New lending will help thousands of UK businesses access finance, but experts warn borrowing should never become a substitute for getting paid on time.
The Government's £2 billion expansion of the Growth Guarantee Scheme has been welcomed as a positive step for UK SMEs, offering thousands of businesses improved access to finance to support investment and growth. However, many business leaders argue that access to funding is only part of the solution.
According to Lynne Darcey Quigley, CEO and Founder of Darcey Quigley & Co, improved access to finance is undoubtedly welcome, but many businesses will never realise the full benefit if late payments continue to undermine their cash flow.
"The additional funding is a positive step that will help many businesses invest with greater confidence," said Lynne. "But finance should enable growth, not compensate for the cash flow pressures created by late payments. Businesses should not have to borrow simply because they are waiting for customers to pay what they owe."
"The healthiest businesses aren't necessarily those with the biggest credit facilities, they're the ones with predictable, reliable cash flow. Access to finance can create opportunities, but cash flow is what keeps businesses operating day to day."
While lending plays an important role in supporting expansion, many SMEs continue to experience unnecessary financial pressure because invoices remain unpaid long after agreed payment terms.
The consequence is that many otherwise healthy businesses are forced to turn to external finance to bridge cash flow gaps, rather than using it to fund recruitment, investment and growth.
"Businesses should never have to take on additional borrowing simply because they are waiting to be paid for work they've already completed," Lynne continued. "The cheapest source of funding available to any organisation is the money it has already earned. Improving payment practices and reducing debtor days can often do more to strengthen financial resilience than taking on new debt."
The warning comes at a time when UK businesses continue to face rising operating costs, economic uncertainty and subdued customer demand. While expanding access to finance is an important step, Darcey Quigley & Co argues that tackling late payments and improving payment discipline are equally critical to strengthening business resilience.
"Strong cash flow underpins every major business decision," Lynne added. "Whether it's hiring new staff, investing in technology or expanding into new markets, those decisions become much easier when businesses have confidence that payments will arrive when they should.
"The Government's investment will undoubtedly help many SMEs unlock new opportunities. But long-term business resilience won't be built through borrowing alone. It will be built by creating a business environment where companies are paid fairly, paid promptly and can confidently reinvest the money they've already worked hard to earn."
About Darcey Quigley & Co
Darcey Quigley & Co is the UK’s leading pre-Litigation commercial debt recovery company, specialising in retrieving outstanding debts on behalf of accounts both in the UK and Internationally.
Founded in 2007, Darcey Quigley & Co was founded by CEO Lynne Darcey Quigley to help UK and international organisations recover late payments they are owed. Since 2007, Darcey Quigley & Co has a 93% success rate in commercial debt recovery, recovered more than £5.5bn on behalf of global clients and grown to a headcount of 30 employees.
Operating across a number of industries, including manufacturing, construction, engineering and professional services to name a few, Darcey Quigley & Co specialises in global debt recovery from its headquarters in Glasgow.
In January 2026, the Glasgow-based firm announced £2.5m in funding from specialist growth finance provider, Growth Lending, in a bid to further expand its services and increase international growth efforts.
Improving client cash flow and reducing debtor days through debt recovery, ledger management and pre-litigation services is what makes Darcey Quigley & Co the UK’s trusted and most reliable commercial debt recovery specialists for nearly 20 years and counting. For more information, please visit: https://www.darceyquigley.co.uk/
