According to the British Business Bank SME Intermediary Survey 2024, 69% of UK SMEs say they lack awareness of the finance options available. The same survey found that 72% will defer growth plans if they cannot access finance via traditional routes.

The good news? In 2026, founders have more choice than ever when it comes to funding their business, and can raise smart, scalable capital without putting someone else in the driving seat. The key is understanding the full landscape, preparing properly, and being deliberate about where you’re prepared to compromise and where you’re not.

1. Know what type of funding fits your strategy

Many founders default to bank loans or, conversely, feel pressured toward equity because ‘that’s what startups do’. In reality, the right option depends on a number of factors including how fast you need the money, whether the funding fuels long-term growth or short-term working capital, your risk appetite, and your willingness to dilute – in other words, issue new shares in your business to an external investor.

Non-dilutive finance options are far more diverse than most business owners realise and include:

• Bank finance: this can include unsecured or secured loans, revolving credit, commercial mortgages or buy-to-let loans if property sits within your model. Banks remain cautious but competitive. If you’ve got a solid story, clean financials and a clear return on investment, bank debt remains one of the cheapest ways to preserve control
• Short-term cash flow tools: business credit cards, overdrafts, and invoice finance help unlock liquidity tied up in payment terms – especially important if you supply enterprise clients or have lumpy revenue cycles
• Asset finance: if you need equipment, vehicles, or machinery, spreading payments protects working capital and lets the asset generate income while you pay for it
• Alternative lenders: crowdfunding, peer-to-peer lending, and sector-specific lenders have matured significantly. Crowdfunding can double as a marketing play, while peer-to-peer often provides faster decisions than banks, with similar costs

2. Equity isn’t the enemy – but it must be on your terms

Angel investors, venture capital firms, and private equity all bring capital, but the trade-off is equity and influence. If you do bring in investors, there are ways to protect your position including minimising dilution in early rounds, avoiding preference structures you don’t fully understand, retaining control over board appointments and setting clear expectations around growth and exit timelines.

3. Prepare like an investor – not like a founder

Whether you raise debt or equity, you’ll be assessed using variants of the CAMPARI method:

• Character – your track record and reputation
• Ability – your capability as a leadership team
• Means – the strength of your financials
• Purpose – why you need the funds
• Amount – why that number
• Repayment – how you’ll service debt or deliver investor returns
• Insurance – your fallback if things go wrong

Most funding refusals come down to poor preparation, not poor businesses. That’s why founders who succeed treat fundraising like a strategic project. They build robust financial models, tighten reporting, stress-test scenarios, create a compelling narrative and clearly articulate how capital will turn into value.

4. Don’t go it alone

One of the biggest barriers to raising non-dilutive funding is that most founders simply don’t know where to look. Research shows that business owners still rely heavily on Google, outdated blogs, or one conversation with a bank manager to make funding decisions.

Yet the funding market has exploded. Alternative lenders doubled year-on-year for several years and continue to expand. And investors are increasingly looking for founder-friendly models.

The challenge is often bandwidth. Building a funding strategy, navigating lenders, preparing documentation and negotiating terms requires experience and time – both of which are often in short supply in scaleups.

This is where a part-time CFO can change the game. At The CFO Centre, our fractional CFOs help founders secure the right capital, on the right terms, without sacrificing control. They prepare your numbers, challenge your assumptions and open doors to trusted funding partners. It really can make all the difference having someone by your side who understands the process and has the experience and expertise to help you navigate your way through.

5. Control isn’t just about equity – it’s about clarity

Founders rarely lose control because they took funding. They lose control because they took the wrong type of funding with the wrong expectations. With the right preparation, right structure and right support, you can raise the capital you need to grow – without diluting your leadership, your strategic vision, or your ownership.

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