Allica Bank Broker Survey Shows Confidence in Asset Finance Sector Has Doubled Since Q4 2024

Allica Bank, the challenger business bank, has today published the results of its latest asset finance broker survey of over 200 brokers, which shows a sharp rise in broker confidence for the months ahead. Though just over 18% expressed concern for the next six months, over half (51.2%) of brokers said they had a positive outlook, a significant increase on Q4, when confidence was just 24%. A further 30% of those surveyed remain neutral. 

This improvement in sentiment comes despite 42.5% of brokers citing a reduction in asset finance applications, reflecting the cautious approach some businesses have taken so far this year. However, 28% of brokers saw an increase, in line with Q4 results, and 30% reported that activity levels had remained mostly unchanged. 

This data reflects the resilience of the sector in the face of challenging conditions. A recent report from Allica Bank highlighted how high street banks have pulled back from SME lending in recent decades, creating a business lending gap in the UK of £65 billion. This has left the UK with the lowest business investment rate in the G7, but despite this, brokers remain confident in the future growth of established SMEs. 

The industries showing the strongest activity remain consistent with previous quarters, with transport and logistics, construction and manufacturing leading the way. 

Brandon Hall, Head of Broker Sales – Asset Finance at Allica Bank, said: “It’s great to see broker confidence is on the rise, especially when the media outlook hasn’t been so positive lately. Overall, the broker survey shows a sector that’s determined to grow despite tough lending conditions, and Allica is keen to help these businesses succeed. We have just launched our lowest asset finance rate in three years for hard assets, and will continue to offer products that give brokers and their clients the boost they need to keep thriving.”

“The resilience this sector shows time and time again is testament to UK business owners, and it’s their appetite for growth that will keep the UK economy moving. After all, established businesses make up a third of the UK GDP, so whatever we can do as a lender to support brokers, their clients, and the communities that they serve is worth doing.”

Henry Hemsley, Founder at EFT Finance, said: “We’re seeing a renewed excitement in the conversations we’re having with businesses, and even though clients are still cautious, there’s a lot more focus on the future and how to prepare for it. Working with a challenger like Allica, who listens and can act quickly, helps us help our clients move forward with confidence, securing opportunities that are vital for their growth and overall success.”