67% of brokers working in the asset finance sector expect to grow their businesses this year despite expecting additional challenges from greater FCA regulation and an unpredictable economy, according to a new survey carried out by United Trust Bank.
The research also found that although 62% of brokers thought lenders fees and charges would stay broadly the same throughout 2015, 33% of brokers expect them to increase by the end of the year.
The majority of survey respondents placed over £5m of asset finance during 2014.
Asset finance business placed during 2014:
| Business Placed | Up to £500k | £500k to £1m | £1m to £2m | £2m to £3m | £3m to £5m | £5m to £10m | £10m to £15m | Over £15m |
| % of brokers | 13.5 | 3.8 | 13.5 | 3.8 | 9.6 | 28.8 | 9.6 | 17.3 |
When asked to place in order of importance what issues in their view would affect their businesses most over 2015, greater FCA regulation was the biggest concern.
| Importance | Issue affecting business |
| 1 | Greater FCA regulation |
| 2 | Possible increase in interest rates |
| 3 | Unpredictability of the UK economy |
| 4 | The General Election |
| 5 | Falling revenues |
| 6 | Rising fixed costs |
| 7 | Inability to attract good staff |
Martin Nixon, head of asset finance at United Trust Bank, said: “It’s great to see that the majority of brokers feel very upbeat about growing their businesses this year. We’ve seen sustained growth to our lending, including a 30% increase in 2014, and ambitions for a further 30% increase in the year ahead.
“Although there will undoubtedly be challenges for brokers and funders this year, I believe there will also be opportunities. SMEs are still being underserved by the High Street banks and many could consider employing asset finance as an alternative and very flexible means for arranging funding quickly. The advantages of asset finance are still relatively unknown to many small business owners and funders and brokers should promote it as a suitable funding option whenever viable.
“We are 100% committed to broker-introduced business and our key focus for 2015 is to continue building strong, long term broker relationships. By continuing to invest in our team and exploring further options for extending our asset classes, United Trust Bank aims to provide brokers and their clients with the funding they need backed by a service which is second to none.”