Fast, flexible funding continues to be a significant hurdle for small and medium-sized businesses (SMBs), as evidenced by Liberis’s recently released Impact Report. According to the study, nearly one in five SMBs would have had to tap into personal savings to sustain operations if timely financing was not available.
Liberis surveyed over 1,700 merchants across the UK and US who received funding through their platform, with 73% reporting a positive impact on their businesses due to access to capital during critical periods.
Traditional lenders often pose substantial obstacles for SMBs. Rigid qualification criteria, lengthy decision-making processes, and extensive paperwork mean that funds frequently arrive too late to be useful. The research revealed that 76% of respondents had been turned down by banks or traditional lenders at least once before opting for Liberis’s embedded finance services. This recurring rejection hampers early success and long-term sustainability.
Embedded Finance is increasingly addressing these challenges. More than half of UK respondents and nearly two-thirds of US respondents obtained their first-ever funding through Liberis, indicating a significant shift in how businesses interact with capital.
Timely Funding Supports Jobs and Growth
The data indicates that access to alternative financing directly influences business survival and employment. Over one-third of UK businesses and more than a quarter of US businesses avoided closure thanks to timely capital. In practice, 42% of funded companies created or preserved at least one job, while 29% safeguarded or added between two and five roles.
Beyond mere survival, capital availability significantly impacts revenue growth. The broader SMB funding gap leads to disparate outcomes; without access to alternative finance, 47% of respondents said they would have missed growth opportunities, 27% would have survived but faced challenges, and 17% would have declined large orders due to cash flow constraints.
This challenge is particularly pronounced in the UK, with roughly 5.5 million small businesses—accounting for nearly 60% of private-sector employment. Globally, SMBs represent around 90% of all businesses and more than half of jobs, yet they are underserved by traditional financial systems. Delays in funding disproportionately affect businesses outside major urban centers, exacerbating regional disparities and impeding local economic growth.
The research also underscores a growing demand for integrated financial services. Most businesses anticipate evolving financial needs, desire personalized funding recommendations, and foresee the need for additional capital. Platforms that embed finance enjoy higher customer loyalty, with 68% of businesses more likely to remain if offered extra financial products.
In conclusion, the findings suggest that Embedded Finance is a structural solution to the SMB funding gap, accelerating access to capital, supporting job creation, and unlocking growth constrained by traditional lending models.
