Hospitality, leisure and construction lead demand for business finance, new broker survey reveals
Hospitality, leisure and construction have been identified as the front-running sectors actively seeking business finance, according to a new survey of commercial brokers conducted by SME funding provider Asset Advantage.
Nearly half (47%) of the commercial brokers surveyed pointed to construction driving demand for business finance – closely followed by businesses in the hospitality and leisure sectors (45%).
More than a third of brokers (36%) also said that the manufacturing sector is actively seeking new funding, ahead of professional services – picked by more than two-in-ten commercial finance brokers (21%). Meanwhile, sectors such as science and technology (6%) and agriculture (7%) are proving to be in less demand for funding support.
Alongside continued investment needs, the findings reflect the strong appetite for growth across a number of key sectors, as businesses look to respond to expansion opportunities, scale up their existing operations and fund significant investments or acquisitions. Brokers have already told Asset Advantage of increasing enquiries for business loans and acquisition funding.
All is revealed in the latest commercial broker survey from Asset Advantage, a leading provider of business loans and asset finance to UK SMEs. The survey questioned commercial brokers on a range of topics to understand current demand and needs in the market, as well as lender appetite and the views of brokers on the future of the commercial finance market and both the economy and their own businesses.
Asset Advantage has been operating in the market for nearly two decades, providing asset finance through hire purchase and finance lease, and business loans. Launched in 2014, business loans are available up to £500,000 and can be used to fund business acquisitions and both hard and soft assets – subject to risk profile and debt serviceability.
Asset Advantage recently enhanced its business loans offering with new two dedicated products to cover both business assets and acquisitions.
Gary Thompson, sales director at Asset Advantage, said: “Commercial finance brokers tell us that businesses in these key sectors do not intend to stand still – they are actively looking to secure funding to push ahead with their expansion and investment plans. While this may not be the case for all with softer demand in some sectors, the consensus is that SMEs are moving forward with their growth plans and are looking to build long-term resilience – further proving the need to support commercial brokers with flexible funding options that are sector and asset agnostic and can move at the pace of businesses.
“In a market where many funders are more risk adverse and restrictive in lending and criteria, it’s really important that commercial brokers have access to strategic funding partners who are open minded and forward thinking, and willing to really understand cases put before them. That has always been our aim and ambition at Asset Advantage and likely why we continue to see persistent demand for flexible funding through our broker partners.”