A survey from SME funding provider Asset Advantage revealed that 68% of commercial finance brokers wanted lenders to think “outside the box”, the top demand from professionals. This was up from 34% at the last survey, indicating a rising need.
Meanwhile, demand for a higher credit appetite rose from 13% previously to 55%.
Asset Advantage found that 49% of the brokers surveyed wanted more flexibility on loan terms, up from 23% at the last survey, and over a quarter wanted more transparency in lending criteria, compared to 16% who desired the same at the end of 2024.
Further, a third of commercial finance brokers said they wanted lenders to improve their processes.
Asset Advantage said the survey’s findings coincided with rising appetite for commercial finance from UK SMEs, with asset finance and business acquisitions expected to drive demand this year.
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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.”
