UK SME asset finance demand projected to grow next year

Group 1 - Demand for asset finance among SMEs in the UK is expected to grow over the next year, with 72% of commercial finance brokers indicating it will be the main area of business funding demand [1] - Business acquisition and expansion loans are anticipated to see higher interest, with one in four brokers highlighting these areas as likely to attract attention [2] - The Finance and Leasing Association reported an 11% year-on-year increase in new asset finance business in September, indicating a positive trend in the sector [3] Group 2 - Nearly 60% of brokers observed a rise in client requests for financing related to buying businesses or completing management buyouts (MBOs) [3] - Asset Advantage has introduced two new loan products aimed at supporting UK SMEs, including a CapEx term loan for investment in non-standard assets and a business acquisition loan for acquiring companies or partners [5][6] - Gary Thompson, sales director at Asset Advantage, noted that SMEs are shifting from short-term cash-flow loans to funding that supports growth, with asset finance being a top priority [4]