Equifax and Menna Use AI to Tackle UK SME Funding Gap

The UK small business sector is facing a severe funding squeeze, with the UK Government reporting that loan acceptance rates dropping below 50% – a 25% decline since the pandemic.

Despite making up 99.8% of the UK business population, small and medium-sized enterprises (SMEs) are struggling to secure the capital needed to grow. 

According to the Bank of England, a £22bn (US$29.5bn) SME funding gap exists, alongside a 20% decline in lending in real terms over the past decade.

In response, UK-based AI finance assistant Menna has announced a new partnership with Equifax UK. 

The collaboration integrates Equifax data into Menna’s AI platform to provide small businesses with clear, actionable insights into their credit profiles. 

The initiative comes at a critical time, as the UK Government actively reviews evidence from small businesses regarding barriers to accessing credit.

Matt Jones, VP, Partners at Equifax UK, says: “Small businesses are the backbone of the UK economy, yet too many still face a confidence shortfall when it comes to seeking funding.

"Through our partnership with Menna, we want to help change that by democratising access to the financial and credit insights that have traditionally felt out of reach.

“This is about giving SMEs a clearer roadmap to funding readiness – helping them better understand the factors shaping lender decisions so they can approach borrowing with greater confidence, build resilience and unlock future sustainable growth.”

Reversing the confidence shortfall

The ongoing decline in loan success rates has had a knock-on effect on entrepreneurial confidence. 

According to a report from UK Finance, SME confidence in applying for finance has hit a 10-year low – with just 45% of business owners feeling confident that a lender would accept their finance request in Q4 2025 compared to 66% in 2016.

Many small businesses struggle to understand how lenders assess them, leaving them unsure of how to improve their financing outcomes. 

The partnership empowers UK SMEs struggling to secure capital by transforming the funding application process. 

Instead of a reactive and uncertain experience, the collaboration fosters "funding readiness".

This is achieved by providing SMEs with the transparency required to understand their credit eligibility, grasp lender processes and proactively strengthen their financial position before applying for capital.

Empowering businesses with AI transparency

Menna’s AI capabilities translate complex credit and financial data into plain-language explanations, early warnings and practical actions. 

In showing SMEs a lender’s perspective, the platform helps business owners understand what is influencing their creditworthiness – from late payments and outstanding invoices to cashflow, account longevity and data accuracy.

Instead of discovering issues only after a finance application is declined, business owners can see how everyday operations affect future funding options, allowing them to take steps to strengthen their position sooner.

Dan Mines, Co-Founder of Menna, says: “Small businesses should not have to wait for a loan application to be denied before understanding their creditworthiness. 

“By combining Menna’s Agentic AI-driven insights with trusted Equifax data, we’re helping business owners understand why a bank says no, what is affecting their credit profile and the practical steps they can take to improve how they are seen by lenders – giving them greater confidence to borrow, plan ahead and grow.”

By combining predictive AI with established credit data bureaus, the partnership aims to shift small business finance from an opaque hurdle into a transparent, manageable process.