Allica survey finds UK broker confidence is surging

Core Insights - Allica Bank's latest survey indicates a significant increase in asset finance broker confidence, with 51.2% of brokers expressing a positive outlook for the upcoming months, a notable rise from 24% in the previous quarter [1][2] - Despite mixed trading conditions, with 42.5% of brokers reporting a decline in asset finance applications, 28% noted an increase, suggesting resilience in the sector [2][3] - The bank highlights a £65 billion lending gap in SME finance due to high street banks reducing their involvement, contributing to the UK's lowest business investment rate in the G7 [3] Broker Confidence - Over half of the surveyed brokers (51.2%) have a positive outlook, more than double the previous quarter's figure of 24% [1] - Only 18% of brokers expressed concerns about the next six months, while 30% remained neutral [1] Trading Conditions - 42.5% of brokers reported a decrease in asset finance applications, indicating a cautious approach from some businesses [2] - Conversely, 28% of brokers experienced an increase in applications, consistent with the previous quarter's performance [2] - 30% of brokers indicated that application volumes remained largely unchanged [2] Sector Resilience - Allica Bank views the current figures as evidence of the sector's resilience amid challenging conditions [3] - Key sectors driving activity include transport and logistics, construction, and manufacturing, which have remained consistent over previous quarters [3] Strategic Initiatives - Allica Bank has launched its lowest asset finance rate in three years for hard assets, aimed at supporting brokers and their clients [4] - The bank's commitment to helping businesses succeed is emphasized by its proactive approach in the current lending environment [4] - Brokers are experiencing renewed excitement in client conversations, focusing on future opportunities despite ongoing caution [4]