Access to finance remains a pressing challenge for UK start-ups and high-growth small businesses. The UK Government’s recent response to its SME access to finance call for evidence – expertly summarised by Blake Morgan Partner, Natalie Coates – highlights the evolving landscape and points founders toward current opportunities and future trends.

1. Financial confidence starts with clarity

One key takeaway is the need for greater financial literacy among SMEs. Many founders feel overwhelmed by the range of products and lending terminology – a hurdle that can deter applications and slow growth. The new Business Growth Service, launched in 2025, aims to streamline access to support and advice in a more user-friendly way.

2. Rethinking traditional lending

Despite their central role in business financing, traditional loans and credit facilities are still difficult to secure for many start-ups. Personal guarantees remain a significant barrier for younger founders or those with limited credit history – something the Government is now prioritising for clearer communication, especially within schemes like the Growth Guarantee Scheme.

3. Broader financing choices

Entrepreneurs should be aware that alternative finance options – from invoice financing to community lenders – are gaining traction as part of a more diversified funding landscape. This matters for founders seeking flexible solutions beyond standard bank loans.

4. Supporting diverse founders

The Government’s response also recognises persistent barriers for underserved groups. Initiatives such as the Investing in Women Code and Disability Finance Code aim to make finance more inclusive — essential learning for founders and funders committed to equity.

5. Looking ahead

With cross-party discussion in Parliament about new SME finance legislation, the UK finance ecosystem may shift again in the coming years – potentially making it simpler and more transparent for small businesses to raise capital.

👉 Read the full Blake Morgan article here:
https://www.blakemorgan.co.uk/sme-debt-finance-reform-what-the-governments-latest-response-means-for-businesses/