The Financial Conduct Authority has outlined practical measures intended to make it easier for small and medium-sized businesses to access finance.

Its latest review found no evidence that FCA regulation is itself a major obstacle to SME funding. However, it identified several wider problems that can make finding and applying for suitable business finance more difficult than necessary.

These include limited awareness of available finance options, complicated application processes, repeated checks and difficulty finding products suited to businesses with limited physical collateral or predominantly intangible assets.

## Why access to finance remains challenging

Smaller businesses often need external finance to invest in equipment, manage cash flow, recruit employees or pursue new opportunities.

Yet the funding market can be difficult to navigate. Different lenders may request different information, offer different products and apply their own eligibility requirements.

The FCA found that these challenges can be particularly significant for microbusinesses. It also noted that smaller firms are less likely to use external finance, potentially limiting their ability to invest and grow.

The review concentrated mainly on regulated business lending of £25,000 or less to sole traders and small partnerships. Much lending to limited companies, facilities above £25,000 and parts of the alternative finance market sit outside this particular regulatory perimeter.

## What is the FCA proposing?

The FCA has identified three areas where it believes practical improvements could reduce unnecessary friction.

### A more proportionate regulatory system

The Treasury is reforming the Consumer Credit Act with the aim of creating a more modern, outcomes-based framework while retaining important protections.

Following that legislative reform, the FCA is expected to consult on the future regulatory framework. This could help address concerns surrounding the complexity and cost of some regulated SME lending.

### Greater use of open finance

Open finance could allow businesses to share relevant financial information securely with finance providers.

In time, this may help lenders assess applications using richer and more accurate business data. It could also reduce the need for businesses to collect and submit the same information repeatedly.

The FCA has identified SME lending as one of its priority use cases when developing proposals for the UK’s first open-finance scheme.

### Reducing duplicated checks

The FCA is also monitoring industry work exploring whether digital verification could reduce repetition during customer checks.

A more streamlined verification process could make applications quicker and less frustrating while maintaining the financial-crime controls required of finance providers.

## What could this mean for UK businesses?

These measures will not remove lender eligibility requirements or guarantee that an application will be accepted.

Every lender will continue to assess applications according to its own criteria, including affordability, business performance, credit history and the intended use of the funding.

However, clearer information, improved data sharing and less duplication could make it easier for businesses to understand their options and prepare stronger applications.

The proposals could also help finance providers assess businesses whose value is based on intellectual property, technology, contracts or other intangible assets rather than traditional physical collateral.

## Preparing for a business-finance application

While the proposed changes develop, businesses can improve their readiness by keeping their financial information accurate and current.

This may include:

– Recent business bank statements
– Filed accounts or management accounts
– Cash-flow forecasts
– Details of existing financial commitments
– A clear explanation of the funding requirement
– Evidence showing how the finance will support the business

The exact information required will depend on the finance product, lender and individual circumstances.

## Finding a suitable finance option

The business-finance market includes term loans, asset finance, invoice finance, revolving credit facilities and other specialist products.

The most suitable option will depend on factors including the amount required, the intended use of the funds, the financial position of the business and its preferred repayment structure.

MoneyWow helps UK businesses explore finance through a panel of finance providers. We act as a broker and introducer, not a lender, and all applications remain subject to lender assessment, eligibility and approval.

The FCA’s work represents a positive move towards a simpler and more accessible SME-finance market. For business owners, understanding the available options and preparing the right information will remain an important part of securing suitable funding.

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*MoneyWow is a finance broker and introducer, not a lender. Finance is subject to application, status, lender criteria and approval. Terms and conditions apply.*

**Source:** Financial Conduct Authority, “FCA sets out steps to support small businesses’ access to finance”, published 17 September 2026.