Survey shows cautious outlook among commercial finance brokers

The research found that 49% of brokers feel neutral about the economic outlook over the next 12 months, while 28% take a pessimistic view. More than two in 10 brokers said they are optimistic, highlighting uncertainty across the market as businesses assess investment decisions.

Brokers surveyed pointed to several pressures weighing on economic prospects, including government taxation, business confidence, rising operating costs and inflation.

One broker cited “cashflow and uncertainty” as the main challenges, adding: “Decisions are taking longer as businesses feel the pinch and have to be careful with additional investment.”

Another broker said: “Inflationary pressures mean businesses make lower profit which in turn affects their serviceability and ability to borrow.”

Despite concerns about the wider economy, separate research from Asset Advantage found that brokers remain broadly positive about their own business prospects. Many expect continued demand from small and medium sized enterprises for asset finance and funding linked to business acquisitions over the next 12 months.

Gary Thompson, sales director at Asset Advantage (pictured), said:

“While there’s still very much strong demand for business funding, there’s no doubt that many businesses are feeling cautious in the current climate. Big factors such as higher operational costs, inflationary pressures and both geopolitical and economic uncertainty all continue to have an impact on business confidence and influence borrowing and investment decisions.

“Against this backdrop, the case for flexible funding options from pragmatic and forward thinking funders becomes ever clearer. Working with expert commercial brokers, specialists funders who are willing to support complex, growth focused deals will be key to giving SMEs the confidence they need to push ahead with their expansion plans. Brokers play a critical role in fostering confidence among their clients and demonstrating what is possible. To ensure they can continue doing this, they need the support of specialist funders and providers.”