Small and medium-sized enterprises (SMEs) are the lifeblood of the UK economy, accounting for over 99% of all businesses and employing more than 16 million people. Yet for years, access to finance has remained one of the sector’s biggest obstacles—especially in a post-pandemic, high-interest rate environment.
Now, one community lender based in Wolverhampton is demonstrating how the tide may be turning. BCRS Business Loans, a not-for-profit finance provider, has cut SME loan processing times by an astonishing 80% after embracing a new wave of back-office technology.
The transformation comes at a crucial moment. Many SMEs are still grappling with cash flow issues, delayed payments, and rising operating costs. Traditional banks have tightened their lending criteria, with thousands of smaller businesses reporting difficulty accessing credit. In this context, the speed and efficiency of alternative lenders like BCRS are more vital than ever.
A radical rethink of the lending process
BCRS Business Loans is no stranger to innovation. The lender was established to serve underserved businesses that fall outside the risk appetite of mainstream banks. Historically, BCRS has provided loans of up to £150,000 to businesses across the West Midlands and surrounding regions.
However, like many legacy lenders, BCRS found itself constrained by slow internal systems and manual processes that added unnecessary friction to the borrower experience. A typical business loan could take several weeks to process—a time delay that could spell trouble for a company needing urgent funding.
That changed when BCRS partnered with fintech platform Kennek, which provides an end-to-end lending operating system. With Kennek’s technology, BCRS streamlined and automated much of its back-office function, from initial borrower onboarding and risk profiling to documentation and compliance checks.
The result? Loan turnaround times have dropped by four-fifths. What once took weeks can now be achieved in days, with borrowers receiving decisions and disbursements faster and with fewer headaches.
Speed matters: why efficiency is now a competitive edge
In today’s business landscape, speed is not a luxury—it’s a competitive necessity. SMEs frequently need funding to capitalise on growth opportunities, manage short-term cash crunches, or invest in equipment and talent. When access to that capital is delayed by weeks, it can mean missed opportunities or even business failure.
Faster processing also improves the lender’s performance. By accelerating loan decisions, BCRS can turn over capital more efficiently, serve more clients, and enhance overall portfolio performance.
“Every day counts for our borrowers,” said Stephen Deakin, CEO of BCRS Business Loans. “By removing bottlenecks and automating key parts of our process, we’re not only providing a better customer experience—we’re making our entire operation more robust and responsive.”
The wider implications for SME finance in the UK
While BCRS may be a regional lender, the implications of its back-office transformation are national. The UK currently faces a persistent SME funding gap estimated at over £22 billion, as noted by the British Business Bank. Many of these unmet financing needs are not due to creditworthiness, but rather inefficiencies and risk aversion in the lending system.
Digital transformation—particularly in the back office—offers a credible path forward. By using platforms like Kennek, lenders of all sizes can move faster, reduce operating costs, and scale without compromising on due diligence or regulatory compliance.
Moreover, fintech innovation in this space isn’t limited to faster processing times. It also includes better risk modelling, data-driven decision making, and integration with Open Banking data to improve financial insights—all of which help ensure responsible lending.
What this means for borrowers
For the small business owner, this shift is hugely welcome. Many SMEs report feeling marginalised or frustrated when seeking finance from high street banks, especially for loans under £250,000. Decision-making can feel opaque, impersonal, and out of sync with the needs of fast-moving firms.
Community lenders and regional growth finance bodies like BCRS play an essential role in bridging that gap. But to do so effectively and at scale, they must adopt the same level of digital sophistication as the fintech giants—while maintaining the local knowledge and hands-on support that make them valuable in the first place.
As BCRS has shown, marrying community ethos with cutting-edge tech isn’t just possible—it’s transformational.
The next chapter for SME finance
The success of BCRS’s back-office reform sends a strong signal to other lenders across the UK. Streamlining internal systems isn’t a “nice to have”—it’s mission critical. As the government pushes forward with its SME finance review in 2025 and prepares a new industrial strategy, modernising the infrastructure behind business lending must remain front and centre.
Whether through partnerships with fintechs, internal digital overhauls, or new market entrants, the goal is clear: UK SMEs deserve faster, fairer, and more accessible finance.
Read more:
SME lending delays slashed by 80% thanks to fintech-driven back-office reform
