Commercial finance brokers say their calls for change remain largely unmet by funders, as their wish list once again sets out demands for flexible loan terms, greater transparency and an open-minded approach to look “outside the box” on deals.
New survey data from SME funding provider Asset Advantage has found that an outside the box approach is the top demand for 68% of brokers – up from 34% in the previous survey in late 2024. A higher credit appetite saw the biggest increase, jumping from just 13% previously, to now more than half of brokers (55%).
Nearly half (49%) of the brokers surveyed said they want flexibility on loan terms – up from 23%, while more than quarter want to see greater transparency in lending criteria – an increase from 16% in late 2024.
Brokers remain clear that funders are yet to deliver on their wish list, and the calls are only getting louder. Furthermore, brokers have since added improved processes – a wish for a third of commercial finance brokers.
Their calls come as brokers tell Asset Advantage of increasing demand for commercial finance among UK SMEs, with asset finance and business acquisitions set to dominate funding needs this year.
Gary Thompson, sales director at Asset Advantage, said: “Given the demand we are seeing from SMEs for funding, there’s clearly a need to give brokers the tools and support they require to answer it. We know from speaking to brokers that there is definitely an appetite issue from mainstream funders – both in terms of risk and funding more complex deals, business acquisitions and supporting non-standard assets or sectors. In truth, more boutique, specialist funders continue to gain ground by answering such demands.
“Brokers need to look across the entire market to identify funding partners who make funding decisions the way they should be made – leveraging people, not rigid processes. Now more than ever, a flexible and pragmatic approach is required to give good businesses the time of day and brokers the support to get more of their transactions approved and over the line. Boutique funders continue to prove that partners can be approachable and commercially-minded, while still being open-minded and pragmatic too.”
Asset Advantage provides business finance to SMEs through asset finance and business loans, with funding available up to ?500,000. Funding is used for a variety of business cases including business acquisitions, management buy-outs (MBOs) and to fund both hard and soft assets. Asset Advantage has been offering business finance for nearly two decades and is flexible on sectors, providing both debt serviceability and risk profiles remains strong.
