Some lenders are quietly becoming obsolete. In 2025, founders no longer tolerate 6-week approval timelines, rigid credit models, or hidden fees buried
in legalese. The pace of business has changed, and the lenders who don’t keep up risk being left behind.
This shift isn’t just anecdotal, it’s playing out in the numbers. UK SME lending volumes have dropped by 10% in Q1 alone (Bank of England, 2025), while
fintech-led funding models are gaining traction, especially among digital-first businesses. Meanwhile, alternative lenders are rethinking risk entirely, using real-time data and AI to offer quicker, smarter, and more flexible capital. It’s becoming clear that
founders are not just shopping for cash, they’re shopping for control.
Working in banking and fintech has made one thing clear: legacy systems weren’t built for modern founders. At Juice, we work with founders every day who
need capital that moves as fast as they do—without losing transparency or control along the way. That’s why I believe the founder-lender relationship is undergoing a much-needed reset.
In this article, I’ll share what founders should expect from lenders in 2025—from faster decision-making to more contextual credit options and a renewed
focus on relationship-led funding. Founders are no longer just raising money—they’re raising expectations.
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Smarter, faster lending decisions are now the norm
The days of waiting weeks for a credit decision are fading fast. In 2025, founders should expect speed—not just in application processing, but in how lenders
assess risk and offer tailored solutions.
AI-powered credit models are reshaping how lenders evaluate businesses. Instead of relying solely on traditional credit scores or collateral, more lenders
now draw on real-time indicators like transaction data, customer engagement, and growth patterns. This approach has already been covered in my previous article
“AI in Fintech: Revolutionising Credit Risk Models”, where I discussed
how smarter underwriting tools can level the playing field for digital-first SMEs.
According to McKinsey’s 2024 Global Banking Report, more than 60% of lenders surveyed reported using machine learning to enhance their credit assessment
processes. Lenders using AI report up to 40% shorter approval times and improved risk segmentation (McKinsey, 2024). This isn’t a futuristic trend—it’s already here.
For founders, this means two things: faster access to capital and more relevant funding terms. But it also means that lenders will expect better visibility
into your business operations. Financials alone won’t cut it. Lenders now want to see your retention metrics, marketing performance, and even customer loyalty scores.
This shift demands that founders stay on top of their numbers and choose partners who understand the nuances of digital business models. As someone who
now works closely with SMEs navigating these expectations, I’ve seen how clarity and data-driven storytelling can transform funding outcomes. It’s not about chasing the cheapest capital—but choosing the smartest fit.
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Flexibility is no longer a bonus, it’s the benchmark
The lending models of the past treated flexibility as a luxury—something offered to the most established businesses or the most creditworthy. In 2025,
that mindset no longer holds. Founders should now expect funding options that align with how their business actually operates: dynamic, digital, and often unpredictable.
Flexible repayment terms are becoming the new standard. From pay-as-you-grow models to revenue-based repayments and revolving credit facilities, lenders
are finally catching up with the realities of running a modern SME. In a world where seasonality, platform algorithm changes, and customer sentiment can all shift in a matter of weeks, rigid monthly repayments just don’t work.
This is especially true in eCommerce, where founders need capital that adapts to their sales cycles. As I wrote in
“Why Non-Dilutive Funding Is the Future for SMEs”, flexibility
is not only about cash flow management—it’s about strategic freedom. When founders are able to borrow, repay, and reborrow capital over a longer term, they make sharper marketing decisions, seize timely growth opportunities, and maintain control of their business.
According to Deloitte’s 2024 SME Lending Outlook, 78% of fast-growth businesses say traditional repayment structures are a barrier to scaling, and 63%
would prefer lenders to offer models that flex with their performance (Deloitte, 2024). That’s not a wish list—it’s a clear signal of where the market is heading.
In this environment, founders should no longer settle for outdated loan structures. Ask your lender: Can this facility adapt to my sales pattern? Does
it give me the room to grow—or does it box me in?
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Data-rich lending will set the pace
Credit is no longer about ticking boxes—it’s about understanding a business in real time. In 2025, founders should expect lenders to move beyond static
credit scores and outdated models and instead rely on live financial signals, platform data, and behavioural trends.
Lenders who still require lengthy financial statements and asset-backed guarantees are likely falling behind. The most progressive players now use API
integrations to assess business health instantly—looking at cash flow patterns, customer retention, ad spend efficiency, and even operational rhythm. As highlighted in my previous piece,
“AI in Fintech: Revolutionising Credit Risk Models”, this shift
allows lenders to make smarter, faster, and fairer decisions—especially for digital-first businesses that may not fit legacy benchmarks.
And it’s working. A 2024 report by McKinsey found that data-rich lenders outperform traditional lenders by 32% in default prediction accuracy (McKinsey,
2024). That’s not just good news for lenders, it means more access and better terms for founders.
Founders can be assessed for funding based on how they’re operating today, not just where they were a year ago. This rewards momentum, product-market fit,
and resilience—traits often missed by legacy systems.
But even the smartest data won’t replace what really drives great lending relationships: trust, transparency, and genuine connection. Founders don’t just
want funding—they want to work with people who understand their journey and offer support that aligns with their ambition.
It’s something we prioritise deeply at Juice, and something I’ve come to believe is non-negotiable for lenders who want to stay relevant in 2025 and beyond.
So, where is the lending heading?
Lending in 2025 is no longer about ticking boxes,it’s about context, speed, and relevance. Founders are right to expect faster decisions, smarter underwriting,
and flexible capital that adapts to their business rhythm. And more than ever, they want to work with lenders who get it, who see beyond the spreadsheet and understand what growth really looks like.
I’ve written before about the shift toward non-dilutive capital, smarter credit models, and the real cost of financial exclusion. But this year, the expectation
bar is even higher. Lenders who can’t meet it won’t just fall behind—they’ll be left behind.
Founders are ready. The question is: are their lenders?
