British companies are leaning heavily on trade finance and cash flow tools to weather disruptions from the Middle East conflict, according to new research from Barclays.

The bank’s Business Prosperity survey of more than 500 UK business leaders found that 66% are already feeling direct pressure from rising fuel and energy prices. Half report moderate or significant supply chain disruptions.

In response, 37% of firms have cut energy use or improved efficiency, and 32% have adjusted their pricing models. Nearly three in ten (29%) are trimming discretionary spending or wider operational costs – a figure expected to climb to 38% over the next six months. A third plan to pass higher costs on to consumers as a defensive move.

Consumer data from Barclays shows the impact spilling into household behaviour. Fuel spending rose 10.9% year‑on‑year at the start of the conflict, while discretionary outlays on holidays and travel fell 7.9% in mid‑March.

Trade Finance Takes Centre Stage

Access to flexible finance has become a pillar of resilience. The survey found that 41% of business leaders see help with cash flow management as increasingly vital, while 39% point to working capital or short‑term credit.

An overwhelming 83% view existing cash savings as essential to navigating the current disruption. Beyond internal buffers, external financial tools rank high: 78% cite working capital support as a key enabler, followed by international trade finance (68%) and cross‑border payments solutions (67%).

“UK businesses are facing a convergence of pressures, with multiple challenges hitting at once,” said Abdul Qureshi, Head of Business Banking at Barclays. “For SMEs, dependable cash flow and access to working capital are increasingly important – not only to keep operations running, but to help safeguard future growth plans.”

Barclays has allocated a £22bn Business Prosperity Fund to support firms through the period.

Confidence Splits: Strong on Self, Wary on Economy

There is a marked gap between how leaders view their own prospects and their assessment of the broader environment. While 78% remain confident in their own business and 74% are optimistic about their sector, only 49% express confidence in the UK economy and 45% in the global economy.

Eight in ten leaders expect geopolitical uncertainty to restrict investment and growth plans over the next 12 months. Yet most see the impact as manageable: only 11% report significant constraints, while 69% anticipate only a slight or moderate effect.

“In an environment of ongoing uncertainty, resilience and flexibility matter more than ever,” said Matt Hammerstein, CEO of Barclays UK Corporate Bank. “Access to working capital, trade finance and cross‑border payment solutions can make a real difference – helping firms manage disruption today while remaining ready to invest and grow when conditions improve.”