The views from the MD of Praetura’s Asset Finance Division, reflecting on 2025 and his expectations for 2026.
Looking back at 2025
If we take a few short moments to look back at what 2025 gave us, it followed patterns from previous years. There were numerous challenges for SMEs to face and uncertainty as to what was going to happen next. There was also an awful lot of waiting around for something to happen, whether that was the impact of Trump’s Tariffs or the autumn Budget.
Earlier in 2025 is when some of the bigger challenges had to be navigated, particularly the changes to National Insurance that businesses had to traverse. There was a lot of bluster about Trump’s Tariffs in the first quarter, with the British Business Bank even putting a tariff impacted GGS facility in place. But that all settled down relatively quickly, causing more uncertainty than it did actual problems.
Speculation and procrastination
Speculation about what could happen, or what might happen is perhaps what caused the biggest issues. When it came to it, the tariffs had minimal impact, the autumn budget (overall, whilst acknowledging issues for specific industries) had little impact. But both created an environment where people worried, so they put things off. We saw that with business levels last year too, in that they were a bit ‘lumpier’. Overall, we had a record year, across the whole of Praetura, exceeding budgets and targets, but the trends over the year were more Inconsistent as a result of business sometimes just pumping the brakes.
In the middle of an evolution
2025 marked a clear shift in expectations around AI and machine learning. At Praetura, AI is viewed as an opportunity, rather than a threat, but only if actively embraced. Our custom-built platform Praeview, launched in 2023, continues to evolve.
This year, we are introducing enhancements to automate the reading and analysis of PDF bank statements. While similar technology exists, our integration is tailored specifically to our underwriting needs, ensuring brokers, advisers and their SME clients receive a more efficient service.
These developments are designed to accelerate the flow of information, support our underwriters and improve operational efficiency. Most importantly, AI will never replace human judgement. While the system may recommend outcomes, every decision remains with an underwriter, allowing us to review declines and explore alternative structures where appropriate.
Collaboration is key
Another element that we saw substantially grow last year was collaborative Praetura deals, with more than one of the Praetura Lending companies (Praetura Asset Finance, Kingsway Finance, Praetura Commercial Finance, Praetura Invoice Finance and Zodeq) working together, using the expertise of each team to deliver multi-facility funding packages to SMEs. This is funding that we are delivering as a Group, utilising the individual strengths of our businesses. We now have an increasing number of Group deals benefitting from the expertise of the Sales Finance teams on the invoice discounting side, on stock, revolving facilities and property, we’ve got Praetura Asset Finance’s expertise on hard assets and Kingsway Finance’s ability to deliver loans, GGS term loans and soft asset finance. We wrote record numbers of business on a Group basis in 2025 and we’re expecting that trend to continue.
I believe this is a key differentiator for Praetura. We’re seeing an increasing number of these types of deals coming through where being able to use the combined expertise of Praetura across the board, working together behind the scenes to make it as simple a process for the client, is making a real difference. The introducer and their clients have a whole team of experts at their disposal, with the level of knowledge and way of working together that high-street banks and other lenders don’t necessarily have.
Expectations for 2026
For Praetura specifically, I’m expecting the growing influence we have in the market to continue to develop, building on the reputation we have established for funding businesses in the right way, at the right time, for the right reasons.
We are going to continue to invest in our people as we always have done, and I expect the benefits that we reap from our graduate and apprentice summit programme to continue to flourish.
The year of consolidation?
Something that we’ve already started to see, and I’m expecting to see more of in 2026, is the consolidation of layered loans. UK SMEs have traversed some tricky waters over the past five years. During the pandemic, many businesses went for the quick fix of a loan to solve the immediate problem (as opposed to necessarily having the right product). We have seen companies paying back huge amounts of interest over short terms and it’s absolutely stifling the cash flow of the business. An increasing number of consolidation funding proposals are now coming through and unfortunately for some, they are beyond the point where we’re able to help.
However, there are significant numbers that we can help, if we can get in early enough. If brokers can intervene early enough and recommend the right facilities, a lot of these situations can be turned around with the right products. We’ve got to play our part in identifying those instances where the businesses can be helped.
It is invaluable for SMEs to use the knowledge and expertise of trusted brokers and advisors; using people that understand your industry and are going to do the right thing for your business, not their commission.
This is why, at Praetura, we work in partnership with our brokers. There has got to be that level of trust between the broker and the funder, as well as between the broker and the client.
Resilience is inspirational
Despite the challenges, procrastination and uncertainty of last year, the SMEs that form the backbone of this country’s economy are resilient. The multitude of challenges we faced last year could have caused hysteria, but the fact that didn’t happen is testament to the resilience of the businesses out there.
That to me is the main reason to be optimistic. At times it’s not easy out there, but SMEs are striving to do more, to save their businesses, to diversify, to adapt and to grow. That is inspiring.
SMEs need funding that’s going to work with their business to help not just their immediate needs, but their aspirations too. Our ethos at Praetura has always been to put the needs of each business first and to provide the right funding, in the right way, at the right time. This is something we will continue to provide, in 2026 and beyond.
