The UK lending landscape is shifting; and for many small businesses and borrowers, the timing couldn’t be more critical.
Recent developments involving Barclays highlight a growing challenge: access to funding for smaller borrowers is tightening just as demand for flexible, fast capital continues to rise.
A Changing Lending Environment
Following significant losses linked to private credit exposures, including the collapse of lenders such as Market Financial Solutions, Barclays has begun to pull back from parts of the small business lending market.
The bank is reportedly:
- Withdrawing from certain lending deals
- Increasing pricing to reflect higher perceived risk
- Refocusing efforts toward larger, more established corporate clients
This shift is understandable from a risk management perspective. However, it creates a widening gap in the market; one that disproportionately affects small businesses, specialist borrowers, and underserved sectors.
The Funding Gap for Small Borrowers
When traditional lenders retrench, smaller borrowers often feel the impact first.
We’ve seen this before. Regulatory changes and market exits have already reduced access to non-prime and specialist finance in the UK, leaving millions of borrowers with fewer options.
Now, as major banks tighten criteria and scale back exposure, the same pattern risks repeating:
- Viable borrowers being declined despite strong fundamentals
- Growth opportunities delayed or lost
- Increased reliance on slower, less flexible funding routes
For businesses that need to move quickly, whether to expand, acquire, or stabilise cash flow, this creates a real challenge.
Why Private Credit Has a Role to Play
While headlines may focus on risk within private credit, the reality is more nuanced.
Private credit, when deployed responsibly, offers:
- Speed – decisions made in days, not months
- Flexibility – structuring around real-world borrower needs
- Access – funding for cases that fall outside rigid bank criteria
In fact, private credit has grown precisely because it fills the gaps left by traditional institutions.
The recent market turbulence is not a signal that funding should disappear, it’s a signal that quality, disciplined capital allocation matters more than ever.
Our Commitment: £50m to Support UK SMEs
That’s why we’re committing £50 million dedicated to supporting UK SMEs directly. Ensuring more businesses can access the funding they need to grow, adapt, and succeed.
At a time when traditional lenders are tightening their criteria, we’re stepping in to help bridge the gap, providing capital that ultimately reaches SMEs who may otherwise struggle to secure funding.
Through this commitment, we aim to:
- Increase access to funding for underserved SMEs across the UK
- Support businesses with real potential that fall outside rigid bank criteria
- Enable faster, more flexible lending solutions when timing matters most
Put simply, we’re here to help SMEs keep moving forward, by making sure funding remains available when you need it most.
Supporting the Borrowers Banks Can’t
As larger institutions move up-market, there is a clear and growing need for alternative capital providers who understand complexity, not avoid it.
This isn’t about replacing banks. It’s about complementing the ecosystem.
Because behind every loan is a real story:
- A childcare provider expanding services
- A hotel upgrading their premises
- A manufacturer investing in new equipment
These are exactly the borrowers who risk being left behind, and exactly the ones we’re here to support.
Looking Ahead
The lending market is evolving, but one thing remains constant:
small borrowers still need access to capital to thrive.
At a time when traditional options are narrowing, we see opportunity, not just for growth, but for impact.
And with £50m committed, we’re ready to play our part.
If you’re a borrower navigating a more complex lending landscape, now is the time to explore new options. Get in touch with our friendly team today!
