Business customers of Santander UK received a clear signal from the bank on Monday, as new research indicates a significant rush for external funding is on the horizon for 2026.
Overwhelming Optimism Drives Funding Demand
The bank's study found that a striking 80 per cent of businesses plan to try and acquire external funding this year. This drive for capital is fuelled by widespread confidence, with 88 per cent of business leaders expecting their company's revenue to grow over the next 12 months.
Furthermore, the scale of ambition is substantial. Nearly half of those seeking finance anticipate raising sums exceeding £1 million. This bullish sentiment extends to the wider economic picture, with over half of respondents predicting an improvement in the UK economy.
Control Remains a Paramount Concern for Founders
The research highlighted a critical condition attached to this funding surge: a fierce desire to retain ownership. A massive 92 per cent of founders stated that maintaining equity control was important, including 75 per cent who deemed it very important.
Guy Phillips, Head of Growth Capital, Structured & Specialist Finance at Santander UK, commented on the findings. “Business leaders are increasingly optimistic about growth this year, with many planning significant investment and expecting strong revenue growth,” he said.
“From the research it is clear, founders want funding that supports their ability to grow without sacrificing control, alongside trusted partners who truly understand the complexities of a business scaling up.”
Santander's Commitment and Industry Voices
Santander Corporate and Commercial Banking has a established track record in this area, having provided over £1.62 billion in lending to more than 240 high-growth companies since 2012. The bank aims to support more firms this year as they execute their expansion plans.
Phillips added: “We are committed to working alongside owners to help bring those plans to life. By providing guidance on growth and expansion, we can help businesses develop a stronger understanding of the different funding trade-offs and risks.”
The survey also captured candid feedback from business founders. One noted the temptation to look abroad, stating: “A lot of founders end up moving to America because it’s easier to raise there and start part of the company there. It’s just quicker.”
Another founder emphasised a cautious, bootstrapping approach, telling the bank: “You bootstrap until you're to a reasonable stage… because you don't want to give away your company to outside people.” This sentiment underscores the delicate balance UK businesses are trying to strike between securing vital growth capital and preserving their hard-earned equity.
