Allica survey reveals increased broker confidence in asset finance sector

Confidence among asset finance brokers has more than doubled since the end of 2024, according to new research published today by challenger business lender Allica Bank.

The bank’s latest broker survey, which gathered responses from more than 200 asset finance brokers, found that 51.2% now have a positive outlook for the sector over the next six months. This marks a sharp rise from just 24% in Q4 2024. A further 30% of brokers remain neutral, while just over 18% expressed concern about the near-term outlook.

The boost in sentiment comes despite a slowdown in applications, with 42.5% of brokers reporting a decline in asset finance activity so far this year. However, almost a third (30%) said activity levels had stayed steady, while 28% recorded an increase, consistent with Q4 2024 results.

Allica said the findings highlight the resilience of the sector in the face of challenging market conditions. The survey shows that the strongest industries for asset finance remain transport and logistics, construction, and manufacturing.

The report also comes against the backdrop of a significant SME funding gap. Research from Allica highlights how high street banks have steadily retreated from business lending, leaving UK firms facing a £65 billion shortfall. As a result, the UK has the lowest business investment rate in the G7.

Brandon Hall, Head of Broker Sales – Asset Finance at Allica Bank, said the results show that brokers and their clients remain determined to invest and grow:

“It’s great to see broker confidence is on the rise, especially when the media outlook hasn’t been so positive lately. 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 that the strength of the sector reflects the determination of UK SMEs:

“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.”

Brokers also welcomed the shift in sentiment. Henry Hemsley, Founder of EFT Finance, said: “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.”