5 smart resolutions all businesses should make in 2026
10/12/2025
The New Year provides a great opportunity for businesses to take stock and improve their performance – and where better to start than your most important aspect, your cash flow.
As we enter 2026, UK businesses are navigating a transformed financial landscape shaped by the November 2025 Budget and the most significant late payment reforms in decades. With new rules tightening payment terms and increasing scrutiny on financial practices, now is the time to reassess your approach to commercial finance and build resilience from the inside out.
So, if you’re looking for a New Year’s Resolution but are struggling to generate some solid, achievable ideas, we could have the answer.
Here are five smart resolutions your business could adopt in 2026, along with additional resources to help you actually accomplish them.
1. Spend more time focusing on cash flow
Cash flow has always been the lifeblood of a business but in 2026, it’s more critical than ever. With business confidence in the UK falling to -31 in Q4 2025 – one of the lowest levels since the pandemic – and late payments continuing to plague SMEs, the need for accurate and proactive cash flow management has never been clearer. According to the British Business Bank, 43% of SMEs experienced cash flow challenges in 2025, yet only just over half regularly use forecasting tools. This gap between awareness and action is a risk few can afford.
Now is the time to implement rolling 13-week forecasts, stress-test your assumptions, and ensure your systems are integrated and responsive. With tighter payment terms and economic uncertainty, robust forecasting isn’t just a best practice – it’s a survival strategy.
2. Benchmark your existing funding
The 2025 Budget reaffirmed the government’s commitment to supporting SME lending and financial innovation, making this the perfect time to reassess your funding arrangements. Whether you’re using invoice finance, asset-based lending, or revolving credit facilities, it’s essential to ensure your funding is still fit for purpose, allowing you to fulfil your business goals.
With many businesses under pressure, often a quick cash flow fix can seem like the best option, however, it’s prudent to be wary of the growing trend of loan stacking – taking out multiple short-term loans from different lenders. While it may offer a quick solution, it can quickly spiral into unsustainable repayment schedules and credit damage. In fact, 13% of SMEs expressed concern about repaying their existing finance in 2025. A well-structured and sustainable funding strategy, tailored to your business’s needs, will always outperform short-term patchwork solutions.
When assessing if your funding facility is right for your business there are many things you should consider. Here we look at the top four to help you find the perfect match for your business.
3. Familiarise yourself with the range of funding options which exist
With so many funding options available, it’s easy to feel overwhelmed. But understanding what’s out there – and what’s right for your business – can unlock new opportunities and improve financial resilience. From invoice discounting to asset finance and revolving credit, each option has its place depending on your asset profile, cash cycle, sector, and growth plans.
The key is to match your funding to your business model, not the other way around. And in a year where flexibility and transparency are paramount, choosing the right partner is just as important as choosing the right product.
Read how our breadth of knowledge and experience significantly adds value to your search.
4. Refine your business plan
Does your company have a business plan? If so, when was the last time you reviewed it?
A strong business plan is more than a document – it’s a living strategy. In 2026, that means accounting for new regulatory pressures, such as the late payment reforms mandating 60-day terms which are expected to come into force and preparing for continued economic volatility. The best business plans are dynamic, data-driven and built around realistic financial projections.
This year, take the time to revisit your plan, update your assumptions and build in contingency strategies for interest rate variations, supply chain disruptions, or sector-specific risks. A well-prepared business is a resilient one.
5. Get tough on late payment
Late payment remains one of the most damaging issues facing UK SMEs. The Federation of Small Businesses reports that £26 billion is currently tied up in unpaid invoices, with 14,000 businesses closing each year as a direct result – that’s 38 closures every single day. New late payment reforms proposed in 2025 are set to mandate maximum payment terms of 60 days for all B2B transactions, with enhanced penalties for non-compliance and greater transparency around payment practices on the horizon.
Despite this increased government focus on improving wider payment practices, it is prudent to tighten up your internal processes to ensure you are front of the queue for payments. This is the year to tighten your credit control, enforce clear terms and make use of your right to charge statutory interest – currently 8% above the Bank of England base rate – on overdue invoices. It’s time to consider taking a firm but fair approach – one that will protect your cash flow and protects your business from being left out of pocket
But credit control doesn’t need to be a daunting process. There are many steps businesses can take to help protect themselves from late payment and increase the chances of getting paid on time, every time.
Take a look at this article for options in tackling late payment.
Will you be adopting any of these resolutions? Or do you have suggestions of your own? Please share your thoughts in the comments below.
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