Stef’s market update – September 2025 – even profitable businesses are feeling the strain

The market remains active, with plenty of deal flow and appetite from lenders but many businesses are starting to feel the strain of rising costs.

The Bank of England’s interest rate rises have pushed up borrowing costs for everyone. Many banks have adjusted their own rates in response to market pressure, passing higher costs straight through to customers. Add in higher cost of living, increased mortgage and loan repayments and greater debt-servicing costs, it’s no surprise that working capital is under pressure.

Capital is more expensive, facilities are being repriced and for some, the monthly numbers are becoming harder to balance. Even profitable businesses are seeing tighter margins and more strain on cash flow.

Now more than ever, it helps to have an expert broker on your side.  One who understands the market, has strong relationships with lenders and can find the right solution without adding to your costs. At Evolve, our support is fee-free and our focus is on securing facilities that make sense for the long term, not just the short term.

If you’re feeling the pinch, whether that’s struggling with cash flow, keeping up with creditor payments or falling behind with HMRC, it’s worth having a conversation with us. A consolidation, refinance or cash injection could ease the pressure and give your business the breathing room it needs.

We’re always here to talk.