< p>As the economic picture brightens, confidence has risen, with many firms looking to invest further in their businesses.
The UK has five million micro-businesses, and while individually they might not seem to have a large impact, collectively pop-up retail alone is now worth £2.3bn to the UK economy and accounts for 0.76% of total UK retail turnover.

However, a survey of 1,000 people from ‘Business is GREAT’ found that despite 62% of respondents saying that starting their own business is one of their greatest ambitions, fear prevents 39% of potential entrepreneurs from ever starting a business.

For the UK’s 5.2 million small businesses, of which 5 million are micro-businesses, timely access to capital is essential. Smaller firms such as these - with 52% of 18 to 24-year-olds saying they think about starting a business most days - are less able to deal with delays in accessing finance, so it is vital that lenders offer solutions that accurately reflect the needs of customers.

Banks are still the first place that the majority of people approach, but as the lending market becomes more specialised, demand for alternative finance is likely to increase. At present the largest four banks account for over 80% of UK SMEs’ main banking relationships. But with this specialisation - an essential factor in ensuring that the market functions at its best - lenders must work hand in hand with brokers, not least because brokers are more important than ever in helping to guide customers through an increasingly complex mortgage market.

A recent Intermediary Mortgage Lenders Association survey revealed that almost three-quarters of intermediaries and two-thirds of lenders believe that the market has become more conservative in its lending. It is therefore vital that this increasing complexity does not result in customers being denied finance, particularly the 60% of entrepreneurs who Business is GREAT found would appreciate more advice.

Aldermore recently held a Commercial Mortgage Senate, attended by almost 50 brokers and intermediaries, and events such as these are invaluable in getting feedback and stimulating the exchange of ideas and business practices that can help the market thrive. A changing market requires innovation, and with the growing role of intermediaries, strong relationships between brokers and lenders are essential in helping provide customers with the best possible finance options for their businesses.

Lenders need to adapt to an evolving market that will most likely see brokers’ market share increase and a further rise in the range of specialist products designed to meet specific customer needs. The result should be that it will ultimately become easier for them, and the younger borrowers who will be the next generation of business owners, to get the capital they need.

By Charles Haresnape, Group Managing Director, Mortgages, Aldermore