Running a small business in the UK isn’t easy – especially when growth requires cash before the results come in. Whether you’re expanding your team, upgrading equipment, or smoothing out cash flow, the right business loan can help you move forward confidently.
At Funding Pool, we help UK business owners access flexible finance through a range of products – including unsecured and secured loans, asset finance, invoice finance, VAT & tax loans, and more. Here are five smart ways to use a business loan to fuel growth in 2026.
1. Invest in new equipment or vehicles
Outdated machinery, software, or transport can slow your business down. With asset finance, you can spread the cost of new equipment or vehicles over time – keeping your cash flow healthy while boosting productivity.
Whether you run a construction firm, restaurant, or logistics business, upgrading your assets can open the door to more work and faster delivery times. Instead of paying upfront, asset finance allows you to pay in manageable monthly instalments while your new tools generate revenue.
Did you know? Asset finance can also cover used equipment, helping you make cost-effective upgrades.
2. Boost working capital and manage cash flow
Every business faces ups and downs in cash flow – especially during seasonal dips or late customer payments. An unsecured business loan can give you the short-term breathing space you need to cover bills, wages, or stock costs without taking on long-term debt.
For businesses waiting on invoices, invoice finance can be a game-changer. It unlocks cash tied up in unpaid invoices so you can keep moving forward instead of waiting 30, 60, or even 90 days for payments.
Steady cash flow means you can focus on growth, not firefighting.
3. Expand your premises or take on new contracts
Growth often means outgrowing your current space – or taking on projects that require upfront investment. A secured business loan can help fund bigger moves like buying property, expanding facilities, or investing in large-scale equipment.
Secured loans typically offer larger amounts and lower rates, making them ideal for long-term growth. They’re especially useful for established businesses with assets to back the loan, such as property or vehicles.
If you’ve got an opportunity lined up for 2026, don’t let cash flow hold you back.
4. Hire and train your team
Your people are your biggest growth driver – but recruiting, onboarding, and training come at a cost. With a short-term unsecured loan, you can bring in the right talent when you need it most, without draining your reserves.
Investing in staff development also pays off long-term: better skills, higher morale, and stronger customer service. A small injection of funding now can translate into bigger returns down the line.
A well-funded team is an empowered team – ready to take your business to the next level.
5. Prepare for tax, VAT, or unexpected costs
Many small businesses face financial strain around HMRC payment deadlines. A VAT or tax loan can help you spread the cost of these obligations over several months, protecting your working capital and avoiding late payment penalties.
You can also use this type of funding to handle unexpected costs – repairs, stock shortages, or new supplier terms – without disrupting day-to-day operations.
Planning ahead with VAT or tax funding can prevent a cash flow crunch later.
The smarter way to fund your growth
Whatever your plans for 2026, Funding Pool can help you find the right type of finance. Our panel of UK lenders offers a wide range of options, from quick unsecured loans to flexible asset finance and invoice finance solutions – all designed to help your business grow sustainably.
Apply online today or speak with our team to explore your options.