Brokers report growing shift towards business loans among commercial finance clients

04 September 2024

Nearly a third (31%) of commercial finance brokers have seen a growing shift among clients towards business loans to secure funding, new survey data from Asset Advantage can reveal.

For nearly a quarter of brokers (24%), the biggest driver among clients towards business loans is more complex projects which require flexible funding routes. Nearly two-in-ten brokers reported an increase in clients needing support with business acquisition and management buy-outs (MBOs), while 5% of brokers supported more clients in expanding into new markets.

Meanwhile, almost half of commercial finance brokers said they have seen a greater mix of both business loans and asset finance as clients look to fund a broader range of projects.

All is revealed in a new survey from Asset Advantage, which questions commercial brokers on a range of topics to determine the state of play and changing demands of the commercial finance market. The survey uncovers the key challenges facing commercial brokers when securing funding for clients as well as their thoughts on lender appetite and the lending landscape.

Business loans have continued to increase in popularity due to their flexibility, enabling businesses to fund their expansion plans or to support an acquisition or buy-out. Asset Advantage is one of the UK’s leading providers of business finance for SMEs, providing asset finance and business loans for nearly two decades.

Philip Knight, credit and risk director at Asset Advantage, said: “Our survey findings certainly mirror what we are seeing on the ground with growing demand for business loans. There’s no question that flexibility is a key driver behind this, moving beyond pure business acquisition to include broader asset classes and industries, as well as more bespoke and complex funding requirements.

“Given the broad growth ambitions of UK SMEs, as well as the climate of the past few years, it’s hardly surprising to hear that projects are becoming more complex. It requires lenders to take a much more holistic view of both the deal and the company to help brokers meet the needs of their clients. This year we’re celebrating our tenth anniversary of offering business loans of up to £1 million, helping brokers better serve their clients through fully flexible funding.”

Business loans from Asset Advantage enable businesses to borrow up to £1 million and are typically used for business acquisition, management buy-outs and buy-ins. This is in addition to increasing use for hard and soft assets such as equipment, software, technology and soft furnishings. Asset Advantage will consider any asset and in any industry sector, while business loans can be used in conjunction with asset finance for full flexibility.

For more information, please contact www.assetadvantage.co.uk, or please call 01256 316200.