Securing funding remains a persistent challenge for many SMEs. Straddling the divide between high street lenders and niche financiers, these businesses often find themselves in an underserved and misunderstood middle ground. Traditional lenders frequently deem them too complex, while specialist lenders sometimes see them as too mainstream. The result is a significant missed opportunity, particularly given the crucial role SMEs play in the UK economy.
Despite economic uncertainty, many SMEs are demonstrating resilience and ambition, seeking capital to fuel expansion, invest in new ventures, or relocate to larger premises. The demand for funding is clear; it simply requires a lender with both the agility and expertise to meet it. Duke Capital has identified this missing middle as a fertile ground for growth, stepping in where others hesitate.
The businesses emerging in this space are not high-risk ventures. They are well-managed, creditworthy firms boasting solid trading histories. Their challenges often stem from nuances that fall outside the rigid parameters of traditional lending models. Whether it’s a non-standard ownership structure, a historic credit blemish, or ambitious growth strategies, these businesses are fundamentally sound. They require lenders willing to take a pragmatic, case-by-case approach rather than a one-size-fits-all assessment.
Brokers who can connect with lenders like Duke Capital stand to unlock significant opportunities. By recognising the potential in these businesses, they can facilitate a new wave of growth, innovation, and job creation. Duke Capital’s flexible approach not only addresses a glaring market gap but also positions it as a critical enabler of SME success.
Recent figures reinforce the importance of focusing on this segment. UK Finance’s Business Finance Review (March 2025) revealed a 13% rise in gross SME lending during 2024, totalling over £16 billion. Each quarter surpassed its 2023 equivalent, with sectors such as agriculture, real estate, health, and recreation seeing notable gains. Yet, net lending remained negative at around minus £7 billion, highlighting the broader challenges SMEs face.
Perhaps even more telling is the shift away from high street banks. Sixty percent of SME lending now originates from alternative providers, demonstrating the increasing diversity and competitiveness of the lending market. Duke Capital’s strategy is firmly aligned with this trend, offering the tailored support SMEs urgently need.
Access to finance remains a pivotal factor in determining business success. Traditional loans, venture capital, and government grants each play a role, but availability and accessibility are not uniform. When funding is scarce, SMEs struggle to expand, innovate, or even survive. Duke Capital’s commitment to bridging this gap helps ensure that promising enterprises are not held back by rigid lending criteria or a lack of financial support.
The broader economic climate inevitably influences lending practices. High interest rates and tighter credit policies can throttle SME access to funding, but government initiatives have provided valuable counterbalances. Recent programmes offering low-interest loans and innovation grants have helped many small firms navigate economic volatility. Duke Capital’s focus on practical, flexible funding solutions fits seamlessly into this evolving landscape.
Venture capital is also gaining traction, especially among tech-driven SMEs, offering not just funds but strategic insights that accelerate growth. In this context, diverse and accessible funding options become even more critical. Duke Capital’s investor-friendly, SME-centric model offers the kind of support that can transform potential into real-world success.
Duke Capital Limited (LON:DUKE), formerly Duke Royalty Limited, is a Guernsey-based provider of hybrid capital solutions for small and medium-sized enterprises (SME) business owners in the United Kingdom, Europe and North America, combining the features of both equity and debt.
