Albert Gahfi is the CEO of NewCo Capital Group (US) & BizCap (UK).
In an era dominated by economic uncertainty, regulatory challenges and stiff market competition across all industries, not to mention ongoing supply chain management issues, small businesses face mounting obstacles. Inflation, high interest rates and limited access to credit can drive even the most promising fledgling businesses into the ground.
Within the U.S., every jurisdiction has unique challenges surrounding financing; when interest rates are up, credit boxes tend to get tighter. This can leave small and new businesses in a bind: They need quick access to capital, yet they are short on options. Even well-run businesses often face delays of 60 to 90 days to secure financing. Consequently, when an opportunity arises for growth or expansion, they may struggle to get the fast capital needed to act, ultimately losing opportunities.
Changing The Thinking Around Financing
The difficulty in accessing capital is hardly novel, by any means. Particularly in periods of economic upheaval, small businesses have often struggled in this regard. Banks become more cautious and stringent in their lending, enforcing strict requirements and often attaching onerous conditions to loans.
In response, we have noted shifts in the priorities of small and new businesses that have been forced to seek out alternatives when faced with obstacles to obtaining traditional financing:
1. Flexible Credit Solutions: Upon launching our line of capital product overseas, we noted that business owners relished the ability to control their financing, drawing funds when needed, paying them off when it suited them and even receiving discounts. These clients preferred to avoid being locked into fixed-term loans. This model has been very successful in Australia and New Zealand, and we project similar widespread acceptance in the U.K. and the U.S.
2. Speed Of Access: While interest rates remain a consideration, in many cases business owners now prioritize speed and access over cost. When an opportunity arises, entrepreneurs would rather pay a premium for faster access than wait in limbo for more conventional financing, potentially missing opportunities. More and more, they recognize the trade-off between cost and convenience, understanding that while quick capital may be more costly, it offers the flexibility needed to grow, scale and create jobs. Using specialty financing in the interim, as a bridge, while pursuing alternate solutions such as a bank loan or line of credit, will allow business owners to accomplish strategic initiatives in the short term while implementing solutions for the future.
3. Product Customization: A growing number of small business owners are gravitating toward lenders who can offer tailored solutions. Financing no longer needs to be a one-size-fits-all approach. Borrowers are increasingly looking for structures that align with cash flow cycles, seasonal fluctuations and operational timelines. Lenders who can provide a consultative approach, offering insights and options rather than rigid terms, are becoming trusted partners in growth.
Regional Differences In Financial Awareness
Business owner trends, their needs and the products available to them are geographically driven. With our clients in the U.S., our practice has observed a stronger sense of familiarity with specialty financing, with businesses generally exhibiting more awareness of the value of these solutions compared to their counterparts abroad.
There is also greater stateside awareness of the wide range of financing options available: For instance, banks may offer loans at 6%, private lenders at 12%, a small credit bank at 18% and credit cards at 22%. Business leaders are conscious that the market is full of choices. However, the core challenges remain the same—ease of access and turnaround time.
In some markets, fledgling businesses may have only one option, the bank. Consequently, these borrowers may only consider a set rate, neglecting to fully consider and evaluate alternate solutions to financing. However, this understanding of multiple financing avenues is gaining traction, as more small business owners globally become less rate-sensitive and more open to flexible financing structures. These business owners are beginning to seek out lenders who can work with them to design and customize solutions that fit their needs.
Attaining product-market fit across international markets requires a deep understanding of each country’s unique risk tolerance, regulatory environment, and financial culture. What works in the U.S. may not resonate in markets where small and medium-sized enterprises (SMEs) are governed by different expectations around capital, repayment behavior, and funder relationships. For funders expanding globally, aligning products with local business norms is not optional; it’s essential. Educating business owners in these regions is critical, as their exposure to alternative financing may be limited or shaped by local customs. The most valuable mindset shift we advocate is helping entrepreneurs become more strategic and forward-looking when it comes to capital, recognizing it not simply as a tool for survival but as a catalyst for opportunity and long-term growth.
The Importance Of Considering Options
In every challenge lies a solution, especially for business owners willing to explore a range of alternatives. Our partner network, for instance, consists of independent professionals who offer a collection of financial instruments to small businesses, from bank loans to SBAs, equipment financing to invoice factoring. We recognize that today’s entrepreneurs face an abundance of funding options and must carefully evaluate what best aligns with their operational needs, cash flow patterns, and growth goals.
When businesses get turned down, their owners understandably face disappointment and uncertainty. But for intrepid and tenacious business owners, there is always a path to securing financing. There are options at all levels, it requires diligence and research to identify them.
Just as capital providers continue to adapt and evolve in the age of FinTechs, business owners must also remain teachable and open to learning. In this new ecosystem and marketplace, every one of us is a student, learning from the market, from one another and from the changing financial landscape. Success comes to those who are willing to think creatively, challenge traditional models and embrace new opportunities.
The Road To Sustainable Growth
As the financial landscape continues to shift, the most successful businesses will be those that integrate flexibility into their capital strategies. Beyond short-term survival, small businesses must think in terms of long-term sustainability, how to fund innovation, adapt to market changes and capture emerging opportunities. This means building relationships with capital providers who understand their vision and can support them across growth cycles.
Ultimately, financing is not just about rates or terms. It’s about possibility. It’s about giving business owners the confidence to act decisively when it matters most. That is where true growth begins.
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