Stef’s market update – September 2026 – there’s plenty of money to lend and plenty of businesses looking for it

I’m not quite sure where the idea that August is a quiet month came from. It certainly wasn’t the case at Evolve this year. August was our busiest month since we started trading and, as I write this, we’re working on around 30 deals. It’s been manic but in a good way.

What we’re seeing on the ground also seems to be backed up by the latest figures. UK Finance says gross lending to SMEs reached £5.35bn in the second quarter of 2026, the highest level since the pandemic. Lending has now been growing for two and a half years though there was some caution towards the end of the quarter as events overseas hit confidence.

From where I’m sitting there is definitely money available. We have a lot of lenders keen to do business and the Bank of England’s September report backs that up. It found that the supply of credit is still ahead of demand and competition for viable borrowers has increased. High street banks are competing hard on price, with other funders often winning business through quicker decisions, service and a greater appetite for risk.

That competition can be very useful for businesses. A good deal may attract interest from several lenders, which gives us scope to look at the rate alongside the terms, service and amount of funding on offer. Deals that are harder to place need more work. That’s where knowing which lenders to approach and how to put the deal to them really counts.

We’re seeing a lot of activity around invoice finance and asset based lending too. The Bank of England reports growth in asset finance and invoice discounting and says acquisition funding is readily available. That fits with much of what’s coming across our desks from invoice discounting and factoring through to full ABL, acquisition funding, refinancing and deals using debtors, stock, plant or property to raise funds.

There is still a cost attached to borrowing, of course. Bank rate was held at 3.75% in September and inflation rose to 3.1% in August with the BoE warning that higher energy prices could push it up further. The effective rate on new SME bank loans was 6.61% in July, up from 6.36% in June.

That makes the way a deal is put together just as important as finding a lender willing to fund it. Businesses need to know what the facility will cost, what it gives them in return and whether it suits what they plan to do over the coming months and years.

September has picked up exactly where August left off for us. The 30 live deals that we’re currently working on cover a wide mix of businesses and funding needs. There’s no sign from our end that lenders have run out of money or appetite. There are some very good options out there and a lot of competition for the right deals.

If you’re looking at funding for your business, give us a call and we can see what’s available.