One in five small businesses (SMBs) would have dipped into their personal savings to keep operating without access to timely funding, according to recent research from Liberis, a leading embedded finance provider.
The survey of more than 1.7k merchants across the UK and US, who received Liberis funding, found that 73% reported meaningful impact for their businesses by having access to capital at the moment they needed it most.
Most SMBs rejected before accessing embedded finance
Banks’ strict rules and lengthy paperwork make it harder for viable SMBs to access funding when they need it. The research found that three-quarters (76%) of respondents had been rejected by traditional lenders at least once before turning to Liberis.
For many, alternative capital offered a pathway to funds that traditional lenders couldn’t provide. More than half of UK respondents (58%) and nearly two-thirds of US (65%) received their first-ever funding through Liberis.
Timely capital prevents closure and protects jobs
Alternative capital serves as a crucial lifeline for both employees and SMBs. More than one-third of those surveyed in the UK (37%) and over a quarter of US respondents (26%) avoided closure thanks to timely funding. This equates to more than two in five businesses (42%) creating or saving at least one job, while nearly a third (29%) preserved or added between two and five roles.
Access to alternative capital at key moments pivotal for revenue growth
Capital is not just integral to survival, it’s the difference between survival and growth. More than three-quarters of businesses (77%) who received funding through Liberis experienced moderate to significant revenue increases, with over half (53%) achieving revenue growth between 10% and 25%. Nine in ten (90%) businesses say the funding positively impacted their operations.
SMBs currently face an unfair disadvantage
The SMB funding gap often forces small business owners into difficult decisions. Without access to alternative capital, one in five (21%) would have used personal savings, 27% would have survived but struggled, 47% would have missed growth opportunities, and 17% would have turned down large orders.
“Funding small businesses is important to the UK on multiple fronts,” said Rob Fairfield, CEO of Liberis.
“There are 5.5 million small businesses in the UK, representing 99.8% of the business population and accounting for 60% of the country’s employment. Small businesses are rooted in local communities across the UK, often outside London and major cities. Funding that reaches these businesses reduces regional inequality and allows the UK access to previously untapped potential. Our research shows just how critical access to capital in key moments is for these businesses.
“More than that, adequate funding enables entrepreneurs to innovate, developing new products, services, and business models that disrupt established players and drive economy-wide productivity gains. ”
Embedded Finance – A solution that delivers
Liberis’ embedded approach – delivering funding through trusted partner platforms like eBay, Worldpay, and Vagaro – eliminates these barriers. For 72% of respondents, Liberis represented their first-ever funding, accessed seamlessly through platforms they already use daily.
Speed emerged as the critical differentiator. The Liberis Capital Platform can deliver funding in just 4 hours from application to disbursement, compared to weeks or months with traditional lenders. This velocity matters: 58% of businesses require extra capital during seasonal peaks like Christmas, when timing is everything.
The funding is being deployed strategically:
Partnership value – loyalty through expanded offerings
The research reveals a powerful opportunity for platform partners embedding finance into their platforms. Sixty-eight per cent of respondents said they would likely stay with their current platform if more financial products were offered, with US businesses showing particularly strong commitment at 74% compared to the UK’s 46%.
Additional findings demonstrate demand for personalised, lifecycle-based finance:
- 82% agree their financial needs evolve over time
- 57% want personalized funding recommendations
- 78% expect to seek additional funding to address future challenges
- 76% favour Flexible Cash Advance products that adjust to sales performance
“For our partners, embedded finance is more than a product feature, it’s a retention and growth engine,” added Fairfield. “Businesses that feel financially supported become stickier customers. When platforms expand their financial offerings, they’re not just helping their customers grow; they’re future-proofing their own business model.”
