February is when many Irish business owners move from reflection into action.
The year is underway. January pressures have either been dealt with or exposed. And attention turns to what needs to happen over the coming months to keep the business moving forward.
From a funding perspective, this is also a reset point. Lenders reassess risk, credit teams sharpen criteria, and decisions become more consistent as the year settles.
Here is what lenders are actually focusing on as we move into spring 2026, based on the funding decisions we are seeing every week.
Recent Filed Accounts Matter More Than Ever
One of the clearest themes right now is the importance of recent filed accounts.
Lenders are not looking for perfection, but they do want reassurance that the business is fundamentally sound. In practical terms, this means:
A net profit showing in the P&L
A positive net worth on the balance sheet
Older accounts, management numbers, or verbal explanations on their own are rarely enough. Up to date filed accounts give lenders confidence that the business is stable and properly run.
For many SMEs, simply getting accounts filed can be the difference between approval and decline.
Bank Statements Are Closely Reviewed
Six months of business bank statements are now standard across most lenders we work with.
What they are looking for is consistency rather than size. In particular:
No missed or very few missed repayments
No ongoing arrears patterns
Sensible cash flow management rather than constant firefighting
Occasional blips can often be explained. Repeated issues usually cannot. Businesses that keep their banking tidy, even during tight periods, tend to get better outcomes and faster decisions.
Tax Clearance Is a Key Gatekeeper
Tax compliance is another major focus in 2026.
For term loans, a valid Tax Clearance Certificate is effectively a must. Without it, options narrow very quickly.
For some flexible finance products, it may still be possible to proceed without tax clearance, but lenders will usually want comfort that the situation is being actively managed. In many cases this means:
Evidence of engagement with Revenue
Screenshots from the Revenue Online Services portal
Confirmation of phased payment arrangement
Being proactive with Revenue is far more important than being perfect.
There Are Faster, Higher-Risk Options, But They Cost More
It is also worth acknowledging that not every business will tick all of the boxes above.
There are higher risk lenders in the market who can move quickly, even where accounts are behind, tax issues exist, or bank statements show stress. These options can be genuinely useful in the right situation, particularly where timing is critical.
However, the trade-off is cost.
When risk increases, the cost of funds goes up. Repayments are often shorter term and less flexible, and the margin for error is smaller.
This does not mean these options should be avoided at all costs. It means they should be used deliberately, with a clear exit plan, rather than as a default choice.
Clear Use of Funds Strengthens Applications
Across all lender types, one question is being asked more consistently: what exactly is this funding being used for?
Applications that clearly link funding to a defined outcome perform far better. Examples include:
Bridging a working capital gap caused by late payments
Funding stock ahead of a busy trading period
Upgrading equipment to improve efficiency or capacity
Smoothing cash flow rather than plugging losses
Vague “general business purposes” requests are harder to support in the current environment.
Preparation Beats Urgency
One of the biggest advantages a business can give itself in 2026 is preparation.
Rushing into funding because of pressure usually leads to fewer options and higher costs. Taking time in early spring to review accounts, tidy banking, and address tax issues creates leverage later in the year when timing really matters.
Even businesses that do not need funding immediately benefit from understanding where they stand.
Final Thought
The funding market in 2026 is not closed. But it is disciplined.
Lenders are backing businesses that demonstrate profitability, basic financial order, and clarity of purpose. For those that do not yet meet those standards, faster options may exist, but they come at a price.
For Irish SMEs that prepare early and choose the right type of funding for their situation, there are still good, sensible options available.
