New research carried out by lender United Trust Bank has found that nearly two thirds (62%) of brokers have been approached by companies seeking short term finance in order to solve cash flow problems and keep their businesses trading.
The survey also revealed that nearly three quarters (73%) of brokers have been approached by companies hoping to raise short term finance to invest in their businesses having been turned down by their usual lender.
The findings support UTB’s own experience of being approached to lend money for a range of different uses secured against various types of wheeled and tracked assets. When asked to select the most important factor when choosing an asset finance lender, 29 per cent of brokers selected ‘flexibility’ whilst 21 per cent chose ‘service’ and a further 21 per cent chose ‘fees and charges’.
Martin Nixon, Head of Asset Finance at United Trust Bank said;
“Our broker research reveals the extent to which companies are now exploring alternative sources of finance in order to invest in their businesses or even, in extreme cases, to remain trading. There’s no sign yet that the high street banks are relaxing their stance on lending to SMEs so for the foreseeable future lenders such as United Trust Bank will continue to play a vital role in enabling businesses to invest and thrive rather than retract and struggle.
“Brokers recognise that one of the key advantages of smaller, bespoke lenders is their flexibility and willingness to construct creative funding solutions when other lenders pull down the shutters. Throughout 2012 United Trust Bank has seen the number of asset finance proposals grow considerably as part of our structured growth strategy and we remain committed to working closely with our broker partners to provide a much needed additional funding line to their SME clients.”