This is despite 66% of finance providers seeing challenges in accessing competitive funding in 2025, according to software company Kennek’s latest report, ‘Strategic Insights from Lenders & Funders – UK Bridging, Development & SME Lending: 2025 Outlook’, produced in collaboration with B&C.

The white paper, which saw 53 UK-based originators surveyed as well as 20 interviews conducted among senior executives at both originators and funders, said 81% of lenders were planning to raise additional funding over the next 12 months.

Despite a strong desire to secure funding, 72% of respondents said there was a lack of investors offering the required flexibility. This was shown to be the most important funding facility characteristic, followed by low cost and advance rates.

The topic of funding was discussed at Kennek’s third annual lenders and funders conference on 23rd April, which preceded the release of the white paper.

The event hosted a panel consisting of Neil Pool, head of compliance at Bluecroft Finance; Warren Mutch, head of speciality finance at Shawbrook Bank; Paul Maurici, managing director of wholesale finance at HTB; David Hughes, finance director at Signature Private Finance; Xavier De Pauw, CEO and founder of Kennek; and moderator Brendan Gilmore, managing director at BPG Strategy.

During the panel discussion, Paul stated he saw increased diversification in funding, as opposed to what he described as more of a binary choice a decade or so ago. This has come through equity, challenger banks, clearing banks, and securitisation and capital markets.

“I think we've definitely seen a little bit more either working together or working in separate SPVs, and then that doesn't prohibit a securitisation line or family office money,” he said.

Warren also agreed that funding had diversified, not least due to differing appetites across a range of areas.

“A lot of lending companies have sought some of that diversity and flexibility among a number of different providers, and every institution [and] funder has slightly different risk appetite [and] slightly different approaches to different products in this market.

“I think the days of a very big lending business with just one funder died with the credit crunch.”

According to the report, the principal source of funding loans today are HNW investors and family offices, with 77.4% funded in this way, followed by own funds or balance sheet at 69.8%, and banks at 50.9%.

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Despite panellists seeing diversification, 55% of respondents said they struggled with gaining access to institutional funding. Respondents noted that issues also arise with managing multiple funding lines, due to the administrative overhead and compliance burden reducing efficiency and agility, especially when handling different types of capital.

During the panel, Neil noted that, as a business new to the industry, Bluecroft struggled to find investors who would speak to them after only a short time writing loans and with no redemptions to show. The company ultimately went on to secure a Shawbrook facility.

Funding wasn’t the only area where originators were looking to make advances. More than 70% of originators stated they were looking to invest in technology over the next 12 months, with the same number saying they had no end-to-end system in place.

When asked how they would describe their company’s tech setups, almost one-third (32.1%) said they were still using manual processes such as Excel and email, while 20.8% used several tools but without them being integrated with a single system, and 13.2% used third-party lending software.

During the conference, panellists were asked whether the industry was ready for technology. Brendan referenced his experience with brokers becoming accustomed to a Shawbrook portal, saying “they loved it”.

However, other panel members noted the difficulty with getting brokers to adopt technology.

“There are a few that have tried to push brokers down a route and, in some cases, it worked well, in others It doesn't because you can't force them to fill in your version of the form,” said Warren.

He went on to say that 10 different lenders might have 10 different forms, and if brokers have to fill in a form for each one, they won’t end up doing it.

Xavier also noted that brokers may be put off going to a lender if they need to fill in a form, which is less efficient than sending an email. However, he also divulged his experience of facilitating funding transactions where firms were “ticking all the boxes of human experience”, alongside market experience and good distribution, but when it came to securing investment, a lack of presentable data let them down.

Paul echoed similar experiences, such as opening up a loan tape and seeing missing data: “Nothing makes my heart sink more,’’ he said.
In the firm’s report, 58.5% of respondents said that technology and data were important to attract and retain investors. But, ultimately, the panel concluded that human touch remained essential.

“Technology is an enabler,’’ said Xavier, “and so it's a human factor. The service is the flexibility. How do you originate? How did you find your deals? These are the things that are, I would say, the USP of an originator.’’

A free copy of Kennek’s report can be found here.