The Intermediary – March 2026 - Flipbook - Page 61
SPECIALIST FINANCE
Opinion
Yorkshire: A region
ready to grow
I
n March, Sheffield played host
to the National Association
of Commercial Finance
Brokers’ (NACFB) first
Funding Future Growth event
of 2026, bringing together
commercial finance brokers, lenders,
suppliers and trade bodies from across
South Yorkshire.
Part of an ongoing roadshow
series designed to support brokers
working with small to medium
enterprises (SMEs), the event explored
the realities businesses face on the
ground. The discussions on the
day reflected the region’s economic
mood: cautiously optimistic, but
clear that unlocking growth will
require stronger connections between
businesses, finance providers and
trusted advisers.
Quiet momentum
Insights from British Business Bank
economist Dan van der Schans
highlighted a region steadily gaining
economic traction.
Yorkshire and the Humber is now
home to around 407,000 SMEs,
marking a 5% increase since 2024
and comfortably outpacing the UK
average growth rate of 3%. While the
region may not match London’s rapid
expansion, its strength lies in steady,
consistent growth.
Across Yorkshire and the Humber
there are 3,135 high-growth businesses
– around 7% of the UK total –
including 715 in South Yorkshire.
This puts the region broadly in line
with other parts of the UK, though it
still trails the business density of the
South East.
Data from the NACFB’s own
Intermediary Market Outlook,
published recently, shows that 15.7%
of regional firms expect growth over
the next year, placing Yorkshire and
the Humber mid-table nationally.
Northern Ireland leads at 17.8%,
while the East of England sits lowest
at 15.3%.
The resilience of the region’s
business base is particularly striking.
Business births dipped slightly to
21,950 – a 0.4% increase in Yorkshire
and the Humber compared with 1%
across the UK – but closures fell more
sharply, down 7% in the region versus
4% nationally.
Survival rates are encouraging,
too: 40.1% of firms survive for five
years, outperforming the UK average
of 38.4%. Yet confidence is soening.
Only 39% of businesses plan to grow
in Q4 2025, down from 47% the
previous year.
Appetite for external finance has
also declined, with 31% planning
to borrow, compared with 38%
previously, largely due to reduced
demand from sole traders.
Resilience into growth
A highlight of the day was a fireside
conversation between NACFB
CEO Jim Higginbotham and Julie
Cuthbertson, chief funding solutions
officer at UMi, exploring how
resilient businesses can turn stability
into growth.
A key theme was improving access
to finance across the North through
beer education, responsible lending
and stronger advisory support.
The discussion also highlighted
the evolving role of brokers,
encouraging a shi away from purely
transactional relationships towards
more consultative conversations
that help businesses understand
their options.
As Higginbotham put it: “We want
to help responsible brokers get great
outcomes.”
The finance gap
The British Business Bank shared
with delegates that – compared with
other regions – fewer Yorkshire and
Humber businesses actively seek
funding. When they do, they oen
rely on short-term solutions such as
credit cards or overdras, rather than
SOPHIE OLEJNIK
is digital marketing executive
at the NACFB
Some firms remain
cautious, while others
struggle to navigate
a complex funding
landscape”
longer-term funding designed to
support expansion.
They also revealed that awareness
of finance options is improving,
with 62% of businesses familiar with
available routes, yet caution remains
– only 34% considered more than
one provider in their most recent
application.
For brokers and lenders, this
points to a gap between resilience
and ambition. Some firms remain
cautious, while others struggle to
navigate a complex funding landscape.
Either way, clearer guidance
and easier pathways to finance
remain essential.
South Yorkshire’s opportunity
The mood in Sheffield was not one of
struggle, but potential. The business
base is growing, firms are resilient,
and awareness of funding options is
improving. The next step is helping
entrepreneurs feel confident to access
the finance to accelerate their plans.
If that confidence grows, the region
may soon move from quietly keeping
pace with national growth to playing a
bigger role in shaping it.
Further Funding Future Growth
events will take place in Cardiff,
Cambridge, Glasgow, Canterbury and
London later this year. ●
March 2026 | The Intermediary
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