According to Atom Bank’s SME Pulse for Q4, only 5% of commercial finance brokers said demand was falling.
The report noted that this was being driven by improving business confidence, with 41% pointing to greater confidence among business clients.
Around 39% pointed to lower interest rates and a quarter said there was greater appetite for lenders.
Nearly three-quarters of brokers said commercial clients said the Budget has been negative for their business, especially regarding National Insurance contributions (NICs). Only 9% said the Budget had been positive.
Over half of borrowers said property purchase was the main purpose of borrowing, with 18% pointing to growth and expansion and 18% naming refinancing of existing debt.
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Over three-quarters of commercial finance brokers want to grow in 2025
More than three-quarters of brokers said growing their business was their priority this year, with 13% saying they wanted to conduct more business in specific sectors.
Business sectors included healthcare, finance and retail at 33%, 20% and 20% respectively.
Approximately 3% said they wanted to cut costs and 3% wanted to incorporate more automation.
David Castling, head of intermediary distribution at Atom Bank, said: “It’s encouraging to see the growing levels of optimism among commercial brokers for 2025 and beyond.
“After the challenges of the last few years, and despite some reservations around the Budget, it seems that plenty of businesses are looking to raise funding to help them invest and meet their aspirations, and that is understandably boosting confidence among brokers, who themselves are keen to grow.
“However, it’s clear that lenders in this market can go further to deliver the support that businesses require. Brokers want to see lenders focus their efforts on providing not only competitive rates, but bespoke packages [that] specifically meet the needs and circumstances of businesses. They also want to see a greater emphasis on developing smoother processes and a greater standard of communication. Lenders who want to win the support of brokers and deliver more funds to UK businesses need to take this feedback on board.”
