Budget 2026: what it means for you and your business —
In short
Funders back credible numbers and credible management — in that order, and they test both. We help you understand the realistic options (bank debt, asset-based lending, invoice finance, growth equity), prepare the forecasts and information a funder actually expects, approach the right lenders or investors, and negotiate the terms. Being turned down is usually a preparation failure, not a business failure.
The right answer depends on what the money is for, and matching them wrongly is expensive.
Working capital gaps → overdraft, invoice finance, or a revolving facility. Not a term loan. Buying an asset → asset finance or hire purchase, secured on the asset itself. Funding growth in stock or debtors → asset-based lending or invoice finance. An acquisition → term debt, usually combined with deferred consideration. Genuine long-term growth investment where returns are uncertain → equity, not debt.
Using a term loan to plug a recurring working-capital hole is one of the most common and most damaging mistakes in SME finance.
An integrated three-way forecast — profit, cash and balance sheet, linked, with clearly stated assumptions. Historic accounts that are clean, timely and consistent with the story you’re telling. Management accounts that are current. A business that cannot produce them is much harder to lend to. A credible explanation of what the money is for and how it gets repaid — from cash flow, not from hope. Security, and often personal guarantees. Understand what you are signing.
The assumptions are what they test. They are not assessing your spreadsheet; they are assessing whether you understand your own business.
Debt is cheaper and you keep ownership — but it must be serviced whether the business performs or not, and it usually comes with covenants and personal guarantees.
Equity requires no repayment and shares the risk — but it is the most expensive money you will ever raise, because you are selling a share of every future pound the business earns. Owners consistently underestimate this.
The honest test: if the business can service debt in a bad year, debt is almost always the right answer. Equity is for when the outcome is genuinely uncertain and the upside is large.
Covenants — conditions you must meet, typically on interest cover, leverage or net worth, tested quarterly. Breaching one can make the whole facility repayable on demand, even if you have never missed a payment. Negotiate headroom, and forecast against them.
Personal guarantees — you are personally liable if the company cannot pay. Most SME lenders want one. Understand precisely what is covered, whether it is capped, and what would release it.
We prepare what funders actually want — and help you defend the assumptions in the room.
The right facility for the right purpose — not a term loan plugging a working capital hole.
We approach more than one funder — competition improves terms.
Covenants stress-tested before you sign, not after you breach one.
Independent — we take no commission from lenders.
This page provides general information about the 2026/27 UK tax year and is not advice on your particular circumstances. Tax and regulatory rules change frequently. Please contact us before acting, or refraining from acting, on anything set out here. LMJ Group is a firm of Chartered Accountants regulated by the ICAEW. LMJ Group is not a registered auditor and does not provide audit services. Last reviewed: July 2026.
