Brokers report steady asset finance demand as renewables climbs

UK asset finance brokers are continuing to see resilient demand for funding, with nearly three in ten reporting rising applications and the renewables sector breaking into the top three areas of activity for the first time, according to new research from Allica Bank.

Allica Bank, the challenger bank for established businesses, surveyed more than 570 asset finance brokers and found that 29% reported an increase in asset finance applications in the second half of the year, up from 26% six months earlier. A further 26% said application volumes were broadly unchanged, pointing to steady overall demand despite ongoing economic uncertainty.

While 45% of brokers said they had seen a fall in applications, many attributed this to businesses delaying major equipment upgrades in response to a more challenging economic backdrop. Brokers said they expect some of this pent-up demand to be released later this year, particularly for soft assets such as IT equipment, while some vehicle and haulage segments may remain softer as firms continue to “sweat” existing assets.

Construction, transport and logistics remain the strongest sectors for asset finance activity, with renewables moving into the top three for the first time. The shift reflects growing investment in low-carbon technologies as businesses seek to improve energy efficiency and manage long-term costs.

Technology is also playing an increasingly central role in the asset finance market. More than two-thirds (69%) of brokers said digital underwriting, automation and artificial intelligence have improved the speed and efficiency of lending decisions, marking a notable rise compared with Allica’s previous survey. Brokers reported that faster decisions and clearer processes are helping them serve clients more effectively and unlock investment more quickly.

Looking ahead, sentiment among brokers is cautiously optimistic. Almost four in ten (39%) said they feel confident about growth in 2026, including 9% who said they are very confident. A further 38% described themselves as neutral, while 23% said they remain concerned about growth prospects.

Brokers pointed to easing uncertainty as a key factor behind improving sentiment, citing expectations that interest rates will stabilise, policy direction will become clearer, and businesses will adapt to cost pressures such as higher National Insurance contributions.

Brandon Hall, Head of Broker Asset Finance Sales at Allica Bank, said the findings point to a market that is more resilient than might be expected.

“What this survey shows is a market that’s steadier than many might expect. Even with ongoing economic pressure, a large proportion of brokers are still seeing demand hold up, and in some cases grow – particularly in areas like renewables,” he said.

“For brokers, the message is that activity hasn’t disappeared, it’s just become more selective. Businesses are often taking longer to commit, sweating existing assets, and relying on brokers to help them invest at the right moment. That makes speed, clarity and certainty more important than ever.

“As uncertainty continues to ease and interest rates stabilise, confidence is starting to return. Brokers who can move quickly, supported by lenders that combine smart technology with real human decision-making, will be best placed to help their clients unlock that pent-up demand over the year ahead.”