Commercial brokers largely optimistic about business prospects

Commercial finance brokers are generally positive about their business outlook for the next 12 months, with the majority expressing optimism or neutrality, according to a new survey by SME funding provider Asset Advantage.

The survey found that 46% of commercial finance brokers described themselves as optimistic about the year ahead, while 43% reported a neutral outlook. Only 11% said they were pessimistic about their future business prospects, indicating cautious confidence across the sector.

Despite the positive sentiment, brokers identified ongoing challenges. Managing client expectations, along with information and process bottlenecks, was cited as the biggest obstacle by 21% of respondents. Lender appetite and inconsistency ranked as the second most significant challenge, selected by 18% of brokers.

Respondents highlighted difficulties in aligning their understanding of clients’ businesses with lender criteria, noting that deals can fall outside funding parameters despite brokers’ confidence in their viability. The findings point to the need for clearer communication and closer collaboration between brokers and lenders.

Asset Advantage said separate research suggests that asset finance and business acquisitions are expected to be key drivers of SME funding demand over the coming year, reflecting an increased focus on growth and expansion among small and medium-sized enterprises.

Gary Thompson, sales director at Asset Advantage, said the survey results reflect growing appetite among SMEs for funding to support expansion, while also highlighting the need for greater efficiency and clarity in SME lending processes.

“It’s clear that delivering on this for SMEs can still be far from straightforward for many brokers, with inefficiencies around processes and inconsistences across SME lending. For us funders, this is a clear call to not just communicate appetite more clearly, but to broaden our horizons – particularly as brokers continue to find themselves held back by the opaque lending practices, rigid processes and restrictive appetites to credit of more mainstream banks and funders. To ensure brokers are supported and good businesses have access to the necessary funding, we need to be focused on growth, and agile and pragmatic enough to deliver that difference – something that is arguably a key attribute of more boutique, specialist funders and providers such as ourselves.”