We sat down with James Clinghan, the MD at Trusted Business Partner, an NACFB Registered Financial Brokerage in the North East, who shared what 8 key trends and risks businesses and professional advisors should be aware of in 2026.
1. Rise of short-term, high interest loans: There’s been an explosion in new debt providers offering very fast, high-rate funding to businesses that wouldn’t normally qualify for traditional bank support. Some deals can be done in hours, even minutes, but speed often comes at a cost.
2. Lending being sold under the concept of GGS isn’t always what it seems: The GGS is a brilliant product I, personally, think it is badly misrepresented or there is poor understanding in the market. The 70% guarantee protects the funder, not the borrower, and there can still be personal liabilities. It’s not quite as cut and dry as many think.
3. Keep an eye on the challenger banks: We’re at an exciting time in banking. The Big 4, is now the Big 5. While the big banks are increasing regional investment, challenger and specialist lenders now account for a record 60% of lending. They’re smaller, more agile, and are bringing some genuinely innovative products to market.
4. Understand where your customers are in relation to their banks: This isn’t bank bashing – banking has just changed since I started in the sector in 2005. Sadly, banking is no longer a white-glove service for everyone, and many clients struggle to get support or even contact their bank. Technology will make this more selfserve and AI will support the next generation of customers. Knowing when the wider market can help is increasingly important.
5. Your personal credit can have an effect on your business credit: We see some really fantastic businesses that struggle to get funding purely due to a Director having a blip against their name but a poor credit score personally can, on occasions, effect your business too – many funders use it as a gauge of whether you’re safe to lend to.
6. Credit Scores are becoming more and more important: Business credit scores now play a huge role in funding decisions, rates and trade terms. A strong score builds trust and improves cash flow, while a weak one limits options. Fixing credit early will be crucial in 2026.
7. Prepare for funding earlier: Different funding takes different times to get agreed and over the line. Leaving things until the last minute makes it difficult for everyone and reduces your client’s options. Starting early gives you time to prepare, approach lenders with the right appetite and consider the overall structure. The cheapest option is not always the best. Even if funding is not needed immediately, an early conversation with a professional adviser can help keep your options open.
8. Better to be over capitalised than undercapitalised: The market has seen a rise in PAYG facilities and funders putting in longer term credit facilities for clients – Knowing that you have an extra rainy day fund, or something you can tap into on a quiet month to keep suppliers happy is always great comfort.
Ultimately, none of this is about doom and gloom – it’s about being better informed and having the right conversations earlier. The funding market has never been broader or more accessible, but it’s also more complex than it’s ever been. For business owners and advisors alike, understanding what’s really going on behind the products, the lenders and the numbers will make a huge difference to outcomes in 2026 and beyond.
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