Published: June 16th, 2026
Accessing the right finance at the right time can be the difference between standing still and moving your business forward.
But we all know how difficult it can sometimes be in practice to get the investment you need when you need it.
For many firms across Herefordshire, Shropshire and Telford & Wrekin, debt finance remains one of the most familiar – yet often misunderstood – routes to unlocking growth.
What is debt finance?
Debt finance is, at its core, borrowing money from an external provider with the agreement that you’ll repay it over time, usually with interest.
One great advantage of debt finance is that it allows you to retain full ownership and control while accessing the capital needed to seize opportunities.
Whether you’re upgrading machinery, expanding premises, hiring staff or navigating a temporary cashflow gap, the right finance product can provide stability and headroom.
However, choosing the right option requires clarity. Different lenders will assess affordability, trading history and security in different ways. Interest rates, repayment terms and flexibility vary widely. That’s why understanding the full landscape – and how each product aligns with your business model – is essential.
The British Business Bank
One great place to start when you are looking for finance for your small business is the British Business Bank, which has a wide range of debt finance options.
The bank operates a series of government-backed programmes which help small businesses invest in equipment, manage cashflow or scale operations without giving up equity.
They include:
Start Up Loans
A long‑running programme offering low‑interest personal loans and free mentoring to help people start or grow a business. More than 125,000 business ideas have been backed with over £1.25 billion in loans.
Bank Referral Scheme
The Bank Referral Scheme refers businesses to alternative platform when they have been unsuccessful in borrowing from a designated bank. Lenders taking part in the scheme include Alternative Business Funding, Funding Options by Tide and Funding Xchange.
Growth Guarantee Scheme (GGS)
Launched on July 1 2024, this is the successor to the Recovery Loan Scheme. It provides a 70% government guarantee to accredited lenders to support access to finance for smaller businesses looking to invest and grow.
ENABLE Programmes
These programmes help social lenders and Community Development Finance Institutions unlock more lending for smaller businesses. They expand lenders’ capacity to finance SMEs and support both established and emerging debt fund managers.
FinTech
The bank supported nearly 2,000 businesses in 2024/2025 with £300million of funding committed. The sector has grown significantly in recent years and the bank remains committed to helping provide a deeper and more diversified pool of funding for smaller businesses.
Debt funds
The UK government was one of the early investors in debt funds, providing capital to qualified alternative lenders in the aftermath of the financial crisis at a time when the major banks had scaled back lending.
Help is at hand
Collectively, these schemes support billions of pounds of finance each year, helping smaller businesses access the capital they need to start, scale and innovate.
The Marches Growth Hub works closely with the British Business Bank to help businesses understand their options and prepare for conversations with lenders.
Our advisers can talk you through the types of debt finance available, what lenders typically look for and how to strengthen your application.
Debt finance isn’t about taking on unnecessary risk – it’s about making informed, strategic decisions that enable your business to grow on your terms. If you’re exploring funding options or simply want to understand what’s available, now is the perfect time to get in touch.
