Funding Insights 2026

Funding Insights 2026 concept image showing a target with 2026 in the centre, symbolising business funding goals and lender priorities for 2026.

Funding Insights 2026: understanding lender priorities and funding opportunities for the year ahead.

 

How ambitious businesses can secure the right funding—without the stress

Read time: 5 minutes  

In a funding landscape that’s steady but selective, ambitious businesses are having to work harder to secure the right facilities at the right time. 2026 isn’t a tougher year — but it is a more deliberate one, where clarity, preparation and choosing the correct route matter just as much as the numbers themselves. This short guide brings together the latest data, lender sentiment, and real‑world examples to help you navigate the market with confidence — and avoid the noise, delays or dead ends that often derail good plans.  

Who this is for 

Owners and leaders planning acquisitions, working‑capital improvements, operational expansion, or blended funding solutions—and who want certainty without endless phone calls or form‑filling. 

The 30‑second summary 

*Note on currency: Where global market sizes are shown in £, figures are approximate (≈) and converted from USD at an indicative GBP/USD ~0.79 for UK readability. The underlying source remains in USD.

 If this sounds familiar, you’re not alone 

You shouldn’t have to choose between speed and structure. You can have both. 

What’s changed (and why it matters to you)

1) Lenders want strong assets or affordability—ideally both 
Why this matters in 2026 

Lenders continue to favour strong assets or clear affordability. If your business holds receivables, stock, equipment or property, you can often access larger or cheaper facilities than unsecured options. However, if assets are light but trading is stable, lenders will still consider term loans when affordability is clear. The global ABL trend shows steady appetite, which reinforces that structured options remain available where they fit. 

 What it means for you 

And if neither assets nor trading are currently where you’d like them to be, options don’t disappear. Lenders will still engage where there’s a clear path to improvement and a believable direction of travel.

2) Time kills deals — certainty keeps them alive 
Why timing matters 

UK smaller‑business lending totalled ~£62bn in 2024. In Q1 2025, gross SME lending reached ~£4.6bn (+14% YoY). Growth then eased to around 6.4% in Q3 as approvals began to flatten. This pattern matters because it reflects a market where lenders remain active, but more selective — meaning delays, missing information or unclear narratives can be the difference between momentum and slowdown. 

In other words, the longer a case sits, the more scrutiny it tends to attract. Clean, timely, well‑positioned applications move quickly; anything ambiguous drifts and risks a “not now” response. 

What it means for you 
3) 2026 lens: what lenders say right now (Bank of England) 
What lenders are signalling 

Recent survey data shows overall corporate credit availability holding steady into early 2026, with a slight uptick for smaller firms and modest improvements for medium and larger businesses. In practice, this points to an active but selective market: capital is available, yet lenders expect a clear rationale, clean numbers and a sensible structure before they move at pace. 

What it means for you 

This all gives you a sense of how lenders think and what drives a fast “yes.” But turning that into a well‑structured, well‑routed funding case isn’t something most business owners can (or should) do alone. 

4) Relationships de‑risk complexity (and price) – and this is where the right broker makes the difference  
Why your route matters 

Lenders increasingly rely on well‑prepared, well‑routed cases. A good broker widens the panel, positions the narrative for the right credit lens, and presents comparable options—often improving both speed and all‑in cost. Conversely, a strong business taken to the wrong audience (or packaged in the wrong format) can drift into a slow “maybe,” which is usually just a delayed no. 

What this means in practice 

3 proven funding plays for 2026

1) Build from your strengths — assets, performance or plan

Unlock funding by showing what your business already has or where it’s credibly heading. That may be through existing assets, solid trading performance, or a clear plan that demonstrates how you’ll reach a viable position. For some businesses, ABL is the fastest way to free up working capital; for others, a straightforward business loan (secured or unsecured) is the cleanest route when lenders are comfortable on serviceability. And even when current performance isn’t the full story, setting out a sensible route toward stronger trading or improved stability can still open the door to funding. Lenders look for progress as much as position.

2) Blend for speed & control

Pair ABL + term debt + property + working capital (where relevant). Blending helps act quickly now and optimise structure later—useful in a market that’s steady but selective. 

3) Use the right route to market

Whether the answer is unsecured, secured, ABL, term debt, or a hybrid, the route matters. The goal is to present the case where it will land best—fit, speed, and flexibility over product preference. 

60‑second self‑check (keep it simple) 

If you answered “yes” to three or more, a structured, broker‑led option‑set is likely worth exploring. 

With the broader trends in mind, it can be helpful to see how these principles play out in real businesses. The following anonymised snapshots highlight how different structures — from asset‑backed refinancing to clean unsecured loans — are being used right now to solve challenges, protect momentum and unlock growth in 2026. 

Two mini case studies 

Manufacturing (Asset refinance to support turnaround) 

A long‑established manufacturing business needed working‑capital breathing room during a market downturn. They also had a capital event scheduled for early 2026 but couldn’t demonstrate the required debt‑service cover through their usual lender. The facility needed to be in place within three weeks. 

What worked:

A £700k asset‑refinance facility was arranged against existing kit and delivered within the deadline. Because the underlying assets were strong, the personal‑guarantee requirement was minimal. The facility was structured over 60 months at a fixed rate, giving the business essential liquidity to bridge to its 2026 capital event and continue its turnaround plan. 

Specialist services: Removal of hazardous materials (Unsecured facility for premises refurbishment) 

A growing specialist services firm needed funds to refurbish a leased site as part of its expansion. Because the project itself wasn’t income‑generating, the directors preferred to keep borrowing unsecured. 

What worked:

A £200k unsecured loan over 60 months at a fixed rate of 8% funded the refurbishment without tying up assets or requiring director guarantees. This allowed the business to progress with its premises upgrade while keeping its asset base free for future growth. 

Bringing it all together 

The takeaway for 2026 is simple: lenders are active, capital is available, and well‑prepared businesses are still securing strong structures — but the route, timing and clarity of your case matter more than ever. Whether you’re planning an acquisition, managing a tight working‑capital window, or preparing for a strategic event, the right combination of structure and route‑to‑lender can remove friction and provide certainty when it matters. If you want to understand your options with minimal effort, we can outline viable routes and expected ranges quickly — so you can move forward with confidence and focus on running the business, not chasing finance. 

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