Hospitality, leisure and construction firms are generating the strongest demand for business finance, according to new research from SME funder Asset Advantage.
Its latest commercial broker survey found that construction led the way, with 47% of brokers identifying it as the busiest sector for funding enquiries. Hospitality and leisure followed closely at 45%.
More than one third of respondents pointed to growing appetite from manufacturers, with 36% saying the sector was actively seeking new finance. Professional services were highlighted by 21% of brokers. By contrast, demand from science and technology businesses was picked by 6%, and agriculture by 7%.
Asset Advantage said the findings reflect continuing investment needs and a renewed appetite for expansion across several parts of the economy.
Brokers have already reported an uplift in enquiries for business loans and acquisition funding as clients look to scale operations and pursue new opportunities.
The survey questioned commercial brokers on current levels of demand, lender appetite, and outlook for both the wider economy and their own businesses. Asset Advantage, which has operated in the SME finance market for nearly two decades, offers business loans of up to £500,000 alongside asset finance via hire purchase and finance lease agreements.
The funder recently broadened its loan offering with two new dedicated products supporting both business assets and acquisitions. It launched its business loans line in 2014, with facilities available for acquisitions and for the funding of hard and soft assets, subject to the usual assessments of risk and debt serviceability.
SECTOR APPETITE REMAINS RESILIENT
Gary Thompson, sales director at Asset Advantage, said: “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.
“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 – further proving the need to support commercial brokers with flexible funding options that are sector and asset agnostic and can move at the pace of businesses.”
Thompson added: “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.
“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.”
