Commercial Funding in an Evolving Lending Market

With ongoing global economic uncertainty, access to the right commercial funding is more important than ever. Interest rate volatility has led many lenders to reassess their offerings, with a noticeable reduction in the availability of highly competitive fixed‑rate products across both residential and commercial mortgages.

Despite these challenges, businesses continue to have a wide range of commercial funding options available, including the Growth Guarantee Scheme.

At TC Group, we’re working closely with clients to find a route through the changing funding landscape, identify the most appropriate solutions, and secure finance aligned to their commercial objectives, whether that means proceeding now or planning strategically for the future.

Understanding Today’s Commercial Funding Options

While some borrowers have chosen to pause borrowing decisions until commercial interest rates to return to ‘normality’, lending activity remains strong across several key areas:

• High Street Banks are increasingly supporting UK businesses through the Growth Guarantee Scheme (GGS), providing commercial funding for small businesses who are looking to invest and grow.
• Challenger Banks and specialist lenders now account for nearly 40% of new facilities granted to businesses, often offering greater flexibility and speed of execution.
• Asset finance and blended funding structures are becoming more common, enabling businesses to acquire or replace assets (machinery, vehicles) without large upfront payments
• Bridging finance continues to be used to provide funding for commercial property, including refurbishments and redevelopment projects.

Each of these options comes with different risk profiles, costs, and strategic implications, making professional advice critical.

 

Real Results: How Businesses Are Securing Finance

A recent project demonstrates how funding remains accessible , with the right preparation and guidance.

TC Group helped a client secure a £1.15m commercial finance package, combining a Growth Guarantee Scheme loan with asset finance. To achieve this, our team produced:

• A full business plan
• Comprehensive financial forecasts
• A lender‑ready funding proposal
• Support through the negotiation and approval process

The result was a competitive funding solution tailored to the client’s new venture and long‑term plans.

 

What Is the Growth Guarantee Scheme (GGS)?

The Growth Guarantee Scheme is a UK government‑backed programme designed to help SMEs access finance they might otherwise find difficult to secure. It supports businesses looking to invest, grow, or strengthen cashflow by providing lenders with a 70% government guarantee, making approval more achievable for viable applicants – while the borrower remains fully responsible for repaying the loan.

Businesses can apply for GSS if they:

• Are trading in the UK
• Have a turnover of up to £45 million
• Meet standard lender credit and affordability checks

GGS funding is flexible and can support:

• Cashflow and working capital
• Equipment, machinery or vehicle purchases
• Investment and business growth projects

 

The Importance of Expert Advice

The recent challenges faced by some specialist lenders, including the collapse of London-based MFS in February 2026, have highlighted the hidden risks associated with some of the funders operating in the sub-prime market, reinforcing the importance of careful lender selection and professional due diligence.

 

Supporting SME Business Growth

Whether you’re considering immediate funding, refinancing existing facilities, or planning for future investment, TC Group provides clear, commercial funding advice tailored to your business.

We helps clients:

• Understand the true cost and risk of funding
• Assess lender credibility and funding security
• Choose solutions that support long term sustainability, not just short term access to capital

To explore your funding options or discuss how current market conditions may affect your plans, our Corporate Finance team would be pleased to help.