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Mid Ulster firms most likely to need external finance for capital expenditure in 2026
The report finds that just 59% of Mid Ulster businesses are expecting growth in 2026, a rate that places the region ahead of the Northern Ireland average of 56%
The most popular form of external financing in Northern Ireland as a whole remained Covid-19 loans.
Reporter:
Staff Reporter
29 Jan 2026 6:00 PM
Email:
news@derrynow.com
The latest Access to Finance Report 2026, published by Enterprise Northern Ireland and the British Business Bank, reveals that a “conspicuously high and statistically significant share” of Mid Ulster businesses “anticipated use of finance for capital expenditure purposes (79%)”.
The stat shows a pronounced intention to invest in capital projects from Mid Ulster businesses when compared to other Northern Ireland regions, with the next closest region being the South region (a combination of Armagh, Banbridge and Craigavon and Newry, Mourne and Down council areas) on 55%.
The report finds that just 59% of Mid Ulster businesses are expecting growth in 2026, a rate that places the region ahead of the Northern Ireland average of 56%. 38% of Mid Ulster businesses expect to remain stable over the next 12 months, against the NI average of 30%.
Not one Mid Ulster respondent stated that it expects to contract in 2026, as opposed to the NI average of 8%, but 3% of Mid Ulster businesses do expect to trade with difficulty, a rate that is half of the NI average of 6%.
The research shows that just over half (56%) of Northern Ireland SMEs are currently using external finance, the lowest proportion among the UK’s devolved nations. Mid Ulster businesses were broadly in line with this proportion, with 56% availing of external finance.
Mid Ulster businesses were unique among Northern Ireland businesses due to their most popular method of external financing being business credit cards (27% of the 56% who availed of external financing).
The most popular form of external financing in Northern Ireland as a whole remained Covid-19 loans (19%).
Encouragingly, 57% of Mid Ulster businesses reported experiencing no barriers to external finance, the highest among NI regions, against an NI average of 37%. Of the 11% of Mid Ulster businesses who reported experiencing barriers, the most commonly cited barrier was poor perceptions of/relationships with finance providers, with 50% of that 11% citing this experience.
While 69% of Northern Ireland SMEs reported a positive cash flow position, this is significantly lower than in Scotland (85%) and Wales (80%), with Mid Ulster’s 68% proportion broadly in line with the NI average. Among the 32% of businesses in Mid Ulster who reported negative cashflow perceptions, the increased cost of doing business was the most commonly cited factor (58% of the 32%).
Overall, Northern Ireland SMEs were found to be the most optimistic about their growth prospects among the devolved nations, with 56% expecting growth, compared with 49% in Scotland and 30% in Wales.
Michael McQuillan, Chief Executive, Enterprise Northern Ireland, said: “This year’s Access to Finance report shows that while fewer SMEs are facing barriers to accessing finance, significant challenges remain, particularly around confidence and cash flow. The fact that Northern Ireland businesses are the most optimistic about future growth is extremely encouraging, but optimism alone is not enough if businesses are unsure whether they can secure the funding required to realise those ambitions.
“We know that both the optimism and ambition are there, and what we now need is a well-tailored support system for local enterprise. Businesses want simple, visible, joined-up support.
“The regional differences highlighted in this research underline the importance of locally tailored enterprise support. Enterprise Northern Ireland will continue to work with our partners to ensure that SMEs across every part of Northern Ireland understand their finance options and can access the right support at the right time.”
Susan Nightingale, Director UK Network, British Business Bank, said: “This report provides a timely analysis of the current financial landscape, and it is encouraging to see that over half of Northern Ireland’s smaller businesses are optimistic about their growth prospects in the next 12 months. The British Business Bank is fully committed to ensuring smaller businesses across Northern Ireland have equal access to capital. This research is an important part of informing the development of programmes and engagement strategies to ensure every business owner is aware of the finance options available to them.”
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