Workplace stress is continuing to rise and the costs are building up for small businesses, both in terms of managing lost work days and spending on workplace wellbeing. With margins already being stretched to breaking point, how can firms balance the books and invest?

New research from the Trade Union Congress suggests that stress is soaring at work, with the associated costs ramping up the pressure on small businesses. According to the study, sickness is costing employers a whopping £85 billion a year, including through lost productivity and sick pay. The report goes on to say that a sharp upturn in mental health issues is driving this increase in sickness.

These findings echo those of a Health and Safety Executive study released at the end of the 2025. According the research, around 22 million working days were lost as a result of stress, with 1.9 million people reportedly suffering from work-related illnesses. As well as stress these illnesses include depression and anxiety, as well as musculoskeletal disorders.

Focusing on small businesses, research from MoneySuperMarket showed that over 40% of small business owners felt burnt out by the end of 2025, with a third admitting that running their own business is harming their mental health. As a result, over a half said that they want to change their work-life habits in 2026.

Whether such change is possible given the current market climate remains to be seen, but there is a clear sentiment towards taking steps to improve approaches and conditions. According to the MoneySuperMarket survey, almost half of small business owners want to set stricter working hours and a similar amount are planning to delegate more.

Notably, such development can be seen as part of a wider recognition of physical and mental health in the workplace, which includes rising expectations around workplace wellbeing schemes. More and more employees view such initiatives as a must-have part of the working environment.

How alternative lenders can help with workplace wellbeing investment

The increased awareness of workplace wellbeing, and the greater rollout of related initiatives, from flexible work arrangements and on-site fitness classes to mental health days and nutritional support, is clearly a positive, but such evolution comes at a cost. While large firms have the deeper pockets to manage such investment, for small businesses finding the cash is more challenging.

Access to finance is key to managing this demand on cash flow for small businesses, however, with traditional banks remaining cautious towards lending to these firms, this is proving far from straightforward.

This is where alternative finance can help.

Small business lending from traditional sources remains subdued in 2026, with almost 40% of firms finding accessing affordable finance one of their biggest challenges. Notably, there has been a call for the introduction of legislation that would require banks to increase access to low-cost lending for small businesses.

Against this backdrop, services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses in the current funding climate. These alternative finance facilities, which offer a more easily accessible, affordable and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth.

Small firm finance options for funding workplace wellness schemes in 2026

Another demand on capital is the last thing small businesses need right now, but workplace stress and the need for workplace wellness schemes is something that has to be engaged with. Without staff, in particular key talent, firms can’t function properly, and this is a threat to performance and profitability.

This is why investing in workplace wellbeing is so important and why, against a backdrop of ongoing conservatism towards small firm lending from traditional banks, it is essential that key decision-makers are aware of all the available finance options, including the services of alternative lenders.

To find out more about A&T Business Associates services, contact Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk.