New research has revealed that in the last year three quarters of brokers working in the sector have helped businesses release capital from assets completely unrelated to the purpose of the loan. The findings come from new research carried out amongst brokers by asset finance lender United Trust Bank.
The research also found that the majority of brokers have a positive outlook for their asset finance related business over the next 12 months with 62 per cent expecting volumes of asset finance business to increase and 28 per cent expecting volumes to at least hold steady.
When asked about lender’s interest rates and charges 81 per cent of brokers felt that they would remain the same for at least the next 12 months whilst 16 per cent felt they would rise. United Trust Bank reduced its own rates for asset finance in July this year.
Martin Nixon, Head of Asset Finance at United Trust Bank said;
“Traditional lenders are continuing to be very restrictive with their lending and what this research shows is that the majority of brokers are using asset finance creatively to help businesses release the capital from their assets for a wide
variety of uses. We’ve experienced this ourselves at UTB, for example when were approached by a broker representing a group of companies in the construction sector which needed working capital to fund the initial costs of some large contracts. We were able to advance £300,000 secured against a fleet of unencumbered excavators and this enabled the customer to commence these new contracts.
“I believe that the more varied uses to which asset finance is being put is one of the reasons why brokers are generally optimistic about their 2012 business volumes and their outlook for 2013 and beyond. Businesses need access to credit to enable them to grow and despite the uncertain economic climate and the lack of appetite to lend from their usual business bankers, many are looking to invest in their products, facilities, equipment and services. By working closely with brokers, United Trust Bank will continue to use its expertise, knowledge and flexibility to offer finance solutions which will help businesses to seize opportunities and thrive.”