Trust, Friction, and the SME Finance Gap: Why Pre-Approval Matters

For small business owners, applying for finance is rarely simple. It’s stressful, time-consuming, and too often ends in rejection.

But beyond the paperwork and credit scores, there’s a deeper issue at play — one that’s holding small businesses back and widening the SME finance gap.

The real barriers aren’t just structural; they’re psychological.

In this fourth post in our “Shaping the Future of Small Business Finance” series, we explore how fear of rejection, admin overload, and lack of trust stop small businesses from seeking the funding they need — and how embedded, pre-approved offers are removing those blockers.

While lenders talk about risk profiles and approval rates, small business owners experience something very different: fear, friction, and a lack of trust.

Three key barriers stand in the way:

1. Fear of Rejection

For many entrepreneurs, being declined for finance isn’t just an inconvenience — it feels personal. They’ve poured their time and energy into their business, and a ‘no’ from a lender can feel like a judgment on their potential.

2. Fear of Application

The lending process is often long, complex, and admin-heavy. Applying for finance can take up to 20 hours, time small business owners simply don’t have. Many are already spending 6-8 hours a week on financial admin alone.

3. Lack of Trust

Most small business owners don’t know — or trust — the financial providers advertising loans online. They fear being misunderstood, declined, or trapped by unfair terms.

So how do you remove these barriers?

The answer is simple but powerful: pre-approval, embedded directly within the platforms small businesses already use.

Instead of asking business owners to search, apply, and wait, the offer is there, pre-approved, real-time, and tailored to their business data.

For many of Liberis’ platform partnerships, 90-100% of eligible customers are pre-approved.

That removes the fear of rejection entirely. The decision is already made. All the business owner needs to do is accept.

The next step is to remove friction from the process.

By leveraging real-time data from platform partners like eBay, Worldpay, and Vagaro, Liberis can underwrite funding offers without paperwork or lengthy applications.

In most cases, no additional information is needed.

For funding up to $60,000, the entire journey can be completed in minutes, not weeks.

The result? A four-click experience to access capital.

No forms. No waiting. No admin headaches.

The final piece is trust.

Rather than marketing directly under the Liberis brand, funding is embedded under the brand of trusted platform partners, like eBay Seller Finance or Worldpay Business Finance.

That makes a difference.

Business owners are far more likely to engage when the offer comes from a name they already know and trust.

This pre-approved, embedded model delivers value on every front:

• Removes friction
• Eliminates the fear of rejection
• Builds trust through existing relationships
• Gives small businesses faster, fairer access to funding

It’s a model designed around the realities of small business ownership, not around the needs of lenders.

Small business owners don’t need another hoop to jump through. They don’t need more paperwork or another rejection letter.

They need finance that’s seamless, trustworthy, and there when they need it.

That’s the future embedded finance is creating — one pre-approved offer at a time.

Up next: we shine a spotlight on the Passion Economy and the rise of side hustlers — and how modern finance can finally serve this growing group of entrepreneurs.

In part 4, we explore the rise of side hustlers and the Passion Economy — and what modern finance must do to meet the needs of this new wave of entrepreneurs.