Brokers back asset finance as SMEs switch from survival to growth
Asset finance is set to dominate SME funding demand over the next year, according to new broker insight from specialist lender Asset Advantage.
In its latest poll of commercial finance brokers, almost three-quarters (72%) said asset finance is likely to be the main driver of business funding requirements in the coming 12 months. A further quarter of respondents highlighted strong expected demand for business acquisition and expansion loans, underlining growing appetite for strategic growth funding.
By contrast, brokers anticipate far weaker interest in other forms of commercial borrowing, with only 22% pointing to invoice finance and just 17% to property-related commercial finance as areas of likely demand.
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Despite persistent economic and market headwinds, the responses point to a clear shift among UK SMEs towards growth-led borrowing – with firms looking to invest in new kit, scale their operations and pursue acquisitions or takeovers rather than relying on short-term working capital fixes.
The survey findings chime with the latest market data. The Finance and Leasing Association recently reported that total asset finance new business in September was 11% higher than in the same month a year earlier. Meanwhile, figures from the Office for National Statistics show that the value of domestic mergers and acquisitions hit £5.3bn in Q3 2025, almost £2bn up on the previous quarter.
Asset Advantage’s own research suggests brokers are already seeing this trend play out, with nearly 60% reporting a rise in enquiries from clients looking to finance a business purchase or complete a management buy-out (MBO).
To support this shift, Asset Advantage has recently strengthened its business loans offering with two new specialist products for intermediaries. The first is a CapEx term loan aimed at non-standard assets – covering specialist equipment, soft assets, and expenditure on fit-outs and refurbishments. The second is a dedicated business acquisition loan, designed for customers seeking to buy a business, buy out a partner, or complete a management buy-in (MBI).
Working exclusively via commercial brokers across the UK, Asset Advantage provides asset finance via hire purchase and finance lease, alongside business loans. Its loan facilities, which range from £75,000 to £500,000, can be used to fund both hard and soft assets as well as to facilitate business acquisitions. The lender says it is prepared to take a flexible view on asset type and sector, provided the borrower’s ability to service the debt and overall risk profile remain robust.
Gary Thompson, sales director at Asset Advantage, said:
“Commercial brokers are telling us that there is growing momentum among SMEs. Rather than seeking short-term fixes with inappropriate cash-flow loans, they are actively pursuing funding that helps them grow – and asset finance is top of their list in the coming year. Alongside this, SMEs are looking to grow through expansion and are therefore prioritising funding for business acquisitions. This certainly mirrors our current business levels and expectations for the year ahead.”
He added: “While the findings are certainly encouraging, delivering on this demand relies on flexible, growth-focused funders – those who are willing to understand the business behind the case and ready to support their investment and expansion plans. Rather than rigid processes and restrictive appetites, we need an open-minded and pragmatic approach to lending to really give brokers the tools and support they need. As we head into 2026, this remains our priority as we help brokers and their SME clients realise these growth ambitions.”
