Brokers predict rise in asset finance rates

However, 71% believe that current lender pricing is about right with a further 14.5% suggesting pricing is too high.

Keith Sangwin, head of asset finance sales at United Trust Bank, commented: “Competition in the asset finance sector is fierce with pricing down to pre-credit crunch levels. It is apparent there’s still a need for volume but as Brexit draws near, now under Boris Johnson’s leadership, the impact of a potential ‘no deal’ Brexit may place us in uncharted waters.

“The Organisation for Economic Cooperation and Development (OECD) predicts that the UK economy will grow by less than 1% in 2019 and 2020 if Brexit goes smoothly but may sink into recession in a ‘no deal’ scenario. Although 71% of brokers feel that current pricing is about right, funders may feel the need to review their strategies this side of the 31st October, especially if it looks like a no deal outcome is most likely.

"Anecdotally, there are rumblings from some quarters that defaults are already increasing, perhaps foreshadowing worse to come if SMEs don’t get more certainty soon."