A recent ‘broker sentiment’ poll, carried out by United Trust Bank (“UTB”) amongst intermediaries operating in the asset finance sector, has found that 39pct believe demand for asset finance funding will continue to increase next year.
The same survey also revealed which sectors brokers feel will drive the most demand in 2018.
In addition to the 39pct who expect demand to increase, 25pct of brokers expect demand from SMEs for asset finance to stabilize, and 8pct feel activity will decline. However, 28pct of brokers were sufficiently unsure of what 2018 had in store to tick the ‘don’t know’ option.
Brokers were also asked to indicate which sectors of industry were likely to drive the most demand for asset finance next year and ‘Construction’, ‘Transport’ and ‘Waste Management’ came out as the top three. UTB names manufacturing, media & technology, haulage and agriculture as the remaining significant areas of predicted demand.
Martin Nixon, Head of Asset Finance – United Trust Bank, commented, “There’s no doubt that awareness of asset finance is growing amongst UK SMEs. Lenders, brokers and industry bodies, such as the FLA and the NACFB are working hard to spread the word about the versatility and flexibility of asset finance and how quickly and easily transactions can be completed. Dealing with a professional asset finance specialist is a far cry from what’s involved in trying to raise a business loan from a high street bank or applying to increase your company overdraft. Brokers have known this for years, but the message is now getting through to business owners across the country, and this is good news for everyone.
“The Government’s push to tackle the housing shortage should mean that construction and housebuilding companies are kept busy for the foreseeable future. As a result, we also expect significant activity in the funding and refinancing of new and used construction plant and machinery. UTB has gained considerable experience of the vehicles and machinery employed in the waste management industry and it’s very much a growth sector. The old saying of ‘where there’s muck there’s brass’ is as true now as it ever was and waste management is a £multi-billion industry with an ever increasing range of specialist plant and machinery for recycling and disposal is being bought and refinanced.”