Reward Funding doubles maximum SME lending term to 24 months

Reward Funding has doubled the maximum term available through its two core lending products, Property Finance and Business Finance, from 12 months to 24 months. The alternative lender announced the change on 2 October 2026, saying it would give qualifying UK small and medium-sized enterprises (SMEs) longer to plan before facing a repayment, exit or refinancing decision.

The change affects businesses that use Reward Funding's Property Finance and Business Finance products, which can be secured against property, plant, machinery or other assets where required under the particular agreement. It does not alter the company's separate Asset Finance product, which already runs on longer terms. For SMEs weighing up finance options, the headline effect is straightforward: a facility that previously had to be settled, exited or renewed within a year can now, for qualifying borrowers, run for up to two years from the outset.

What has changed

Reward Funding's current product pages for Property Finance and Business Finance both list a maximum term of 24 months, alongside borrowing of up to £5m and interest starting from 0.99% a month. That marks a clear shift from the company's February 2025 brand brochure, which listed durations of three to 12 months for both products, with Business Finance carrying an option to renew at the end of the term. Reward Funding has not published a separate effective date distinct from the 2 October 2026 announcement, so it is not yet confirmed whether applications submitted before that date can be moved onto the longer term.

Source: Reward Funding product pages and February 2025 brand brochure.

There is an unresolved wrinkle. Reward Funding's Property Finance page states a product-level maximum of 24 months, but a separate section on the same page describes its "simple bridging" loans as running for three to 12 months, with an option to extend. The page does not explain how this narrower bridging category relates to the new 24-month headline figure, so it would be wrong to assume every property facility is now available for an initial 24-month term. Prospective borrowers should check which sub-product applies to them before assuming the longer term is on offer.

What it means for SMEs

The practical argument for a longer initial term is timing. Under the old structure, a business taking a 12-month facility faced a repayment, exit or refinancing decision within a year of drawing the funds. A 24-month maximum pushes that decision further out for borrowers who qualify for it, delaying the point at which they may need to repay, exit, refinance or enter a new agreement.

That is a reasonable consequence of the change, not a guarantee. The 24-month figure is a maximum, not a default term offered to every applicant, and Reward Funding's materials describe individual arrangements as tailored. Nothing in the company's published pages states that every eligible business will be offered the full 24 months, and the underwriting criteria that determine term length have not been made public.

Costs and eligibility

Both products are advertised with interest "from" 0.99% a month and amounts "up to" £5m. Both words carry weight: the published rate is a minimum starting point rather than a rate every borrower will receive, and £5m is a ceiling rather than a typical advance. Reward Funding's pages do not provide a representative cost example or an annual percentage rate for either product, so the actual total cost of a 24-month facility for a given business is not established.

Business Finance is pitched at "asset-rich" businesses and can be secured against commercial or residential property, plant and machinery. Under the structure described on Reward Funding's pages, borrowers pay interest monthly with no capital repayment during the term, then settle the capital at the end or enter a fresh agreement to renew. A longer term defers that capital settlement point, but continuing monthly interest payments, plus any setup, legal and exit fees, can add to the total cash cost even where the monthly rate itself is unchanged.

Reward Funding says setup and legal fees can be rolled into a Business Finance agreement, and that pricing can include setup fees, monthly interest and exit fees. The company has not published the level of its setup or exit fees on the pages reviewed for this article, so a prospective borrower would need to obtain a formal offer to see the full cost of a specific facility.

Where a Business Finance facility is secured against assets such as property, plant and machinery under the final agreement, a borrower who cannot meet their obligations risks those assets, as is generally the case with secured business lending. Reward Funding's published material does not set out its default or enforcement process, and it is not stated whether personal guarantees are required or what would happen to a guarantor's own assets. Anyone considering this type of finance would need to establish these points from the formal offer and agreement, not from the product marketing pages.

Regulatory and risk context

UK SME lending is not uniformly regulated. The Financial Conduct Authority (FCA) said on 17 September 2026 that business lending of £25,000 or less to sole traders and small partnerships generally falls within the consumer-credit regulatory perimeter, while much lending to limited companies, lending above £25,000 and parts of alternative lending sit outside its remit. Whether a particular Reward Funding agreement is FCA-regulated, and whether a borrower or guarantor could refer a dispute to the Financial Ombudsman Service, depends on the type of borrower, the amount lent and the specific agreement. That was not established from the sources available for this article, and nothing here should be read as confirming FCA regulation, Financial Services Compensation Scheme cover, or Ombudsman access for any given facility.

Why Reward Funding made the change

Reward Funding attributes the longer term to discussions and research with clients and finance introducers, saying this pointed to demand for arrangements that support longer-term relationships. The company also says its existing client relationships already average around 23 months, close to the new maximum. Both claims come directly from Reward Funding; the company has not published the methodology, sample size, measurement period or underlying data behind either the research findings or the 23-month average, so they should be read as the lender's own account rather than independently verified statistics.

What to watch next

Several points remain open. Reward Funding has not confirmed a formal effective date separate from the 2 October 2026 announcement, nor clarified whether simple bridging loans remain capped at 12 months while other property and business facilities move to 24. The company has also not published a representative pricing example, its full eligibility criteria, or its policy on personal guarantees. Businesses considering a Property Finance or Business Finance facility should request Reward Funding's formal offer and agreement, which will set out the binding interest rate, fees, security requirements and repayment terms for their specific circumstances, rather than relying on the headline figures in the product marketing.