Stef’s market update – January 2026 – a flying start to the year

January has been nothing short of hectic at Evolve – and that’s a good sign. The market feels buoyant with plenty of lenders reporting strong activity. As a team we’ve already completed multiple deals this month across invoice discounting, asset finance and term loans, totalling £3.1m. We’ve got five more in the pipeline to close before the month ends, so it’s set to be a busy finish to the first month of 2026. Long may it continue!

On the wider outlook, UK inflation has risen to 3.4% for the first time in five months. I do expect that to settle back down towards the Bank of England’s 2% forecast by mid-year. This latest rise looks to be driven by food prices, higher flight costs (a familiar December pattern) and increased tobacco prices.

There was also some positive news on public finances, with UK government borrowing coming in lower than expected in December. The UK borrowed £11.6bn, helped by rising tax revenues: a welcome boost for the chancellor.

That said, I still expect a level of uncertainty through 2026. We’re seeing a steady flow of refinances and pre-pack transactions across the market. Lenders remain supportive, but credit has tightened across our panel so it’s more important than ever to put deals in the right place and get the structure right from the start.

If you need funding, a review of an existing facility or just want a second view before you commit, don’t hesitate to reach out.