If the last twelve months has taught us anything, it’s that the global economic “weather” changes faster than a Dublin afternoon. For SMEs across the UK and Ireland, 2025 wasn’t just another year on the calendar, it was a masterclass in maintaining momentum.
From the food and beverage producers in Cork to the high-precision manufacturers in the Midlands, every business felt the ripple effects of a world in flux. At Teybridge Capital, we believe in progress, not passivity. As we settle into 2026, the question for every ambitious leader isn’t just “What’s next?”… It’s “Are you ready to grab it?”.
2025: The Year of the Perfect Storm
Looking back, 2025 was defined by three major headwinds that tested even the most seasoned operators:
- The Tariff Seesaw: Tariffs on EU exports to the US and post-Brexit regulatory amendments created ongoing volatility for exporters. In 2025, many Irish firms had to frontload shipments just to beat the clock on trade policy shifts.
- Sticky Interest Rates: While we hoped for a steady descent, we still felt a higher cost environment, squeezing margins for service providers and retailers alike.
- Geopolitical Friction: In 2025, supply chain disruptions from the Red Sea to the Suez Canal meant that “Just-in-Time” inventory often became “Just-Too-Late”, forcing businesses to tie up cash in inventory just to stay operational. While we see the first ships returning to the Suez this month, the scars of 2025’s delays have fundamentally changed inventory strategy.
2026: New Year, New Headlines
We are only a few weeks into 2026, and the pace hasn’t slackened. We’ve already seen:
- The “Greenland” Trade Tension: While the immediate threat of a 10% blanket tariff on UK and EU exports was recently de-escalated in late January, the underlying friction remains. The “Turnberry Deal” is still fragile, and for Irish and UK exporters, the threat of sudden trade policy shifts is now a permanent line item in risk management.
- Commodity Price Shocks: Copper remains the “canary in the coal mine” for industrial costs. After shattering records in late January, prices are currently consolidating around $13,000. For construction and high-precision manufacturing, this isn’t just a fluctuation, it’s a fundamental shift in working capital requirements.
- The Irish Payroll Spike: As of January 1st, the rollout of Pension Auto-Enrolment is live. With over 760,000 employees now enrolled and the minimum wage sitting at €14.15, Irish SMEs are facing a dual-pronged increase in payroll overheads that requires precision cash flow planning.
- UK Fiscal Drag: In the UK, the decision to extend tax threshold freezes until 2031 continues to act as a “stealth tax.” As firms increase wages to keep up with inflation, more of their growth is being swallowed by higher tax brackets, squeezing the very margins needed for reinvestment.
- AI Transformation Costs: Generative AI has moved from being an experiment to necessary infrastructure. The cost of staying competitive now involves additional capital outlay for data integration and proprietary AI workflows – expenditures that often don’t fit into traditional bank lending models.
Momentum Matters: The Only Cure is Cash Flow
In economics, they talk about “exogenous shocks”; things you can’t control. You can’t control a tariff hike or a supply squeeze. But you can control your liquidity.
Having a reliable financier, such as Teybridge Capital, will allow you to enable momentum and eliminate uncertainty. This may be the difference between pausing your operations and seizing upon an opportunity.
Don’t Wait for the “Desperation Point”
The biggest mistake we often see is the “Panic Pivot”; businesses waiting until a critical order arrives before worrying about the financing. In 2026, financial readiness is a competitive advantage. To ensure you never lose momentum, start by:
- Cleaning up the ledger: Resolving old disputes to ensure your debtor book is ready to fuel your next move.
- Stock Transparency: Knowing exactly what’s on your shelves so it can be used as security for Stock Finance.
- Knowledge Readiness: Understanding exactly what can and cannot be funded so you can take control of your future.
The 2026 Strategy: Fuel Your Ambition Now
The most successful businesses in 2026 won’t be the ones with the best crystal balls; they’ll be the ones with the most flexible balance sheets.
Teybridge Capital isn’t a lender of last resorts; we are your first-choice growth partner. By putting a trade finance facility in place now, will allow you to unlock possibilities in the future. When an opportunity arises, you won’t have to pause, you’ll have the freedom and confidence to grab it.
2026 is moving fast. Let’s keep you moving forward.
