Hospitality, leisure and construction lead demand for business finance

Hospitality, leisure and construction businesses are driving demand for commercial finance as UK firms push ahead with expansion plans, according to new research from SME funding provider Asset Advantage.

In its latest survey of commercial brokers, nearly half (47%) named construction as the sector most actively seeking business finance. Close behind were hospitality and leisure operators, highlighted by 45% of respondents. Manufacturing also showed strong appetite for funding, with more than a third of brokers (36%) reporting increased activity, ahead of professional services at 21%.

By contrast, brokers pointed to notably lower demand from sectors such as science and technology (6%) and agriculture (7%).

Asset Advantage said the findings reflect widespread business confidence and continued investment needs as SMEs look to scale operations, respond to new opportunities and finance significant acquisitions. Brokers have already reported growing enquiries for business loans and acquisition funding.

The survey explored broker views on market demand, lender appetite and the wider economic outlook, offering a snapshot of sentiment across the commercial finance landscape.

Gary Thompson, sales director at Asset Advantage, said brokers are seeing a clear commitment to growth among SMEs in leading sectors.

“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,” he said. “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.”

Thompson added that, as some funders become more risk-averse, brokers increasingly need flexible partners able to respond quickly.

“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,” he said. “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.”