What does 2026 look like for business borrowers and bank appetite?
Matt Wheeler · Posted on: January 20th 2026 · read
As we move into 2026, the lending environment for UK businesses is shaping up to be more positive than it has been for several years.
With Base Rate trending lower and inflation more contained, the focus will hopefully shift away from crisis management and back towards growth, investment, and strategic borrowing.
For business borrowers, 2026 is likely to offer:
- Improved access to capital, particularly for well-run businesses with strong cash flow and clear growth strategies.
- More competitive pricing, as lenders compete to deploy capital rather than preserve it.
- Greater choice, with challenger banks, specialist lenders, and high-street institutions all targeting similar opportunities.
- Stronger negotiating power, especially for refinancing, acquisitions, or expansion funding.
Importantly, borrowers are no longer simply rate-takers. With multiple lenders chasing quality deals, businesses that prepare early, present robust financials, and articulate a clear story will be best placed to secure favourable terms.
From a bank appetite perspective, 2026 will hopefully be defined by:
Strong capital positions and pressure to lend, not retrench.
A renewed focus on relationship-led lending rather than defensive credit tightening.
Continued appetite for sectors with visibility and resilience, including professional services, healthcare, logistics, renewable energy, and asset-backed opportunities.
A willingness to compete on margin, structure, and speed, not just headline rates.
That said, appetite from certain lenders will remain selective. Some lenders will favour businesses with predictable cash flows, experienced management teams, and realistic leverage levels. Businesses that struggled during the higher-rate environment may still face scrutiny, but even here, the refinancing landscape may become more flexible.
Key takeaway for 2026
2026 should be shaping up to be a more borrower-friendly market. With banks keen to lend and competition increasing, businesses that understand the market, and know how to position themselves, will be best placed to take advantage of improving conditions.
How MHA Banking & Finance can help
In a market where lender appetite is increasing and competition is driving improved terms, having the right advice has never been more important. MHA Banking & Finance has the knowledge, expertise, and deep lender relationships to help businesses navigate an evolving funding landscape. By understanding both borrower objectives and bank appetite, we support clients in structuring, negotiating, and securing the most appropriate funding solutions as they plan for 2026 and beyond.
For more information
Contact the teamView latest insights
From Paper to App: The Rise of eCarnets
Andrew Thurston
Customs Duty & Indirect Tax Consultant
Mandatory payrolling of benefits: what charities need to know ahead of April 2027
Stuart McKay
Partner
Charity leaders’ 2026 to do list: navigating costs, staffing and emerging priorities
Stuart McKay
Partner
