That could mean acquiring a property, purchasing assets, refinancing shorter-term borrowing or making an acquisition that supports the next stage of growth and that is where the structure of finance becomes increasingly important.
Giving businesses greater stability
When the wider economic environment is unpredictable, having greater visibility over one of your largest costs can make a material difference to business planning.
That thinking was behind the August launch of a fiveyear fixed commercial mortgage option alongside our existing two-year fixed product. It was introduced following feedback from brokers and SME customers looking for greater stability around longer-term borrowing costs and cashflow management.
A five-year fixed rate will not be the answer for every borrower, and good lending is never about forcing every business into the same solution, but for an SME that wants predictable repayments while it concentrates on running and growing the business, longer-term fixed funding can provide valuable breathing room.
It can also give businesses the confidence to think beyond the immediate economic cycle. For the right borrower, that might involve replacing short-term debt with funding that better matches the life of an asset, acquiring commercial property or other assets, or putting finance in place so the business is able to move when an opportunity presents itself.
Lenders need to show resilience too
The UK Finance figures are encouraging, but there’ s another important statistic worth keeping in mind. Despite gross SME lending reaching a post-pandemic high, lending from the main banks remains below pre- Covid levels and, in real terms, lending during the first half of 2026 was still around a third below the 2019 average.
Therefore, there is clearly more work for the lending industry to do. SME resilience needs to be matched by lenders that are prepared to understand what businesses are trying to achieve, rather than simply responding to the economic headlines.
That means offering different funding structures decisively, looking at the individual circumstances behind an application and working closely with brokers to understand both the opportunity and the risks.
The economic and geopolitical environment will continue to change and there will inevitably be periods when confidence rises and falls, and when some sectors perform more strongly than others. However, what the latest lending figures demonstrate is that UK businesses continue to look for ways forward.
For me, that’ s where lenders have an important role to play. We need to understand what a business is actually trying to achieve, work closely with the broker and structure finance around the real-world needs of the customer, rather than expecting the customer to fit the product.
What matters is having the ability to act when the right opportunity comes along. Good businesses are constantly assessing risk, opportunity and how their funding needs may change as they grow.
Recognise your potential
Click here to learn more about Recognise Bank, and how they can help you.
Recognise Bank Limited is a company registered in England and Wales, registration number 10603119 with its registered office at 4th Floor, 5-11 Worship Street, London, England, EC2A 2BH. Recognise Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 849404.
ISSUE 10 | 7