Commercial finance brokers say their long-standing calls for greater flexibility and a more open-minded approach from funders remain largely unanswered, as new survey data points to rising frustration across the market.
Research from Asset Advantage suggests that brokers’ wish list has grown rather than diminished over the past year, with demands for an “outside the box” approach, higher credit appetite and more flexible loan terms all increasing sharply since late 2024.
An outside the box approach is now the top demand for 68% of brokers surveyed, up from 34% in the previous survey. A higher credit appetite recorded the biggest jump, rising from 13% previously to 55% of brokers.
Nearly half of respondents, 49%, say they want greater flexibility on loan terms, compared with 23% in late 2024. More than a quarter are calling for greater transparency in lending criteria, up from 16% in the earlier survey.
In addition, a third of brokers have added improved processes to their wish list, underlining concerns not just about credit appetite but also about how deals are assessed and progressed.
The findings come against a backdrop of increasing demand for commercial finance among UK SMEs, with brokers reporting that asset finance and business acquisitions are set to dominate funding needs this year.
Gary Thompson (pictured), 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.”
Asset Advantage has been touring the UK with a regional broker roadshow aimed at supporting commercial finance brokers in structuring deals. Following events in Manchester and London, the roadshow will visit The Belfry in Birmingham on Thursday 12 March.
