Resilience over growth: How working capital finance is keeping businesses moving

Resilience is now a Strategy

Last week, the UK Government announced a £4.5bn funding package for the British Business Bank, reaffirming a clear priority: to help small businesses stay financially resilient. Through an expanded Growth Guarantee Scheme and extended Start Up Loans, this plan puts a spotlight on working capital, cash flow, and financial adaptability, not just growth at all costs.

That shift mirrors what we’re hearing from businesses every day. For many small business owners, 2025 isn’t about scaling fast, it’s about strengthening the core. It’s about managing late payments, unlocking trapped cash, and ensuring there’s enough headroom to weather uncertainty. Put simply, resilience is now a strategy, not just a safety net.

According to the British Business Bank’s Small Business Finance Markets report , 51% of businesses seek funding primarily to support working capital. That figure reflects the day-to-day pressures of running a business (payroll, inventory, energy bills), especially in a climate where payment terms are stretching and overheads remain high.

Working capital is what keeps businesses moving

The Government’s extended support for the Growth Guarantee Scheme is timely. By backing lenders to offer more affordable loans, it opens the door for more businesses to access working capital, whether that’s through term loans, asset finance or invoice finance. This isn’t about borrowing for the sake of borrowing, it’s about keeping cash flowing so the business can function at full strength.

Invoice finance is also a growing part of the toolkit. With payment delays still a top concern, many firms are looking for ways to convert invoices into working cash, particularly in sectors like construction, professional services, and wholesale. It’s a smarter alternative to chasing clients, or relying on overdrafts.

Asset finance allows businesses to invest in vehicles, equipment or infrastructure without draining their cash reserves. In times of uncertainty, spreading the cost of a £30k van over 24–36 months improves cash reserves, smoothes cashflow and therefore improves resilience to temporary shocks enabling operational efficiency.

These are not defensive tactics. They are informed, strategic decisions that allow business owners to navigate the now while planning for what's next.

A new lending landscape

This focus on resilience is also reshaping the funding landscape itself. Challenger banks and non-bank lenders now account for over 60% of new SME* lending, a figure that’s grown steadily as traditional banks pull back. More business owners are exploring alternative lenders who offer speed, flexibility and a greater appetite to lend.

As the Government’s £4.5bn package kicks in, those lenders will play a key role in delivering that capital to the real economy. Through schemes like ENABLE and the Growth Guarantee Scheme, many will have stronger backing to serve small businesses who might not qualify through high street bank routes.

For businesses, this means more choice, but also the need to be proactive. Whether it’s invoice finance, a credit facility or asset-backed lending, the tools are available to build financial resilience before it’s needed.

Turning resilience into advantage

This year, resilience isn’t a buzzword. It’s a competitive advantage. The businesses that will thrive in 2025 are those that can adapt quickly, protect their cash flow, and stay financially flexible.

With more government support in the pipeline and a growing ecosystem of alternative lenders, SMEs now have more opportunity than ever to build that resilience through smart financing. At Capitalise, we help businesses and their advisers explore these options, comparing lenders, products and terms, to find funding that fits the business, not the other way around.

If you’re planning for the months ahead, don’t just think about where you want to grow. Think about how you’ll stay strong enough to get there. Because working capital is what keeps your business moving, even when the world doesn’t.

SME*: Small- and Medium-sized Enterprises