A guest editorial by Katherine Chan, chief executive officer of Juice
Britain has long carried the tag of being a ‘nation of shopkeepers’, denoting the nation’s strong ties to small businesses. The phrase, which is believed to have arisen towards the end of the 18th century, still rings true today. While much has changed in the intervening years, our collective affinity for small and medium-sized enterprises (SMEs) remains strong. In 2024, more than 99% of UK businesses were classified as SMEs, generating 52% of private sector turnover and employing 60% of the national workforce.
However, despite their legacy and continued importance, SMEs across the UK currently face considerable and growing uncertainty. Amidst the plethora of challenges they face, unequal access to lending capital ranks high. Compounding this, smaller businesses often lack the advanced financial insights into performance that larger firms take for granted. When combined, this puts smaller companies at a significant disadvantage and makes it harder for them to compete in today’s landscape.
A new chapter for AI
Thankfully, there may soon be light at the end of the tunnel. A potential solution to these issues looks to be emerging through developments in AI-driven technologies. Specifically, I am referring to the ability of some AI-driven solutions to provide smaller companies with access to advanced financial insights, which, in turn, enables them to make more informed decisions across areas essential to business development. Crucially, these solutions can also help to improve the creditworthiness of businesses in the eyes of lenders.
Let me preface this by saying that I suspect some of you may be feeling a degree of AI fatigue, and understandably so. We are told ad nauseam about the transformative qualities of AI, from streamlining workflows to reshaping business models. However, much of the discussion to this point has related to the capabilities of generative AI. While a useful tool for many small businesses, it’s the emergence of AI tools that support more intelligent financial decision-making which could have a greater impact.
The path to sustainable growth
In fact, I believe AI-driven tools of this kind will soon become a staple in the way SMEs manage their finances. From providing real-time insights on current business activity to delivering predictive analytics of future financial performance, these solutions are giving SMEs a better grasp of their financial health and critically making it easier for them to convey this standing to others.
In doing so, these new technologies are helping to create a more straightforward path to sustainable growth. In part, this will be achieved by enabling SMEs to better demonstrate their creditworthiness to traditional lenders. This shift is essential, as at present, fewer than half of UK SMEs that apply for bank finance are successful. Oftentimes, this is because traditional financial institutions assess creditworthiness using criteria that are more relevant to larger, enterprise-level businesses.
A necessary evolution
Such evolution is vital, given the SME Finance Monitor also found that a sizable proportion of SMEs are open to borrowing to fuel growth. From a broader economic perspective, enabling this ambition could play a vital role in helping Britain regain its footing on the global stage. By equipping SMEs with the tools to grow confidently and securely, we create the conditions for a new generation of innovative and high-potential businesses to thrive, regardless of their current size and scale.
Ultimately, by giving businesses the ability to better track and predict key areas, such as cash flow, in real-time or, as mentioned, by facilitating faster and more accurate assessments of risk and creditworthiness, the fintech sector can leverage AI technologies in a way that makes a real impact. What’s more, these tools are making it easier for small businesses to opt out of the traditional credit lending process entirely and connect with alternative finance providers who are often better equipped to meet their needs.
What comes next
By supporting growth while helping to manage the risk of overextension, these AI-driven tools could represent the missing link in closing the UK’s long-standing SME lending gap—a challenge that has persisted for years and only deepened in recent times. In offering a smarter and more equitable path to long-term success, such technologies have the potential to shift perceptions of AI from a productivity aid to a critical force for financial resilience.
Therefore, if we want to empower SMEs, we must now shift our AI narrative from productivity gimmicks to financial game-changers. Greater automation, enhanced personalisation, and boosted productivity are all fantastic. Still, they pale in comparison to the benefits brought about by technologies that help small businesses gain more effective insights into the health of their business finances and enable more equitable lending. To put it simply, the future of sustainable growth lies not just in automation but in access to resources.
For more information about Juice, please visit: https://www.getmejuice.com/
Related news: Juice secures £25m in funding
Guest Editorial
This article was produced specially for Fintech Intel by an expert guest contributor.
