it will be home to approximately 60 million middle class consumers, and by 2035, their demand for imports is on course to top £1.4tn, With confidence in exporting fragile against a volatile global backdrop, increasing complexity and costs, the Government is looking to turn the tide, setting its sights on supporting businesses to boost their growth by accessing international markets. 26 Á26 Business Link www.blmforum.net EXPORTING representing major opportunity for UK businesses. Commenting, Mark Ridgway OBE DL, CEO of Wakefield-based Group Rhodes, said: “As a manufacturer of advanced metalforming machinery used in the forming and lightweighting of aircraft, India is a strong market for Group Rhodes and offers significant growth potential. The recent UK-India trade deal not only sets the scene for reduced tariffs on machinery but also serves to both enhance our competitiveness as a UK exporter and reduce the complexity of trade with this fast-growing market.” The new agreement with the EU, the UK’s largest trading partner, is cutting red tape in a move particularly welcomed by the food & drink industry after a 21% drop in agrifood exports and 7% dip in agrifood imports since Brexit, as well as firms spending £60m a year on export health certificates since 2021. The UK will be able to sell various products, such as burgers and sausages, back into the EU again, and as part of the deal a new SPS (sanitary and phytosanitary) agreement will make it easier for food and drink to be imported and exported, reducing the checks and red tape (and associated costs) burdening businesses and the lengthy lorry queues at the border. The deal will see some routine checks on animal and plant products removed completely, allowing goods to flow freely again. British steelmakers, meanwhile, stand to make millions extra a year as the EU gets rid of its steel tariffs. Historic trade flows are to be re-established between the UK and the EU, easing the administrative and financial burdens that have affected steel exporters. Steel is set to benefit from the US-UK deal too, in which steel and aluminium tariffs are slashed to zero (yet to be implemented). It also sees 10% tariffs on aerospace sector goods like engines and aircraft parts removed, car export tariffs reduced from 27.5% to 10% (applied to the first 100,000 vehicles exported), and protections on agriculture put in place. Though a relief in a time of uncertainly when it comes to trading with the US, 10% tariffs remain on other goods exports, putting the country in a weaker position than it once was with increased costs for companies, and a removal of the tariff on ethanol coming into the UK from the US has been crushing to the UK’s own industry. Just last month (August) Associated British Foods (ABF) announced the closure of Vivergo, its UK bioethanol production plant in Hull, which cannot compete with cheaper, heavily subsidised US ethanol. The rocky relationship with the US is further being damaged by President Donald Trump cutting the “de minimis” exemption, meaning parcels valued under $800 will be subject to tax, bringing fresh uncertainty, costs and possible price rises for businesses, primarily SME exporters. Though big swings in trade agreements paint an exciting picture for exporting, the reality is one of fragile confidence and a constantly changing international background. There is also a disparity in export confidence and activity between firms based in London and those in the North and Midlands. The UK Trade Barometer, launched by Manchester Airports Group (MAG) and the Growing Together Alliance, shows that 63% of London businesses surveyed in the second quarter of the year said www.blmforum.net Business Link 27 EXPORTING ports in Yorkshire and Lincolnshire and Freeport sites. Exporting into new markets can seem daunting for any business, with paperwork, logistical issues, regulatory differences, and lack of cultural familiarity often cited as barriers, but international trade brings with it myriad benefits, from increasing sales through accessing larger markets to forging a firm un-reliant on the domestic market and resilient to local economic downturns. Operating overseas also introduces opportunities to tap into new technologies, marketing strategies, and insights and inspiration from foreign competitors. Though at first look the global picture may be volatile, there are international markets ready to welcome the region’s businesses and support their growth. D Davies Turner they currently export and have expanded sales in Q2, that compares with 51% in the North and 51% in the Midlands. Additionally, while 51% of businesses polled in the capital expect to increase sales to an existing market in Q3, less than a quarter do in the North (24%) and Midlands (23%). If the UK, and our own region, wants to bolster exports, the right finance and advice will be required. In response, alongside access to international trade advisers, support schemes are being enhanced, with the Mayor of York and North Yorkshire, David Skaith, for instance, launching a new programme to get firms exporting, backed by more than £600,000 in grants. It comes after a similar programme last year, which aided businesses with £200,000 in grants and resulted in over £15m in sales. Applications are open and will be followed by a roadshow of events across the region in October. The roadshows will see a team made up of experts from York and North Yorkshire Growth Hub and the Department for Business and Trade on hand to answer questions. David Skaith, Mayor of York and North Yorkshire, said: “York and North Yorkshire is brimming with fantastic businesses that have made their mark – not just here but across the world. From food and drink producers like Bettys and Taylors to manufacturers like ECON and creatives like Viridian FX working on hit TV shows. York and North Yorkshire businesses have the ambition and talent to thrive when they make the jump into international markets.” Our region is further well positioned in exporting thanks to its infrastructure, with vital 28 Business Link www.blmforum.net OFFICE SOLUTIONS G eneration Z is beginning to change the way Britain works, not through loud confrontation but by quietly resetting expectations. They are the first generation to enter employment after the pandemic altered the meaning of presence, and that timing matters. For them, the office is no longer an unquestioned fixture of working life but a space that has to earn its relevance. The familiar sight of commuters filing through stations every morning feels less inevitable to people who spent their first internships or graduate roles working at kitchen tables. That early experience has given them a sharper sense of choice, and in exercising it, they are reshaping what the modern workplace looks and feels like. The change can be seen in the kinds of spaces companies are beginning to commission. A decade ago, a new office might have been designed around rows of identical desks and a scattering of meeting rooms. Now, it is more likely to feature a mix of café-style lounges, quiet nooks, open collaboration zones and technology-rich meeting pods. The idea is not to impress with square footage or glass façades but to create somewhere people actively want to spend time. Employers talk about “magnet not mandate”: providing an environment that pulls staff in because it feels useful and enjoyable. It is a subtle but telling shift, and one largely driven by younger employees who see little point in leaving home unless the destination offers something more. Wellbeing has become part of that calculation. The conversation around The office through Gen Z eyes Britain’s youngest workforce is challenging tradition, pushing employers to design spaces that prioritise wellbeing, inclusivity and purpose over routine presence. The office through Gen Z eyes www.blmforum.net Business Link 29 OFFICE SOLUTIONS mental health has grown louder in recent years, and for those in their twenties it is not treated as a side issue. Many will choose an employer as much for its culture as for its salary, and a poorly designed workspace that drains energy can be seen as a signal of deeper neglect. Natural light, greenery, ergonomic seating and the chance to step away from the desk are now viewed as basic requirements. Meditation rooms, fitness areas or roof terraces, once marketed as luxuries, are increasingly expected. Even small design decisions— like whether there is a quiet spot to decompress—carry more weight when judged through the lens of wellbeing. Technology, too, has become a litmus test. Gen Z grew up in a world of seamless apps and instant connectivity. When they enter an office and encounter clunky booking systems or patchy video links, the mismatch jars. In their view, technology is not an optional extra but a measure of professionalism. Employers are responding with investment in smarter systems: sensors that adjust lighting and air quality, booking tools that actually work, hybrid- meeting setups that do not collapse under strain. To older colleagues these upgrades may feel like welcome improvements; to younger staff they are simply the minimum standard for a credible workplace. This generation’s influence is also evident in the culture that surrounds the office. The nine-to-five template has already been dented by hybrid working, but for many in their twenties, flexibility is 30 ÁNext >