Commercial Brokers Optimistic About Business Prospects In The Next 12 Months, New Survey Reveals

Commercial finance brokers are broadly positive about their business prospects for the coming 12 months, with the majority expressing an optimistic or neutral view – according to new survey data from SME funding provider Asset Advantage.

The survey found that nearly half of all commercial finance brokers (46%) are optimistic about the year ahead, while slightly more than four-in-ten (43%) feel neutral about their business outlook in the coming 12 months.

Just 11% of commercial finance brokers say they feel pessimistic about their future business prospects – highlighting that while there may be some apprehension, overall there is a cautious optimism within the commercial broker community.

However, the survey findings show that commercial finance brokers continue to grapple with a number of significant obstacles. When asked to name their biggest challenges as a broker, the top responses were managing client expectations and information and process bottlenecks, which received 21% of the vote.

Lender appetite and inconsistency also ranked as key challenges – chosen by nearly one-in-five (18%) commercial brokers.

Brokers highlighted the challenge of aligning their experience and knowledge of the client’s business with lender appetite, noting that sometimes deals can still fall outside funding criteria. The findings highlight the importance of close collaboration and clear dialogue, nurturing a partnership that trusts the experience of specialist brokers in the sector, while ensuring opportunities are assessed through the right context and criteria.

Despite this, recent findings revealed by Asset Advantage show that commercial brokers expect asset finance and business acquisitions to drive SME funding demand in the coming 12 months – pointing to increasing appetite for growth and expansion-based lending among small and medium-sized enterprises.

Asset Advantage is a leading provider of business funding, working with commercial brokers to provide asset finance and growth based business loans up to £500,000 to UK SMEs. This funding is typically used to support both hard and soft asset purchases, business acquisitions and management buy-outs (MBOs). Asset Advantage takes a flexible approach to asset types and sectors, providing that debt serviceability and risk profile remain robust.

Gary Thompson, sales director at Asset Advantage, said: “With our survey identifying significant appetite among SMEs for funding to help them grow, we shouldn’t be surprised to see many commercial brokers anticipating a positive year ahead. As these enterprises look to make critical investments and grow, both expert advice and flexible funding will be essential components in making these ambitions a reality.”

“It’s clear that delivering on this for SMEs can still be far from straightforward for many brokers, with inefficiencies around processes and inconsistences across SME lending. For us funders, this is a clear call to not just communicate appetite more clearly, but to broaden our horizons – particularly as brokers continue to find themselves held back by the opaque lending practices, rigid processes and restrictive appetites to credit of more mainstream banks and funders . To ensure brokers are supported and good businesses have access to the necessary funding, we need to be focused on growth and agile and pragmatic enough to deliver that difference – something that is arguably a key attribute of more boutique, specialist funders and providers such as ourselves.”

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