Funding delays cost mid-sized firms growth opportunities

More than one in five UK mid-sized businesses have lost opportunities to competitors because funding approvals took too long, according to new research from Shawbrook Bank.

The findings, published in Shawbrook’s latest report, The M Agenda: The Medium-Sized Business Gap, highlight the commercial impact of delays in securing finance, with businesses increasingly forced to choose between missing growth opportunities or paying more for faster funding.

According to the research, a quarter (25%) of medium-sized businesses have experienced delays with funding applications, while 22% said the approval process simply took too long. As a result, 22% reported losing business opportunities to competitors.

The knock-on effects extend beyond missed deals. Around 22% of respondents said funding delays had forced them to postpone significant investment, while 20% had been unable to purchase new equipment. A further 18% said they had been unable to recruit staff needed to support growth, and 19% reported being unable to complete a planned business exit.

The research also suggests that slow lending decisions can damage business relationships and reputations. More than one in five (21%) business leaders said their professional credibility had suffered because they were unable to move quickly enough, while 18% reported losing partners or clients altogether.

To avoid losing momentum, 21% of businesses said they had turned to faster but more expensive sources of finance to keep their growth plans on track.

Neil Rudge, Chief Banking Officer at Shawbrook, said: “In the mid-market, timing is critical.

“Whether it’s upgrading equipment, a new hire, or the leap into a new market, these opportunities often have a narrow window of opportunity. Our research shows that businesses can miss out simply because funding options are not moving at a quick enough pace.

“This is backing mid-sized businesses into a corner – either they lose out to competitors, or they are forced to settle for more expensive solutions just to stay in the race. For the UK economy to thrive, it’s important that the funding available to these firms is as agile and ambitious as the businesses themselves.”

The findings are based on a survey of 1,000 funding decision-makers at UK medium-sized businesses employing between 50 and 249 people with annual turnover of £5 million to £100 million. The research was conducted by Censuswide on behalf of Shawbrook between 15 and 27 October 2025.