The recent Bank of England interest rate hike to 3% has certainly put a dampener on cheap lending but as startups seek a path through the myriad of economic uncertainty, the additional factor to consider is the high likelihood that if new finance is needed, the business founder or directors will need to sign personal guarantees.

A rise in startups born during the pandemic is hugely positive but also not surprising. We’ve had more time to think and do and explore new avenues, particularly where existing business models or employment have ceased to exist. Necessity truly is the mother of invention. But while the pandemic has created new opportunities, the lending environment for startups looks set to be challenging.