42% of finance brokers have no plans in place for Brexit

United Trust Bank’s most recent broker sentiment survey has revealed that 42% of brokers operating in the property and asset finance sectors have not planned for Brexit and are leaving it until it becomes clearer what Brexit will actually look like.

The findings of the poll of over 100 finance brokers reflects the high degree of uncertainty still surrounding the effect the UK’s withdrawal from the EU will have on business and the economy.

However, although a majority of brokers are not implementing any Brexit plans just yet, around 1 in 5 (21%) have made plans believing Brexit will bring positive opportunities for their business and 5% are planning for potentially damaging implications. More than a quarter (26%) of brokers who took part in the poll believe that Brexit will not affect their business.

Are you or your business drawing up a Brexit plan?

We are leaving it until it’s clearer what Brexit will look like 42%
No – We don’t believe Brexit will have any implications for us 26%
Yes – We are preparing for potentially positive opportunities 21%
Yes – We are preparing for potentially damaging implications 5%
I don’t know 6%

Is the approach of Brexit causing you/your business to do any of the following?

Increase spend on marketing and promotion 44%
Put a freeze on recruitment 20%
Decrease spend on marketing and promotion 19%
Put a freeze on investment in technology 14%
Increase recruitment 14%
Increase investment in technology 13%
Delaying a move to larger premises 9%
Reducing staff numbers 6%
Accelerating a move to larger premises 4%

Harley Kagan, Group Managing Director – United Trust Bank, commented:

“Within the next couple of weeks, we’ll know whether the Brexit deal negotiated by the Government will proceed or whether it will be back to the drawing board for Mrs May and possibly months or even years of further uncertainty. It’s clear from our research that although the countdown clock is ticking, many brokers feel there are at present still too many variables to even begin planning beyond March 2019.

“What is encouraging is that around 1 in 5 brokers see Brexit as an opportunity not a threat and a slightly higher number expect the outcome of Brexit to be benign from a business perspective. UTB’s view has always been that whilst it’s prudent to keep a close eye on the implications there are developers, SMEs and entrepreneurs finding and unlocking opportunities across many sectors of UK industry and we remain committed to supporting them.

“When brokers and borrowers can’t find certainty in the economy, they look to their financial partners to provide the stability and experience to ride out any storms. We plan to continue investing in people and technology and to keep growing our book and our business whatever decision is made in Westminster.”