Asset Finance Broker Confidence Doubles Despite Fall in Applications, Allica Bank Survey Finds

Confidence in the UK asset finance sector has more than doubled since the end of 2024, according to a new survey of over 200 brokers from challenger business bank Allica Bank. Over half (51.2 per cent) of brokers reported a positive outlook for the next six months, a significant increase from just 24 per cent in the fourth quarter of 2024.

The survey found that a further 30 per cent of brokers remain neutral on their outlook, while just over 18 per cent expressed concern for the months ahead.

Confidence rises amid challenging lending conditions

The improvement in sentiment comes despite nearly half of the brokers surveyed reporting a slowdown in business activity. Forty-two per cent of respondents cited a reduction in asset finance applications, which the report suggests reflects a cautious approach from some businesses so far this year. However, 28 per cent of brokers saw an increase in applications, consistent with the previous quarter’s results, and 30 per cent reported that activity levels had remained mostly unchanged.

The findings are set against a backdrop of challenging conditions for SME lending in the UK. A recent report from Allica Bank highlighted a business lending gap of £65billion, which it attributes to high street banks pulling back from the SME sector in recent decades.

The survey also identified the industries with the strongest activity, which have remained consistent with previous quarters. Transport and logistics, construction, and manufacturing continue to lead the way in asset finance applications.

A resilient sector focused on growth

“It’s great to see broker confidence is on the rise, especially when the media outlook hasn’t been so positive lately,” commented Brandon Hall, head of broker sales for asset finance at Allica Bank. “Overall, the broker survey shows a sector that’s determined to grow despite tough lending conditions, and Allica is keen to help these businesses succeed. We have just launched our lowest asset finance rate in three years for hard assets, and will continue to offer products that give brokers and their clients the boost they need to keep thriving.”

Hall added: “The resilience this sector shows time and time again is testament to UK business owners, and it’s their appetite for growth that will keep the UK economy moving. After all, established businesses make up a third of the UK GDP, so whatever we can do as a lender to support brokers, their clients, and the communities that they serve is worth doing.”

Henry Hemsley, founder at EFT Finance, provided a broker’s perspective: “We’re seeing a renewed excitement in the conversations we’re having with businesses, and even though clients are still cautious, there’s a lot more focus on the future and how to prepare for it. Working with a challenger like Allica, who listens and can act quickly, helps us help our clients move forward with confidence, securing opportunities that are vital for their growth and overall success.”

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