Commercial brokers express mixed outlook for UK economy

Confidence in the UK economy remains divided among commercial finance brokers, according to new research from SME funding provider Asset Advantage.

The survey found that 49% of commercial brokers feel neutral about the UK’s economic prospects over the next 12 months, while 28% hold a pessimistic view. Just over one in five respondents said they were optimistic, highlighting the uncertainty facing businesses as they assess investment and borrowing plans.

Brokers cited a range of pressures weighing on the economic outlook, including higher taxation, inflation, rising operational costs, and subdued business confidence. One broker warned that “cashflow and uncertainty” are prompting delays in decision-making, noting that “businesses feel the pinch and have to be careful with additional investment.” Another commented that inflation is eroding profitability, affecting firms’ ability to borrow.

Despite the caution surrounding the wider economy, Asset Advantage’s separate research indicates that commercial brokers remain broadly positive about their own business prospects, expecting continued strong demand for asset finance and business acquisition funding among SMEs.

Gary Thompson, Sales Director at Asset Advantage, said the findings reflect the challenging balance businesses are trying to strike:

“While there’s still very much strong demand for business funding, there’s no doubt that many businesses are feeling cautious in the current climate. Higher operational costs, inflationary pressures and geopolitical and economic uncertainty all continue to impact business confidence and influence borrowing and investment decisions.”

Thompson added that flexible, pragmatic funding solutions will play a crucial role in supporting SME growth:

“The case for flexible funding options becomes ever clearer. Working with expert commercial brokers, specialist funders willing to support complex, growth-focused deals will be key to giving SMEs the confidence they need to push ahead with their expansion plans. Brokers play a critical role in fostering confidence among their clients, and to do this they need the support of specialist funders and providers.”