This article was featured in the NACFB’s Expo edition of Commercial Broker Magazine on 01/06/2026. Lawrence will be attending the NACFB Expo in Birmingham on 10th June 2026 – come and meet him on stand S26.
Over the last six years, UK businesses have had to navigate one shock after another – from the pandemic and supply chain disruption to inflation, higher interest rates and persistent cost pressures. More recently, the ongoing conflict in the Middle East has added further uncertainty and disruption to global markets, with its effects still unfolding.
In that environment, planning becomes more difficult and borrowing can become reactive by default: Funding decisions are driven by timing, not strategy – a late-paying customer, an unexpected VAT bill, a seasonal stock requirement, or a contract that needs fulfilling before cash arrives.
That urgency, coupled with finance application success rates remaining 18 percentage points below pre-2020 levels (BVA BDRC SME Finance Monitor Q4 2025), is contributing to a growing concerning trend: loan stacking – where businesses take multiple short-term facilities one on top of another, to solve immediate cashflow gaps. Each facility might make sense on its own -the problem is they’re rarely assessed as part of a wider financial plan – and there are often alternatives to “another quick loan”, including asset-based lending solutions such as Invoice Finance, Asset Finance or a structured facility.
The issue isn’t short-term finance
Short-term funding can be a smart tool when it’s structured properly. But as the loans stack grows, strain tends to show up in day-to-day cashflow: overlapping deductions, repayment dates that clash, and higher interest rates that lead to a cumulative cost that’s hard to see until it starts restricting working capital.
Where introducers make the difference
Introducers are uniquely placed to take a step back and a wider view to strengthen and protect the client’s longer-term position:
- What’s the funding for – and what is the right product for it?
- What existing commitments are already coming out of the account, and when?
- What does the full repayment picture look like over 12–24 months?
- Can we simplify, consolidate, or restructure to restore flexibility?
A wider view of funding options
Introducers play a pivotal role in safeguarding businesses from the pitfalls of loan stacking by broadening the conversation before any new agreement is signed. By partnering with the right lender, they can help combine and structure debt funding into asset-based solutions – such as invoice finance or asset finance – that not only reduce the overall cost of borrowing but also unlock working capital and restore cashflow. Their wider market perspective enables them to identify tailored funding options that truly fit the business’s needs, rather than simply plugging another gap with a rushed facility.
Instead of defaulting to another quick loan, introducers can assess whether an existing lender might offer a more efficient solution – such as a top-up, a term loan alongside an existing facility, or a temporary increase to cover a known pinch point. Often, the most effective outcomes arise from consolidation or refinancing: reducing the number of facilities, simplifying repayment schedules, and creating more headroom for growth. Through their ability to step back and take a strategic, structured approach to funding, introducers help businesses make decisions that protect cashflow and support long-term financial health.
Because when you replace speed-led borrowing with a clear funding structure, you’re not just arranging finance. You’re protecting working capital, restoring flexibility, and helping clients make decisions they’ll still be happy with in 12 to 18 months’ time.
Get funding moving
You’re an introducer looking for the right funding partner for a client? Find out more about our range of funding solutions or register your interest to become an Ultimate Finance introducer today.
