If you have been putting off borrowing to invest in your business, now might be the time to have another look. The latest figures from UK Finance paint a much more positive picture for UK businesses. In the first three months of 2026, SMEs borrowed £5.3 billion - up 16% on the same period last year and the highest level of lending since the pandemic. Even more encouraging is who is getting the funding. The findings also showed lending to the smallest businesses has surged, and new loan approvals have risen sharply. Put simply, more businesses are applying for finance, and more are being approved. It’s not just one industry benefiting either. Lending has increased across sectors including property, agriculture and leisure, suggesting lenders are becoming more confident about backing UK businesses. Borrowing isn’t right for every business, but the latest figures suggest lenders are more willing to support businesses with clear plans for growth.
It’s no secret that lenders became more cautious over the last few years. Higher interest rates and economic uncertainty meant they were more selective about who they lent to – but now, things seem to be changing. Interest rates have become more stable, and lenders are keen to grow their loan books. Banks, challenger banks and specialist lenders are all competing for good businesses, giving business owners more choice than they’ve had for some time. This doesn’t mean every application will be approved- but if your business is financially healthy and you have a clear reason for borrowing, you could have more options than you think.
If you have been delaying investment, now could be a good time to revisit your plans. The right finance solution can help your business grow without putting pressure on your cash flow. Whether you are buying new equipment, replacing vehicles, taking on a larger contract, purchasing commercial property or simply refinancing existing borrowing, finance can help you spread the cost and keep cash available for the day-to-day running of your business. With more lenders competing for business, there is also a wider range of funding options available than many business owners realise. That means you’re more likely to find a solution that’s tailored to your business. The right type of finance can help your business grow while keeping cash available for day-to-day running costs.
One of the biggest mistakes business owners make is waiting until funding becomes urgent. Applying for finance when your business is performing well usually gives you more choice, better terms and a smoother application process. No one knows how long current lending conditions will last, but right now lenders are actively looking to support businesses with strong plans for growth.
Businesses have more funding options than ever before. Alongside the high street banks, there are now hundreds of specialist lenders, each with their own approach to assessing applications. The challenge is understanding which lenders are the best fit for your business. Each has its own lending criteria, industries it prefers to work with and types of finance it specialises in. so, if you haven’t explored your funding options for a while, you may find the market looks very different to the last time you applied. If you’re not sure where to start, or you would like to understand what’s available before making any decisions, we are here to help. We work with a wide panel of lenders and can help you explore the options that best suit your business and your plans for growth.
Phoenix Commercial Finance was founded in 2021, when access to finance was at its toughest. We saw good businesses being turned away - not because they lacked potential, but because lenders had become increasingly cautious. Today, we are pleased to see the picture is very different. Lending is at its strongest since the pandemic, giving many SMEs opportunities that simply weren’t available a few years ago.
We work across the whole market – be that traditional banks, challenger lenders, specialist providers and asset finance houses, all to find UK business owners the right finance and on the right terms. If you would like a no-obligation conversation about what's available to you right now, chat with us on WhatsApp or fill in our no-obligation quick enquiry form and a member of the team will be in touch with you shortly.
